Human Resource Management: Muhammad Mujib Siddiqui

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Human Resource

Management

Muhammad Mujib Siddiqui


Managing Human Resource

 Formal Organisations
 Objectives to perform
To provide high quality service/goods at
competitive prices based on perceived unfulfilled
demands of the market
 Attaining these objectives
Some tasks to be done such as manufacturing,
administration, accounting etc. According to the
work – the organisations are defined.
IN TODAYS WORLD

The new forms of organizations are emerging


 Smaller companies employing fewer people

 Shifting from vertically integrated hierarchies

to network of specialists.
 Workers/Technicians of repair operations are

gaining more importance than manufacturing


operatives.
 Market value determines the salary structure
IN TODAYS WORLD

of a person than his education or position.


 A paradigm shift of getting product/service

through part time/temp employees.


 Outsourcing of activities not core business.

 Redefinition of work: Constant learning, more

higher order thinking, less 9-5 mentality.


Key characteristics of competitive
business environment
1. Demographic changes/increasing cultural
diversity.
2. Skill gap.
3. Global competition – facing real wages –
downsizing.
4. Effect of economic changes.
5. People as a source of competitive
advantage.
Productivity

 It is a measure of output of goods/services


relative to input of labour, material,
equipment.
 More the productivity – more competitive is
the product.
 It benefits companies to be more competitive
with the rival.
 It benefits workers to get higher pay/perks.
Productivity

But workers want significant improvement in


the “QUALITY OF WORK LIFE” – QWL.
QWL

Two ways to measure QWL.


 Objective organizational Conditions
 Promotion from within policies.
 Democratic supervision.
 Employees involvement.
 Safe working conditions
 Subjective View – Employees perception
 They are safe.
 Relatively well satisfied.
QWL
 Able to grow.
 Full range of human needs are met.
 Current Status – Successful QWL efforts
 Managers to become leaders/coaches not
bosses/dictators.
 Openness and trust.
 Information held by management must be shared
by all.
 QWL cannot be mandated unilaterally by
management.
HRM Activities

Staffing  Identifying work requirement in org.


 Determining the no of people and skill
mix necessary for the job.
 Recruitment, selections and promoting
qualified candidates.

 Reward for performing job effectively.


Retention
 Maintenance of harmonious relations
between employers and management
 Safe and healthy work environment
HRM Activities

Development  Preserve/enhance employees’


competence in their job by increasing
their knowledge, skills and abilities.

Adjustment  Compliance of the standards /


procedures – discipline.

Managing  Enhance the ability of the org to


Changes develop its internal/external
environment and take all employees
on board to cope with the changes.
HRM Activities – Line
Managers/HR Deptt
Activity Line Management HRM
Staffing Providing data for job Job analysis.

analysis – minimum HRM planning


qualifications. Legal issues
Integrating strategic plan
Written test
with HR plan at
Performance test
department level while
Background and
interviewing candidates.
Making final decisions reference check
Physical exam.
on entry level hires in
coordination with HR.
HRM Activities – Line
Managers/HR Deptt
Activity Line Management HRM
Retention Fair treatment of Compensation and
employees. benefits.
Open communication Employees relations.

Face to face resolution Health and safety

of conflict
Promotion of team work

Respect work force

Pay increase on merit.


HRM Activities – Line
Managers/HR Deptt
Activity Line Management HRM
Development On job training Moralsurveys
Job retention / Technical training

enrichment. Career planning


Coaching. Consulting
Motivation HR research.
Performance

feedback.
HRM Activities – Line
Managers/HR Deptt
Activity Line Management HRM
Adjustment Discipline. Investigation
of
Discharge employees complaints.
Lay Outplacement
off
Transfers Retirement consulting.

Provide expertise to
Managing Provide a vision for
change future. facilitate the overall
Resources to make it a process of managing
reality. change.
Operation of HR

 HR Operates at three levels.


1. Strategic
 Corporate Objectives/Policies.
 Human Resource Planning.
2. Operational
 Action plan to meet HR needs.
 Data Bank – Search for Present/Future needs.
3. Functional
 Ensure employees are at the RIGHT PLACE at RIGHT
TIME at RIGHT COST.
HRM Professional’s Code of Ethics

 Integrity – Honesty – Fairness.


