ERP

HR Processes
What is HUMAN RESOURCE MANAGEMENT

• The management function that deals with

recruitment, placement, training, development of
organization members.
• HRM is a process for staffing the organization
and sustaining high employee performance.
• HRM can be defined as all the practices,
systems and procedures implemented to
attract, acquire, develop and manage human
resources to achieve the goals of an organization.
• Simply it is managing the employment
relationship
 Importance of
“Human Resource Management”
• Staff is the most important resource of an
organization.

• Human resource is the key ingredient to

success.

• “Human resource” creates organizational

accomplishments and innovations.
 Components of a HRM System

Human
Human Resource Career
Career Compensation
Resource Compensation &
&
Planning
Planning Development
Development Benefits
Benefits

Performance
Performance
Recruitment/
Recruitment/ HRM
HRM Management
Management
Decruitment
Decruitment

Selection Training/
Training/
Selection Orientation
Orientation Development
Development
Human Resource
Planning
 HRM “Planning”

• Human resource planning is designed to

ensure - how future personnel needs will be
constantly and appropriately met.
• The process by which managers ensure that
they have the right number and kinds of people
in the right places, and at the right times, who
are capable of effectively and efficiently
performing assigned tasks.
 Planning..
• It is accomplished through analysis of

• Internal factors : Current and expected

skill needs, vacancies and departmental
expansions and reductions.
• Environmental factors: Labor markets,
use of computers to build and maintain
information about employees
Human Resource Planning (continued)

• Human resource planning must be integrated within the

organizations strategic plans

• Senior management must emphasize the importance of

human resource planning

• Human resource planning must be based on the most

accurate information available.

• A clear plan must be developed with associated time-spans

and scope of activity.
 Planning ………. (continued)
• Current Assessment:
Job analysis
Defines jobs and the behaviors to perform them .
Job description
A written statement of what a job holder does, how its done and why
it is done.
Job specification
A statement of the minimum qualifications that a person must possess
to perform a given job successfully.
• Meeting Future Human Resource Needs:
 Recruitment &
Decruitment
 Recruitment
• The development of a pool of job candidates in
accordance with a human resource plan
• It is the process of locating, identifying, and
attracting capable applicants.

Decruitment
 Techniques for reducing the labor supply within an
organization. e.g. firing ,layoffs, transfers, retirements.
 Recruitment….(continued)
• Job description :
A written description of a job, covering title, duties and
responsibilities and including its location on the organization
chart.
• Position description:
A written description of a management position.
• Hiring specification:
It defines the education, experience and skills an individual
must have in order to perform effectively in the position
he/she is applying
Sources Of recruiting Potential Job
Candidates

• Labor market:
Easy to recruit in large labor markets.

• The type or level of the position:

The more specialized the position the more recruitment
efforts .

• The size of the organization:

The larger the organization the easier it is to recruit.
 Process of Recruitment

Steps in the Recruitment process:

Internal Search
Advertisement of a job vacancy.
Web based advertising.
Preliminary contact with potential job candidates.
Initial screening to create a pool of qualified applicants.

Methods of Recruitment process:

External Recruitment
Internal Recruitment
 Recruitment Policies

• Source :
Current Employees
Internal and external Advertisements
Data Bank
Employment Agencies and
consultants
Selection
 Selection
• The process of assessing candidates and
appointing a post holder to ensure that the
most appropriate candidates are hired.

• The scheme used for optimally staffing the

organization
 Selection
Validity and Reliability

Validity Reliability
The proven relationship The ability of a selection
that exists between a device to measure the
selection device and same thing consistently
some relevant job
criterion
 Selection Criteria
1. Completed Job Applications:
This step indicates the employee desire
position and this application provides
information useful for interviews.
2. Interviews:
It is most common method in which
selection committee evaluates a candidate’s
abilities by following methods:
 Selection Criteria (continued)

Types Of Interviews:
• Testing:
To measure the job and learning skills of the
candidate.
• Initial Screening:
A type of interview in which questions are
asked about experience of the candidate
and his salary expectations
• Panel and Serial interviews.
To evaluate a candidate for the job.
Steps In Selection (continued)

• In Depth Selection Interviews:

These interviews are conducted by the manager to whom
the applicant will report.
The objective of this step is to find out more about
applicant as an individual.

