Notes in HRM
Notes in HRM
The HR Cycle
Management Process
The five basic functions of planning, organizing, staffing, leading and controlling.
Personnel Mistakes
Hire the wrong person for the job
Experience high turnover
Your people not doing their best
Waste time with useless interviews
Have your company sued for discriminatory actions
Have your company fined for unsafe practices
Some employees think their salaries are unfair and inequitable relative to others in the
organization
Allow a lack of training to undermine your department’s effectiveness
Commit any unfair employment practices
Line and Staff Aspects of HRM
Authority
The right to make decisions, direct others’ work, and give orders
Duties of HR Specialists
Training Specialist
Plan, organize and direct training
Advice managers on training
Job Analyst
Collect information about jobs
Prepare job descriptions
Recruiter
Collect information about job
Interview and recommend suitable candidates
EEO (Equal Employment Opportunity) Coordinator
Investigates EEO grievances
Examine HR practices for potential violations
Compensation Manager
Develop compensation plans
Handle employee benefits program
Employment relations specialist
Advise managers on ER issues
Negotiate with unions
Benefits of HR Planning
Aids in planning job assignments
Helps cope with fluctuations in staffing
Identifies recruiting needs
Provides Other useful Information
Strategic Planning
Determine the organizational mission
Scan the organizational Environment
Set strategic goals
Formulate a strategic plan
Demand Forecasting
Statistical approaches to Demand Forecasting
1. Trend Analysis
1992 1993 1994 1995 1996
Sales 12,000 14,500 13,200 19,100 22,000
# of Emps 300 393 342 511 650
2. Ration Analysis
# of patients = 100
# of nurses = 25
Patient/nurse ration= 4/1
Group 1 PPT
Understanding HR Planning
To maintain a steady supply of skilled employees
To assist businesses in determining their needs and making plans to meet them
To fulfill short-term staffing needs while also adapting to long-term changes in business
environment
Challenges of HR Planning
Employees promoted
Hs a family decide to have a vacation
Near to retirement
Settle to change career
Have an outside pursuits
Workers get sick
Plans must be
Recruit and retain qualified personnel
The top applicants are chosen, trained, and rewarded
Deal with disagreements and absences
Employees may promoted or let go
Importance of HR Planning
HR Planning allow business to better maintain and target the right kind of talent to
employ
HR Planning ensures the best fit between employees and jobs while avoiding man power
shortages or surpluses
HR Planning is an important investment for any business as it allows companies to
remain both productive and profitable
Steps to HR Planning
1. Analyzing Labor Supply: The first step of HR Planning is to identify the company’s
current Human Resource Supply
2. Forecasting Labor demand: The second step requires the company to outline the future of
its workforce
3. Balancing Labor Demand with Supply: The third step in the HR Planning process us
forecasting the employment demand GAP analysis
4. Developing and implementing a plan: The answers to questions from the gap analysis
help HR how to proceed, which is the final phase of HR Planning process
VERJAS
Duties
Tasks
Task ratings
- importance
- needed training
Job context
Competencies
Critical Incidents
Strengths Weaknesses
Useful for identifying selection criteria Does not provide a complete job
Useful for identifying training needs description
Time consuming
Group 2 PPT
Job Analysis
Gathering and analyzing information about the content, context, and human
requirements of jobs
Job analysis is the basis for all human resource practices because the process set
up how employees are hired, trained and developed, evaluated, and compensated
Distinction among jobs including the following:
Behaviors
Interactions
Performance
Budgeting
Equipment
Conditions
Supervision
Knowledge, Skills, Ability/Attitude
Different types of Job Analysis
Job Analysis requires a high degree of coordination and cooperation between the
HR units and operating managers, and assigning responsibility for Job analysis
depends on who can best perform various parts of the process
1. Task Based Analysis: The most common type and focuses on the components and
characteristics of work embedded within a job
TASK -Is distinct identifiable work activity
DUTY –Is a larger segment comprised of tasks
RESPONSIBILITIES –Are obligation to perform a certain tasks and duties
2. Competency Job Analysis:
Are individual capabilities that can be linked to enhanced performance by
individuals or teams
The competency approach may be more broadly focused on behaviors, rather
than just on tasks, duties, and responsibilities
The decision about whether to use a task-based or competency-based approach to
job analysis is affected by the nature of jobs
Group 3 PPT
Job Classification:
Evaluate by job outline descriptor
Covers a large variety of job and job descriptions
One job can have multiple levels
Filter’s job titles and duties
1. Preparation of Job Description
2. Preparation of Grade Description
3. Selection of Grades and Key Jobs
4. Classification of all jobs
Factor Comparison
Thomas E. Hitten
A scientific method designed to rank job roles based on a breakdown of factors
rather than the role as a whole
Benchmark jobs
Factors of factor comparison
Skills
Mental effort
Physical effort
Responsibility
Working conditions
ADVANTAGE: Realistic, practical, straightforward, and quick
DISADVANTAGE: Market rate information may be difficult to obtain or
inaccurate
Point Factor
Compensable factors
Assign points
Most popular internal method
Most efficient method
Best for complex organization
JOB EVALUATION
DEFINITION:
An attempt to determine and compare demands of a particular demands of a
particular job
Determine convenient pay rate
Determine entry and performance requirements
Determine and compare the demands
Qualities of Job holder is not considered
Job evaluation is a process of weighing different job positions within a company in order
to determine a convenient pay rate.