 Legality – Respecting individual rights.
 Proficiency – Professional Competence.
 Professional Loyalty – Don’t misuse for
personal/business gain.
 Confidentiality.
Legal Context of HR Decisions

 Laws of Broad Scope


 Fundamental rights ensured in the competition.
 UDHR/ILO Standards (Special provisions for
women/children).
 Bonded Labour.
 Contract ACT 1936.
 PPC.
 Laws of Routine Application
 Factories Act.
Legal Context of HR Decisions
 Mines Act.
 Pakistan Railways Act.
 Payment of Wages Act.
 Workmen Compensation Act.
 IRO 2008.
 WPIC Employment Standing Order.
 Social Security Ordinance.
 EOBI Act.
Legal Context of HR Decisions

 Women in Workforce
 Changes in attitude Developed in late 50’s.
The Reasons
 Changes in the family.
 Changes in the education.
 Changes in self perception.
 Changes in Technology.
 Changes in the Economy.
Development
 Training
 Induction and Orientation
“A formal process of familiarizing new employees
with the organization.”
 Benefits
 Lower turnover.
 Increased productivity.
 Improved morale.
 Lower further training costs.
 Facilitate learning.
 Lowering the anxiety of the employees.
Development

 Formal Training
“Any procedure initiated to foster learning
among organization members”
Development
“It goes beyond educating employees for a
specific position. Development prepares
employees with learning which will allow
them to grow individually alongside the
organization itself.”
Employment

1. Analyzing and planning for people


 Job analysis
 Describes the process of obtaining information about
jobs
 Info about tasks required for the jobs
 Education required
 Experience required
 Specialized training for the job
 Job description
 Tasks
 Duties
Employment
 Responsibilities
 Job environment
 Job Specification
 Knowledge required to perform the job
 Competencies required
 Physical requirement
 Personal qualities
 Sources of Data
 Job analyst
 Employee
 Spervisor
Employment
 Union/Association
 Method
 Interviews
 Questionnaires
 Focus groups
 Critical incident
 Diaries or logs
 Observation
2. Recruiting
 Human Resource Requirement
 Numbers, skills mix, levels, time frame
Employment
 Pool of qualified candidates
 Recruitment
 External
 University relations
 Executive search firms
 Employment agencies
 Recruitment advertising
 Internal
 Succession plan
 Job posting
 Employees referral
 Temp workers pool
Employment

3. Staffing
 Screening
 Rapid, rough selection
 Candidates screened against positions specifications
 Written tests
 Recommendations
 Reference checks
 Employment interviews
 Non directive interviews
 Directive interviews
 Panel interviews
 Stress, groups
Employment
 Screening and Selection Method
 Employment application forms
 Info asked must be valid and fair to the nature of job
 No questions asked which constitutes invasion of privacy
 Job related questions only
 Recommendation and referral checks
 Education and employment history
 Character and interpersonal competence
 Ability to perform the job
 Willingness of the past or current employer to retire
applicant.
Employment
 Recommendation will be meaningful
 The person recommending had adequate opportunity to
observe the candidate
 He is competent to evaluate the candidate’s
performance
 He can express the evaluation meaningful to the
prospective employer
 It is candid
 Psychological measurement
 Drug testing
 Handwriting analysis
 polygraph
Employment
 Integrity tests – clear purpose tests – to assess directly
attitude towards dishonest behavior/disguised behavior
 Tests to assess disciplinary problems and violence etc
 Mental ability tests
4. Development/Training
 Training
 Induction and orientation – “A formal Process of
familiarizing new employees with the org”
 Benefits
 Lower turnover
 Increased productivity
 Improved morale
Employment
 Lower further training costs
 Facilitate learning
 Lowering the anxiety of the employee
 Formal Training
“Any procedure initiated to foster learning among
org members”.
 Development
“It goes beyond educating employees for a
specific positions. Development prepares
employees with learning which will allow them to
grow ind. along with org itself”
Employees Training
 Trends / Need
 No of unskilled / uneducated youth needed at
entry level.
 Technological sophisticated system imposing
training needs.
 Need to train – currently racial / ethnic minorities,
women etc.
 Need of the firms – employees involvement at
workplace.
 Training need – internationally competitive
environment.
Employees Training
 Problems
 Corporate commitment is lacking.
 Too little funds allocated for training.
 Schools / institutes awarding degrees to students
without proper skills
 Poaching trained workers
 Slowing down of economy
 Government providing no help to trained workers
downsized / laid off workers.
 Huge influx of unskilled labor in industries.
Employees Training
 Employers / Universities – Not having proper ties.
 Unions not playing their due role.
 Assessing Training needs
 Organizational Analysis
 Operational Analysis
 Individual Analysis
Selection of Training Method

