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Fundamentals of Human Resources


Management
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Introduce yourself 3

Please Introduce yourself to the group briefly

Name

Department in which you work

Role

Background

An achievement your are proud of 

Answer One of the following questions:


• What questions about Fundamentals of HRM do you have?
• What do you want out of this program?
• Have you been to previous HRM training? Comments?

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Outlines

• Chapter One: Introduction to HRM


• Chapter Two: Strategic Human Resources Planning
• Chapter Three: Recruitment and Selection
• Chapter Four: Jobs
• Chapter Five: Training and Development
• Chapter Six: Performance Management and Appraisal
• Chapter Seven: Compensations
• Chapter Eight: Employees Relations
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Training Materials

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Chapter One
Introduction to HRM

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Introduction

The practice of human resource


management (HRM) is concerned
with all aspects of how people are
employed and managed in the
organization.

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Human Resources Management

Managers must find ways to get the highest level


of contribution from their workers. And they will
not be able to do that unless they
are aware of the many ways that their under-
standing of diversity relates to how well, or how
poorly, people contribute.

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HR Department Organizational Chart

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Businesses look both internally and externally

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Definition

• Human Resource Management is a series of


integrated decisions that form the employment
relationship; their quality contributes to the
ability of the organizations and the employees
to achieve their objectives.

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Definition

• Human Resource Management The process of


attracting, developing and maintaining a
talented and energetic workforce to support
organizational mission, objectives and
strategies.

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Human Resources Management

• Human Resources (HR) Management


– The management function devoted to acquiring, training,
appraising, and compensating employees.

• Strategic Human Resource Management


– The linking of the human resource function with the
company’s strategies to accomplish that strategy.

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Human Resources Management

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Case Study

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Human Resources Management Processes

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Cooperation of HR with Operating
Managers
• HR Unit • Managers
– Develops legal, effective – Advise HR of job openings
interviewing techniques – Decide whether to do own final
– Trains managers in conducting interviewing
selection interviews – Receive interview training from HR
– Conducts interviews and testing unit
– Sends top three applicants to – Do final interviewing and hiring
managers for final review where appropriate
– Checks references – Review reference information
– Does final interviewing and hiring – Provide feedback to HR unit on
for certain job classifications hiring/rejection decisions

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Changing Roles of HR Management

Note: Example percentages are based on various surveys.


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Human Resources and Change
Management
• “It is generally much easier to kill an organization
than change it substantially.”

Kevin Kelly, Out of Control

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Human Resources and Change
Management

• So where to start? Who can make THE difference,


who really has POWER, who must change FIRST
and WHY

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Chapter Two
Strategic Human Resources Planning

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HR Planning Process

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HR Planning Process

• HR Strategies
– The means used to anticipate and manage the supply
of and demand for human resources.
• Provide overall direction for the way in which HR activities
will be developed and managed.
Overall
Strategic Plan

Human Resources
Strategic Plan

HR Activities
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Scanning the External Environment

• Environmental Scanning
– The process of studying the environment of the
organization to pinpoint opportunities and threats.
• Environment Changes Impacting HR
– Governmental regulations
– Economic conditions
– Geographic and competitive concerns
– Workforce composition

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Internal Assessment of the Organizational
Workforce
• Auditing Jobs and Skills
– What jobs exist now?
– How many individuals are performing each job?
– How essential is each job?
– What jobs will be needed to implement future
organizational strategies?
– What are the characteristics of anticipated jobs?

