HUMAN RESOURCE

MANAGEMENT

Monjurul Alam
Senior Manager, HR Eastern Bank Ltd

Human Resource Management

Human resource management is the function performed in organizations that facilitate the most effective use of people to achieve organization or individual goal.

Competitive Challenges Facing HRM

Globalization

Technology Change management Development of human capital Market responsiveness Cost containment

Emerging Employee Issues in HRM

Diversity of background

Age distribution Gender issues Education levels Employee rights Privacy issues Attitude towards work Family concerns

Evolution of HRM
The Craft System
The

history of HRM can be traced back to England before the Industrial Revolution, where masons, carpenters, leather workers, and other craftsmen organized themselves into guilds. guilds were responsible for supervision of apprentice training, production methods and quality, and working conditions. guilds were the predecessors of trade unions.

The

The

The Industrial Revolution

The

Industrial Revolution in the late 18th Century replaced the time-consuming hand labor with mechanical means of production. the rapid growth of manufacturing industry, emergence of supervisors and managers widened the gap between the workers and owners.

With

Scientific Management
Fredrick

Taylors Scientific Management introduced the concept of division of labor and advocated separate responsibilities for management and workers managements responsibility to plan and workers responsibility to execute.
He

attempted to increase worker efficiency through work methods, time and motion study, and job specialization.

Industrial Psychology
Hugo

Munsterberg applied psychological principles towards increasing the ability of workers for performing effectively and efficiently. maximum well-being of the workers was the focus of industrial psychology.

The

Human Relations Movement

Elton

Mayo and his associates conducted several studies on worker productivity. The studies pointed out the importance of social interaction and work group on output and satisfaction. human relations movement eventually became a branch in the study of Organizational Behavior.

The

Personnel Department
Personnel

Departments emerged in the organizations first time in the 1920s in order to bridge the gap between the management and the workers.
But

early personnel departments were only concerned with the blue-collar workers. These departments were mostly involved in recordkeeping, dealing with union troubles, arranging farewell parties, annual picnic, etc.

Human Resource Management

During

1970s, personnel management gradually evolved into human resource management broadening its scope in the organizations. function was integrated into the organizational goals and strategies. The crucial role of HRM became gradually evident in attaining the strategic and competitive advantage of organizations for survival.

HRM

HRM Today
HRM Model
The

scope of HRM today has been defined by a model developed by ASTD (American Society for Training and Development): Training and development Organization development Organization/Job design Human resource planning Selection and staffing Personnel research and information systems Compensation/Benefit Employee assistance Union/Labor relations

HRM Today
HRM Model
The

model suggests that these nine areas have impacts on three human resources outputs:
Quality of work life Productivity Readiness for change

Environmental Elements of HRM

External Environmental Elements
Government Union Economic conditions Labor force Geographic location

Internal Environmental Elements

Strategy Goals Organizational Nature of task Workgroup Leadership

culture

HR Planning
Definition

The process by which an organization ensures that it has the right number and kinds of people, at the right places, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives. The process by which an organization assesses the future supply of and demand for human resources.

HR Planning Process
Development of Plans for Action

After analyzing the demand for and the supply of future human resources, these two forecasts are compared to determine the courses of action. The discrepancy between the demand and supply forecasts may lead to two situations: Shortage of human resources Surplus of human resources

Development of Plans for Action

Shortage of Human Resources: the options open for an organization in order to fill up the shortage include:

Overtime Recruitment and recall Temporary employment Outsourcing

Development of Plans for Action

Surplus of Human Resources: the options open for an organization to deal with the surplus employees include:

Demotion and transfer Early retirement Layoff and termination Attrition Downsizing

Job Analysis
Job A job is a type of position held by a person within an organization. Job Analysis The process of systematic analysis of a job in order to determine the task, duties, and responsibilities of the job and the knowledge, skills, and abilities required to perform the job. The outputs of a job analysis include: Job description Job specification

Job Description
The list of tasks, duties, and responsibilities of a job.

