Human Resources Management

Human Resources Management
4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Prepared by Ibrahim Inan
The aim of this hand out is to help the students for better understanding the subject with a solid examples and explanations. Prepared by Ibrahim Inan 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Syllabus presentations (15%) Mid-term exam (30%) Final exam (50%)
participation (5%) attendance speaking up 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Program Introduction to Human Resource Management
What is HRM? Human Resource Management at Work Responsibilities of the HR Department what does HRM involve Specific HRM Functions Goals of Human Resource Management FUNCTION OF Human Resources Management Recruitment Selection Employment Legislation Discrimination Development Training Rewards Systems Trade Unions Desired Outcomes of HRM Productivity Human Resources Management : The Strategic Business Partner! 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

What is HRM? Products Services Labor Capital Goods (e.g. Equipment)
Human Resource Management Human Resource Management includes all activities used to attract & retain employees and to ensure they perform at a high level in meeting organizational goals. These activities are made up of 1. Recruitment & selection. 2. Training and development. 3. Performance appraisal and feedback. 4. Pay and benefits. 5. Labor relations Labor Products Services Simply stated, work organizations combine raw materials capital goods (machinery equipment) and labor to produce products or services. Labor input is vital to the success of virtually all organizations. Capital Goods (e.g. Equipment) Raw Materials 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

HRM is a Separate Department
Subsystems A “Staff” perspective Potential Employees Retired Employees Recruiting Hiring Education And training Termination Benefit administration ACTIVITIES OF HRM DATA MANAGEMENT EMPLOYEES THE FIRM 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Major Organizational Subsystems
OBJECTIVES… EFFECTIVE UTILISATION OF HUMAN RESOURCES ORGANISATIONAL STRUCTURE OF RELATIONSHIP DEVELOPMENT OF HUMAN RESOURCES REWARDS COMPATIBILITY OF INDIVIDUAL GOALS WITH THOSE OF AN ORGANISTION MAINTAIN HIGH MORAL.. Major O Human Resources Research & Development, Engineering Management Finance Materials, Production, and/or Services Management The interdependence of HRM with finance, marketing, R&D, and productions management makes it a CRITICAL player in developing organizational STRATEGY Marketing 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Why a Separate Department is Useful
1) Importance of Human Resources Competitive Advantage 2) Increasing Complexity Global workforce 3) External Influences Legal Requirements ACTIVITES OF HRM RECRUITMENT PLACEMENT TRAINING AND EDUCATION COMPENSATION MAINTENANCE 1) Most important asset of an organization = people. Few work up to their potential. 2) Line managers jobs are increasingly complex and demanding. HRM problems go beyond their expertise and require more time than they can devote. Hence specialists are needed and a department is established. 3) Laws and regulations must be complied with, programs developed, and records kept as proof of compliance. 4) There is a need for consistency in treatment of all employees. E.G. Union contract administration 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Human Resource Management at Work
Management Process The five basic functions of planning, organizing, staffing, leading, and controlling. 9 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

The policies and practices involved in carrying out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising. 10 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Why is Human Resource Management is Important to all Managers? All Managers are Human Resource managers To avoid mistakes and getting results 11 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Authority The right to make decisions, direct others’ work, and give orders 12 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Line Authority Staff Authority The authority exerted by an HR manager by directing the activities of the people in his or her own department and in service areas Staff authority gives the right (authority) to advice other managers or employees Line Manager Staff Manager A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks A manager who assists and advises line managers. 13 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Line Managers Human Resource Duties Human Resource Managers Duties ?????????????? A line function A coordinative Function Staff function 14 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

HR functions in small business Manager/Owner Finance M. Operations M. Sales M. HR functions in medium size firm President HR M. Finance M. Operations M Sales M. 15 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

HR functions in a large firm President & CEO HRM VP Finance VP Operations VP Marketing VP Safety & Health Manager Staffing Compensation & Benefits Manager Training & Dev. Labor Relations 16 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

An evolving HR organization President & CEO Operations VP Finance VP HRM VP Marketing VP Other HRM Functions Manager Benefits Training Executive Development Outsourced Shared Service Center 17 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

The Changing Environment of Human Resource Management
Globalization Trend Technological Trends Trends in the Nature of Work High tech jobs Service jobs Knowledge work and human capital Workforce demographic trends 18 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