 Information Presentation Techniques


 Lecture – Conference – Correspondence Courses
– Videos – Computer assisted Programs etc
 Simulation Method
 Case Model – Role Playing – Programmed Group
Exercises – Business Games.
 On The Job Training
 Orientation Training – Apprenticeship –
Assignment – Performance Appraisal.
Evaluating Training Programs

 Reaction
 Achievement of specific level / knowledge /
performance.
 Changes occurred.
 Learning
 Changes due to training.
 Behavior / Result
 Changes positively related to the achievement of
Org Goals.
Performance Management
 Performance
 Goal Setting
 Goals must not be vague
 Goals direct attention to specific performance
 Mobilize efforts to accomplish higher level of performance.
 Measuring accomplishments
 Measure the extent to which goals accomplished
 Accomplishment must be standardized
 Assessment
 Regular assessment of progress
 Progress towards goal achievement.
Purpose of Performance
Management
 Provide legal / formal justification for
employment decision
 Used as criteria in test validation (to evaluate
the hypothesis)
 Feedback for employees
 Help establish objectives for training
programs
 Help diagnose Organization Problems
MBO

 Peter Drucker in 1954 formulized it.


 Judging the employees performance on their
success in achieving the objectives.
 Objectives are established in consultation
with their supervisors in line with the
company’s / department’s objectives.
 Its focus is mainly on the goals achieved by
the employees rather than the trait they
exhibit in their assigned duties.
Steps Involved

 Setting up of organization’s common goals.


 Department specific goals are set up in line
with the organization’s goals.
 Each supervisor lists the goals and measures
for his subordinates.
 Subordinates proposes goals and measures
for his/her job in consultation and in line with
the listed goals/measures suggested by the
supervisor.
Steps Involved

 Periodic review period for supervisors and


employees on results achieved.
 Final review on subordinate’s result
measured against established goals.
Disadvantage of MBO
 MBO is a lengthy and costly appraisal system
 It has only a moderate impact on company’s
success.
 Performance data are designed to measure
data on short term basis. This leads to let
their equipment suffer to reduce maintenance
costs to get better results.
 The quality of employees like cooperation,
adaptability, initiative and concern for human
relations are ignored in making production
Disadvantage of MBO

and sales objectives under MBO.


 Concept of mutual goal setting between
employee and his/her supervisor is a myth.
Only the supervisors’ goals will prevail.
Other Methods of Performance
Review
 Rating Scales
 Every trait/characteristic to be rated as
represented on a scale.
 Global Rating
 Single rating for overall job performance like –
good, average, poor.
 Mixed standard scale
 Each trait reflects three types of performance.
 Randomly sequenced to form mixed standard
scale.
Other Methods of Performance
Review
 Behaviorally anchored rating scales
 For each behavior a scale 1-10 is made and the
employee is rated as very high, moderate, high,
low, very low etc.
Appraisal Interviews

 Objective
 Provides an opportunity to discuss subordinate’s
performance record.
 To explore areas of possible improvement and
growth of the individual.
 An opportunity to identify the attitude and feelings
more thoroughly.
 Area of emphasis
 Focus the subordinates attention on future rather
than on past
Appraisal Interviews
 Initially emphasize the strengths of the employee
on which he can build his career rather than
weakness to overcome.
 Avoid suggestions about personal traits to change
instead suggest more acceptable way of
performing.
 Concentrate on opportunities for growth that
exists within the framework of the employee’s
present position.
 Limit plans for growth to a few important items
that can be accomplished within a reasonable
amount of time.
Appraisal Interviews

