Presentation Outline

What is HRM? Why HRM is important? Environment Factors that affecting is HRM Functions of HRM Process Planning Recruitment Selection Training / Orientation Performance and Reward Management Compensation and Benefits Career Development

Current Issues in HRM

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What is HRM?
The process of attracting, developing and maintaining a talented and energetic workforce to support organizational mission, objectives and strategies

Basic Definition
managing the employment relationship (Tyson, 1987)

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Why HRM?
Getting the Best Employees Employees due Benefits & Compensation Ensuring Compliance to Regulations

Ensuring Safe Work Environment

Sustaining High-Performing Employees

Adds value to the firm

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Factors Affecting HRM

Employee Labor Unions Legal Considerations Technology Economy Share Holders Society

Competitions
Customers

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Functions of HRM Process

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Functions of HRM (Planning)

An effort to anticipate future business and environmental

demands upon and organization and to provide personnel to fulfill that business and satisfy that demand (Bowey, 1974)

Assesses the human resource needs associated with strategic management and helps identify

staffing needs

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Functions of HRM (Recruitment)

The process by which a job vacancy is identified and potential employees are notified

Job Analysis:
An assessment that defines a job and the behaviors necessary to perform the job Job Description: outline of the role
of the job holder

Job Specification: outline of the skills

and qualities required of the post holder

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Functions of HRM (Recruitment)

Recruitment The process of locating, identifying, and attracting capable applicants to an organization

Contd.

Decruitment The process of reducing a surplus of employees in the workforce of an organization

E-Recruitment Recruitment of employees through the internet Organizational Website Online Recruiters
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Meeting Future HR Needs

Supply of Employees Demand for Employees

Factors Affecting Staffing Strategic Goals Forecast demand for products and services Availability of knowledge, skills, and abilities
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Functions of HRM (Selection)

An exercise in predicting which applicants, if hired, will be (or will not be) successful in performing well on the criteria the organization uses to evaluate performance

Selection Errors: Reject errors for potentially successful applicants Accept errors for ultimately poor performers

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Functions of HRM (Selection)

Validity (of Prediction):

Contd.

A proven relationship between the selection device used and some relevant criterion for successful performance in an organization

High tests scores equate to high job performance; low scores to poor performance
Reliability (of Prediction): The degree of consistency with which a selection device measures the same thing Individual test scores obtained with a selection device are consistent over multiple testing instances

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Functions of HRM (Selection)

Selection Devices: Application Forms

Contd.

Written Test
Performance Simulations Interviews

Background Investigations
Physical Examinations

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Functions of HRM (Training/Orientation)

Transitioning a new employee into the organization

Work-unit orientation:
Familiarizes new employee with workunit goals Clarifies how his or her job contributes to unit goals Introduces he or she to his or her coworkers Organizational orientation: Informs new employee about the organizations objectives, history, philosophy, procedures, and rules. Includes a tour of the entire facility
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Functions of HRM (Performance & Reward)

A process of establishing performance standards and appraising employee performance in order to arrive at objective HR decisions and to provide documentation in support of those decisions Written Essays Critical Incidents Graphic Rating Scales BARS Multi Person Comparison

MBO
360-degree Appraisals
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Functions of HRM (Compensation & Benefits)

Benefits of a Fair, Effective, and Appropriate Compensation System
Helps attract and retain high-performance employees Impacts on the strategic performance of the firm Types of Compensation & Benefits: Base Wages or Pay (Basic Salary) Daily Wages / Hourly Wages Wages & Salary Add-ons Various Allowances Incentives / Commissions Skill based Pay Variable Pay Insurance, Pensions, Vacations Cafeteria / Conveyance
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Factors that influence Compensation & Benefits

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Functions of HRM (Career Development)

The sequence of positions held by a person during his or her lifetime Development activities that broaden employee horizons Helped attract and retain highly talented people Orientation, on-the job training, off-the job training, technical education Boundary Less Career: A career in which individuals, not organizations, define career progression and organizational loyalty

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Current Issues in HRM

Managing Downsizing Managing Workforce Diversity Work-Life Balance

Controlling HR Cost
Sexual Harassments Workplace Romances

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