The Changing Role of Human Resource Management
Strategic human resource management Formulating and executing human resource policy and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims Creating high performance work systems # Managing with technology # Effective HR practices # High performance work systems Measuring the human resource management team’s performance Metrics (A set of quantitative performance measures use to assess their operations) Managing with the HR scorecard process HR scorecard (Measures the HR function’s effectiveness and efficiency in producing employee behavior needed to achieve the company’s strategic goals 19 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Responsibilities of the HR Department
Advice and Counsel Service Advice and Counsel. The HR manager often serves as an in-house consultant to supervisors, managers, and executives. The HR manager has a gatekeeping role, bringing a knowledge of the key issues among different stakeholders to the attention of management to promote better decisions. By being able to bridge external and internal environmental concerns, to articulate and explain special interests, and summarizing the interaction of many variables, the HR manager can provide advice and counsel to executive decision makers. Service. The HR manager often functions as an internal “one-stop service” provider for recruiting, selecting, testing, planning, training, and listening to employees. Policy Formulation and Implementation. HR managers often draft proposed changes in company policies and are responsible for implementing accepted changes in policy. HR managers also monitor performance in relation to new policy and can provide other managers and workers with important interpretations of policy for their respective areas. Employee Advocacy. HR managers must serve as the employee’s advocate to the rest of the organization, including top management. As a result of their gatekeeping role, HR managers are in a position to have the best understanding of how employees are affected by company decisions and how employee ideas can be used to help improve organizational responsiveness. By giving voice to employee ideas, whether suggestions for improvement or complaints about existing practices, HR managers can enhance effective organizational communication. Policy Formulation and Implementation Advice & counsel Inhouse consultant to supervisors, managers, & execs Service Recruiting, selecting, testing, training, paying, insuring employees Policy formulation & implementation Propose & draft new policies/revisions Prevent recurring problems/prevent anticipated problems Implementation  control function Make sure policies (and laws) are appropriately enacted Employee advocacy Listen to ee concerns, represent needs to other mgrs Strategic partner Provide input into org-wide strategic plan Create programs to support company objectives Employee Advocacy Strategic Partner 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Every Supervisor or Manager is an HR Manager
Anyone who deals with subordinates plays a HRM role The “Line” perspective 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Tasks Completed by Line Managers
Interview job applicants Provide orientation, coaching, and on-the-job training Provide and communicate job performance ratings Recommend salary increases Carry out disciplinary procedures Investigate accidents Settle grievance issues 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

So just what does HRM involve?
Ways of categorizing HR activities 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Four Activities The Acquisition of Human Resources The Development of
The Rewarding of Human Resources The Maintenance of Human Resources 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

How HR Functions Relate to HR Activities
The Acquisition of Human Resources Planning Analyzing Jobs Recruitment Selection The Development of Human Resources Appraising Training Developing 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

How HR Functions Relate to HR Activities, continued
The Maintenance of Human Resources Employee Benefits Safety & Health Labor Relations The Rewarding of Human Resources Compensating (Wages & Salaries) (Incentives) 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Goals of Human Resource Management
Facilitating organizational competitiveness Enhancing productivity and quality The human resource function in contemporary organizations Figure 1.3 page 17 DeNisi & Griffin Complying with legal and social obligations Promoting individual growth and development 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Desired Outcomes of HRM
Attraction Retention Job Performance Productivity Employee Safety and Health Attendance Job Satisfaction Competitive Advantage Company Performance These are dimensions along which HR contributes to the attainment of an organization’s goals Therefore, these dimensions can be the basis for judging the effectiveness of the HR program A growing issue for HR in organizations is justifying and promoting their activities, showing the value added by such efforts. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Specific HRM Functions
Human Resource Planning Analyzing Jobs Recruiting Selecting Appraising Training Developing Compensating Benefits Work Environment 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

HRM Planning: Outsourcing Outsourcing: managers can decide to contract with outside workers rather than hiring them. Outsourcing is more flexible for the firm. Outsourcing often provides human capital at a lower cost. Outsource problems: managers lose control over output. Outsource contractors are not committed to the firm. Unions typically are against outsourcing that has potential to eliminate member’s jobs. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