3. Background Checks:
• Selection committee confirm the truthfulness of
application Résumé or of the application form.
• The previous supervisor of the applicant is called to
confirm this information and to get his career highlights.
Steps In Selection (continued)

4.Physical Examination:
It is conducted to ensure the physical fitness of applicant.

REALISTIC JOB PREVIEW:

A preview of the job that provides both positive and

negative information about the job and the company.
Steps In Selection (continued)
5.Job Offer:
Welcome
Position / title
Authority, duties and responsibilities
Starting date, normal work hours
Starting salary
Benefit package
Other - probationary period, travel, etc.
Orientation
 Orientation

• Introduction of a new employee to his/her job

and the organization.
• A program designed to help employees fit
smoothly into an organization; also called
socialization.
• Orientation or socialization is designed to
provide new employees with the information
needed to function comfortably and effectively in
the organization.
 Orientation (continued)
• It conveys three types of information:
1. General information about daily work
routine.
2. Review of organization’s
history ,purpose operations, and
products or services and contribution
of employee’s job to the
organization’s needs.
3. Presentation of organization’s policies,
work rules and employee benefit.
 Types of Orientation
• Two types of orientation:
1. Work unit orientation:
Familiarizes employee with goals of work unit,
contribution to the unit’s goals, introduction to co-
workers.
2. Organization orientation:
Informs employee about the organization’s
objectives, history ,philosophy procedures and
rules, human resource policies and benefits. Tour
of organization’s work facilities.
Training
 Training Programs

• A process designed to maintain or improve

current job performance.

• Most training is directed at upgrading and

improving an employee’s abilities or skills.
 Developmental Programs
• A process designed to develop skills necessary for
future work activities.
 Difference between Training and
Developmental Programs

• Training is for improvement in the current job

while developmental program is for
improving skills which will be used in the
future.
• Both managers and non-managers receive
help from training and developmental
programs but mostly non-managers are
concerned with training while managers are
concerned with developmental programs.
 Why Training and Developmental
Program?
• To improve three types of skills

1) Technical skills
2) Interpersonal skills
3) Problem solving skills
 Training Methods
1) Most training takes place on the job because
this approach is simple and inexpensive.

2) Some skill training is too complex to learn on

the job. in such cases it should take place
outside the work setting.
Employees Performance
Management
 Employee Performance
Management

• Performance management is a process used

within organization to establish and evaluate
an individual’s job performance to achieve
goals and objectives.
 Performance Management

Performance Appraisal
A process of systematically evaluating
performance and providing feedback upon
which performance adjustments can be made.
Performance appraisal should be based on job
analysis, job description, and job specifications.
 Types of Performance Appraisal
• Informal Performance Appraisal:
“The process of continually giving feedback to
subordinates - information regarding their work
performance”
• Formal Performance Appraisal:
“A formalized appraisal process for rating work
performance, identifying deserving raises or
promotions, and identifying those in need of further
training”.
360 Degree
Written
Feedback
Essays

Performance Graphic
Multi-person
Appraisal Rating
Comparisons
Methods Scale

BARS
Behavioral Critical
Anchored Incidents
Rating Scales
Compensation And
Benefits
Compensation and benefits
• Benefits of a Fair, Effective, and Appropriate Compensation
System
– Helps attract and retain high-performance employees
– Impacts on the strategic performance of the firm
• Types of Compensation
– Base wage or salary
– Wage and salary add-ons
– Incentive payments
– Skill-based pay
Factors That Influence Compensation and Benefits
How long has employee
been with company and
how has he or she performed?

How large is the Does job require

company? Employee’s Tenure high levels of skills?

and Performance

How profitable is the Size of Kind of

What industry is job in?
company? Company Job Performed

Company Level of Kind of

Profitability Compensation Business
and Benefits
Geographical
Unionization
Location

Where is organization Management Labour- or

located? Is business unionized?
Philosophy Capital-Intensive

What is management’s Is business labour- or

philosophy toward pay? capital-intensive?