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1)HR Planning and Analysis (PLANNING)
2)Equal Employment Opportunity (OPPORTUNITY)
3)Staffing ( STAFFING)
4)HR Development (DEVELOPMENT)
5)Compensation and Benefits ( COMPENSATION)
6)Health, Safety, and Security ( SAFETY)
7)Employee and Labor/Management Relations ( RELATION)
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1.Economic and Technological Changes
2.Occupational shift-Shift in jobs for manufacturing and agriculture to service industries and telecommunications. The anticipated increase in jobs is due to the rapid growth of information technology such as databases, system design and analysis, and desktop publishing while the growth in health care jobs is due to demand of an aging population.
3.Workforce availability and quality concern - Pressures of global competition causing firms to adapt by lowering costs and increasing productivity.
4.Growth of information technology (Internet)- technology allow people to work from home, at night and weekend. Need to develop a human resource policies regarding electronic sexual harassment and appropriate internet usage
5.Globalization Of Business – many giant corporation operates from outside of their home country. All the total sales and profit gain from outside United States. Global security and terrorism-Firm around the world have to had to develop terror response and security plans.
6.Growth in Contingent Workforce
7.Increases in temporary workers, independent contractors, leased employees, and part-timers caused by:
8.Need for flexibility in staffing levels which doesn’t need to employ a huge amount of permanent employees. This method is more dependent and will increase the productivity of organization
9.Increased difficulty in firing regular employees.
10.Reduced legal liability from contract employees
11.Demographics and Diversity Issue
12.More diversity of race, gender, age, and ethnicity in the world job market. Global events since 2001 have increased employers attention to individual who are Muslim, and more awareness and accommodation for Islamic religious belief and practices have become common concern.
13.Balancing Work and Family
14.Dual-career couples where both parent is working in daily basis.
15.Single-parent households where only mom or dad only raised the children because of divorce or death of spouse.
16.Decline in the “traditional family”
17.Working mothers and family/childcare
18 .Single employee “backlash” against family-oriented programs.
19.Organizational Restructuring, Mergers, and Acquisitions
20.“Right-sizing”—eliminating of layers of management, closing facilities, merging with other organizations, and out placing workers 21. Intended results are flatter organizations, increases in productivity, quality, service and lower costs.
22. Costs are survivor mentality, loss of employee loyalty, and turnover of valuable employees.
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Internal recruitment is filling vacancies with employees currently employed by an organization and also known as recruitment from within.
Internal sources is
•Organizational database (computerized record system)
•Job posting System
•Promotion and transfer within the company
•Current employee referrals and
•Recruiting former employees
External recruitment is recruiting and finds potential candidates from outside the organization
External recruitment sources include
- College and University Recruiting
- High Schools and Technical Schools
- Labor Unions
- Employment Agencies and Search Firms
- Competitive Sources
- Media Sources and Job Fairs (advertising)
- internet recruitment
To new employees
a)To reduce anxiety because of
a.New situation- providing with organizational and job information, the more change and uncertainties the employee will have to cope up with.
b.Problem to entering in a group- new employee often worry about whether they will be accepted by other group members in the new places.
c.Unrealistic expectation- New employees often have unrealistically high expectation about the advantages of their new jobs and often shocked at the reality of getting less than they bargained for.
d.Surprise/ nervousness- Surprise may occur when expectations about one self are unmet, or when the features of the job such as the need to work late hour are unanticipated.
b)Could have realistic job expectation after getting the briefing and information from the supervisor and management.
