Management of

human resources

Dr. Xiangping XIAN

Assistant Professor
Department of Architecture and Civil Engineering
City University of Hong Kong

Contact information:
E-mail address: xiangping.xian@cityu.edu.hk
What resource is most important to a
modern organization?
◼ Building industry is a people-reliant industry
 Designers, Engineers, Surveyors,
Construction managers, Estimators, Plant
Managers, Workers…
◼ Every manager or team leader is necessarily
involved in concerns about the way in which
people are employed as well as about what and
when they need to be doing, and how well.
Human resources management
(HRM)
◼ 70s and 80s → “Personnel Management”
◼ Assure the organization of an adequate
and constant supply of skilled employee
◼ An ongoing process that tries to keep the
organization supplied with
right numbers of employeeswith
right skills and competencies are in the
right place at the
right time
 HRM functions
Human Resource Management includes all activities used to attract &
retain employees and to ensure they perform at a high level in meeting
organizational goals.

Organization needs

Attracting an effective workforce

Developing an effective workforce

Maintaining an effective workforce

HRM Components

Attract
Human resource
Recruitment Selection
planning

Develop
Training and
Socialization
development

maintain
Performance Rewards,
Appraisal Job reallocation
 Human resource
Recruitment Selection
planning

Training and

ATTRACT - development
Socialization

Performance

Human resource Appraisal

Rewards, job reallocation

planning
◼ Matching the human resources with the
organization current needs and long-term
needs
 HR demand forecast such as number, type
and quality of people needed, taking into
account both internal and external factors
 Human resource
Recruitment Selection
planning

Training and
Socialization
development

Human resource Performance

Appraisal
Rewards, job reallocation

planning

◼ Demand forecast / Internal factors

 Vacancies
 Current/expected skill demands
 Organization expansions or reductions
◼ Supply forecast / External factors
 Labor supply
 Competitors
 Legal requirements (e.g. qualification…)
 Worker / Union expectation
HR 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.
 Human resource
Recruitment Selection
planning

Training and
Socialization
development

Recruitment Performance
Appraisal
Rewards and job reallocation

The development of a pool of job candidates in

accordance with a human resource plan
 Ways: Internet & Newspapers advertisements, open
houses, campus recruitment, placement agents,
head-hunter firms, etc.
 Sufficient size and fit to the purpose
 Legal issues (e.g. Equal Employment Opportunity…)
Recruitment
Internal recruitment External recruitment
Adv: Adv:
◼ Cheaper, quicker ◼ Expand the
◼ Familiar with the organization’s
organization experience and
expertise base
◼ Providing promotion
opportunity
Recruitment

Job description: Written

statement to specific the
job content, title, duties
and responsibilities,
location on the
organization chart

Hiring specification: a
written description of the
education, experience
and skills need to
perform a job or position
effectively

>>> Job analysis – Identify the new employee’s expected duties, outcomes to be
achieved , major tasks, and job relationships with others
 Human resource
Recruitment Selection
planning

Training and
Socialization
development

Selection Performance
Appraisal
rewards, job reallocation

◼ A mutual process whereby the

organization decides whether or not to
make a job offer and the candidate
decides whether or not to accept it
 Background information form, screening
interview, Testing, Background investigation,
In-depth selection interview, Physical
examination….
Selection
Procedures Purposes Actions

1. Completed Indicates applicant’s Requests only information

job desired position; provide that predicts success in the
application information for interviews job
2. Initial Provides a quick Ask questions on
screening evaluation of applicant’s experience, salary
interview suitability expectation, willingness to
relocate, etc
3. Individual Measures applicant’s job May include computer
testing skills and the ability to testing software, hand
learn on the job writing analysis, physical
ability
Selection
Procedures Purposes Actions
4. Background Checks truthfulness of Calls the applicant’s
investigation applicant’s resume or previous supervisor
application form (with permission) and
confirms information
from applicant
5. In-depth Finds out more about the Conducted by the
selection applicant as an individual manager to whom the
interview applicant will report
6. Physical Ensures effective Often performed by
examination performance by applicant; company’s medical
protects other employees doctor
against diseases; establishes
health record on applicant;
protects firm against unjust
worker’s compensation
claims
Selection
◼ References: outside people provide candid information
about candidate

◼ Ability test: assess if applicant has right skills for the job.
◼ Physical Ability Test: measure strength & endurance.
 Good for physically demanding jobs.
◼ Personality test: seek traits relevant to job performance.

➢ Be sure they are is a good predictor of job performance.

 Selection
Interview:
 ‘A person CAN perform well’ doesn’t
mean ‘A person WILL perform well’
 Structured interview: managers ask each
person the same job-related questions.
 Unstructured interview: held like a normal
conversation.