 Procedure
 Listen more than you talk. The more the
interviewer talk the less effective the interview will
be.
 Question should be meant to get an employee
thinking and talking. Questions that calls of an
answer of “yes” and “no”.
 Use follow up questions. If the employee is
nervous, critical or gives only short answers,
follow up questions should be asked.
Appraisal Interviews
 Reflect feeling – The feeling expressed is
reflected back to the subordinate in the form of
restatement. This provides a feeling in the
subordinate that he is being listened properly.
 Avoid sandwich technique – In this technique
praise serves to cushion criticism. This alerts that
after praise criticism will be coming.
Ineffective Performance of an
Employee
 Sources
 Organizational Policies and Practices
 Ineffective job placement.
 Insufficient trainings.
 Heavy handed management.
 Lack of attention to employee’s needs or concerns.
 Lack of clear job descriptions.
 Personal Problems
 Stress/Family problems.
 Financial worries.
 Emotional disorder
Ineffective Performance of an
Employee
 Lack of effort.
 Drug and alcohol.
 Health concern.
 Job related Sources
 Boredom with job
 Unclear/constantly changing work requirement.
 Lack of growth.
 Management employee conflict.
 Excessive workload.
 Lack of job skill.
Ineffective Performance of an
Employee
 External Factors
 Conflict between ethical/moral/religious standard and job
demands.
 Legal constraints.
 Employee Discipline
 To maintain employee’s behavior and performance to
the required organizational standards
 Discipline processes aim to recognize and correct
unacceptable work practices for the benefit of the
employee and organization.
 Crucial elements of discipline Process
 Equity across organization
Ineffective Performance of an
Employee
 Equity across offences.
 Union agreements.
 Careful examination of causes.
 Well documented records.
 Appropriate appeal procedures.
 Common Disciplinary Issues
 Attendance Problems
 Dishonesty and related problem
 Work performance problems
 On the Job behavior
 Understanding Disciplinary Action
 Documentation of Employee’s misconduct.
Ineffective Performance of an
Employee
 Investigative interview / reply of the accused.
 Progressive action / enquiry.
 Correction / dismissal.
Legal rights / procedures outlined in
labor laws of Pakistan for Work men
 IRA – 2008
 Applicable on all workmen except government /
defense forces / security staff / hospitals etc but
applicable to Pak railway, post office, T & T
department.
 Registration of trade union by workmen.
 Legal strike.
 Unfair labor practices on the part of the employers
 Legal lockout
 Unfair labor practices by workmen.
Legal rights / procedures outlined in
labor laws of Pakistan for Work men
 Participation of workmen, the management of an
industrial unit.
 Workmen Compensation Act – 1923
 Employees liability for compensation in case of an
accident to a workmen.
 Report of fatal accident.
 Factories Act – 1934
 Health and safety for workers
 Restriction on working hours of workmen
Legal rights / procedures outlined in
labor laws of Pakistan for Work men
 Special provisions for women and children
 Weekly / annual / festival holidays
 Pakistan Industrial / Commercial employment
Standing orders
 Payment of bonus
 Company group insurance
 Terms and conditions to be given in writing
 Termination of employment
Compensation

 Strategic Objectives
 Reward past performance
 Remain competitive
 Maintain safety equity among employees
 Motivate employee’s future performance
 Control wages and salary costs
 Attract and retain good staff
 Reduce unnecessary staff turnover.
Reward Systems
 Financial
 Direct payments (wages/salaries)
 Indirect Payments (benefits
 Non Financial
 Protection programs
 Employee’s involvement in decision making
 Effective supervision
 Recognition
 Training opportunities.
 Supportive corporate culture
Reward Systems

 Crucial Areas in Determination of Wages


 Labor market condition / External Equity
(Comparison of salary with employees working
with employees working on similar position in
other organization).
 Legal requirements (minimum laid down salaries /
benefits)
 Collective bargaining of the unions.
 Management attitude
 Organization’s ability to pay
Reward Systems
 Effect of inflation on salaries
 Pay compensation
 Pay raises
 Merit wages
 Establish standard of performance
 Develop appraisal systems with focus on job
specific result oriented criteria
 Train supervisors to provide proper feedback
 Tie reward closely to performance.
 Provide a wide range of pay increases
Reward Systems

 Incentive Plans
 Stock options
 Profit sharing / Bonuses
 Blending fixed vs variable pay packages
 Interest free house / misc loans

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