To The Employer
a)To facilitate socialization and internalization between new and old employees ( the process which new member gain exposure to its values and norms, its policies and procedure and behavior expected from new people), good communication between old and new employees will increase effectiveness in company management and also will help to enhance the organization.
b)Establish a favorable employee impression of the organization and the job.So the new employees will have better understanding and motivational factor to work with the organization.
c)To reduce turn over - if employees perceive themselves as ineffective , they may react to these feeling by quitting, due to this effective orientation can reduce this costly reaction.
d)To save time- improper oriented employees must still get the job done, and to do so they need help .The most likely people to provide help is co worker or supervisor , so a good orientation program can save every one time
Identifying strength and weakness- Many workers do not always know where and how to improve .with the performance appraisal the employees will improve the performance that found lack in this process
Identifying areas for growth – performance appraisal will show the strength of employees and could help to focuses on the field that he or she has an advantage to the company. For example if the result found that the problem with a employees is lack of working knowledge in accounting prevent him/her to considered for a management job, then the manager could suggest the employees to take a accounting course.
Development Planning- performance appraisal would give an idea where the training may be beneficial for the future development to the employees.
Career planning- the result will give a clear indication to the employee about its career planning and what the step to be taken
As a primary source of information and feed back for employee- it also will help to reinforce satisfactory employee performance and to address performance defiencies.Positive reinforcement for desired behavior contribute to both individual and organizational development.
RATER ERROR
1.Varying standard/shifting standard- when appraising employees, a manager should avoid applying different standard and expectation for employees performing similar jobs.
2.Recency effect- Occurs when a rater gives greater weight to recent events when appraising an individual performance
3.Primary Effect- Occurs when a rater gives greater weight to information received first when appraising an individual performance
4.Central Tendency errors- Occurs when a rater gives all employees a score within a narrow range in the middle of the scale
5.Leniency errors - Occurs when a rater gives all employees a score high on the scale
6.Strictness errors- Occurs when a rater gives all employees a score low on the scale
7.Rater Bias- Occur when a raters value or prejudice distort the rating
8.Halo and Horn effect - Occurs when rater scores an employee high on all job criteria because of performance in one area.
9.Contrast Error- Tendency to rate people relative to other, rather than against performance standards.
10.Similar to me / Different from me error - raters is influenced by the type of qualification of the employees based on similarity with the rater.
11.Sampling Errors - occurs when rater took only the small percentage of work by employees to be rated instead of all work done by the employees.
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variable plan
1)Develop clear, understandable plan that are continually communicated.
2)Use realistic performance measures
3)Keep the plan currents and linked to organizational objectives.
4)The financial incentive provided by the company must be linked to a valued behavior
5)The incentive plan must be fair one
6)The quality or performance standard set by the company for the incentive plan must be challenging and achievable
7)The payment made must simple and understandable by the employees.
8)Identify variable pay incentives separately from base pay
Base Pay-Is the basic monetary compensation that an employee receives, usually as a wage or salary.
Wages- Payments calculated on the amount of time worked.
Salaries- Consistent payments made each period regardless of the number of hours worked in the period.
Variable Pay- Compensation linked to individual, team, or organizational performance.Traditionally known as incentive; variable pay plans to attempt to provide tangible rewards to employees for performances beyond normal expectation.
1)May be less expensive to outsource training- some areas where internal training resource are limited .Instead to provide the training material in house which is more expensive and time consuming ,the the organization could use external consultant to conduct a training for the employees on their consultant specific expertise field.
2)Insufficient time to develop training- usually the training material on the organization is not sufficient enough to cover the training process, the effort to combine and collecting all training material could take a longer time and will drag to training process and delaying the work on the organization. With a consideration of work load and skill required by the workers the training should be conducted by external consultant which have better training material.
3)Lack of expertise- Sometimes the Training Department only specialized in certain field and for training purpose, they don’t have capabilities to train the employees at other field and need external consultant to train the employees.
4)Advantages of interacting with outsiders- There are an advantage to having employees interact with manager and peers in other companies in training program held externally
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1.Executive Base Salaries
A base salary is given to the executive on a Consistent payment made each period regardless of the number of hours worked in the period. This salary is differing to other organization according to their salary system. Survey data on executive salary are often reviewed by Boards of Director to ensure that their organization is competitive
Example: The management executive at EXXON MOBILE will have monthly basic salary at US 5000.00
2.Regular benefits which available with other non executive employees
Example: Traditional retirement, Health Insurance, and Vacation Plans
3.Supplemental benefits which non executive employees not receive
Example: Executives health plan with no co-payment and with no limitation on deductible or with physician choice. The other include the Corporate –owned insurance on the life of executive.
