Principles of
HR Management
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1
Training Agenda
1. HR Management : An Overview
2. HR Planning and Recruitment
3. Employee Selection
4. Training and Development
5. Performance Management
6. Career Management
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2
Human Resource
Management : An Overview
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HR Management Cycle
Recruitment &
Selection
Training &
Development
Performance
Management
Reward
Management
Career
Management
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HR Strategy and Business Result
Recruitment &
Selection
Business
Strategy
Training &
Development
Performance
Management
Business
Result
HR
STRATEGY
Reward
Management
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Career
Management
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Manpower Planning &
Employee Recruitment
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Manpower Planning
Company Strategy
Job Analysis
What staff do we
need to do the
job?
What staff is
available within
our
organization?
Is there a
match?
What is impact
on wage and
salary program?
• Performance
appraisal
• Company data
banks
• Training
• Employee
management and
development
If not, what type of people
do we need, and how
should we recruit them?
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Manpower Planning
Factors in Forecasting Personnel
Requirements
Projected
turnover (as a
result of
resignation and
terminations)
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Quality and nature of
your employees (in
relation to what you
see as the changing
need of your
organization)
The financial
resources
available to
your
organization
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Technique to Determine Number of Recruits
Trend
Analysis
•
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 sales volume and
number of employees needed
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Recruitment from External Resources
•
Recruiting new staff from external sources will be influenced
by several factors, namely :
MacroEconomic
Conditions
of a Nation
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When the economic conditions are
relatively difficult, there will usually be
an oversupply, or the number of
applicants will much higher than the
demand. In such a case, the company
will find it relatively easier to select new
employees from the large number of
applicants.
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Recruitment from External Resources
Availability
of Manpower
in Desired
Sectors
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When the sector is one that is
considered a ‘rare’ sector, the company
will have more difficulty in recruiting
staff for this sector. For example,
computer technology, or cellular
engineering.
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Recruitment from External Resources
Company
Reputation
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It will tend to be easier for a company
to find and recruit the best people if
the company has a good reputation,
therefore the best fresh graduates will
flock to apply to the company.
Example : Google, McKinsey or
Microsoft.
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Recruitment Yield Pyramid
•
Some employers use a recruiting yield pyramid to
determine the number of applicants they must generate
to hire the required number of new employees.
•
Example of Recruitment Curve:
•
1200 - Leads generated
•
200 - Candidates invited
•
150 - Candidates interviewed
•
100 - Offers made
•
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- New hires
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Recruitment Sources
Advertising (newspaper,
magazine, internet)
Recruitment
Sources
College
Recruitment
Recruitment Agent
(headhunter)
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Employee Selection
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Basic Concept of Selection Tests
The quality of an employee selection test is determined by
three main factors, namely :
1. Criterion Validity : A type of validity based on showing
that scores on the test (“predictors”) are related to job
performance (“criterion”).
2. Content Validity : A test that is “content valid” is one in
which the test contains a fair sample of the tasks and
skills actually needed for the job in question.
3. Reliability : The consistency of scores obtained by the
same person when retested with identical or equivalent
test.
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Some Types of Selection Test
1. Cognitive Ability Test
2. Personality Test
3. Interview
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Cognitive Ability Test
•
Cognitive Abilities Tests: Paper and pencil or
individualized assessment measures of an
individual's general mental ability or intelligence.
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Advantages of Cognitive Ability Test
•
•
•
•
•
•
highly reliable
verbal reasoning and numerical tests have shown high
validity for a wide range of jobs
the validity rises with increasing complexity of the job