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Internal Assessment of the Organizational
Workforce
• Organizational Capabilities Inventory
– HRIS databases—sources of information about
employees’ knowledge, skills, and abilities (KSAs)
– Components of an organizational capabilities
inventory
• Workforce and individual demographics
• Individual employee career progression
• Individual job performance data

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Forecasting HR Supply and Demand

• Forecasting
– The use of information from the past and present to
identify expected future conditions.
• Forecasting Methods
– Judgmental
• Estimates—asking managers’ opinions, top-down or bottom-up
• Rules of thumb—using general guidelines
• Delphi technique—asking a group of experts
• Nominal groups—reaching a group consensus in open discussion

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Forecasting HR Supply and Demand

• Forecasting Methods (cont’d)


– Mathematical
• Statistical regression analysis—
• Simulation models
• Productivity ratios—units produced per employee
• Staffing ratios—estimates of indirect labor needs
• Forecasting Periods
– Short-term—less than one year
– Intermediate—up to five years
– Long-range—more than five years
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Exercise

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Human Resource Management System
(HRMS)
– An integrated system providing information used by HR
management in decision making.
– Purposes (Benefits) of HRMS
• Administrative and operational efficiency in compiling HR
data
• Availability of data for effective HR strategic planning
• HR Workflow: increased access to HR information

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Designing and Implementing an HRIS

• HRIS Design Issues


– What information available and what is information
needed?
– To what uses will the information be put?
– What output format compatibility with other systems is
required?
– Who will be allowed to access to the information?
– When and how often will the information be needed?

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Accessing the HRIS

• Intranet
– An organizational (internal) network that operates over the Internet.
• Extranet
– An Internet-linked network that allows employees access to information
provided by external entities.
• Web-based HRIS Uses
– Bulletin boards
– Data access
– Employee self-service
– Extended linkage

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Chapter Three
Recruitment and Selection
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Recruitment and Selection

Recruitment
is the process of generating a pool of capable people to
apply for employment to an organization.
Selection
is the process by which managers and others use specific
instruments to choose from a pool of applicants a
person or persons most likely to succeed in the job(s),
given management goals and legal requirements.

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Differentiation between recruitment and
selection
Recruitment Selection
1. It the process of searching the candidates for It Involves the series of steps by which the
employment and stimulating them to apply candidates are screened for choosing the most
for jobs in the organization. suitable persons for vacant posts.
2. The basic purpose of recruitments is to create The basic purpose of selection process is to choose
a talent pool of candidates to enable the the right candidate to fill the various positions in
selection of best candidates for the the organization.
organization, by attracting more and more
employees to apply in the organization.
3. Recruitment is a positive process i.e. Selection is a negative process as it involves
encouraging more and more employees to rejection of the unsuitable candidates.
apply .
4. Recruitment is concerned with tapping the Selection is concerned with selecting the most
sources of human resources. suitable candidate through various interviews
and tests.
5. There is no contract of recruitment Selection results in a contract of service between
established in recruitment the employer and the selected employee.

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Recruitment Needs Are Of Three Types

• Planned
the needs arising from changes in organization and retirement
policy.
• Anticipated
Anticipated needs are those movements in personnel, which an
organization can predict by studying trends in internal and
external environment.
• Unexpected
Resignation, deaths, accidents, illness give rise to unexpected
needs.

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Recruitment Process

Prepare job Conducting


description Managing interview
Identify Advertising Short- Arrange
and person the and
vacancy the vacancy listing interviews
specificatio response decision
n making

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Job analysis

Recruitment

Application form

Written examination

Selection Process Flowchart Preliminary interview

Tests

Medical examination

Reference checks

Line managers decision

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Recruiting Evaluation Pyramid

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HR Responsibilities

Planning and Recruitment

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HR Responsibilities

Selection

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Sources of Recruitment

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External Recruitment

1. Advertisements : a popular method of seeking recruits


as many recruiters prefer advertisements because of
their wide reach. Advertisement in local or national
newspapers and trade and professional journals
2. Educational Institutions : Direct recruitment from
educational institutions for jobs which require technical
or professional qualifications has become a common

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External Recruitment

3. Professional or Trade Associations :These services may


consist of compiling job seeker's lists and providing access
to members during regional or national conventions.
Further, many associations publish or sponsor trade
journals or magazines for their members.

• What else??
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Internal Recruitment

1. A promotion is the transfer of an employee to a


job that pays more money or one that enjoys
some preferred status. A promotion involves
reassignment of an employee to a position having
higher pay, increased responsibilities, more
privileges, increased benefits and greater
potential.

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