4.Executives Perks ( perquisites)
Perquisites usually non-cash items for executive like using company car, using company transportation, provide car allowances, giving free financial planning, stress counseling, health club, first class air traveling and many more.
5.Annual bonuses and incentive
It can be determined in several ways. First is using the a discretionary system whereby the CEO and the Board Of Director decide bonuses. Second way is to specific measure such a return on Investment, earning per share, and net profit before taxes.
6.Performance incentive ( short term-long term)
The use is to tie executive compensation to long term growth and success of the organization. Short term reward based on quarterly or annual performance.
Example of long term incentive: Stock Option Plans. A stock option gives individual the right to buy stock in a company, usually at an advantageous price.
1.Moral – managers undertake accident prevention on purely humane grounds. The objective is to minimize the pain & suffering of the injured worker & his family as the result of an accident
2.Legal – today, there are federal, state & municipal laws covering occupational safety & health & penalties for non-compliance have become quite severe. organizations are subject to fines & supervisors can received jail sentences if sound responsible for fatal accidents
3.Economic – the cost to the company of small accident can be quite high. Workers compensation insurance simply compensates the injured worker. Among these are payments for settlements of injury or death claims, legal fees for defence against claims, cost of rescue operation, increased insurance costs & others.
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HR
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Trade Union
1.Working environment – inadequate staffing, mandatory overtime and poor working conditions
2.Compensation – non-competitive pay, inadequate benefits and inequitable pay raises
3.Management style – arbitrary management decision making, use of fear and intimidation and lack of recognition
4.Employee treatment – job insecurity, unfair discipline and policies, lack of response to complaints and harassment and abusive treatment.
1.Preparation and initial demands – both labor and management representatives spend much time preparing for negotiations. Employer and industry data concerning wages, benefits, working conditions, management and union rights, productivity and absenteeism are gathered.
2.Negotiations – after taking initial positions, each side attempts to determine what the other side values highly so that the best bargain can be struck.
3.Settlement and contract agreement – the bargaining parties usually return to their respective constituencies to determine if the informal agreement is acceptable.
4.Bargaining impasse – regardless of the structure of the bargaining process, labor and management do not always reach agreement on the issues. If they reach an impasse, then the disputes can be taken to conciliation, mediation or arbitration.
5.Strikes and lockouts – if a deadlock cannot be resolved, then an employer may revert to a lockout-or a union may revert to a strike. During the strike, union members refuse to work in order to put pressure on an employer.
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1.Security benefits – these benefits include some mandated by laws and others offered by employers voluntarily. The primary benefits found in most organizations include workers compensation, unemployment compensation and severance pay.
2.Retirement benefits – the aging of the workforce in many countries is affecting retirement planning for individuals and retirement plan costs for employers and governments. Many pension plans include provisions for early retirement to give workers voluntary opportunities to leave their jobs. Some employers choose to offer their retirees benefits which may be paid for by the retirees the company or both.
3.Health-care benefits – employers provide a variety of health-care and medical benefits, usually through insurance coverage. The most common plans cover medical, dental, prescription drug, and vision care expenses for employees and their dependents.
4.Financial benefits – employers may offer workers a wide range of special benefits that provide financial support to employees: financial services; relocation assistance, insurance benefits, educational assistance and others
5.Time-off benefits – time-off benefits represent an estimated 5%-13% of total compensation. Employers give employees paid time off in a variety of circumstances
1.Job rotation – involves providing management trainees with a series of job assignments in various functional areas of the company or movement among jobs in a single functional area or department.
2.Action learning – team training approach where management trainees are allowed to work full time and analyzing and solving problems in other departments.
3.Coaching/understudy approach – the trainee works directly with a coach (peer to manager) who will motivate him, help him develop skills and provide reinforcement and feedback.
4.Inside seminars – for develop and motivated the employee.