Task: a task is a distinct work activity carried out for a distinct purpose. Duty: a duty is a number of tasks. Responsibility: an obligation to perform certain tasks.

Job Specification
The list of knowledge, skills, abilities, and other characteristics that an individual must have to perform a job.
Knowledge:

usually of a factual or procedural nature applied directly to the performance of a task.

a demonstrated competence to perform

an organized body of information,

Ability:

an observable behavior or a behavior that results in an observable output.

Job Specification
Skill:

a competence to perform a learned, psychomotor act, and may include a manual, verbal, or mental manipulation of data, people, or things. Characteristics: the personality factors (attitudes), aptitudes, or physical or mental traits needed to perform the job

Other

Job Analysis
Job Analysis Methods
Observation Method Interview Method Questionnaire Method Diary/Logbook Method

Recruitment
What is Recruiting?

The process of searching for and obtaining a pool of qualified candidates to fill up job vacancies. The process begins when an organization seeks potential candidates against job vacancies and ends when the applications are submitted. Recruitment creates a buffer between HR planning and actual selection.

Forms of Recruiting

Internal Recruiting Initial consideration given to the current employees. External Recruiting Consideration given to the outside labor market.

Internal Recruiting

Sources Promotion Transfer and relocation Temporary worker pool Job posting and bidding Skill inventory

Internal Recruiting

Advantages Builds better employee relations. Motivates employees to perform. Encourages ambitious employees. Increases the chances of better selection as information on the performance of candidates are readily available. Less costly than outside recruiting. Easy and faster socialization of selected employees.

Internal Recruiting

Disadvantages Need for strong career development program. Risk of recruiting inferior employees. Political infighting for promotions. Possible de-motivation of those not promoted Lack of varied perspectives. Employee soldiering due to assured internal recruiting.

External Recruiting

Sources Advertisements Employee referrals Employment agencies Campus recruiting Professional societies Walk-in applicants

External Recruiting

Other Sources E-recruiting Job fair Internship Other companies

External Recruiting

Advantages

Brings new and varied perspectives. May bring competitors secrets new insights. Cheaper than training a professional. No political infighting for promotions.

External Recruiting

Disadvantages May not be able to obtain suitable job candidates. De-motivation of internal employees. Longer socialization time. May bring an attitude of we used to do it in this way at XYZ Company.

Selection
What is Selection?

The process by which an organization chooses from applicants the person or persons who best meet/s the selection criteria for the position/s available. The objective of selection process is to choose the individual from the pool of candidates who can successfully perform the job. Job analysis, HR planning and recruitment are necessary prerequisites for the selection process.

Selection Process
The Selection Process
Initial screening Completion of application form Employment test Comprehensive interview Background investigation Physical examination Final employment decision

Compensation System

Objective

of a Compensation System

The primary objective of an organizational compensation system is to establish a structure for the equitable compensation of employees basing on their jobs and their level of performance.

Compensation Determination
Deciding compensation for employees involves three aspects: Determination of pay-structure Determination of pay-level Determination of individual pay

Determination of Pay-structure Determining the relative worth of different jobs within the organization. Involves setting a value on each job within the organization relative to all other jobs. Job evaluation is the approach used.

Determination of Pay-level
Examining pay relative to employees working on similar jobs in other organizations. Also called job-pricing. Objective is to keep the organization competi

tive in the labor market. Ensures external equity. Pay survey is a major tool used in job-pricing.

Determination of Individual Pay Examining pay relative to employees working on the same job within the organization. Ensures internal equity.

What is Job Evaluation?

Job Evaluation

Job evaluation is a systematic process of deter mining the value of each job in relation to other jobs in the organization in order to determine which jobs should be paid more than others.

Job Evaluation Methods Job ranking Job classification Point method Factor comparison

Job Ranking
Job ranking involves arranging all jobs in an organization in a simple rank order from the simplest to the most difficult. Qualitative in nature. This method is suitable for small and simple organizations having less number of jobs. But not suitable for big and complex organizations having a large number of jobs. Subjectivity and lack of definite or consistent standard is another limitation.

