Chapter 11: Managing Human Resources
Layout of
Chapter:
1.
What is HRM and how it works
2.
Human Resource Planning,
Recruitment, and Selection
3.
Training and Development
4.
Compensation and Benefits
1.
What is HRM and how it works
HRM (Human
Resources Management):
The process of acquiring, retaining, terminating,
developing, and properly using the human resources (people) in an organization.
How HRM Works:
Developing human resources involves training, educating,
appraising and generally preparing personnel for present or future jobs. HRM
involves the following tasks:
·
Human Resources Planning,
Recruitment and Selection
·
Training and Development
·
Compensation, Benefits and Resources
·
Labor Relations.
2.
Human Resources Planning, Recruitment, and Selection
A.
Planning: The steps taken in estimating the
size and make up of the future work force. This process helps the firm acquire
the right number and kinds of people when they are needed.
B.
Recruitment: Steps taken to staff an
organization with the best-qualified people.
In order to
complete recruiting process, first one must understand about jobs and it is
called job analysis.
Job Analysis: The process of determining the
tasks that make up a job and the knowledge, skills, and abilities (KSAs) needed to perform the job. E.g.
the BUS101 course instructor needs to have minimum basic knowledge of all
business subjects and needs the ability to communicate that knowledge in easy
understandable terms to students.
Job Description: A statement that furnishes
information about a job’s duties, technology, conditions and hazards, based on
data from job analysis. Such as activities, condition etc. (Lecturing, question
preparation, admission test duties etc.)
Job Specification (Job Requirements): A
statement of the human qualifications needed to perform a job, derived from the
job analysis. Such as, education, qualifications, experiences. E.g. all
qualifications needed for the post of a marketing manager.
Recruitment Sources:
(i) Internal sources: Present employees, friends of employees, former employees
and previous applicants. e.g., recruiting full time faculties from the pool of
adjunct faculties; Or marketing manager from among the brand managers.
(ii) External sources: Blind Advertisement, newspaper, trade journals,
magazines and Internet Job sites.
Also,
through university career centres which (e.g. placement office of any
university) work as a source for recruitment in the many countries. Now a day
in Private University of Bangladesh has introduced this technique. Example: EWU has its career development
center etc; NSU has its placement office.
There are
also many recruiting agencies.
C.
Selection: A series of steps that starts with
the initial screening and ends with a hiring decision.
The steps are as follows:
a. Advertisement (Go for the ad. First)
b. Receiving of application
c.
Initial screening or short listing
the applicants
d.
|
e.
Oral test or Viva voce
f.
Physical check up/ medical checkup (HIV,
drug)
g.
Reference check
h.
Decision to hire/ Job offer/
Appointment letter
i.
Joining letter / acceptance of job
letter
From 3 to 8 is called the selection
process.
3.
Training and Development
A continual process of helping employees to perform at a high level.
Training and Development programs include orientation activities that inform
employees of policies and procedures, educate them in job skills,
and develop them for future advancement.
Before a training program can be developed, problem areas must be
pin-pointed. Once training needs have been identified, objectives need to be
stated in writing. They provide a framework for the program. Objectives need to
be concise, accurate, meaningful, and challenging.
There are usually two major categories of objectives:
Skill and Knowledge.
=> Skill objectives focus on
developing physical abilities.
=> Knowledge objectives are
concerned with understanding, attitudes, and concepts.
To be effective, a training program must accomplish a number of
objectives:
a. It must
be based on both organizational and individual needs; training for training’s
sake is not the objective.
b. The
objectives of training should spell out what problems will be solved.
c. All
training should be based on sound theories of learning. This is the major
reason why training and management development are not for amateurs.
d. A
training program must be evaluated to determine whether it is working.
There are 3 methods widely used for training purpose. These are –
(i)
On the job training: A supervisor or other worker may show a new
employee how to perform the job.
(ii)
Vestibule training: Training in a mock up or facsimile (exact
copy or duplicate) of the actual work area.
(iii)
Classroom training: Numerous classroom methods are used by many
business organizations. E.g. Lecturing or formal organized presentation;
Interactive videos (IAV) lecturing is becoming a popular technique.
Management development
The process of education and developing selected personnel so that they
have the knowledge, skills, attitudes, and understanding needed to manage in
future positions.
Training is generally associated with non-managerial or operating
employees; Management Development is associated with managerial personnel.
Management development programs can be of two types:
1. On-the-Job training: includes
understudy programs, job rotation, coaching etc.
2. Formal Development Program:
conducted by training units within organizations or by consultants in
universities or specialized training facilities.
Performance Appraisals
Training and Development also involve performance appraisal.
Managers use appraisal programs to communicate expectations and to help
subordinates improve personal deficiencies. Most employees want to know how
well they are performing, and appraisals provide a basis for reviewing their
performance. E.g. Employee evaluation by supervisor.
4.
Compensation and Benefits
Money is important both economically and psychologically.
A compensation system has one
objective: to create a system of rewards that is equitable to both employer and
employee. The system must motivate the employee to work hard and accomplish
goals.
An employer views compensation in
terms of cost effectiveness, fairness, and adequacy.
An employee views compensation in
terms of equity, security, motivation and meaningfulness.
Compensation is direct or indirect.
(i)
Direct Compensation: includes base-pay (salary or wage) and performance-based
pay (incentives).
Base Pay (Salary) – on
hourly / weekly / monthly / yearly basis for the time at employment.
Performance-based pay (Incentives)
– bonus, production bonus, commission etc.
(ii)
Indirect Compensation: includes Benefits and Services, also Federal
and State mandated protection programs & private protection programs.
Benefits – Financial in
nature; (such as health insurance, provident fund, pension fund etc).
Services – Employer
supplied programs; (such as, car parks, gymnasiums, housing, transportation,
cafeteria, etc.)
Public Protection
programs – include social security benefits, unemployment compensation, and
workers’ compensation provided for temporary or permanent disability or
disfigurement etc.
Private Protection
Programs – provided by firms but are not required by law; include health care
benefits, income after retirement, guaranteed work and pay programs (e.g. paid
leave, miscellaneous benefits, golden parachute).
Example of Private Protection Programs (Executive
level benefits):
We can call them special compensation.
·
Golden
Parachute – An executive termination package that guarantees
employment or service pay even when another firm takes over. E.g. merges or
acquisitions of a firm.
·
Golden
Handcuffs – A benefit program that makes it too costly for
an executive to leave a company, because of benefits that would be forfeited.
E.g. stock options, retirement packages of Microsoft.
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