Haramaya University

College of Business & Economics

Department of PADM

Human Resource Management

(PADM 4101)
December 6, 2022
 Course Contents
• Ch-1: Overview of HRM
• Ch-2: Job Analysis
• Ch-3: Employee Resourcing
• Ch-4: Training & Development
• Ch-5: Performance Appraisal
• Ch-6: Wage and Salary Administration
• Ch-7: Employee safety, health and labor
relations management

December 6, 2022
 Chapter One: Overview of Human Resource Management

• Chapter Outline
 Definition of Human Resource Management
 Basic Management and HRM Functions
 Features of Human Resource Management
 The Process of Human Resource Management
 Importance of Human Resource Management
 HRM Environmental Challenges

December 6, 2022
 • Human resource management (HRM) is
concerned with the “people” dimensions in
management.

• HRM is the term increasingly used to refer

to the philosophy, policies, procedures and
practices relating to the management of
people within organizations.
December 6, 2022
  Those organizations that are able to acquire,
develop, stimulate and keep outstanding
workers will be both effective and efficient.
 Human resource thus, creates organizations
and makes them survive and prosper.
 If human beings are neglected or mismanaged,
the organization is unlikely to do well.

December 6, 2022
• HRM is the management of one of the most
important resources of organizations; the-people

Human
Resource + Management
• Plan
• Organize
People • Staff
• Direct
• Control
December 6, 2022
• When the definition is broken down to its
specific components, we find the basic
management functions and its
application to managing human
resources.

December 6, 2022
  Establishing goals and standards,
developing rules and procedure, developing
plans and forecasting- predicting or projecting
some future occurrence.

 Determining, in advance, a personnel /HR

program that will contribute to the goals of an
enterprise (human resource requirement plan).

December 6, 2022
• Giving each subordinates a
specific task; establishing departments;
delegating authority to subordinates;
establishing channels of authority and
communication; coordinating the work of
subordinates.

December 6, 2022
  Directing: Getting others to get the job done;
maintaining morale; motivating subordinates.
 Setting standards of performance,
checking to see how actual performance compares with these
standards; taking corrective action as needed.

December 6, 2022
• Concerned with obtaining
proper kind and number of human resources
necessary to accomplish organizational goals.

• It specifically deals with determination of HR

requirement, recruitment, selection, and
placement.

December 6, 2022
• It is the increase of skill,
through training and development programs,
needed for proper job performance.
• This function is essential as nature of jobs
change through time due to technological
advancements, realignment of jobs, and other
complexities that come along with expansion
of a business.

December 6, 2022
  It is the adequate and
equitable remuneration of personnel for their
contribution to organizational objectives.

 It could be made in the form of money –

salary, bonus, or fringe benefits such as
medical insurance, transportation or housing
allowance, dependency allowance, stock
options, etc.

December 6, 2022
 • It is concerned with the
attempt to effect a reasonable reconciliation
of individual, societal and organizational
interest.
• It rests upon the foundation of a belief that
significant overlapping of interests do exist
in our society.
• It is often the case that there is a difference
in what employees, management, and/or
society expects from each other.
December 6, 2022
  It is concerned with the
perpetuation of the state where by interest of
individuals, organizations and the society is
reconciled.

 It is going to be a continuous effort that

involves the active involvement of the HRM in
ensuring the changes that may affect the
reasonably good working environment and
make the necessary corrective measures.
December 6, 2022
 • It refers to the process involved in
HRM when an employee is separated from an
organization.
• Depending on the reason why an employee
separates from an organization, HRM will take the
necessary action to ensure that such employees
pass through required processes as specified by
the policies and procedures of the organization.
• Some of these reasons include retirement, layoffs,
out-placement, discharge, etc.

December 6, 2022
 Features of HRM
• People Oriented: Human Resource
Management is concerned with employees
both as individuals and as group in attaining
goals.
• Comprehensive Function: Human
resource management covers all levels and
categories of employees.

December 6, 2022
 Cont’d
• Individual-oriented: Under human
resource management, every employee is
considered as an individual so as to provide
services and programs to facilitate employee
satisfaction and growth.
• Continuous Function: Human resource
management is a continuous and never ending
process.

December 6, 2022
 Cont’d
 A Staff Function: Human resource
management is a responsibility of all line
managers and a function of staff managers
in an organization.
 Pervasive Function: Human resource
management is the central sub function of
an organization and it permeates all type of
functional management viz., production
management, marketing management and
financial management.
December 6, 2022
 Cont’d
• Challenging Function: Managing of
human resources is a challenging job due to
the dynamic nature of people.
• Development–oriented: Individual
employee-goals consists of job satisfaction,
job-security, high salary, attractive fringe
benefits, challenging work, pride, status,
recognition, opportunity for development etc.