This makes sure that everyone is paid their worth, not different jobs, have different entry
and performance requirements.
International Labor Organization defines a job valuation process as an attempt to
determine and compare the demands of a particular job position.
One good thing about job evaluation is that you don't need to worry about the qualities of
a job holder.
The relative worth is assess irrespective of the qualities of a specific job holder.
And for most companies, different team members vary in the responsibilities and the
profit they bring to the business and that's why a fair hierarchy is vital for a company's
reputation
And Job valuation is often mistaken for job analysis and vice versa, and yet there is a big
difference between both these two practices
On the one hand, job analysis is about writing job descriptions through a detailed
examination understanding of the tasks and responsibilities included in it
On the other hand, job valuation method, assess and compare the value of each job
QUANTITATIVE METHODS
Quantitative methods evaluate jobs according to facts based on gathered data
In this group we have the point factor method, the factor comparison method and customs
factor comparison method.
These jobs are assumed to be fairly paid, and then there are the five important factors
listed against which each of these keeps Jobs points are listed.
We also have the salaries listed down for each of the three key Jobs.
This helps in formulating the pay rate scale for each of the factors listed
With the help of these factors, ratings and the pay rates compared, it becomes easier for H
R to decide the pay package for the new job position.
The same goes for the case of custom factor comparison method but in that case, you can
have more factors listed other than the five here.
o So if you have 8 jobs, this means that there are 16 paired comparisons
II. In the second stage of the job ranking method.
o You rank key jobs based on the monthly salaries, or you can also use some other
criteria to rank these jobs
JOB RANKING METHOD
RANK MONTHLY SALARIES
1. ACCOUNTANT 6,000
2. ACCOUNT CLERK 3,600
3. PURCHANSE ASSISTANT 3,400
4. MACHINE OPERATOR 2,800
5. TYPIST 1,800
6. OFFICE BOY 1,200
III. And later on, when you're done with the ranking of your key jobs, then you move
ahead and bring the other jobs remaining
2. JOB CLASSIFICATION METHOD
Next, we have the job classification method.
The individual who evaluates is the one who outlines a description of each job class and
grades them.
This process covers a large variety of jobs and job descriptions.
So one job position can belong to more than one grade level.
And job classification also filters job tiles and duties based on scale and complexity
shared among organizations.
o Here's an example of how a job classification table looks like
JOB CLASSIFICATION METHOD
CLASS I CLASS II CLASS III CLASS IV
EXECUTIVES SKILLED SEMI SKILLED UN-SKILLED
WORKER WORKERS WORKERS/
HELPERS
CEO Purchasing Steno typists Office boys
Manager Assistant Cashier Machine operators File Clerks
Deputy Office Receipts Clerk ect.
Manager
Superintendent
Dept. Supervisor
We are now done to the fist division of Job Evaluation method which is the internal; Let's
move on to external job evaluation methods.
For some organizations, internal job evaluations may be inappropriate
For example, jobs with skills shortage may result in inflated prices.
In addition, matrix organizations with little hierarchy would not benefit from job ranking
or point-factor comparisons.
The external job evaluation method works better for matrix organizations with little
hierarchy or organization suffering from skill shortages.
This is where many employers choose to employ market data to determine the value of a
job position
Doing regular reviews of external pay rates as well as generating accurate market data
will allow companies to state fair and competitive.
o For instance, market pricing focuses on the external value of specific jobs, makes
room for effective and competitive salary plans, as well as wise allocation of
compensation costs.
This method mostly uses their party compensation surveys
Well job content evaluations beneficial for internal consistency and job assessment.
It is also vital for falling federal laws and regulations by sharing equal pay to employees.
You can build a healthy work environment without a fair pay for performance content
And all in all, the entire job valuation process is a key factor in establishing a trustworthy
and consistent work structure and focuses on a jobs complexity
Well, many job valuations methods depend on the personal decision of the valuators .