5.Committee assignment – assigning promising employees to important committees may broaden their experiences and help them understand the personalities, issues and processes governing the organization.
1.Ability tests – cognitive ability tests measure an individual’s thinking, memory, reasoning, verbal and mathematical abilities. Tests such as these can be used to determine applicants basic knowledge of terminology and concepts, word fluency, spatial orientation, comprehension and retention span, general and mental ability and conceptual reasoning. Physical ability tests measure an individual’s abilities such as strength, endurance and muscular movement.
2.Personality tests – personality is a unique blend of individual characteristics that affect interaction with a person’s environment and help define a person. They are big five personality characteristics ; 1) conscientiousness , 2) agreeableness, 3) extroversion, 4) emotional stability and 5) openness to experience
3.Honesty/integrity tests – honesty/integrity tests may be valid as broad screening devices for organizations if used properly. However, it is important that the tests be chosen, used and evaluated in ways that ensure that they are and remain valid and reliable
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HR
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information
1.Questionnaires – the questionnaire is a widely used method of gathering data on jobs. The questionnaire method offers a major advantage in that information on a large number of jobs can be collected inexpensively in a relatively short period of time
2.Interviews – the interview method of gathering information requires a manager or an HR specialist to visit each job site and talk with the employees performing each job. A standardized form is used most often to record the information. Frequently, both the employee and the employee’s supervisor must be interviewed to obtain a complete understanding of the job.
3.Observation – with the observation method, a manager, job analyst or industrial engineer observes the individual performing the job and takes notes to describe the tasks and duties performed. One types of observation, work sampling, does not require attention to each detailed action throughout an entire work cycle.
4.Logs/diaries – another method requires employees to observe their own performances by keeping a diary/log of their job duties, noting how frequently those duties are performed and the time required for each one.
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separate HR
1.Coordinates career plans and employee development efforts
2.Prepares skill-training materials
3.Coordinates training efforts
4.Provides input and expertise for organizational development
5.Conduct and monitor continuing on the job training
1.The employee discusses the grievance with the union steward and the supervisor
2.The union steward discusses the grievance with the supervisor’s manager and/or the HR manager.
3.A committee of union officers discusses the grievance with appropriate company managers.
4.The representative of the national union discusses the grievance with designated company executives or the corporate industrial relations officer.
5.If the grievance is not solved at this stage, it goes to arbitration. An impartial third party may ultimately dispose the grievance.
1.Preparation and initial demands – both labor and management representatives spend much time preparing for negotiations. Employer and industry data concerning wages, benefits, working conditions, management and union rights, productivity and absenteeism are gathered.
2.Continuing negotiations – after taking in initial positions, each side attempts to determine what the other side values highly so that the best bargain can be struck.
3.Settlement and contract agreement – after reaching an initial agreement, the bargaining parties usually return to their respective constituencies to determine if the informal agreement is acceptable.
4.Bargaining impasse – regardless of the structure of the bargaining process, labor and management do not always reach agreement on the issues. If they reach an impasse, then the disputes can be taken to conciliation, mediation or arbitration.
5.Strikes and lockouts – if a deadlock cannot be resolved, then an employer may revert to a lockout-or a union may revert to a strike. During a strike, union members refuse to work in order to put pressure on an employer.
Advantage of market-pricing
- The primary advantage cited for use of market pricing is that it closely ties organizational pay levels to what is actually occurring in the market, without being distorted by “internal” job evaluation. An additional advantage of market pricing is that it allows an employer to communicate to employees that the compensation system is truly “market linked” rather than sometimes being distorted by internal issues.
Disadvantages of market pricing
- The foremost disadvantage of market pricing is that it relies on accurate and appropriate market survey data, yet for numerous jobs, pay survey data is limited or may not be gathered in method-ologically sound ways. The scope of market data is another concern. Some employers who are labor market “competitors” may not participate in surveys, and the absence of their data can distort the market values used. Finally, tying pay levels to market data can lead to wide fluctuations based on market conditions.