➢ To avoid bias: A panel of interviewers;

Structural interview
➢ Focus on the requirements of the job and the
actual skills and abilities of candidates will
provide

➢ Provide realistic picture of the job!

Develop the Human Resource
◼ Represents the developmental side of
the HRM cycle
◼ Rationale behind
Investing in people in the right ways will ensure that
they continue to contribute to the direction in which
the business wants to go

performance of the employees

the business.
 Human resource
Recruitment Selection
planning

Orientation or Training and

development
Socialization

Socialization Performance
Appraisal
Rewards and job reallocation

◼ Orientation program is designed to help

employees fit smoothly into an organization
Purposes:
 Increase the productivity
 Reduce the anxiety of a new employee in a new
environment
➢ Reduce the turnover rate of new employees
 Human resource
Recruitment Selection
planning

Training and Training and

development

Performance
Socialization

Rewards and job reallocation

Development Appraisal

 Training programs – Teaching organizational

members how to perform current jobs and
helping them to acquire the knowledge and
skills they need to be effective performers.
 Developmental programs – Building the
knowledge and skills of organizational
members to enable them to take on new
responsibilities and challenges.
◼ Training used more often at lower levels of
firm, development is common with
managers.
Training and Development
 On-the-job type / Off-the-job type
◼ Classroom Instruction
◼ On-the-Job Training

◼ Varied Work Experiences

◼ Formal Education

◼…

➢ Whatever training and development efforts

used, results must be transferred to the
workplace.
 Human resource
Recruitment Selection
planning

Training and
Socialization
development

Performance
Reward and job reallocation
Appraisal

Maintenance-
Performance appraisal
◼ Provides managers with the information they
need to make good human resources decisions
about how to train, motivate, and reward
organizational members
 Scope: outcomes, behaviors, traits…
◼ Informal continuous appraisal / Formal systematic
appraisal
◼ Fact based / Subjective based
Performance Appraisal
Who appraises peformance?
 Selfappraisal
 Direct manager’s rating of an employee
 A group of managers rating an employee
 A group of peers rating a colleague
 Employee’s rating of bosses
 Customers & clients
Performance Appraisal
◼ Appraisals basically aim to improve the
performance
 Process of evaluating employee performance
◼ job related strengths
◼ development needs
◼ progress toward goals
◼ determine ways to improve performance
◼ Pay an promotion decisions

➢ More open and systematic is better

 Human resource
Recruitment Selection
planning

Training and
Socialization

Reward development

Performance
Appraisal
Reward and job reallocation

To create a system of incentives

that motivates people to work
towards an organization’s goals
continuously
◼ Extrinsic rewards = tangible, e.g. pay,
incentives, benefits, working
environment….
◼ Intrinsic rewards = intangible, e.g.
award of achievement, delegation of
responsibility and challenge…

◼ Effective reward system: relevant,

adequate and equitable
Pay
◼ Base Wage
 Job Based Pay-paid for the job that is done
 Competency Based Pay-pay is linked to job-
relevant skills, knowledge, and experience

◼ Incentive Pay-linked to job performance

 can increase motivation
 links employees to firm performance
 works well when employees trust firm
Individual Incentives
◼ Piece-Rate - Pay for each unit of output
◼ Commissions - Pay from percentage of
sales or profits
◼ Bonuses - Lump sum payments
◼ Merit Pay - Permanent increases in base
pay linked to individual’s previous
performance
◼ Seniority - Increases over time
Team or Organizational
Incentive
◼ Gain Sharing - teams of employees share
in gains from improvements in productivity
or cost saving measures
◼ Profit Sharing - A percentage of profits
earned by a department or company
◼ Stock Ownership
 Options
 Employee Stock Ownership Plans
 Human resource
Recruitment Selection
planning

Training and
Socialization

Maintain effective development

Performance
Appraisal
Reward and job reallocation

workforce
Job reallocation system for
 Promotion
 Transfer
 Demotion
 Separation
Labor Relations
◼ The activities managers engage in to
ensure they have effective working
relationships with the labor unions that
represent their employees interests.
 End of presentation
(All text and illustrative materials reproduced in this presentation are solely for education purpose)

References:
Jones, G.R. & George, J.M., Contemporary Management.
Cole, G.A., Management – Theory and Practice.
Cole, G. Personnel and Human Resource Management
Stoner, J.A.F., Freeman, R.E., and Gilbert, D.R., Management.
Loosemore M., Dainty A. & Lingard H., Human Resource Management in
Construction Projects- Strategic and Operational Approaches.