Chapter One: Introduction to HRM

An Introduction
 Introduction
People are at the core of every organization. Without staff
organizations cannot exist.
 Human: People
 Human Resource: people with their experience, skills,
knowledge and personal qualities
 Human Resource Management :The design of formal
systems in an organization to ensure the effective and efficient
use of human talent to accomplish the organizational goals.
Human Resource Management is also a function of
management, concerned with hiring, motivating and
maintaining people in an organization. It focuses on
people in the organization.
Human Resource Management is concerned with the
people dimension in management. Since every
organisation is made up of people, acquiring their
services, developing their skills, motivating them to
higher levels of performance and ensuring that they
continue to maintain their commitment to the
organisation are essential to achieving organisational
objectives. This is true regardless of the type of
organisation – government, business, education, health,
recreation or social action
Cont’d

Good Human Resource Management depends

on the organization having a clear vision,
mission, and values.
Vision: It is needed to motivate staff
Mission: It is the reason for existence
Values: Show how the organization will do its work and
what kind of staff are needed to do it.Vales often make
an organization different from other organization
 What Organizations Do

Labor

Products
Product or Service
Capital Goods
Services
(e.g. Equipment) Raw Materials
 Major
Organizational
Subsystems
Human
Resources

Research &
Finance Development,
Engineering
Management
Materials,
Production,
and/or
Services Marketing
Management
Two Views of HRM

View One: HRM is a separate

Department i.e. One of the major
organizational subsystems
View Two: Every supervisor or
Manager is an HR Manager. i.e Anyone
who deals with subordinates plays a
HRM role
Why a Separate Department is Useful

1) Importance of Human Resources

Competitive Advantage
2) Increasing Complexity
Global workforce
3) External Influences
Legal Requirements
4) Consistency in Treatment
Responsibilities of
the HR
Advice and Counsel
Department
Service

Policy Formulation
and Implementation

Employee
Advocacy

Strategic Partner
 So just what does HRM
involve?
 The central focus for HR management
must be on contributing to organizational
Success
 Ways of categorizing HR activities
Four Activities

The Acquisition The Development

of of
Human Resources Human Resources

The Rewarding The Maintenance

of of
Human Resources Human Resources
How HR Functions Relate to HR Activities

The Acquisition of
Human Resources

Planning
Analyzing Jobs
Recruitment The Development of
Selection Human Resources

Appraising
Training
Developing
How HR Functions Relate to HR
Activities, continued

The Maintenance of
Human Resources

Employee Benefits
The Rewarding of Safety & Health
Human Resources Labor Relations
Compensating
(Wages & Salaries)
(Incentives)
Specific HRM Functions

 Human Resource Planning

 Analyzing Jobs
 Recruiting
 Selecting
 Appraising
 Training
 Developing
 Compensating
 Benefits
 Work Environment
Goals of Human Resource Management

Facilitating Enhancing
organizational productivity and
competitiveness quality

The human resource

function in contemporary
organizations

Complying with Promoting

legal and social individual growth
obligations and development
Desired Outcomes of HRM

 Attraction
 Retention
 Job Performance
 Productivity
 Employee Safety and Health
 Attendance
 Job Satisfaction
 Competitive Advantage
 Company Performance
Competitive Challenges for HRM

Managing Change
Cultural Diversity
Work & Family Issues
Developing Human Capital
Part-time, Temporary Employees
Globalization
Quality and Teamwork
Advances in Technology
Assignment

1. How do our staff fit within our organization’s vision,

mission and values?
2. Identify at least four major HR challenges currently
facing organizations and managers. How they affect
organizations?
3. More effective management of human resources (HR)
increasingly is being seen as positively affecting
performance in organizations, both large and small. Do
you agree? why or why not?
 Chapter Two: The Acquisition of HR

Employment Process is concerned with the obtaining of

the proper kind and number of people necessary to
accomplish organizational objectives. It includes the
following basic tasks:
2.1 Job Analysis
2.2 Human Resource Planning
2.3 Recruitment
2.4 Selection
2.5 Induction
2.6 Placement
2.1 Job Analysis

 Job Analysis is a systematic process of studying and

collecting information about the nature and characteristics of
the job and the qualification of the employee that will fill the
job. i.e. it is a systematic process of finding work-oriented
and personal requirement of the job
 Job Analysis can be studied using the following methods:
Observation [slow and less accurate], Interview [accurate,
but expensive and time consuming], Questionnaire [quick
and economic to use], Employee Log [appropriate for highly
specialized works] and others.
Steps in Job Analysis

 There are six steps required to develop Job Analysis:

1. Determine the use of the Job Analysis Information
2. Collect Background information such as organizational structure,
process, objective,…
3. Benchmark Positions
4. Collect job analysis information such as behavior, content,
equipment, tools, standards, human requirements ..
5. Review the information with the participants .i. e check the
corrective-ness of the information with workers, supervisors, and
others
6. Develop Job Analysis
Job Analysis