Job Classification
Job classification is the process grouping jobs into different grades or classes on the basis of differences in skills, duties, responsibilities, knowledge, working conditions and other jobrelated factors. Then those grades of jobs are ranked by levels of difficulty or sophistication. Qualitative in nature. This method is quick, simple, and cheap. It is also easy to understand and communicate. But it may lead to inappropriate grouping of some jobs and consequent feeling of inequity.

Point Method
Point method involves breaking down jobs on the basis of certain identifiable criteria (such as skill, effort, responsibilities, etc) and then allocating points or weights to each of these criteria as per their importance. The points of each job are then added and jobs with similar point-totals are placed in similar pay grades. Quantitative in nature. This method is the most consistent one with least rating errors. But it is complex, costly and time-consuming.

Factor Comparison Method

This method involves identifying certain key jobs in the organization and then comparing them by using a universal five-factor (that is, skills, responsibilities, physical effort, mental effort, and working conditions) scale. A base rate is decided for each of the key jobs which is then allocated among the five criteria. Quantitative in nature. It is a step-by-step systematic method which can be tailored to meet specific needs of each organization. But this method is also complex, costly and time-consuming.

Employee Benefits

What are Employee Benefits?

These

are indirect and membership-based rewards offered by an organization to attract and retain employees. programs do not directly affect the performance of employees but inadequate benefits lead to employee dissatisfaction.

Benefits

Objectives of Benefits Program

Improve employee work satisfaction. Meet employee health and security

requirements. Attract and motivate employees. Reduce employee turnover. Remain competitive in labour market.

Types of Employee Benefits

Legally Required Benefits Social security Unemployment insurance Workers compensation insurance Unpaid leave of absence Discretionary Benefits Health care benefits Paid time off Supplemental unemployment benefits Life and long-term care insurance Retirements and pensions

What are Compensation Surveys? Techniques and instruments used to collect data about compensation paid to employees in: a geographic area an industry an occupational group Obtaining valid and reliable information on the external wage rates is critical to creating a competitive compensation structure.

Sources of Surveys

Pay surveys are conducted by: Professional and consulting agencies Trade associations Business journals Trade unions Government agencies Companies themselves

Performance Appraisal System

Performance Appraisal Process
A

formal process in an organization whereby each employee is evaluated to determine how he or she is performing. process of evaluating employees on: Employee productivity: measured in terms of efficiency and effectiveness. Employee-created disruptions: measured in terms of accidents, absences, and tardiness.

The

Purposes of Performance Appraisal

Strategic

Strategic and HR planning. Evaluating goal achievement. Deciding compensation and rewards. Deciding promotion, transfer, and lay-off. Meeting legal requirements. Validating selection test criteria.

Administrative

Developmental

Providing performance feedback. Setting high performance goals. Designing performance improvement programs.

Steps in Performance Appraisal Process

Establish performance standards. Set policies on who evaluates, when, and how often. Communicate performance expectations to employees. Gather employee performance data and measure actual performance. Compare actual performance with standards. Discuss the appraisal with employees. Initiate corrective actions, if necessary.

Orientation
What is Orientation?

The process of familiarizing new employees with the organization, their work units, and their jobs. The process of socialization by which new employees get acquainted with the organizational rules and regulations, norms, values, work procedures, and patterns of behavior.

Levels of Orientation

Organizational Orientation A general orientation that presents topics of relevance and interest to all employees. Departmental and Job Orientation An orientation that includes issues unique to the new employees specific department and job.

Training
What is Training?

The systematic process of altering the behavior of employees in a direction that will enable them to perform their jobs and achieve organizational goals. A formal training program is an effort by the organization to impart job-related knowledge, skills, and behaviors to the employees. Training is related to the performance of current job and Development is related to the performance of future job.