HRM Planning: Job Analysis Job analysis determines the tasks, duties and responsibilities of the job. A job analysis should be done for each job in the organization. Job analysis can be done by: Observe current workers. Questionnaires filled out by worker and managers. Current trends are toward flexible jobs where duties are not easily defined in advance. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Human Resources The Strategic Business Partner! HRM Components Component should be consistent with the others, organization structure, and strategy. Recruitment: develop a pool of qualified applicants The Topic that we are covering in are presentation is feasibility of manpower resource, which is known as HR management in today’s corporate world. Feasibility Study focusing manpower: Feasibility Study focusing manpower A feasibility study phase provides the analyst with a more thorough understanding of the problems, opportunities related to personnel’s . A feasibility study should be conducted to determine the viability of an idea before proceeding with the development of HUMAN RESOURCE . Objective of feasibility study in HR: To increase the benefit and lessen the cost 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Economic feasibility As the world denotes that the economic feasibility means more benefit at less expenditure . So every organization must keep in mind while recruitments of the personnel’s that more people should not be employed than required as it can raise the cost. Motivational feasibility Motivation plays a vital role in overall improvement in terms of efficiency of personnel’s. As through motivation more and more work with grater efficiency can be taken away from employees Different ways of motivations are: → Performance appraisals → Training and development → Improving working condition as par their health and security. → Incentives and perks etc. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Operational feasibility Before switching to new technology, it mainly examines whether the employees at work are comfortable with organizational frame work.. Are the Requirements, specifications and design clearly explained to the employees, so that they conduct their operations successfully. Political feasibility It is perhaps the most power full type of feasibility. As every political system is biased. Because government issues, new polices which can effect the moral of the personnel’s at a larger extent. Hence these are the different types of feasibility having different effects on the conduct of personnel’s. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

What Next? After the feasibility study has been completed, a Feasibility Report is prepared covering following aspects. Basic information about the personnel’s The expectations as regards development schedule and manpower resources Highlighting the requirements of personnel’s. A gist of Technical, economical, Operational, motivational and political feasibility assessment. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

SYSTEM ANALYSIS The analysis of the system is the basic necessity for an efficient system design.The need for analysis stems from the following points: To redefine or reset the objectives as a reference point in context of the current business requirement. To establish the system boundaries that define the scope and coverage of the system. SYSTEM ANALYSIS STAGES The different stages as followed in the system analysis of the HR management information system are : ORGANISATIONAL ANALYSIS A Human Resources Information System, is a system that lets you keep track of all your employees and information about them . An analysis of the existing information system is necessary to propose new HRIS. CURRENT SITUATION ANALYSIS Here we analyze a company’s competitive situation, develops its strategic goals and mission, it’s external opportunities and threats, and its internal strength and weaknesses to generate alternatives. Also a plan of actions and deployment of resources is determined to achieve the pre-specified goals. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

FUNCTION OF Human Resources Management

Recruitment 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

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. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

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) 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Recruitment Recruitment External recruiting: Managers look outside the firm for people who have not worked at the firm before. Managers advertise in newspapers, hold open houses, recruit at universities, and on the Internet. External recruitment is difficult since many new jobs have specific skill needs. A multi-prong approach to external recruiting works best. Internal Recruiting: positions filled within the firm. Internal recruiting has several benefits: Workers know the firm’s culture, may not have new ideas. Managers likely already know the candidates. Internal advancement can motivate employees. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Selection 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Selection Selection: determine relative qualifications & potential for a job. Training & Development: ongoing process to develop worker’s abilities and skills. Performance appraisal & feedback: provides information about how to train, motivate, and reward workers. Managers can evaluate and then give feedback to enhance worker performance. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Selection The process of assessing candidates and appointing a post holder Applicants short listed – most suitable candidates selected Selection process – varies according to organisation: 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

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 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Selection Selection Process Paper & Pencil Tests:
Either an ability and personality test. Ability test: assess if applicant has right skills for the job. Personality test: seek traits relevant to job performance. Be sure test is a good predictor of job performance. Performance Tests: measure job performance. Typing speed test is one example. Assessment Center: candidates assessed on job-related activities over a period of a few days. References: outside people provide candid information about candidate. Can be hard to get accurate information. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Selection Process Selection Process After a pool of applicants are identified, qualifications related to the job requirements are determined: Background Information: includes education, prior employment, college major, etc. Interview: almost all firms use one of two types: Structured interview: managers ask each person the same job-related questions. Unstructured interview: held like a normal conversation. Usually structured interviews preferred; bias is possible. Physical Ability Test: measure strength & endurance. Good for physically demanding jobs. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Employment Legislation

Employment Legislation
Increasingly important aspect of the HRM role Wide range of areas for attention Adds to the cost of the business Even in a small business, the legislation relating to employees is important – chemicals used in a hairdressing salon for example have to be carefully stored and handled to protect employees. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Discrimination Crucial aspects of employment legislation: Race Gender
Disability Disability is no longer an issue for employers to ignore, they must take reasonable steps to accommodate and recruit disabled workers. Copyright: Mela, 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Discipline 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

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 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Development 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

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 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Training 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