They can sometimes take individual employees personal qualities and consideration as
leading Job factors.
And this is why external consultants can often bring more productivity and objectivity
and weighing that
Here, base pay is a deciding factor in the employee standard of living.
And it ultimately determines how much the company values employees role and
contributions
In every work environment, compensation is a sensitive topic that can cause a reluctant
approach to change, so it is important that the base pay rates are appropriate for both
employer and employees.
Both must be aligned with federal law, cost effective and externally competitive
JOB EVALUATION PROJECTS STEPS
And it's important to note that John evaluation projects include several common steps in
all companies.
1. OUTLINE THE PARAMETER STEPS
First off, the employer should outline the parameters of the project and coordination with
the senior management
2. CHOOSE A CONVENIENT EVALUATION SYSTEM
And based on that, they have to choose a convenient evaluation system that works in the
company's best interest.
3. GATHER RELEVANT DATA
After that, the team should gather relevant job data required for the particular method
with reliable, trustworthy techniques.
4. READY FOR ANALYSIS, DOCUMENTING AND ASSESSMENT
The collective data is then ready for analysis, documenting an assessment and to establish
a fair hierarchy you want to use points and divide job positions and to grades.
According to breaks, once you build a reliable pay structure, allocate the jobs to it.
5. TRACK SYSTEM DEVELOPEMNT AND CHOOSE OPERATING PROCEDURES
Next, you should track system development and choose operating procedures while also
thinking of formal appeals and reconsidering decisions.
6. EMPLOYEES FAMILIAR WITH THE DECISION-MAKING PROCESS
And as a very final step, you should make sure employees are familiar with the decision
making process concerning their pay rates.
The best way to achieve this is through transparency, which can happen through a
management employee communications program.
That being says beyond important to know when you need job reevaluation
When it comes to smaller businesses with rare cases of upward mobility, small changes
and responsibility can make managers consider a reevaluation.
It's advisable to do a routine reevaluation of all jobs once every two years
And in a broad system, jobs often need a proper classification. Still, you can conduct the
job evaluation process with simpler groupings instead of complex systems such as point
factor evaluation.
o For example, companies can combine ranking to market with whole jobs lodging.
o In this case, the management team should document job contents and make the
best use of job descriptions.
SYSTEM MAINTENANCE
Last, but not least, let's talk about system maintenance
System documentation and review
Choice of compensable factors
Defining degree for each factor
Assigning a value to each factor
Applying reliable criteria to attain points
Allocating each job to a particular point range
Recruitment
Locate applicants
Attract Applicants
Recruitment Costs
Advertising
Recruiter travel
Candidate travel
Sign-on bonuses
Agency/search firm fees
Recruiters’ salaries and benefits
Managers’ time
Typically 1/3 of new hire’s annual salary
2. Supervisor recommendation
Strengths Weaknesses
Popular with supervisors Supervisor may be biased
Supervisors know capabilities of potential Some qualified employees may be
candidates overlooked
Court have not beed favorable to this
method
3. Job posting
Strengths Weaknesses
Enhances likelihood of surfacing qualified May take longer to fill positions
candidates May encourage supervisors to “play
Gives employees responsibility for their games”
own careers Employees may “Job hop”
Enables employees to leave bad situation Rejected employees may
1. Employee referrals
Strengths Weaknesses
Employees make good recruiters May serve as barrier to equal employment
Applicants tend to perform better and stay opportunity
longer
2. Applicant-Initiated recruitment
Strengths Weaknesses
Efficient Timing –may get applicants when jobs are
Low cost not available
Highly motivated applicants
3. Help-wanted advertisements
Strengths Weaknesses
Reach a large audience in a relatively Not as effective as other methods
short period of time May produce too many applicants
Helps ensures equal opportunity
7. Campus Recruiting
Strengths Weaknesses
Useful for filling specialized entry-level Costly
jobs Time consuming
8. On-line recruiting
Strengths Weaknesses
Fast Expensive
Large Audience
Group 4 PPT
Recruitment
The process of identifying the sources for prospective candidates to stimulate them to
apply for jobs in organization. It involves seeking and attracting a pool of people from
which qualified candidates for job vacancies can be chooses
Sources of Recruitment
1. Internal Sources
Internal sources of recruitment include:
Transfer: It involves shifting of an employee from on job to another without
reference to changing responsibilities and compensation
Promotions: It is a transfer of an employee to a job that carries higher pay and
status
Re-employment of ex-employees: It is an economical to employ the retired and
retrenched personnel to meet the short-term HR needs
Advantages of Internal sources Disadvantages of Internal sources
The internal candidates have intimate Better qualified outsides may not be
knowledge of the organization structure reached by the management
and can handle new jobs easily The mobility of manpower is restricted.