 The purpose of Job Analysis is to obtain answer to the

following six questions:
A. What workers does= task or function
B. Why is done=reason
C. What aids= tools, machines, equipments,…
D. What qualification=skill, capacity, experience…
E. What is accomplished= output
F. How is done= procedure, methods, techiniques,
Job Analysis

 Components of Job Analysis:

1. Job Description: it is the profile of the
job. It defines what the job does.
2. Job Specification: it is the profile of the
human characteristics needed by the job.
 Job Description

 Job Description: is a written document that shows the

nature and characteristics of the task to be performed. It is
the picture of the job
 It includes the following points:
1. Job Identity: title, location, grade…
2. Brief statement of the purpose of the job
3. Job Duties and Responsibilities
4. Facts about working Conditions: allowance, private office, Safety,
Health, physical, environmental, hours of work
5. Machinery and equipment to be used
Job Specification

 It is a written statement of the minimum acceptable human

qualities necessary to prepare a given job properly. Job
Specification includes the following information:
1. Physical Qualities: appearance, age, eyesight, hearing,
2. Mental Quality: intelligent, thinking ability, ability to make sound
decision,
3. Skill or Talent: communication ,technical, conceptual, human and
computer skill
4. Qualification: Knowledge acquired from experience, education or
training
5. Personality Requirement; emotion, stable, patient,
2.2 Human Resource Planning

Human resource (HR) planning; The process of

analyzing and identifying the need for and availability of
human resources so that the organization can meet its
objectives.
Human Resource Planning /HRP/ helps organization
to identify their short-term and long-term human
resource requirement.
Process of HRP

 There are five steps [Procedures ] needed in

developing HRP
 Step 1: Determine the total Human Resource Planning
Requirement [HRPR]
 Step 2: Determine the Human Resource Inventory
[HRI]
 Step 3: Anticipate Change in HRI
 Step 4: Determine the Net Human Resource
Requirement [DNHRR]
 Step 5: Action Planning
Step 1: Determine the total Human Resource
Planning Requirement [HRPR]

HRPR begins with the analysis of the organization’s

Business Plan such as
Sales Budget
Human Resource Budget
Productivity
Materials Budget
E.t.c
HRP for a new organization may be to study similar
organization by using forecasting techniques
Forecasting Human Resource

 Forecasting is based on the annual budget and long-term

corporate plan. Methods of forecasting HR are stated below:
A. Judgment and experience: It is subjective method which is purely
the common sense of the manager. It is appropriate for short period
of time.
B. Zero base forecasting: The existing HR information is taken as a
starting and based on that information, you an predict for the future.
The idea here is re-assigning the existing HR and use efficiently and
effectively.
C. Bottom up approach: is a popular method which is based on the
projection of future requirements from the concerned sections.
D. Delphi Method: method of HR forecasting by a group of experts
Step 2: Determine the Human Resource Inventory
[HRI]

 This step deals with knowing the type and number of

people available in the organization. In other words, it
is Human Resource Auditing.
 There are two types of HRI/Audit/
A. Management Audit: deals with the number and type of
people available in the management position
B. Skill Audit: deals with the number and type of people
available in the management position
 Human Resource Audit should be explained/expressed/
in terms of number.
 Step 3: Anticipate Change in HRI

 The present data in the HRI is the photograph of the

human resource available at a singe point in time. But,
in the long run, changes must be anticipated and
carefully planned. This is called employee mobility
such as
A. Turn over
B. Promotion
C. Transfer
D. Demotion
E. E.t.c
Turn over

 It refers to movement in to and out of the organization.

Reasons for turn over are
A. Natural Wast: death, illness, sickness, retirement
B. Voluntary TO: poor working condition in the
organization, dissatisfaction with management and
payment, no possibility/opportunity/ growth and others
C. Involuntary TO: dismissal, forced by the organization
for incapable employee
Turn over

 The degree of movement of Human Resource [Turn

Over] depends on two factors
A. Time: as people stay longer in the organization, they
become permanent.
B. Age: as people become older and older, they stay in the
organization permanently
Step 4: Determine the Net Human Resource
Planning Requirement

Net Human Resource Requirement is the different

between the total Human Resource Planning
Requirement and the Human Resource Audit and
Anticipated changes in HRI.
NHRR= THRPR- HRI- ∆HRI
The result can be zero [no variation on demand and
supply], positive [surplus of employees] or negative
[shortage of employees].
Step 5: Action Planning

 This is the step to be taken for adjustment purpose of

the net requirement of Human Resource Planning. So,
based on the result in step four, Action Plan should be
developed for each conditions. That is
A. Action Planning when Net Human Resource Planning
Requirement is Zero
B. Action Planning under Surplus Condition
C. Action Planning under Shortage Condition
Action Planning