December 6, 2022
 The Process of HRM
HRM is a process consisting of
about four functions:
[Link] of human resources
[Link] of human resources.
[Link] of human resources.
[Link]

December 6, 2022
 Key Process and Systems
HRP
Job Analysis
Procurement Transfer

Staffing:
Recruitment Promotion
Selection
Placement Orientation

Training &
Development
Performance Appraisal
Appraisal
Maintenance Compensation & Reward

Protection (Safety&
Health Management)

Resignation

Separation
Discharge

Retirement

Lay-off
December 6, 2022
 Cont’d
 Acquisition Function: Acquisition
process is concerned with securing and
employing the people possessing required kind
and level of human resources necessary to
achieve the organizational objectives.
 Development function: Development
function is the process of improving, molding
and changing the skills, knowledge, creative
ability, aptitude and values.

December 6, 2022
 Cont’d
• Maintenance Function:
The maintenance function is concerned
with providing those working
conditions that employees believe are
necessary in order to maintain their
commitment to the organization.

December 6, 2022
 Cont’d
• It refers to the process
involved in HRM when an employee is
separated from an organization.
• Some of the reasons for separation
include retirement, layoffs, out-
placement, discharge, resignation, etc.

December 6, 2022
 Why HRM?
• Changing employee needs
• Increased complexity
• Increased legal complexity
• Developing Human Resource Policies
• Human Resource Information Systems
(HRIS)
• Human Resource Cost- effectiveness
December 6, 2022
 Objectives of HRM

• Human resource management pursue several objectives.

• The primary objective of HRM is to ensure a continuous

flow of competent workforce to an organization.

• Three categories of HRM objectives include owners

objectives, societal/legal objective, and employee
objectives
December 6, 2022
 Cont’d
Owners objectives:
 Human resource management contributes to the objectives of
the owners.
 Profit for business organizations.
 Satisfy users and owners for non business organizations.
 Ensure the continuous flow of competent work force and their
contributions to the fulfillment of organizational objective.

December 6, 2022
 Cont’d
Social/legal Objectives:
• HRM satisfy customers needs, fair competition, keep societies
welfare including safe products and healthy environment.
• Political-legal objectives comply with government laws and
regulations, avoid decimation, allow equal employment
opportunities, fair treatment, minimum pay, working hours,
Affirmative actions, etc.

December 6, 2022
 Cont’d

Employee objectives:
• Satisfy employee needs, achieve quality work
life (QWL), by creating job satisfaction and
by providing less work and more leisure
time
December 6, 2022
 Roles of HRM

1. Service function
2. Control function
3. Strategic partner:
 Aligning HRM strategies to business strategies is important to
help the company execute its business strategy
4. Administrative expert:
 Designing and delivering efficient and effective HRM systems,
processes, and practices; such as systems for selections,
training, developing, appraising and rewarding employees.
December 6, 2022
 Cont’d
5. Employee Advocate:
 Entails managing the commitment and contributions of
employees. No matter how skilled an employee is, if he is
angry or alienated, he will not contribute his efforts to the
firms’ success, nor will he stay with the firm for long.
6. Change agents:
 HRM must help in transforming organizations to meet the
new competitive conditions. You need to change and
develop a capacity for change, communicate, manage
conflict, etc,.
December 6, 2022
 Organization of HRM
• Factor affecting the organization of the human resource
department is the size of an organization.
• 1. HRM in a Small Business
• In such organizations, the same functions of HR are needed
but at smaller scale. For instance, an owner-manager most of
the time performs the necessary HR functions (outsourcing
some of these activities).
• In other situations, small business human resource
departments are staffed with one individual, and possibly a
full-time secretary.
• The main difference is that they are doing the work
themselves without benefit of a specialized staff. In such
situations, there is a tendency to use outside consultants to
assist in HRM activities. .
December 6, 2022
2. HRM in Large Organization
• As an organization grows in size and
complexity the HRM department will be
undertaking specialized HR functions under
separate department/units.
• These departments normally involve distinct
areas in human resources such as
employment, training and development,
compensation/benefit administration, and
employee relations.

December 6, 2022
 1. Job Analysis (Job Description, Specification)
2. Human Resource Planning
3. Recruitment and Selection
4. Orientation
5. Training and Development (Coaching)
6. Performance Appraisal (Feedback)
December 6, 2022
 Cont’d
7. Encouraging teamwork
8. Rewarding employees (Compensation)
9. Benefits and Services
[Link] employees
[Link] Relations
[Link] and Termination
December 6, 2022
 Human Resource
Management
Environments

December 6, 2022
 HRM Environment

1. External Environment
2. Internal Environment

December 6, 2022
 HRM Environment
• Human Resource management as a system
is affected by several factors including
external and internal environment.
 External Environment are those factors that
are outside the organization, they are
largely uncontrollable and provide
opportunities and threats (OT) to the
organization. The analysis of external
environment is some times called PEST
analysis
December 6, 2022
 Cont’d
• Internal environment are factors within
the organization, they constitute the
strengths and weaknesses (SW) of the
organization.
• The analysis of the internal and external
environment together is called SWOT
analysis

December 6, 2022
 Cont’d
• External Environment
– Political/legal
– Ethical
– Economic
– Social
– Technological

December 6, 2022
 Cont’d
• Internal Environment
– Vision, mission,
– Organizational styles, leadership
– Organizational Structure
– Nature of the task
– Work groups

December 6, 2022
 External Environment

1. Political/Legal:
• Governments make different laws that
require human resource management to
respect. Laws include:
– Equal employment opportunities,
– Affirmative actions,
– Compensation & benefits,

December 6, 2022
 Cont’d
– Safety & health,
– Hours of work, holidays,
– Industrial relations etc.