Promotion increases the morale of the One a man joins a organization, he will
employees stick to the organization
Promotion ensures sincere efforts on the In promotion, there might be clash
part of the employees as they know that between factors like seniority and ability.
they may be promoted to higher positions Such decisions by managers may lead to
The cost of training the insiders for the favoritism
senior posts will be less The spirit of competition among the
Reliance on internal sources will be employees is hampered if they are sure
enable the enterprises to make best use of about the time bound promotion
capabilities of its employees Further growth of business is hindered by
The cost of internal recruitment is very the limited latent of the insiders. The entry
low of fresh talent into the organization will be
restricted
2. External Sources
External sources of recruitment include:
Advertisement
Employment exchange
Fieldtrips
Educational institutions
Labor contractor
Employee referrals
Telecasting
Direct employment
Merits of External Sources Demerits of External Sources
Selecting from more candidates Increases costs
Adding fresh perspective Additional Training
Enhancing diversity Adds a transition period for all employees
Finding a specialized candidate Affects on employee morale
Encouraging referrals from current
employees
Staying competitive
Reducing employee tension
Establishing authority
Selection
The process of choosing from among the candidates the most suitable person from the
current position or for the future position
Selection is negative process as it involves rejection of unsuitable persons
Benefits of Selection
Proper selection and placement of personnel go a long way towards building up a
suitable workforce
Competent employees will show higher efficiency and enable the organization to
achieve its objectives
Steps in Selection
Employment Test
Individual differ with respective to physical characteristic, capacity, level of
mental ability, likes and dislikes and also with respect to personality traits
Employment Interviews
The final choice is based in part on how well the candidate did on different
tests and on part on how well he did in the final interview
During the interview, the candidate’
o Significance of Employment Interviews
1. There is a face-to-face contact between the employer and the candidates. The
employer can assess the personality traits of the candidate
2. The candidate can seek more information about the employer and the job.
This creates better understanding in the mind of the candidate
3. The communication skill of the candidate can be judge in the interview. His
way of thinking is known
4. Interviewing is very important where the candidate has not to go through
employment tests
Placement
Placement may be defines as the determination of the job to which a selected
candidate is to be assigned, and his assignment to the job
It includes the initial assignment of new entrants and the transfer and promotion
of the existing employ
It is matching of what the supervisor has the reason to think he can do with the
job demands; it is matching of what he imposes (in strains, working conditions)
and what he offers in the form of payroll, with promotional possibilities
o Importance/Significance of Placement
It improves employee morale
It helps in reducing employee turnover
It helps in reducing absenteeism
It helps in reducing accident rates
It avoids misfit between the candidate and the job
It helps the candidate to work as per the predetermined objectives of the
organization
o Consideration in Placement
Job requirements
Suitable Qualifications
Adequate information to the job incumbent
Loyalty and Cooperation
Flexibility
Proper placement helps to improve the employees’ morale. The capacity of
the employees can be utilized fully
Reliability
Establishing both higher inter-rater reliability (with in the same interviewer)
Validity interviews must also be valid to enable useful selection
Structured Interviews
Involves a set of prepared job related questions that are asked of all applicants
so that comparisons can be made easily
Unstructured
Occurs when the interviewer improvises by asking questions that are not
predetermined
Interview Techniques
Know your story
Consider why you are interviewing and your qualifications
Do a research
Ask questions
Practice your speaking voice and body language
Sell yourself
2. Employee Placement
Placement
The process of assigning specific jobs and workplaces to the selected
candidates
It involves putting square pegs into a square holes i.e matching individuals
and the job
Significance of Placement
It improves employee morale
It helps in reducing employee turnover
It helps in reducing absenteeism
It helps in reducing accident rates
It avoids misfit between the candidate and the job
It helps the candidate to work as per the predetermined objectives of the organization
Principles of Placement
A few basic principles would be followed at the time of placement of a worker on
the job:
Man should be placed on the job according to the requirements of the job
The job should be offered to the person according to his qualification
The employee should be made conversant with the working conditions
prevailing in the organization and all things relating to the job
Introducing the job to new employees
The placement should be ready before the joining date of the newly
selected person
The placement in the initial period may be temporary a changes are likely
after the completion of training
Benefits of Placement
Building support with peers, juniors, seniors in the department within a short
period
Able to adjust himself to the new job
Avoid mistakes
Regular attendance
High level of involvement in the job
Good performance in the job