Near East University Faculty Of Economics & Administrative Sciences MAN Introduction To Business Week 5 Tuğberk KAYA 

Human Resource Management (HRM) HRM is the process of acquiring, training, appraising, and compensating employees, and attending to their labor relations, health and safety, and fairness concerns. (Dessler, 2008) ‘HRM comprises a set of policies designed to maximize organizational integration, employee commitment, flexibility and quality of work.’ (Guest, 1987) ‘The management of work and people towards desired ends’ (Purcel et. al, 2003)

Four key activities: Selection, Performance management, Reward, Development (Fombrum, Tichy, Devanna 1984)

Why HR is important?

Aims of HRM Old Employment Model Inflexible High Conflict Low Productivity New Employment Model Flexible Low Conflict High Performance

HR Manager Proficiencies 1. HR Proficiencies:  Employee Selection  Training  Compensation 2. Business Proficiencies:  Merge business objectives with employee objectives.  Strategic planning  Production  Marketing  Finance

HR Manager Proficiencies  3. Leadership - Leading teams effectively - Change management 4. Continuous Learning: -Research and apply recent trends in the industry.

Job Analysis  ‘The procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for.’  Why Job Analysis is required?  In order to produce information used for job description and job specifications.

Definitions  Job Description: ‘A list of a job’s duties, responsibilities, reporting relationships, working conditions, and supervisory responsibilities.’  Job Specifications: ‘A list of a job’s human requirements, required education, skills and personality.’

Functions of HR Manager  By job analysis HR Manager collets following information;  Work activities  Human Behaviours  Machines, tools, equipment and work aids  Performance standards  Job context  Human Requirements

Why job analysis is important?  Recruitment and Selection  Compensation  Training  Performance Appraisal  Discovering Unassigned Duties

Personal Planning & Forecasting  Personal Planning (PP) is about deciding what positions the firm will have to fill and how to fill them.  PP can include all jobs from cleaning staff to CEO.  Executive jobs can also be selected by succession planning.  Personal Planning should derive from the firm’s strategic plans.

Forecasting Personal Needs  Simple method; forecast revenue then estimate size of staff required to achieve this sales volume.  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, for example, sales volume and number of employees need.  The Scatter Plot: A graphical method used to help identify the relationship between two variables.

The Training Process  Training  The process of teaching new employees the basic skills they need to perform their jobs.  The strategic context of training  Performance management: the process employers use to make sure employees are working toward organizational goals.  Web-based training  Distance learning-based training  Cross-cultural diversity training

The Training and Development Process 1. Needs analysis  Identify job performance skills needed, assess prospective trainees skills, and develop objectives. 2. Instructional design  Produce the training program content, including workbooks, exercises, and activities. 3. Validation  Presenting (trying out) the training to a small representative audience. 4. Implement the program  Actually training the targeted employee group. 5. Evaluation  Assesses the program’s successes or failures.

Performance appraisal  Evaluating an employee’s current and/or past performance relative to his or her performance standards.  The process employers use to make sure employees are working toward organizational goals. Performance management

Needs and Motivation  Abraham Maslow’s Hierarchy of Needs  Five increasingly higher-level needs:  physiological (food, water, sex)  security (a safe environment)  social (relationships with others)  self-esteem (a sense of personal worth)  self-actualization (becoming the desired self)  Lower level needs must be satisfied before higher level needs can be addressed or become of interest to the individual.

 Herzberg’s Hygiene–Motivator theory  Hygienes (extrinsic job factors)  Inadequate working conditions, salary, and incentive pay can cause dissatisfaction and prevent satisfaction.  Motivators (intrinsic job factors)  Job enrichment (challenging job, feedback and recognition) addresses higher-level (achievement, self- actualization) needs.  The best way to motivate someone is to organize the job so that doing it helps satisfy the person’s higher-level needs. Needs and Motivation

Instrumentality and Rewards  Vroom’s Expectancy Theory  A person’s motivation to exert some level of effort is a function of three things:  Expectancy: that effort will lead to performance.  Instrumentality: the connection between performance and the appropriate reward.  Valence: the value the person places on the reward.  Motivation = E x I x V  If any factor (E, I, or V) is zero, then there is no motivation to work toward the reward.  Employee confidence building and training, accurate appraisals, and knowledge of workers’ desired rewards can increase employee motivation.

References  Dessler, G. (2008) Human Resource Management. 11 th edn. Harlow: Pearson Education Ltd  Drucker, P. F. (1993) Post-capitalist society. New York: Harper Collins Publishers  Guest, D. (1987), “Human resource management and industrial relations”, Journal of  Management Studies, Vol. 24 No. 5, pp DOI:  DEVANNA, M. A., FOMBRUN, C. and TICHY, N. (1984). 'A framework for strategic human resource management'. In Fombrun, C., Tichy, N. M. and Devanna, M. A. (Eds), Strategic Human Resources Management. New York: WUey.  Hall, E.T. and Hall, M.R. (1990) Understanding cultural differences. London: Nicholas Brealey Publishing  Hofstede, G. and Hofstede, G.J. (2005) Cultures and Organizations: Software of the Mind. 2 nd edn. New York: The McGraw-Hill Companies  Mondy, R. (2005) Human Resource Management. Harlow: Pearson Education Ltd  Purcell, J., Kinnie, N., Hutchinson, S., Rayton, B. and Swart, J. (2003) Understanding the People and Performance Link: Unlocking the Black Box. London: CIPD  Tuckman and Jensen (1977); hingstaff/developmentprogrammes/StagesinGroupDevelopment.pdf  Trompenaars, F. and Hampden-Turner, C. (2011) Riding the Waves of Culture: Understanding Cultural Diversity in Business. 2 nd edn. London: Nicholas Brealey Publishing

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