HUMAN RESOURCE MANAGEMENT MODULE 1: INTRODUCTION • • • • • • • • What is Human Resource Management? Employee Life Cycle – Hire to Retire Talent Acquisition Performance Management Talent Management Learning & Organisational Development Compensation & Benefits HR Operations WHAT IS HUMAN RESOURCE MANAGEMENT TOPIC 1.1 HUMAN RESOURCE MANAGEMENT Physical Resources-money, materials and machinery & Human Resources – knowledge, skills, abilities Human Resources “From a national point of view, human resources are knowledge, skills and attitude obtained in the population; while for individual enterprises, they represent the total of the abilities, knowledge and skills of its employees” – Leon C. Megginson Human Resource Management “the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished” – Edwin Flippo OBJECTIVES OF HRM To act as a liaison between the top management and the employees To arrange and maintain adequate manpower inventory, which, in turn, ensures the smooth working of the organization To offer training as a way of developing skills, enhancing productivity and, most importantly, increasing individual and organizational performance to achieve the desired results To devise employee benefit schemes for improving employee motivation and group morale and enhancing employer employee cooperation To ensure and enhance the quality of work life, which refers to the employees’ perception of their physical and psychological well- being at work To help keep up ethical values and behaviour amongst employees both within and outside the organization FUNCTIONS OF HRM OPERATIVE FUNCTIONS OF HRM FUTURE SCOPE OF HRM Change in nature of jobs Widening scope of HR activities Measurement of HR effectiveness through analytics/tools Greater emphasis on HRIS EMPLOYEE LIFE CYCLE – HIRE TO RETIRE TOPIC 1.2 Hire Onboard Manage Develop Retire HIRE Requisition of talent due to business need Job postings done through various channels – online, print, etc. Applicant responses – shortlisting of candidates Selection Hiring with an offer ONBOARD Enter employee information onto database Manage information regarding Reporting manager Business Line Demographic data Compensation & Benefits offered MANAGE Manage transfers both domestic and international, and relocations Manage promotions Manage Performance Design and manage compensation & benefits plans Manage tax and related liabilities Run payroll DEVELOP Identify training needs, develop individual plans, objectives Assess skills and competencies Align learning goals with business priorities Customise and develop learning programs Measure effectiveness of learning initiatives RETIRE Manage employee exits Design Retention initiatives Collect information regarding exit through surveys, interviews Check leave, financial dues and process settlements Manage exit paperwork TALENT ACQUISITION TOPIC 1.3 TALENT SOURCING & SELECTION Sourcing talent is the process to generate a pool of qualified candidates for a particular job. The organization must announce the job’s availability to the market and attract qualified candidates to apply. The organization may seek applicants from inside the organization, outside the organization or both. Talent selection is the process to make a “hire” or “no hire” decision about each applicant for a job. The process usually involves determining the characteristics required for effective job performance, interviewing, and then measuring applicants on those characteristics. Gomez-Mejia L. R., Balkin, D. B., & Cardy, R. L. (2004). Managing Human Resources (4th Ed.). New Jersey: Pearson Prentice Hall. WORKFLOW Job Requisition Sourcing Screening of Applications Selection Employment offers SOURCING Campus recruiting Newspapers Recruiting services Web sites Trade journals Job fairs PERSON-ORGANISATION FIT SELECTION METHODS Interviews Ability tests Personality tests Integrity tests COMMON BIASES TO BE AWARE OF The halo effect is the tendency to attribute positive traits to a person with whom you have something in common. This leads to hiring people most like yourself and not necessarily the best person for the job. The recency effect is the tendency to focus your attention on the most recent candidates because they are freshest in your memory. COMMON INTERVIEWS Behavioral Interview: Applicants are asked to give specific examples of how they have performed a certain task or handled a problem in the past. Behavioral questions typically begin with “Tell me about a time when…” or “Can you think of....” Situational Interview: Applicants are asked how they would respond to a specific job situation related to the content of the job they are seeking. Any job-relevant question that begins with “What would you do if…" or “How would you handle…." DOCUMENT FEEDBACK Candidates Primary Qualifications Has five years experience in… Rahul Tina Aman Certifications Problem Solving Initiative Leadership