The importance of Human Resource Management

1. TEI of THESSALYSCHOOL OF BUSINESS AND ECONOMYDEPARTMENT OF BUSINESS ADMINISTRATION «HUMAN RESOURCE MANAGEMENT»Spring SemesterG. ASPRIDIS, Assistant Professor

2. The importance of Human Resource Management We believe that human resource departments playa pivotal and expanding role in shaping the success of human organizations W. Werther Jr. – K. Davis In an information society, human resources is at the cutting edge. And it means that human resource professionals are becoming much, much more important in their organization J. Naisbitt Managers are focusing on improved human resource management as a means of restoring the competitive position of their companies in an increasingly challenging global marketplace R. Miler – Ch. Snow

3. The purpose of Human Resource Management The purpose of HRM is to improve the productive contribution of people to the organization. The HRM is the management of people. The importance and dignity of human beings should not be ignored for the sake of employees do expediency. Only through careful attention to the needs of employees do successful organizations grow and prosper.

4. The external challenges of HRM • Technological – technology impacts personnel management by changing jobs and skills required to do them. • Economic – when the economy expands new employees programs are needed. • Demographic – describes educational level, age, race, sex and other characteristics. • Cultural – as cultural values change personnel departments must try to anticipate these changes. • Governmental – involved in the employment relationship.

5. Distinguishing Between HRM and PM

6. The Harvard Model of Human Resource Management

7. Guest’s Model of HRM

8. The objectives of HRM • Societal – to be socially responsible • Organizational – the contribution to organizational • Functional – to maintain the department's contribution at the best level • Personal – to assist employees in achieving their goals

9. Strategic Management and Environmental Pressures

10. Human Resources Planning

11. Human Resources Planning (or)Employment planning forecasts an organization’s future demand for, and supply of, employees. By estimating the number and types of employees that will be needed, the personnel department can better plan its recruitment, selection, career planning and other activities.

12. The benefits of HRP • Improve the utilization of HRM • Match personnel activities and future organization objectives efficiently • Achieve economies in hiring new workers • Expand the personnel management information base to assist other personnel activities • Coordinate different personnel management programs such as the hiring needs

13. Forecasting Techniques • Experts forecasts – are based on the judgments of those who are knowledgeable of future HRM needs • Budget and planning analysis • Computer modeling • International implications

14. The supply of Human Resources • Internal • Human Resources Audits summarize each employee’s skills and abilities • Replacement charts are a visual presentation of who will replace whom • External • Labour markets analysis • Community attitudes • Demographics

15. Human Resources Planning HRP requires considerable time, staff and financial resource. Large organizations use HRP as a means of achieving greater effectiveness. HRP is an attempt by personnel departments to estimate their future needs of Human Resources. The information becomes an important addition to the personnel department’s data base.

16. Job Analysis Job analysis information provides the foundation of an organization’s human resource information system. They design job analysis questionnaires to collect specific data about job, jobholder characteristics and job performance standards. Job analysis information is important because it refers to duties and responsibilities are associated with each job.

17. Job analysis • Why does the job exist? • What physical and mental activities does the worker undertake? • When is the job to be performed? • Where is the job to be performed? • How does the worker do the job? • What qualifications are needed to perform the job? • What are the working conditions? • What machinery or equipments is used in the job? • What constitutes successful performance?

18. Job analysis • Interviews • Work sampling • Repertory and technique • Questionnaires • Observation • Critical incident • Hierarchical task • Gathering informations

19. Collection of job analysis information • Identify the jobs in the organization to be analyzed • Develop a job analysis questionnaire – for example the duties and responsibilities, human characteristics an working conditions and performance standards • Collect job analysis information – interviews, mail questionnaires, observations, employee diary

20. Applications of job analysis information • Job descriptions – is a written statement that explains the duties, working conditions and other aspects of a specified job. We gathered information about date, author (of the description), job location, job grade (or level), supervisor, status • Job summary and duties – a written narrative that concisely summarizes the job in a few sentences. • Working conditions – go beyond descriptions of the physical environment • Approvals

21. The applications of job analysis • Job specifications it describes what the job demands of employees who do it and th human skills that are required. • Job performance standards serve two different standards. They become targets for employee efforts and are criteria against which job success is measured.

22. The human resource information system We know the job performance standards and the actual job performance so we can do the corrections and then the feedback. • Legal considerations • Organization of the data base

24. Aspects of job design • Organizational elements • Mechanistic approach – seeks to identify every task in a job so that tasks can be arranged to minimize the time and effort of workers. It stresses efficiency in effort, time, labour costs, training and employee learning time • Work flow – is strongly influenced by the nature of the product or service • Work practices – are set ways of performing work • Ergonomics – is the study of how human beings physically interface with their work

25. Aspects of job design [2] • Environmental elements • Employee abilities and availability • Social expectations – the acceptability of a job’s design is also influenced by the expectations of society (culture, work ethic, religious beliefs) • Behavioural elements • Autonomy – responsibility for work • Variety – use of different skills and abilities • Task identity – doing the whole piece of work • Task significance – doing an identifiable piece of work makes the job more satisfying • Feedback – information on performance

26. Techniques of job design • Underspecialization when jobs are not specialized enough. For example the task of one job may be assigned two jobs. So the specialists must reducing the number of tasks • Overspecialization • Job rotation moves employees from job to job • Job enlargement expands the number of related tasks in the job • Job enrichment adds new sources of need satisfaction to jobs

27. Recruitment The process of finding and attracting applicants for employment. The process begins when new recruits are sought and ends when their applications submitted.