may be administered in group settings where many
applicants can be tested at the same time
scoring of the tests may be completed by computer
scanning equipment
lower cost than personality tests
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Disadvantages of Cognitive Ability Test
•
•
non-minorities typically score one standard deviation
above minorities which may result in adverse impact
depending on how the scores are used in the selection
process
differences between males and females in abilities (e.g.,
knowledge of mathematics) may negatively impact the
scores of female applicants
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Personality Test
•
Personality Tests: A selection procedure measure the
personality characteristics of applicants that are
related to future job performance.
•
Personality tests typically measure one or more of
five personality dimensions: extroversion,
emotional stability, agreeableness,
conscientiousness, and openness to experience.
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Advantages of Personality Test
•
can result in lower turnover due if applicants are
selected for traits that are highly correlated with
employees who have high longevity within the
organization
•
can reveal more information about applicant's abilities
and interests
•
can identify interpersonal traits that may be needed for
certain jobs
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Disadvantages of Personality Test
•
difficult to measure personality traits that may not be well
defined
•
responses by applicant may be altered by applicant's
desire to respond in a way they feel would result in their
selection
•
lack of diversity if all selected applicants have same
personality traits
•
lack of evidence to support validity of use of personality
tests
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Interview
•
Interviews: A selection procedure designed to predict
future job performance on the basis of applicants'
oral responses to oral inquiries.
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Advantages of Interview
•
useful for determining if the applicant has requisite
communicative or social skills which may be necessary for
the job
•
can assess the applicant's job knowledge
•
can be used for selection among equally qualified
applicants
•
enables the supervisor and/or co-workers to determine if
there is compatibility between the applicant and the
employees
•
allows the applicant to ask questions that may reveal
additional information useful for making a selection
decision
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Disadvantages of Interview
•
•
•
•
•
•
subjective evaluations are made
decisions tend to be made within the first few minutes of
the interview with the remainder of the interview used to
validate or justify the original decision
interviewers form stereotypes concerning the
characteristics required for success on the job
research has shown disproportionate rates of selection
between minority and non-minority members using
interviews
negative information seems to be given more weight
not as reliable as tests
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Training & Development
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Training Process
Training
Need
Analysis
What are
the training
needs for
this person
and/or job?
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Training
Objectives
Objective
should be
measurable
and
observable
Training
Delivery
Techniques
include onthe-jobtraining,
action
learning, etc.
Training
Evaluation
Measure
reaction,
learning,
behavior,
and results
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Assessing Training Needs
Task Analysis
A detailed analysis of a job to
identify the skills required, so
that an appropriate training
program can be instituted
Competency
Careful study of competency level
to identify a deficiency and then
correct it with a training program, or
some other development
intervention.
Analysis
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Competency Analysis
Current
competency
level of the
employee
Competency
Gap
Competency
Assessment
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Required
competency
level for certain
position
Training and
Development
Program
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Competency Profile Per Position
Required Level
Position
Required Competency
1
2
3
4
5
Communication Skills
Training &
Development
Manager
Public Speaking
Leadership
Training Need Analysis
Material Development
Training Evaluation
Communication Skills
Interview Skills
Recruitment
Supervisor
Analytical Thinking
Understand Selection Tools
Teamwork
Customer Orientation
Score Required
Competency Type
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Competency Profile Per Position
Managerial competency
1
2
3
4
Leadership
Required Level
Actual Level
Achievement Orientation
Teamwork
Planning & Organizing
Functional competency
1
2
3
4
Mechanical Engineering
Mechanical Equipment Maintenance
Position
Competency
Requirements
SUPERVISOR
Leadership
Achievement
Orientation
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Relevant Training Modules