1.Training focus on learn specific behaviours and actions, demonstrate techniques and processes, but development is understand information concepts and context, develop judgement and expand capacities for assignment
2.Training is for the short term time frame but development is longer term
3.Effectiveness measures for training is performance appraisals, cost-benefit analysis, passing test and certification , for development is a availability of qualified people when needed, possibility of promotion from within, HR-based competitive advantage
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Entitlement philosophy – assumes that individuals who have worked another year entitled to pay increases, with little regard for performance differences
Performance philosophy – requires that compensation changes reflect individual performance differences
Differentiate between entitlement and performance:
1. Entitlement depend on seniority basis and performance, no raises for length of service
2. Entitlement across-the-board raises and performance, no raises for longer-service poor performers
3. Entitlement, pay scales raised annually but performance, market-adjusted pay structures
4. Entitlement, industry comparisons of compensation only but performance, broader industry comparison
5. Entitlement ,”santa claus” bonuses but performance, bonuses tied to performance results
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1. Managers act is their traditional role of judge rather then set performance goals together and then evaluate subordinate progress toward the set goals
2. Shifting standards – some managers rate each subordinate by different standards and expectations.
3. Rater bias – personal bias regarding sex, race, color, religion, style of clothing or political viewpoint can distort ratings
4. The halo effect – there is tendency for managers to rate subordinates high or low on all performance measures based on one of their characteristics.
5. Different rater patterns – managers differ in their rating styles. Some managers rate harshly others easily.
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1. Graphic rating scale (GRS) method
- GRS method is the most popular technique for appraising performance. This technique requires the rater to list a number of traits and a range of performance value for each traits.
2. Ranking method
- In this method, the employees are ranked from best to worst on a particular traits and then rank them from highest to the lowest.
3. Paired comparison method
- In this method for every trait, every subordinate is paired with and compared ‘to every other’ subordinate to indicate who is the better employee of the pair
4. Critical incident method
- This method requires the supervisor to keep a log book of each subordinate’s work-related behaviour. The supervisor and subordinate then meet periodically, and discuss the latter’s performance using the specific incidents as examples.
5. Narrative from
- The rater is required to write a brief narrative describing the employee’s performance. The rater is also required to write down critical examples and an improvement plan designed to aid the employee in understanding where his/her performance was good or bad, and for improving that performance
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1. Training focus on learn specific behaviours and actions, demonstrate techniques and processes, but development is understand information concepts and context, develop judgment and expand capacities for assignment
2. Training is for the short term time frame but development is longer term
3. Effectiveness measures for training is performance appraisals, cost-benefit analysis, passing test and certification , for development is a availability of qualified people when needed, possibility of promotion from within, HR-based competitive advantage
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- Career plateau occurs when an employee’s job functions and work content remain the same because of a lack of promotional opportunities within the organization. When this happen, employees find themselves blocked and unable to achieve further advancement. Employee ‘plateauing’ creates problems for both the individual and the organization.
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1. Reaction – organizations evaluate the reaction levels of trainees by conducting interviews with or administering questionnaires to the trainees. Assume that 30 managers attend a two-day workshop on effective interviewing skills. A reaction-level measure could be gathered by having the managers complete a survey that asked them to rate the value of the training, the style of the instructors and the usefulness of the training to them.
2. Learning – learning levels can be evaluated by measuring how well trainees have learned facts, ideas, concepts, theories and attitudes.
3. Behavior – evaluating training at the behavioral level means : (1) measuring the effect of training on job performance through interviews of trainees and their co-workers and (2) observing job performance.
4. Results – employers evaluate results by measuring the effect of training on the achievement of organizational objectives
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1. Organizational analysis determines the appropriateness of training by reflecting their business strategy and objectives, available resources and to get support from the management
2. Person analysis (performance analysis) helps to identify who needs training by determining any performance deficiencies who need training and determining employee readiness for training
3. Task analysis identifies the importance tasks and knowledge, skill and behaviours that need to be emphasized in training.