Has the ability to… Takes the initiative to… Demonstrates an ability to… ONBOARDING Select the candidates Make the employment offer Onboard new hires with orientation sessions for integration into the culture of the company Help socialise with teams to ensure business know-how is acquired in time to perform on the job PERFORMANCE MANAGEMENT TOPIC 1.4 DEFINITION Performance management is an ongoing process of communication between a manager and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization. PERFORMANCE MANAGEMENT CYCLE Plan Check-in Review PLAN Manager and employee collaborate to build goals, objectives for the short term and long term Performance Expectations = Results + Behaviours/Actions Results are measured through the use of objectives Actions and Behaviours can be measured through the use of performance dimensions Make a written summary of the expectations Verify expectations with employee Create developmental goals for the employee – skills required for the job or personal/professional competency development CHECK-IN Once performance objectives and standards are established, you should observe an employee’s performance and check-in with them regularly, providing feedback Some jobs have built-in feedback Informal feedback can be provided everyday Checking in is a shared responsibility REVIEW Performance review is the process of measuring an employee’s performance in the current position The key goal is to recognize the degree to which an employee was successful, or how well the employee met expectations, be they objectives, standards, performance dimensions or some other measure. PERFORMANCE MANAGEMENT SYSTEMS Ranking Forced distribution 360-degree feedback Competency-based MBO (Management by Objectives) TALENT MANAGEMENT TOPIC 1.5 TALENT MANAGEMENT Everything that is done to recruit, develop, retain, reward and make employees perform better is talent management IDENTIFY ORGANISATIONAL GOALS Develop the job descriptions and specifications for the role you want to acquire the talent for. Since it is the first step towards the process, it plays a crucial role in the success of the whole process. ELEMENTS OF TALENT MANAGEMENT Sourcing and Talent Attraction Recruitment and Onboarding Employee Engagement Attracting Developing Performance Management Rewards & Recognition Retention/Succession Planning Motivating Retaining Dissatisfaction with some employee development efforts appears to fuel many early exits. It’s important to not only provide growth opportunities, but also to identify the ways in which each individual hopes to excel in the company HBR Higher employee motivation is linked to better results and lower retention: employees who are most motivated perform 20% better than their peers, and are 87% less likely to resign (SHRM Research Qtly). LEARNING & ORGANISATIONAL DEVELOPMENT TOPIC 1.6 OBJECTIVE Learning & Development is to build connection between organisational needs and individual needs to boost performance TERMS TO KNOW Knowledge is organizing information. Typically, information evolves to knowledge by the learner's gaining context, perspective and scope about the information. Skills are applying knowledge in an effective and efficient manner to get something done. One notices skills in an employee by their behaviours. Abilities result from applying the skills to the extent that the applications become natural or intuitive to do. Perceptions are a way of interpreting or coming to understand something. When people are stuck in solving a problem, it is often because they are stuck in how they see the situation. A task is a typically defined as a unit of work, that is, a set of activities needed to produce some result, e.g., vacuuming a carpet, writing a memo, sorting the mail, etc. Complex positions in the organization may include a large number of tasks, which are sometimes referred to as functions. A job is a collection of tasks and responsibilities that an employee is responsible to conduct. Jobs have titles. A role is the set of responsibilities or expected results associated with a job. A job usually includes several roles. PHASES OF A LEARNING PROGRAM COMPENSATION & BENEFITS TOPIC 1.7 WHAT IS COMPENSATION? Defining compensation Fixed pay and Variable Pay Understanding Salary Ranges Understanding Compa-ratio Benchmarking compensation with the market Designing your own salary range BENEFITS Insurance benefits Leaves Maternity/Paternity related benefits Perquisites Work time flexibility Workplace flexibility Flexible bouquet of benefits Privileges/vouchers HR OPERATIONS TOPIC 1.8 KEY DUTIES During recruitment and offers Onboarding database management Manage transfers Maintain HRIS Compensation & Payroll management Leave/holiday management Report generation – Recruitment, Attrition, L&D Initiatives utilisation, etc. Compliance Custodian of key HR policies and guidelines HR Vendor Management