A. Action Planning when Net Human Resource

Planning Requirement is Zero: This is a situation
when number of employees demanded and number of
employees available in the organization matches. That
means there is no variation between demand and supply
of employee in the organization. So, there is no action
to be taken.
 Action Plan

B. Action Planning under Surplus Condition: Occurs when

supply of employees is greater than the demand. Employees
are abundantly available. So, the action is reduction of
employees which is difficult for managers. Example of this
action are:
 Early retirement
 Layoff
 Work sharing
 Dismissal or termination
 Stop overtime or part-time
 Give leaves
 Action Plan

C. Action Planning under Shortage Condition: This

occurs when there is scarcity of Human Resource
Requirement. So, the action is to increase number of
employees.
 Training and Promotion of the present employees
 Recalling previously laid off employees
 Sub-contracting some part of works
 Buyback vacations
 Increase over-time and part-time workers
 E.t.c
Recruitment: Definition

 Recruitment is the process of attracting potential candidates

who are capable and interested to fill the vacant position in an
organization.
 Sources of Recruitment. There are two sources:
 Internal: Sources of Recruitment through promotion, upgrading or
transfer. It is Less costly, save time and effort, raise morale of
employees, behavior of employees are known and tested, needs little or
no adjustment, but provides limited choice, doesn’t help to avoid
dissatisfied employees and danger of inbreeding
Sources of Recruitment

 External: Sources of Recruitment Sources of Recruitment outside of the

organization such as universities, colleges, employment agencies, and
others. Provides large and better choice, avoids inbreeding and helps to
avoid dissatisfied employees but it is costly; behavior of employees is
unknown, internal employees may be disappointed and needs large
adjustment.
 In recruiting employees, you should follow and use realistic approach
.i.e provide them with positive aspect of the organization such as
growth, benefit, attraction and negative aspect such as strict supervision,
dealing with unpleasant customers.
Steps in Recruitment Process

Step-1: Identify the need for recruitment

Step-2: Describe the job
Step-3: complete recruitment request
form
Step-4: Agree the grade and salary for
the job
Step-5: Advertise the job
Step 1: Identify the need for recruitment

The recruitment process starts when a vacancy arises.

This may be a new position or due to expansion of the
company or as a result of a staff member leaving the
organization.
 For each vacancy it is important to consider:
Does the role fits with the organization’s mission and
vision?
Does the role add value to the organization?
How the role will be funded? Organizations should
consider the cost of employing staffs such as salary,
benefits, equipments…
 Step 2: Describe the job-the job profile

 The job profile has two components: job description and job
specification.
 Job description: include the main purpose of the job, scope of
the job, and duties and responsibilities of the job .When you
are stating the duties and responsibilities, use verbs for
example advise, arrange, check, inspect, train…
 Job Specification: includes the minimum requirements of the
individual to carry out the job such as skill, experience,
qualification and others.
 Once the job profile is prepared, you have to answer questions
like, is it realistic?, is it clear? is it equal opportunity for all?
Step 3: Complete the Recruitment Request Form

Once the job profile is written, it is important to have a

process where line managers make an official request for
the position to the HRM Department.
A suggested temples for recruitment request form is
stated as follows.
Job Title
Location

Needed from Start date End date

Reason needed Replacement New Position
Funding General fund Specific fund
Job Profile Attached?
Advertisement Suggesting appropriate place to
advertise the job
Requested by Name Signature Date
Approved by Name Signature Date
Step 4: Agree the Grade and Salary

 The Grade and Salary of a job depends on the job profile. In

order to set a Grade for a job, the job profile must be
evaluated.
 Evaluation of jobs should be carried out by a member of the
HRM Department and the line manager of the job being
valuated. Between them, they have an overview of the
organization and good understanding of the job.
 Job Evaluation depends on three criteria such as level of skill,
level of responsibility and level of representation. Lower skill,
responsibility and representation are given fewer points and
vice versa. More points are given to responsibility.
Levels and Responsibility Skill Representation
criteria

Low

Medium

High

Very High
Job Evaluation

Once score is given to each job, there should be

comparison with other jobs. Then grade will be assign as
lower, medium high or very high.
If the grade of the job is identified, it is easy to set
salary.
 Step 5: Advertise the job

Once the job description, Job Specification and Salary has

been finalized, it is time to let people know about the
vacancy.
There are many ways to advertise vacancies such as notice
board, through internet, using newspapers.
It is worth thinking carefully about targeting places where
people with right skills and personal qualities are likely to
see the advertisement
Con’t

Information Included in the advertisement:

Brief Description of the Organization
Location of the job
Salary and grade of the job
Start date
Closing date
How to apply
And other information included in the job description and
job specification.
 2.4 Selection

