Department of Management

College of Business and Economics

Addis Ababa University

Introduction to Management

Yohannes Neda
[email protected]

Strategic Management 1
Yohannes Neda
 Chapter Six
The Staffing
(Human Resource
Management)
Function
Chapter Objectives Contents

At the end of this course you will be able to: ✓ Meaning and Importance of HRM
✓ Explain the meaning and importance of HRM ✓ Basic HRM Activities
✓ Discuss the basic activities of HRM

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Questions for Reflection
1. How do you perceive the term human
resource management?
2. Do you think that human resource
management is more important than other
resources? Why?
3. What do you think is the purpose of human
resource management?
4. What do you think are activities of human
resource managers?

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What is Human Resource Management?
 Human resource management is a management function, which
involves various activities designed to foster the effectiveness of an
organization’s workforce in achieving the organizational goals and
objectives.
 Human Resource Management (HRM) focuses on people-their needs,
expectations, values and legal rights as well as strategies that would ensure
the achievement of individual and corporate goals.
 Human Resource Management is the process of achieving
organizational goal by attracting, developing, and retaining and
properly using talented human resource.

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HRM Activities
 Job analysis defines a job in terms of specific tasks and responsibilities
and identifies the abilities, skills and qualifications needed to perform it
successfully.
 Human resource planning or employment planning is the process by
which an organisation attempts to ensure that it has the right number of
qualified people in the right jobs at the right time.
 Employee recruitment is the process of seeking and attracting a pool of
applicants from which qualified candidates for job vacancies within an
organisation can be selected.
 Employee selection involves choosing from the available candidates the
individual predicted to be most likely to perform successfully in the job.

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HRM Activities

 Orientation and Placement is the formal process of familiarizing

new employees with the organization, their jobs, their work units
and employees. Placement, on the other hand, is the assignment of
an employee to a new or different job.
 Performance appraisal is concerned with determining how well
employees are doing their jobs, communicating that information to
the employees and establishing a plan for performance
improvement.
 Training and development activities help employees learn how to
perform their jobs, improve their performance and prepare
themselves for more senior positions.

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HRM Activities
 Compensation refers to all types of rewards that employees receive
in return for their services.
 Safety and Health involves protecting employees from injuries
caused by work-related accidents. Health refers to the employees'
freedom from illness and general physical and mental well being.
 Career planning and development activities benefit both employees
(by identifying employee career goals, possible future job
opportunities and personal improvement requirements) and the
organisation (by ensuring that qualified employees are available
when needed).

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Importance of HRM

❖ attract and retain talent

❖ train people for challenging roles
❖ develop skills and competencies
❖ promote team spirit
Good HR Practices help
❖ develop loyalty and commitment
❖ increase productivity and profits
❖ improve job satisfaction
❖ enhance standard of living
❖ generate employment opportunities

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Job Analysis

Job analysis is a systematic process of determining tasks, duties and

responsibilities that make up the job and the qualification (skill,
knowledge, experience) required to perform the job
Job analysis is performed on three different accessions. These are:
✓when the organization is founded (established)
✓when new jobs are created
✓when jobs are changed significantly as a result of new technology.

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Key Products (Outputs) of Job Analysis

1.Job description: is a written statement that explains the title,

duties, responsibilities, authority, accountabilities, working
conditions, conditions of employment and other aspects of
a specified job (what the worker does ).
2.Job specification: is a written statement that describes the
skill, knowledge, work experiences required to perform the
job (who the worker is)

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Key Products (Outputs) of Job Analysis

3.Job Performance Standard: is a statement that

indicate quality and quantity of job performance.

4. Job Evaluation: is process of determining the

relative values of each job in the organization and
ranking them in a hierarchy.

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Human Resource Planning
➢HRP is the process of reviewing HR requirement to
ensure that the required number and type of employees
are available when they are needed.
➢HRP is a process used to determine what and how
many position have the firm to fill and how to fill them
➢HRP is an activity that managers engage in to
forecasting their current and future needs of human
resources.

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Recruitment
Recruitment is the process of attracting individuals (pool of candidates)
on a timely basis, in sufficient numbers and with appropriate
qualifications.
The ground work for successful recruitment lies on:
➢ Human resource planning: identify job openings and future human
resource requirements
➢ Job analysis information: identify the content of the job and
qualification required
who conduct recruitment?
✓ In large organization HRM department
✓ In small organization recruitment and selection committee

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 Source & Methods of Recruitment
1. Internal source of recruitment:
current employees in the organization and take the form of promotion or
Are
transfer with in the organization.

