Human Resource Management

Introduction to Business BM004-4-0-ITB

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Learning Outcomes

• Define what human resource management is.• Understand the objectives of Human Resource

Management.• Describe the main functions involved in Human

Resource Management.

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Human Resource Management

The process of acquiring, deploying and developing people for organisational success. This involves:

• Recruitment• Selection• Induction• Training & Development• Performance Appraisal• Compensation

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The overall objectives of Human Resource Management (HRM) are to study and develop new ways to:

1)Utilise human resources efficiently:

2)Promote desirable working relationships among employees;

3)Encourage employees to develop to their maximum potential.

Objectives of HRM

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Recruitment

Job Analysis:Hiring, training and evaluating employees is a lot easierwhen both the employer and the prospective employee know precisely what a job entails.

This information should come form a job analysis, a systematicstudy of each employee’s duties, tasks and work environment.

The process of attracting individuals on a timely basis, in sufficient numbers and with appropriate qualifications, and encourage them to apply for jobs with an organisation.

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Job Analysis The results of job analysis are two written statements:

a) Job description- a written summary of the duties, tasks and responsibilities associated with a a job. E.g. job title, detailed description of the tasks including work assigned, specific task, inherent authority and area of responsibilities.

b) Job specification- a listing of the key qualifications a person needs to perform a job successfully. E.g. the potential employee’s: relevant experiences, academic qualification, attitude and appearances.

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Selection

A typical selection process would involve six steps:

The process of gathering information and deciding who should be hired, under legal guidelines, for the best interests of the individual and the organisation.

1) Application forms & initial screening:

The completed application forms help the employer to discover the application’s academic background, work experiences, career objectives and other qualifications directly related to the requirements of the job.

Initial screening is carried out to separate those candidates who have the qualification that match those on the Staff Requisition Request from those that do not.

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Selection (cont)

2) Giving employment test: Use to measure basic competencies in specific job skills (e.g., Visual Basic skills) and to help evaluate applicants’ personalities and interests.Test could take the form of general knowledge questions, IQ tests, interviews or combination of both.

3) In-depth selection interviews: These are conducted by the division manager concerned or by a selection panel. The objectives on the in-depth interviews are: a) to find out more about the applicant as a person. b) to assess the interpersonal skills of the applicants for the post. c) to fill gaps in the candidate’s application form or resume.

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Selection (cont)

4) Conducting background investigations: A background check is then conducted to ensure the validity of the information provided by the candidates. Background checks help weed out those candidates least likely to succeed and identify those most likely to succeed in a given position.

5) Physical examination: The purpose of medical test is to: a) ensure that the candidate is physically fit to perform the task. b) eliminate candidates with contagious diseases. c) to protect the organisation against unjustified claims for medical compensations.

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Selection (cont)

6) Job Offer:If an applicant went through successfully all these selection stages and still remains keen about employment, a job offer is made. The main terms of the contract of employment are explained to the successful candidate.

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Induction

The process of introducing the new employee to the organisation. The core of induction programme is:

a) A detailed summary of the work of the department.b) The policy of the company regarding discipline, holidays promotion, and the date of payment of salaries.c) The work rules, safety and health regulations.

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Training and Development

Training and development includes all attempts to improveproductivity by increasing an employee’s ability to perform.

Training is short-term skills oriented; whereas development islong term career oriented. Both training and development programs include three steps: a) assessing the needs of the organisation and the skills of the employees to determine training needs; b) designing training activities to meet the identified needs c) evaluating the effectiveness of the training.

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Performance Appraisal

Performance appraisal is an evaluation in which the performance level of the employees is measured against established standards to make decisions about promotions, compensations, additional training or dismissal.

Definition

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Performance Appraisal

Performance appraisals consist of these six steps:

1) Establishing performance standards: Standards must be understandable, subject to measurements and reasonable.

2) Communicating those standards: Employee must be told clearly and precisely what the standards and expectations are and how they are to be met.

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Performance Appraisal (cont.)

3) Evaluating performance: It is a matter of evaluating the employee’s behaviour to see if it matches standards.

4) Discussing results with employees: Discussing an employee’s successes and areas that need improvement.

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Performance Appraisal (cont.)

5) Taking corrective action: Manager can take corrective action or provide corrective feedback to help the employee perform his or her job better.

6) Using the result to make decisions: Decisions about promotions, compensations, additional training or dismissal are all based on performance evaluations.

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Compensation

Compensation:- The money or benefits or both for which an employee exchanges work.

Most compensations packages to the full-time employee consist of three parts. These parts vary in proportion dependingon the organisation. 1) The basic wage or salary payment.

2) Fringe benefits – such as paid sick-leave, paid vacation and health plans that represent additional compensation to employees. 3) Incentive payments for good performance. E.g. bonuses

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Objective of Compensation Policy

1) To attract and retain employees.

2) To be flexible enough to permit adjustment to changing conditions.

3) To pay fair and adequate wages and salaries that take into account of skill, training, experience and productivity.

4) To pay employees on the basis of merit and output or accomplishment.

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Question and Answer Session

Q & A