 Selection is the process of choosing the best candidate among

many applicants by matching personal qualities with the job
requirement.
 Steps involved in selection process are:
 Completion of the application blank
 Preliminary screening
 Testing [Written and on the job]
 In-depth Interview
 Collect Reference
 Medical Testing
 Offer the job
 Inform unsuccessful candidates
 Open personal file
 Steps in Selection Process

Step 1: Completion of the application blank

Filling the employee requisition form with their bio-data
such as experience, qualification, background and other
relevant factors
Step 2: Preliminary Screening
Reject the unfit employee by checking the minimum
educational, experience, and capacity
Step 3: Testing
Valid and reliable test will be given to measure the mental
and psychological effort of the individual. The test could be
theoretical test [written examination] or practical test on the
actual job.
Steps in Selection Process…

Step 4: In-depth interview

involves face to face questioning of the
applicant to find out his/her personal and
professional excellence,
It measures the confidence, theoretical and
practical knowledge of the applicant
Step 5: Collect References

 References play a very important part in the recruitment process.

Information from past employers is often the best way to understand how
a new staff member will fit into the role and the organization.
 References are normally collected after the interview for the most
successful candidates.
 References can be collected in written form or by telephone. Telephone
references may give a more realistic picture of what the candidate is like
since references do not have time to think about diplomatic responses to
the questions.
 Questions asked to referee could be questions related to specific to the job,
character and his/her recommendation of the applicant to the job.
Steps in Selection Process

Step 6: Medical Examination

and mental fitness of the

Checking the physical

applicant to the job

Some jobs has already specified particular
diseases which are communicable and
epidemic once.
 Step 7: Offer the Job

 Where possible, the line manager should telephone the

successful candidates to offer the job. The decision of the
successful candidate whether to accept the job should not be
expected immediately. Next, medical test, checking the
physical fitness to the job, will be made.
 Jack Park [Paperwork] will be prepared. It includes
Acceptance letter, Contract of employment, medical test,
personal information sheet, employment offer letter, and staff
handbook.
Step 8: Inform Unsuccessful Candidates

Candidates who were unsuccessful must be told as soon

as the successful candidate has accepted the job. It is not
necessary to state why they where unsuccessful but be
prepared to provide constructive feedback if requested.
Tests, and interview notes completed by unsuccessful
candidates should be kept for as long as local law
requires. This file may be useful for future references.
Step 9: Open a personal file

A personal file should be set up for each new staff

member. This file is confidential and only the HRM
Department and the line manager should have access on
it. It should therefore be stored in a locked cabinet.
The personal file should contain all information relevant
to the staff member. It is important that it is kept up-to
date.
The amount of information held will depend upon the
person’s role.
Con’t

 Each personal file should contain:

 Personal Detail such as Marital Status, number of children, Age, Sex,
Date and country of birth, home address, telephone, e-mail address,
photograph, emergency contact, identity card/passport…
 Recruitment Information such as results of police checks, medical
results, test scores, curriculum vitae, and others
 Employment Information such as employment history, appraisal and
development results, disciplinary records, sickness and absence
records, salary records, annual leave, committee works, others
 2.5 Induction

 When a new member of staff joins an organization, it is

important that they are given good support in gaining an
understanding of their role and the organization.
 Induction is the process of socializing/familiarizing the new
employee/new comer/ with the organization ,with other
employees and with his/her job.
 Induction is designed to provide the new staff with information
in order to function comfortably and efficiently in the
organization
Areas of Induction

 Content of Induction includes:

A. Organizational related Issues such as history , organizational
structure, operation overview, company policy, and others
B. Employee Related Issues such as pay scale, pay day, vacation,
education opportunity, benefits, safety and health and others
C. Job Related Issues such as job duties, responsibilities, job location,
job safety, job requirement, job relation and others
D. Relationship related issues such introducing with his/her superior,
colleagues, trainers, and other peoples.
 To introduce, we may use films, videos,slides or company
handbooks.
 Why Induction

Benefits of Induction are:

It helps to reduce the new employee feeling of isolation
It helps the new staff to become part of the organization
quickly and to be more secured
It helps the new employee to learn more about the new
duties and responsibilities
It helps the new candidate to understand the social, cultural
and technological aspect of the work place quickly.
 2.6 Placement

It is the process of assigning a worker to a particular job

based on qualification, experience, qualities, and other
factors.
Avoid wrong placement. It brings inefficiency and
ineffectiveness in an organization. Proper placement
brings
 better motivation
Reduce cost of absenteeism and turnover
Increase employee satisfaction
Better utilization of resources
Questions

 Do all the jobs in your organization fit with its vision and
mission?
 Does every jobs has job description? If not who is responsible
for it?
 Do you think the recruitment and selection process fair and
transparent?
 How are new member of staff introduced in your
organization? is it adequate? How this can be improved?
 What is the practice of your organization in placement