Leadership I

Communication Skills I

The Art of Motivating Employees

Providing Effective Feedback

Goal Setting Technique

Work Motivation

Planning & Organizing

Continuous Self Improevement
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V
Teamwork
V
Achievement Orientation
V
Customer Focus
V
Job Functional Skills
Communication Skills
Leadership
V
V
V
Teamwork
Manager
V
Achievement Orientation
Customer Focus
V
V
Strategic Thinking
Problem Solving & Decision Making
Job Functional Skills
Professional
Seminar Series
V
Leadership
Supervisor
Building Productive
Teamwork
Strategic
Management
Creative Problem
Solving
Achievement
Motivation Training
V
Service Excellence
for Customer
Position
On Becoming
Effective Leader 2
Communication Skills
Training Title
On Becoming
Effective Leader 1
Managerial Competency
Productive
Communication
Series
Training Matrix for Competency Development
V
V
V = compulsory training
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Enhance Training Effectiveness
Make the
material
meaningful
Provide for
transfer to
learning
Training
Effectiveness
Motivate
the trainee
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Enhance Training Effectiveness
Make the
material
meaningful
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•
At the start of training, provide the
trainees with a bird’s-eye view of the
material to be presented. Knowing the
overall picture facilitates learning.
•
Use a variety of familiar examples when
presenting material
•
Organize the material so that it is
presented in a logical manner and in
meaningful units
•
Try to use terms and concepts that are
already familiar to trainees
•
Use as many visual aids as possible
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Enhance Training Effectiveness
Provide for
transfer to
learning
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•
Maximize similarity between the training
situation and the work situation
•
Provide adequate training practice
•
Identify each feature of the step in the
process
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Enhance Training Effectiveness
Motivate
the trainee
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•
People learn best by doing. Try to
provide as much realistic practice as
possible
•
Trainees learn best when correct
response on their part are immediately
reinforced.
•
Trainees learn best when they learn at
their own pace. If possible, let trainees
pace themselves.
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Type of Training Program
OFF THE JOB
Formal course
•
•
Does not interfere with job
Provides for fact learning
Simulation
•
•
Helps transfer of learning
Creates lifelike situations
Wilderness Trip
•
•
Builds teams
Builds self-esteem
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Type of Training Program
ON THE JOB
Job instruction
training
•
•
Facilitates transfer of learning
Does not require separate facilities
Apprenticeship
training
•
•
Does not interfere with real job performance
Provides extensive training
Job rotation
•
•
Gives exposure to many jobs
Allows real learning
Mentoring
•
•
Is informal
Is integrated into job
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Evaluation of Training Effectiveness
Level 1 - Reaction
Level 2 - Learning
Level 3 – Behavior
Application
Four Levels
of Training
Effectiveness
Level 4 – Business
Impact
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Evaluation of Training Effectiveness
Evaluate trainees’ reactions to
Level 1 -
the program. Did they like the
Reaction
program? Did they think it
worthwhile?
Test the trainees to determine if
Level 2 -
they learned the principles,
Learning
skills, and facts they were to
learn.
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Evaluation of Training Effectiveness
Ask whether the trainees’ behavior on the job
changed because of the training program. For
example, are employees in the store’s complaint
department more courteous toward disgruntled
customers than previously?
What final results were achieved in terms of the
training objectives previously set? Did the number
of customer complaints about employee drop? Did
the reject rate improve? Was turnover reduced,
and so forth.
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Level 3 –
Behavior
Application
Level 4 –
Business
Impact
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Employee
Performance Management
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Why Performance Appraisal?
•
Appraisal provide information upon which promotion and
salary decision can be made.
•
Appraisal provide an opportunity for a manager and
his/her subordinates to sit down and review the
subordinate’s work-related behavior, and then develop a
plan for corrective action.
•
Appraisal provide a good opportunity to review the
person’s career plans in light of his/her exhibited
strengths and weaknesses.
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Performance Management Cycle
Performance
Planning
(Setting
Performance
Targets)
• Training &
Development
Plan
• Salary/Bonus
Adjustment
• Career
Development
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Regular
Review and
Monitoring
Feed back
Corrective
Action
Performance
Appraisal and
Evaluation
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Performance Management Cycle
Defining
Performance
Standard/
Targets
1. Defining the performance standards
means making sure that you and your
subordinate agree on his/her duties and
targets that you expect
Appraising
Performance
2. Appraising performance means
comparing your subordinate’s actual
performance to the standard/targets set
in step one.
Providing
Feedback for
Development
3. Providing feedback means discussing
plans for any development that is
required.
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Problems in Performance Appraisal
Lack of
standards
Poor
feedback to
employee
Irrelevant or
subjective
standards
Negative
communication
Poor
measures of
performance
Failure to
apply
evaluation
data
Common Performance Evaluation Problems
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Bias in the Appraisal Process
Halo
Effect
Central
Tendency
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The "halo" effect occurs when a supervisor’s
rating of a subordinates on one trait biases the
rating of that person on other traits
A tendency to rate all employees the same
way, such as rating them all average
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Bias in the Appraisal Process
Leniency
The problem that occurs when a supervisory
has a tendency to rate all subordinates either
high or low
Bias
The tendency to allow individual differences
such as age, race, and sec affect the appraisal
rates these employees receives.
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Performance Appraisal Element
Performance
appraisal
elements
has two main
categories:
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1. Competencies: It
represents soft or qualitative
aspects of performance
(process)
2. Performance Result:
Hard or quantitative aspects
of performance (result)
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Performance Appraisal Element
1. Competencies Score
Overall Score
2. Performance Result
Score
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Will determine the employee’s
career movement, and also
the reward to be earned
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Element # 1 : Competencies
Competency : Collaboration
Basic
Intermediate
Advanced
Expert
Actively listens, and clarifies
