Human Resource Management Dr. Fred Mugambi Mwirigi JKUAT

What is HRM? The integration of all processes, programs, and systems in an organization that ensure staff are acquired and used in an effective way The management function that deals with recruitment, placement, training, development of organization members. HRM is a process for staffing the organization and sustaining high employee performance. HRM can be defined as all the practices, systems and procedures implemented to attract, acquire, develop and manage human resources to achieve the goals of an organization. Simply it is managing the employment relationship

Uniqueness of HRM HR is multidisciplinary: It applies the disciplines of Economics (wages, markets, resources), Psychology (motivation, satisfaction), Sociology (organization structure, culture) and Law (min. wage, labor contracts, etc) HR is embedded within the work of all managers, and most individual contributors due to the need of managing people (subordinates, peers and superiors) as well as teams to get things done.

Human resource planning Human resource planning is designed to ensure the future personnel needs will be constantly and appropriately met. The process by which managers ensure that they have the right number and kinds of people in the right places, and at the right times, who are capable of effectively and efficiently performing assigned tasks.

Contd. It is accomplished through analysis of Internal factors : Current and expected skill needs, vacancies and departmental expansions and reductions. Environmental factors: Labor markets, use of computers to build and maintain information about employees

Contd. Human resource planning must be integrated within the organizations strategic plans Senior management must emphasize the importance of human resource planning Human resource planning must be based on the most accurate information available. A clear plan must be developed with associated time-spans and scope of activity.

Human Resource Planning Sketch Assessing Current Human Resources Assessing Future Human Resource Needs Since it is important to have the right people in the right jobs at the right time, human resource planning is the process to achieve that. What the organization will do is make an assessment of the current capabilities of its employees, determine what it will need in the future, and design a program to meet those needs. Depending on the organization’s objectives and strategies, demand for human resources is contingent upon demand for the organization’s products or services and on the levels of productivity. After estimating total revenue, management can estimate the number and kinds of human resources needed to obtain those revenues. After it has assessed current capabilities and future needs, management can estimate future human resources shortages and over-staffing. Then, it can develop a program to match these estimates with forecasts of future labour supply. Developing a Program to Meet Needs 6

Key components ofHRM HR planning Recruiting Selecting Organizational and work design Induction / Orientation Performance Appraisal and Management Disciplining Rewarding/ retention Training and developing ‘Decruiting’ Labour relations

Recruitment The process by which a job vacancy is identified and potential employees are notified. The nature of the recruitment process is regulated and subject to employment law. Main forms of recruitment through advertising in newspapers, magazines, trade papers and internal vacancy lists.

Recruitment Job description – outline of the role of the job holder Person specification – outline of the skills and qualities required of the post holder Applicants may demonstrate their suitability through application form, letter or curriculum vitae (CV)

Selection The process of assessing candidates and appointing a post holder Applicants short listed – most suitable candidates selected Selection process – varies according to organisation:

Selection Interview – most common method Psychometric testing – assessing the personality of the applicants – will they fit in? Aptitude testing – assessing the skills of applicants In-tray exercise – activity based around what the applicant will be doing, e.g. writing a letter to a disgruntled customer Presentation – looking for different skills as well as the ideas of the candidate

Orientation Two types of orientation: Work unit orientation: Familiarizes employee with goals of work unit, contribution to the unit’s goals, introduction to co-workers. Organization orientation: Informs employee about the organization’s objectives, history ,philosophy procedures and rules, human resource policies and benefits. Tour of organization’s work facilities.

Discipline Firms cannot just ‘sack’ workers Wide range of procedures and steps in dealing with workplace conflict Informal meetings Formal meetings Verbal warnings Written warnings Grievance procedures Working with external agencies

Development Developing the employee can be regarded as investing in a valuable asset A source of motivation A source of helping the employee fulfil potential

Training Similar to development: Provides new skills for the employee Keeps the employee up to date with changes in the field Aims to improve efficiency Can be external or ‘in-house’

Performance Appraisal Informal Performance Appraisal: “The process of continually feeding back to subordinates information regarding their work performance” Formal Performance Appraisal: “A formalized appraisal process for rating work performance, identifying deserving raises or promotions, and identifying those in need of further training”.

Behavioral Anchored Rating Scales 360 Degree Feedback Written Essays Graphic Rating Scale Written Essays Critical Incidents 360 Degree Feedback Multiperson Comparisons BARS Behavioral Anchored Rating Scales Performance Appraisal Methods

Rewards Systems The system of pay and benefits used by the firm to reward workers Money not the only method Fringe benefits Flexibility at work Holidays, etc.

Factors That Influence Compensation Employee’s tenure and performance Company profitability Kind of job performed Size of company Level of Compensation and Benefits Kind of business Geographical location Management philosophy Labour- or capital-intensive Unionization There are a number of factors that can influenced compensation levels. This slide (Exhibit 9-7) displays the various factors. For example, private-sector jobs typically provide higher rates of pay than comparable positions in public and not-for-profit jobs. Likewise, employees who have been with an organization for a long time may have had a salary increase each year. Because skill levels tend to affect work efficiency and effectiveness, many organizations have implemented skill-based or competency-based pay systems. These types of systems reward employees for the job skills and competencies they can demonstrate. These systems also tend to mesh nicely with the changing nature of work and today’s work environment. But the most critical factor is management’s compensation philosophy.

Trade Unions and Labour Relations Importance of building relationships with employee representatives Role of Trade Unions has changed Importance of consultation and negotiation and working with trade unions Contributes to smooth change management and leadership

Productivity Measuring performance: How to value the workers contribution Difficulty in measuring some types of output – especially in the service industry Appraisal Meant to be non-judgmental Involves the worker and a nominated appraiser Agreeing strengths, weaknesses and ways forward to help both employee and organisation

Strategic Issues in HRM Downsizing of personnel departments Strategic HR planning Outsourcing Devolution of administrative functions Human resource development

Factors that influence HRM Employee skills, knowledge and attitudes Social: social values, roles, trends, etc. Political: political forces, changes. Legal: laws, court decisions, regulatory rules. Economic: product, labor, capital, factor markets. Demographics Organization Culture Organization Strategy

Four C’s Model For Evaluating Human Resources Competence Commitment Congruence Cost effectiveness

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