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’ 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Types of Training Training Development Apprentice
Ships On-the-job Training On-the-job Training Needs Assessment : Types of Training Classroom Instruction: workers acquire skills in classroom. Includes use of videos, role-playing, simulations. On-the-Job Training: learning occurs in the work setting as worker does the job. Training given by co-workers and can be done continuously. Apprenticeships: worker contracts with a master worker to learn a skill. Types of Development Varied Work Experiences: Top managers must build expertise in many areas. Workers identified as possible top managers given many different tasks. Formal Education: tuition reimbursement is common for managers taking classes for MBA or similar. Long-distance learning can also be used to reduce travel. Whatever training and development efforts used, results must be transferred to the workplace. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Training & Development Training
Reliability & Validity Selection tools must be reliable and valid. Reliability: the degree to which the tool measures the same thing each time it is used. Scores should be close for the same person taking the same test over time. Validity: Does the test measure what it is supposed to measure? Example: does a physical ability test really predict the job performance of a firefighter? Managers have an ethical and legal duty to develop good selection tools. Training & Development Training: teach organizational members how to perform current jobs. Help worker’s acquire skills to perform effectively. Development: build worker’s skills to enable them to take on new duties. Training used more often at lower levels of firm, development is common with managers. A Needs Assessment should be taken first to determine who needs which program and what topics should be stressed. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Rewards Systems 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

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. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

HRM Components Pay and Benefits:
High performing employees should be rewarded with raises, bonuses. Increased pay provides additional incentive. Benefits, such as health insurance, reward membership in firm. Labor relations: managers need an effective relationship with labor unions that represent workers. Unions help establish pay, and working conditions. If management moves to a decentralized structure, HRM should be adjusted as well. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Pay and Benefits Pay level
How the firm’s pay incentives compare to other firms in the industry. Managers can decide to offer low or high relative wages. Pay Structure: clusters jobs into categories based on importance, skills, and other issues. Benefits: Some are required (social security, workers comp). Others (health insurance, day care, and others) are provided at the employers option. Cafeteria-style plan: employee can choose the best mix of benefits for them. Can be hard to manage. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Trade Unions 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Trade Unions 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 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Unions Unions Unions Unions represent worker’s interests in organizations. Managers usually have more power over an individual worker. Workers join together in unions to try and prevent this. Unions are permitted by the National Labor Relations Act (1935) which also created the NLRB to oversee unions. Not all workers want unions. Union membership costs money in dues and a worker might not want to strike. Union membership is lower today than 40 years ago. Collective bargaining: process unions and management go through to negotiate work agreements. Results in a contract spelling out agreed terms. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Labor Relations Considers all activities managers perform to ensure there is a good relationship with labor unions. There are laws regulating some areas of employment. Fair Labor Standards Act (1938) prohibits child labor, sets a minimum wage and maximum working hours. Equal Pay Act (1963) men and women doing equal work will get equal pay. Work Place Safety (1970) OSHA mandates procedures for safe working conditions 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Productivity 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Who Appraises Performance?
Self: self appraisals can supplement manager view. Peer appraisal: coworker provides appraisal; common in team settings. 360 Degree: provides appraisal from a variety of people able to evaluate a manager: Peers, customers, superiors, self. Need to be alert to bias from some evaluators. Effective feedback: appraisals must provide feedback: Formal appraisals: conducted at set times of the year Provides valuable, but infrequent feedback. Informal appraisals: manager provides frequent feedback informally. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Performance Appraisal & Feedback Trait Appraisals:
Evaluate on traits (skills, abilities) related to the job. Problem: Even though a worker has the trait, they may not use it in the job and it is hard to give feedback. Behavior Appraisals: how a worker does the job. Focuses on what a worker does and provides good feedback options. Results appraisals: what a worker accomplishes. Sales reps are usually evaluated on what they sell. Objective appraisals: based on facts (sales figures) Subjective appraisals: based on a manager’s perceptions of traits, behavior, or results. Many rating scales used to overcome subjective problems. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

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 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

STRATEGIES FOR HR REQUIREMENT DETERMINATION
The methods for forecasting and planning HR needs are : INTERVIEW … A face to face method for collecting data. It may be formal or informal, questions asked may be structured or unstructured. Success of an interview depends on the skill of the interviewer and on his or her preparation for the interview. QUESTIONAIRE … A structured questionnaire can be used to collect data. The questionnaire is pre-tested, modified, and used to capture data on a cross-section of HRIS users. There are four parts to the questionnaire: profiles of organizations; application of HRIS; perceptions of the barriers to the implementation of HRIS and perceptions of the benefits achievable through HRIS; and profiles of the respondents. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

Effective Feedback: 1. Be specific and focus on correctable behavior. Provide a suggested improvement. 2. Focus on problem-solving and improvement, not criticism. 3. Express confidence in worker’s ability to improve. 4. Use formal and informal feedback. 5. Treat subordinates with respect and praise achievements. 6. Set a timetable for agreed changes. 4/21/2017 Yrd. Doç. Dr.İbrahim İnan

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