Phases of Training
Conducting the needs assessment Designing the training program Implementing the training program Evaluating the training program

Needs Assessment

The needs assessment phase attempts to determine: Why training is needed What kind of training is needed Where it is needed Who need it When and how long they need it Needs assessment involves: Organization analysis Task analysis Person analysis

Needs Assessment

Organization analysis: an examination of organizational environment, strategies, and resources to determine where the training emphasis should be placed. Task analysis: a review of job description and specification to determine the training areas. Person analysis: the determination of the specific individuals who need training.

Training
Program Design

Once the training needs have been determined, the next step is to design the type of learning environment necessary to enhance learning. Training design should focus on: Instructional objectives Trainee readiness and motivation Principles of learning Characteristics of instructors

Program Design

Instructional objectives: desired outcomes of a training program, which include: knowledge and skills to be acquired attitudes to be developed Trainee readiness and motivation Trainee readiness: refers to the knowledge and experience of the trainees necessary to absorb training to be conducted. Trainee motivation: for optimum learning, trainees must feel the necessity of training and have a constant desire to learn.

Program Design

Principles of learning: following principles of learning should be kept in mind while designing a training program: Goal setting Meaningfulness of presentation Modeling Individual differences Active practice and repetition Whole-versus-part learning Massed-versus-distributed learning Feedback and knowledge of progress Rewards and reinforcement

Program Design

Characteristics of instructors: following is a list of desirable traits of an instructor: Knowledge of subject Adaptability Sincerity Sense of humor Interest Clear instructions Individual assistance Enthusiasm

Program Implementation

Training Methods On-the-job training Apprenticeship training Vestibule training Off-the-job training

Program Implementation

On-the-job training: training that shows the employee how to perform the job and allows him or her to do it with the instructions of a supervisor or trainer. Job rotation is an example. Apprenticeship training: A comprehensive training that combines the theoretical and practical aspects of the work required in a highly skilled occupation. It is a combination of on-the-job and off-the-job training.

Program Implementation

Vestibule training: in this kind of training, the trainee learns the job in an environment that simulates the real working environment as closely as possible. Off-the-training: beyond apprenticeship, vestibule training, and on-the-job training, all other training is off-the job training, whether it is conducted in the organization classrooms, vocational schools, or elsewhere.

Program Evaluation

Conducting an evaluation of training program is essential for determining its effectiveness. The evaluation should involve determining: Reaction: how much did the trainees like the program? Learning: what principles, facts, and concepts were learned ? Behavior: did the job behavior of the trainee change due to training? Result: what was the result of the program in terms of factors such as reduced cost or reduced turnover?

 Organizational

Reward System
Rewards and Employee

Motivation

Employee

recognition is not just a nice thing to do for people. Employee recognition is a communication tool that reinforces and rewards the most important outcomes people create for your business. When you recognize people effectively, you reinforce, with your chosen means of recognition, the actions and behaviors you most want to see people repeat. An effective employee recognition system is simple, immediate, and powerfully reinforcing.

Classification of Rewards

Extrinsic Vs. Intrinsic Rewards

Extrinsic Rewards: are external to the job

and come from an outside source. Money Promotion Fringe benefits some-one gets from the job itself. Pride in the job Feeling of accomplishment Belongingness

Intrinsic Rewards: are the satisfactions

Classification of Rewards
Financial

Vs. Non-financial Rewards

Financial Rewards: are the rewards that

enhance employees financial well-being. Direct Financial Rewards Wages Bonuses Profit-sharing Indirect Financial Rewards Pension plans Paid vacations Paid sick leaves Purchase discounts

 Non-financial Rewards: are the rewards

that make the life on the job more attractive.

Impressive job title Desired work assignment Decorated office Reserved parking space Own secretary

Classification of Rewards

Performance-based Vs. Membership-based Rewards

Performance-based Rewards:

Commissions Piecework pay plans Incentives Group bonuses Merit pay plans

Membership-based Rewards:

Benefits and services Insurance plans Profit-sharing Seniority

Characteristics of Effective Rewards

Adequate Cost-effective Equitable Balanced Flexible Visible Acceptable to the employee Secure Incentive-providing

Industrial Relations

What is Industrial/Labour Relations?