understanding where required, in
order to learn from others.
Actively listens, and clarifies
understanding where required, in
order to learn from others.
Actively listens, and clarifies
understanding where required, in
order to learn from others.
Actively listens, and clarifies understanding
where required, in order to learn from others.
Empathise with audience and
formulates messages accordingly.
Empathise with audience and
formulates messages accordingly.
Empathise with audience and
formulates messages accordingly.
Empathise with audience and formulates
messages accordingly.
Shares resources and information.
Shares resources and information.
Shares resources and information.
Shares resources and information.
Responds promptly to other team
members’ needs.
Balances complementary strengths
in teams and seeks diverse
contributions and perspectives.
Actively builds internal and external
networks.
Builds internal and external networks and uses
them to efficiently to create value.
Involves teams in decisions that
effect them.
Uses cross functional teams to draw
upon skills and knowledge
throughout the organization.
Uses cross functional teams to draw upon
skills and knowledge throughout the
organization.
Encourages co-operation rather than
competition within the team and with
key stakeholders.
Builds and maintains relationships
across The company.
Drives and leads key relationship groups
across The company.
Manages alliance relationships through
complex issues such as points of competing
interest.
Ensures events and systems, eg IT, for
collaboration are in place and used.
Draws upon the full range of relationships
(internal, external, cross The company) at
critical points in marketing and negotiations.
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Element # 2 : Performance Results
No.
Main Performance Target
1 Conduct an assessment of the
employee's performance
Target to be
Achieved
All employees submit their performance assessment form
on time
2 Improve the system for
performance assessment
Target : completed 100 %
in November 2008
3 Conduct training activities
Target : to conduct 6 training modules
in one year
4 Carry out on the job training
activities
Target : 90 % of the total employees
who attend the training
experience an increase
in skill and knowledge
Target should be measurable and
specific
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Employee Career
Management
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Career Planning and Development
Career
Planning &
Development
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Providing employees
the assistance to form
realistic career goals
and the opportunities
to realize them
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Typical Career movement
Entry Level
First Line
Join Company 22 years old
Supervisor/Ass. Manager 26 - 29 years old
Middle
Management
Managers 29 - 35 years old
Senior
Management
GM/Senior Managers 35 - 45 years old
Top
Management
CEO/BOD 45 - 55 years old
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Career Stage
Trial Stage
The period from about age 25 to 30 during
which the person determines whether or
not the chosen field is suitable and if it is
not, attempts to change it.
Stabilization
Stage
The period, roughly from age 30 to 40,
during which occupational goals are set
and more explicit career planning is made
to determine the sequence for
accomplishing goals
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Career Stage
Mid career
Crisis Stage
The period occurring between the midthirties and mid-forties during which people
often make a major reassessment of their
progress relative to their original career
ambitions and goals
Maintenance
Stage
The period form about ages 45 to 65 during
which the person secures his or her place
in the world of work
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Career Stage
Decline Stage
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The period during which many people are
faced with the prospect of having to accept
reduced levels of power and responsibility.
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Career Anchors
Career Anchor :
A concern or value that someone will not give up if
choice has to be made
Career anchors, as their name implies, are the
pivots around which a person’s career swings; a
person becomes conscious of them as a result of
learning about his or her talents and abilities.
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Five Career Anchors
Technical/
Functional
Career Anchor
Managerial
Competence as a
Career Anchor
Autonomy and
Independence as
Career Anchor
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Creativity as a
Career Anchor
Security as a
Career Anchor
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Five Career Anchors
•
People who have a strong
technical/functional career anchor
tend to avoid decisions that would
drive them toward general
management.
•
Instead, they make decisions that will
enable them to remain and grow in
their chosen technical or functional
field
Technical/
Functional
Career Anchor
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Five Career Anchors
•
People who show strong motivation
to become managers
•
Their career experience enables
them to believe that they have the
skills and values necessary to rise to
such general management position
Managerial
Competence
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Five Career Anchors
•
People who go on to become
successful entrepreneurs
•
These people seem to have a need
to build or create something that is
entirely their own product – a product
or process that bears their name, a
company of their own, or a personal
fortune that reflects their
accomplishments.
Creativity
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Five Career Anchors
•
People who are driven by the need to
be on their own, free from the
dependence that can arise when a
person elects to work in a large
organization.
•
Some of these people decide to
become consultants, working either
alone or as part of relatively small
firm. Others choose to become
professors, free-lance writers, or
proprietors of a small retail business.
Autonomy and
Independence
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Five Career Anchors
•
People who are mostly concern with
long-run career stability and job
security.
•
They seem willing to do what is
required to maintain job security, a
decent income, and a stable future in
the form of a good retirement
program and benefits.
Security
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Career Management and the First
Assignment
•
Factors to keep in mind about the important first
assignment, include :
1. Avoid reality shock (reality shock refers to the result
of a period that may occur at the initial career entry
when the new employee’s high job expectations
confront the reality of boring, unchallenging jobs.
2. Provide challenging initial jobs
3. Provide realistic job preview in recruiting
4. Be demanding
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Career Management and the First
Assignment
5. Provide periodic job rotation
6. Provide career-oriented performance appraisals
7. Encourage career-planning activities
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Recommended Further Readings
1.
Gary Dessler, Human Resource Management, Prentice Hall
2.
Susan Jackson and Randall Schuler, Managing Human Resource : A
Partnership Perspective, South-Western College Publishing
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