2. External Sources of recruitment

➢ External sources involves attracting qualified candidates from outside the
organization to apply for job vacancies

➢ This source is widely used especially to:

✓ fill entry-level jobs
✓ acquire skill not owned by current employees (when the org. need new
skills &approach)
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Selection
Selection is the process of choosing the most suitable candidate for a
particular position from among the candidates
The selection Process
 Preliminary evaluation of Application Form
 Testing
 Interviewing
 Background and Reference Checks
 Medical Examination
 Hiring

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Orientation and Placement

 Orientation is a means of familiarizing new employees with their job,

responsibilities, organizational policies, coworkers and other key
aspects of the organization as a whole.
Purposes of Orientation
 It improves the performance of the employee
 It increases organizational stability and reduces conflict.
 It saves time and effort

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Orientation and Placement
 Placement refers to the assignment or reassignment of an employee
to a new job. it includes:
➢ Initial assignments of new employees from outside
➢ Reassignment of current employees due to promotion, transfer or
demotion.

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 Human Resource Development
Human Resource Development (HRD) is planned, continuous effort by
management to improve employee competency levels and organizational
performance through training, education, and development program
➢ Training is a program designed to improve skills and knowledge that
help employees to effectively perform their current job.
➢ Development is a program designed to improve the overall
effectiveness of managers for their present as well as future positions.
The purpose is to help managers handle future responsibilities.
➢ Education is learning experience that improve overall competency of
an individual in a specific direction beyond the current job. Teaching
theoretical concept and develop a sense of reasoning
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 Career Development
➢ Career development: is the personnel activity which helps
individuals plan their future career with the organization in order to
help the organization achieve its goals.
Values of Career Development
✓ Aligns strategy and internal staffing requirements
✓ Develops promotable employees
✓ Reduce turn over
✓ Tap employees potential
✓ Further personal growth
✓ Satisfies employee needs

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Meaning of Performance Appraisal (PA)
appraisal is a formal system of periodic, review and
evaluatioPerformancen of an individual’s job performance as well as
giving feedback to an employee

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Uses of Performance Appraisal
➢Performance improvement: PA provide feedback
necessary for improving performance and motivating
employees.
➢Compensation adjustments: help to determine who get
what
➢Placement decisions: Managers use information from PA
to make decisions on promotions, transfer and demotion
➢Training and development needs: PA indicate a training
and development needs
➢Guide career planning and development decisions
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Uses of Performance Appraisal
➢Indicatedeficiencies in staffing process: show strengths
and weakness in performing staffing functions
➢Informational inaccuracies: indicate errors in collecting
information on job analysis and planning
➢Job-design errors: Poor performance may be a symptom
of poor job designs
➢Feedback to human resources: indicates how well the
human resource function is performing

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Compensation

Compensation is reward
employees receive in exchange
for their performance. It is
concerned with wages and
salaries, pay raises, and similar
monetary and non monetary
exchange for employees’
performance .

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Objectives of Compensation
✓ To attract qualified employees required
✓ To retain and motivate the existing workforce
✓ Control cost ( to avoid over payment or underpayment)
✓ Comply with legal regulations ( to consider legal challenges
imposed by the government)
✓ Ensure equity :establish fair and equitable rewards to the employees
✓ Reward desired behavior
✓ Further administrative efficiency

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Promotion
Promotion occur when a current employee is moved
from one job to other that is higher in pay, responsibility,
status and organizational level (vertical movement). In
other words:
 If the employee’s performance is high he/she will
get promotion.
 It is un Upward movement of employees
 Employees get salary increment
 Includes more responsibility
 Promote to higher position
 More power

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Demotion
Demotion down ward movement of an employee to
a position with low responsibility, organizational
level, status and perhaps lower in pay. Demotion
may occur due to: discipline, poor performance and
inappropriate behavior. In other words:
 It is downward movement
 Decrease in pay, responsibility and power
 Punishment for less performance or
inappropriate behavior

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Transfer
 Transfer reassignments of employees from one job to
other with similar status, pay and responsibility
(horizontal movement). In other words:
It is a horizontal movement
Same salary
Same position

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Separation
There are two types of separation
1. Permanent separation
 Termination of contract of employment
 Retirement

 Disciplinary termination
2. Temporary separation
 Annual leave
 Maternity leave
 Sick leave e.t.c
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