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1. Halo effect
Making decision or judgment based on the first observation of the applicant and the first few minutes of the interview session
2. Contrast error
A situation when the interviewers are influenced either for or against the prior interviewee with the current one
3. Similar to me error
This is a situation where the interviewers tent to give higher ratings to the candidates that are perceived to be similar to them be it coming from the same university or have the same interests and so forth.
4. Gender bias
This is a situation when decisions made depend on the applicant’s sex or physical attractiveness
5. Misinterpretation or non-verbal cues
Interviewers making the mistake of paying too much attention to the non-verbal behaviour like how the person looks, sits or his/her ability to establish eye contact.
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- From jobs realistic preview, HR can know what the job descriptions required for the certain department. HR can easily to recruit new employee to fulfill the job activities depend on the job descriptions.
Employees-Any information from same level of employee can write down for all activity or job analysis
Supervisors-
Managers-manager can get their information about job analysis from their supervisor level
Job analyst- Data from job description of employee and job specification.
1. Globalization
Globalization is the trend toward opening up foreign markets to international trade and investment. Business everywhere, in order to grow and prosper are seeking business opportunities in global markets. For example, Toyota, based in japan, is growing its market share and number of jobs in the U.S and North American sales provide 70% of its profits worldwide. Also, Toyota, Honda, Nissan and other Japanese automobile manufacturers, electronics firms and suppliers have established operations in the U.S. the globalization of business has shifted from trade and investment to the integration of global operations, management and strategic alliances which has significantly affected the management of human resources.
Orientation, training and development will become complex too and important.
2. Safety and health
This process caters for organizations to provide a safe and healthy work environment that will comply with specific occupational safety and health standards and to keep records of occupational injuries and illnesses.
3. Employee benefits and compensation
This process aims to provide and to reward employees with equitable pay/remuneration of employees for the contributions they contributed to organizations in achieving their objectives. Effective Human Resource Management will ensure that both internal and external equities to compensation are met.
4. Industrial Relations
This process will focus on maintaining good and harmonious relationships between the management and the employees. The process include handling grievances, disciplinary proceedings, trade unions and collective bargaining process.
5. New technological advances
Computer technology has made organizations to take advantage of the information explosion. It also forced and enabled organizations to become more competitive. It also change the nature of work in organization.
2. Understanding the external and internal forces enable the HR practitioners minimize constraints in performing their tasks and roles.
Comment the statement and justify.
Human resource management is defined as the way employees are recruited, organized, developed, appraised, motivated, and retained.
Through proper planning and effective management of their people, organizations can achieve their goals. There are still many organizations
that get mixed up with human resource management and personnel management. In the latter, most of the tasks carried out are administrative in nature
although related to employee matters. When we talk about human resource management, we are defining employees as resources that we need to manage effectively to get some form of returns.
There are internal and external factor that constraint the practitioner to perform their task.(click to continue )
Do all organizations need a structured HR department? Discuss.
The factors that push the organizational to have structured HR Department is
Ownership of the Company
Philosophy of top management
Size of the company-
Unionization of the work force
Company Objective and necessities
1-Philosophy and company policies - determine whether or not you need to have an employee handbook or other formal policies and procedures manual to cover everything from establishing the company as an at-will employer to benefits. If a handbook already exists, be certain that it is in compliance with federal and state regulations and that the policies and the way they are written are in the best interests of the company. Are all the basic policies included? These can be thought of as grouped into conditions of employment, benefits, and disciplinary processes. Is there a balance between stated corporate and employee rights and obligations?
2- Size of the company- How many employees should a company have before there is a need for an HR Department? As companies grow, there is a need to administer the HR function, but that doesn't necessitate an HR Department. In fact, 30 years experience has shown that until the company has at least 50 employees, that "department" -- really a function -- can consist of or be handled by one person...often much to the dismay of that one person. Between outsourcing such things as payroll and the initial writing of an employee handbook, and with the plethora of software for HR today, one person should be able to develop and administer the function. But in most small companies an Office Manager will take the Human Resource Tasks. When the workers is larger for example more than 50 persons, there is need to have a structured HR Department.
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