28. Challenges of recruitment • Organizational policies • Promote-from-within policies, are intended to give present employees the first opportunity for the job openings • Compensation policies – • Employment status policies – hiring part-time and temporary employees • Human resources plan • Through skills inventories and promotion ladders, the human resource plan outlines which jobs should be filled by recruiting outside the firm and which are to be filled internally • Affirmative action plans • The recruiter needs to recruit more minority or female candidates. • Recruiter habits • Continue past mistakes • Avoid more effective alternatives

29. Challenges of recruitment [2] • Environmental conditions • Leading economic indicators • Predicted versus actual sales • Want-ads index • Job requirements • What does the job require? • Costs • Recruiters must operate with budgets, so they can minimize the expenses • Incentives • Incentives is necessary to stimulate a potential recruit’s interest.

30. Channels of recruitment • Walk-ins (CVs who arrives at the personnel department in search of a job) and write-ins (CVs who send a written inquiry) • Employee referrals • Advertising • State Employment Security Agencies • Private placement agencies • Professional search firms • Educational Institutions (placement assistance)

31. Channels of recruitment [2] • Professional associations • Labour organizations • Military operations • Government-funded training programs • Temporary-help agencies (a short-run staffing) • International recruiting (offers special challenges) • Departing employees (many retirees and other departing employees they can stay if they rearrange their schedules) • Open house (people are invited to see the company facilities and a film about the company)

32. Job applications blanks Collects information about recruits such as : • Personal data • Employment status • Educational • Skills • Work history • Military background • Memberships, awards and hobbies • References

36. Perspectives on Appraisal :The Organisation • Performance appraisal is the process by which organizations evaluate job performance. • making equitable reward decisions • improving performance • motivating employees • succession planning and identifying potential • promoting manager-subordinate dialogue • formal assessment of unsatisfactory performance

37. Perspectives on Appraisal :The Employee • Want fair distribution of reward • Want performance feedback • Want constructive dialogue with ‘the organisation’ BUT • the appraisal is perceived as fair • has a good working (social?) relationship with the appraiser • impact of the assessment on their rewards and well-being

38. Perspectives on Appraisal :The Appraiser Napier & Latham (1986) ‘Reluctance’ why… • lack of agreement with target (appraisee) • lack of confidence in own ability to appraise • very high administrative workload • office politics

39. Common Practice : Aims of the Appraisal • Performance appraisal generally thought up by Personnel and/or senior management • NB1. Importance of setting realistic aims - conflicting perspectives on aims of appraisal (assessment vs motivation & development) • NB2. The aims of the appraisal will affect the nature and content of the scheme • assessment : common dimensions • motivate & develop : emphasis on the individual

40. Techniques 1. Committee Method Personnel and Snr Mgr/Exec. determine by discussion of ‘key’ abilities. 2. Diary Method Job-holder keeps an hour-by-hour record 3. Direct Observation HR and/or Occupational Psychologist observes job holder at work

41. Techniques 4. Questionnaire Methods • Information Input • Mental Processes • Work Output • Relationships with Others • Job Context • Other Characteristics 5. Interviews with job holders & stakeholders (Critical Incident Technique) : Incidents of ‘very effective’ and ‘very ineffective’ performance.

42. Rating Scale Format(Assessment and Comparison) 4 common formats for ratings scales : 1. Scales with verbally described intervals 2. Numerical/Alphabetical, with ‘low’-’high’ (intervals specified, but not described) 3. Graphic rating scales : extremes and mid-point specified, with detailed description of dimension of behaviour 4. Comparative scales : behaviour described relative to others.

43. Why Use Rating Scales ? Advantages • easily understood • encourage an analytic view of behaviour • provide quantitative data, so facilitates comparison Disadvantages • idiosyncratic rating errors (halo, restriction of range, leniency, central tendency, acquiesence)

44. Training and the Implementation of Appraisal • Fletcher & Williams (1982) : the effectiveness of performance appraisal is related to the training effort put into it • Traditionally, introduced ‘top-down’ • Background briefing - history of appraisal in the org., ‘selling’ the system, familiarise with the process • Train the Appraisers - train on Assessment Skills, Appraisal Interview Skills, offer an appraisal clinic. N.B. train for appraisal of diverse workforce • Train the Appraisees - e.g. aims of scheme, how to prepare, reassure, how to respond.

45. Monitoring and Maintenance of Appraisals Short-Term Criteria • completion rate • action generated • quality of appraisal reports • attitudes and perceived value of the appraisal • equity Long-Term Criteria • organisational performance • quality of staff • retention of staff • levels of employee commitment

46. Appraisal and Performance Management ‘a shared vision of the direction of the organisation, in which each individual employee recognises and accepts their contribution’ The Process of PM • develop org. mission statement and objectives • develop a business plan • enhance communication within the organisation • clarify individuals’ responsibilities • define and measure individual performance • implement appropriate reward strategies • develop staff to improve performance further

47. How does Appraisal fit in to PM ? Appraisal is the vehicle by which : • org. goals and objectives are translated to individuals • individual needs are identified, and objectives agreed NB • Individual vs team achievement • line driven appraisal • appraisal as part of a feedback loop • excessive bottom-line emphasis

48. Appraisal and Pay • Direct and indirect links with merit pay • Wider (financial and non-financial) reward policies e.g. promotions, office décor, more holidays/flexible working practices, technology, ‘better’ work, conferences and training

49. Performance Management An iterative process of goal-setting, communication, observation and evaluation to support, retain and develop exceptional employees for organizational success.

50. Setting Effective Goals • S.M.A.R.T.E.R. Goals • Specific • Measurable • Achievable/Agreed Upon • Relevant • Time-bound • Expanding • Rewarding