The continuous relationship between a defined group of employees and management. The relationship includes: The negotiation of a written contract concerning pay, hours, and other terms and conditions of employment. The interpretation and administration of this contract over its period of coverage.

Types of Industrial Relations Organizations

Craft Unions: unions that represent skilled craft workers. Labour/Trade Unions: unions that represent all workersskilled, semi-skilled, and unskilled employed along industry lines. Employees Associations: organizations that represent various groups of professional and white-collar employees in establishments or industries. Employers Associations: organizations that represent all employers in industries.

What is a Trade Union?

A union is an organization of workers, acting collectively, seeking to promote and protect its mutual interests through collective bargaining. Employees generally join trade unions to satisfy needs that are important to them including: Socialization and group membership Communication link to management Fair compensation Greater job security Safe and healthy working conditions

Why Employees Join Unions?

Formation of Trade Union

All workers in an establishment have the right to form trade unions under the provisions of IRO 1969. But no worker is allowed to become the member of more than one trade union. A trade union must be registered. But a trade union must have a minimum membership of 30 percent of the total number of workers employed in the establishment to qualify for registration.

Formation of Trade Union

The registration of a trade union involves an elaborate, formal procedure. A duly registered trade union is issued with a certificate of registration by the Registrar. A registered trade union is a body corporate with a separate legal entity. Any two or more registered trade unions may form a federation of unions and register it under the provisions of IRO 1969.

Collective Bargaining

What is Collective Bargaining?

Process by which the representatives of the employer meet and attempt to work out a contract with the representative organization of employees called the Collective Bargaining Agent (CBA). Collective Bargaining Agent: means the trade union of workers in relation to an establishment or industry which is the agent of the workers in the establishment or industry in the matter of collective bargaining.

Collective Bargaining Agent

If an establishment has only one registered trade union with its members not less than onethird of the total worker employed in the establishment that trade union will work as the CBA. But if an establishment has more than one registered trade unions one of them will be elected as CBA for a 2-year term through a secret ballot arranged by the Registrar.

Settlement of Industrial Dispute

Industrial dispute: any dispute or difference between two parties (such as the employer and the workers) in regard to wages, working hours, working conditions, or other terms and conditions of employment.

Settlement of Industrial Dispute

Such industrial disputes are settled through a series of instruments which include: Negotiation Conciliation Arbitration Strike and lockout Labour court Labour appellate tribunal

Getting the right number of people with the right skills, experiences, and competencies in the right jobs at the right time.

Engages senior management in a disciplined review of organizational talent Guides development activities of staff Brings HR systems into alignment Assures continuity of key positions / Avoids transition problems Assures new managers are prepared for their jobs Focus on Organizational Effectiveness

Succession Planning: Key Elements

Assessment of Key Positions

Identification of Key Talent

Development Monitoring & Review

Key Elements
Assessment of Key Talent

Generation of Development Plans

Succession Planning: Key Elements

1. Assessment of Key Positions:
What are the competencies and experiences needed to qualify for each key position?

2. Identification of Key Talent:

Typically people at the top two levels of the organization and high potential employees one level below. Identified by their managements assessment of their performance and potential for advancement.

3. Assessment of Key Talent:

For each person on the radar screen, primary development needs are identified focusing on what they need in order to be ready for the next level.

Succession Planning: Key Elements

4. Generation of Development Plans:
A development plan is prepared for how we will help the person develop over the next year.

5. Development Monitoring & Review

An annual or semi-annual succession planning review is held to review progress of key talent and to refresh or revise their development plan.

An HRIS, the abbreviation for Human Resources Information System, is a system that lets you keep track of all your employees and information about them. It is usually done in a database or, more often, in a series of interrelated databases.

Incident Records Employee Benefits Management Manage Employee Leaves Improved Evaluation Process Positional Assignments Administration Benefit Claims Analysis Manage Company Vehicles and Parking Automatic Deductions Control Company Equipment Permanent Histories Import and Export Multiple Employee Bank Accounts Detailed Employee Information New Employee Templates