December 6, 2022
 3. Economic Environment:

 Such as the business cycle, inflation, income level,

competition, etc.

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 4. Social Environment:

• Such as demographic factors, culture, religion,

belief on work etc.

December 6, 2022
 5. Technology Challenge

 Advances in technology have:

◦ Changed how and where we work
◦ Resulted in high-performance work systems
◦ Increased the use of teams to improve customer service and
product quality
◦ Changed skill requirements
◦ Increased working partnerships
◦ Led to changes in company structure and reporting relationships

December 6, 2022
 Internal Environment
• Vision, mission, objectives and
strategies- HRM require to align its
activities to these requirements.
• Styles of Management- the styles of
management whether it is autocratic,
democratic or laissez faire has direct
implication for the work of HRM.

December 6, 2022
 Cont’d
 Nature of the task- whether the job is
attractive or repulsive
 Organizational Structure- Number of
positions and relationships
 Work groups- Whether the work group is
supportive

December 6, 2022
 Chapter 2

Job Analysis

December 6, 2022
 Chapter Outline
1. Definition of Job Analysis
2. Who is involved in JA
3. Components of JA
4. JA Steps
5. JA Potential Problems
6. Job Design

December 6, 2022
 1. Definition of Job Analysis

• The reason why people are required in an

organization is to fill job vacancies and to do the
job.

• This requires human resource management to

understand the nature of the job and the nature
of the person required for the job.

December 6, 2022
 Cont’d
• Job analysis is a systematic process of
collecting and making judgment about all of
the important information related to the
nature of the job.
• It is the basis of all human resource
management activities.
• Job analysis objectives are to achieve
information on the following job and person
aspects.
December 6, 2022
 Job analysis is all about
 Collecting or gathering information about a job,
Analyzing such information,
Producing job descriptions and job specification,
and
Carrying out the processes above in a systematic
manner

December 6, 2022
 Cont’d
– What a worker does-workers function
– How a worker does-methods and techniques used
– What aid is necessary-machines, tools, experts
etc.
– What qualifications are necessary-knowledge,
skills, abilities, experience
– The output of job analysis are job description and
job specification

December 6, 2022
 Type of Information Obtained from Job
Analysis
 Overall purpose –Why the job exists and, in essence, what
the job holder is expected to contribute.
 Job content – The nature and scope of the job in term of the
tasks and operating to be performed and duties to be carried
out- KSA’s)
 Job context – Working conditions such as physical working
conditions, work schedule
 Organizational factors – The reporting relationships of the
job holder
 Worker/Human requirement – The qualifications, skills level,
abilities, attitude, personality and
 Performance criteria-The criteria, measures or indicators
that enable an assessment to be carried out
December 6, 2022
 Multifaceted Nature of Job Analysis

Labor Relations Recruiting

Selection

Strategic HR
Safety & health Planning
Job Analysis
Compensate
Employee
Training
Performance appraisal

Career dev’t Employee dev’t

December 6, 2022
 When is Job Analysis Needed?
[Link] analysis is done when the organization is
founded, and a job analysis program is initiated for
the first time
[Link] analysis is performed when new jobs are
created in an organization.

[Link] analysis is used when jobs are changed

significantly as a result of new technologies,
methods, procedures, or systems.
December 6, 2022
 Steps in Job Analysis
 The six steps in doing a JA are as follows.
 Step 1: Determine the use of the job analysis
information. Start by identifying the use to which the
information will be put, since this will determine the
types of data you collect and the technique you use to
collect them. .
 Step 2: Collect background information. Next,
review available background information such as
organization charts, process charts and job
descriptions.
 Step 3: Select representative positions to be
analyzed. This is necessary when many similar jobs
are 6,to2022be analyzed and it is too time-consuming to
December
 Cont….
Step 4: Collect job analysis information.
Your next step is to actually analyze the job
collecting data on job activities, required
employee behaviors,
Step 5: Review the information with the
participants. The job analysis provides
information on the nature and functions of the
job.
Step 6: Develop a job description, and job
specification. .
December 6, 2022
 2. Output of Job Analysis
Job Description—a listing of the
job’s duties; its working
Job conditions; and the tools,
Description
materials, and equipment
used to perform the job. It
Job identifies the picture of the
Analysis job
Job Specification—a listing of
Job the skills, abilities, and
Specification
other credentials the
incumbent jobholder will
need to do a job. It identifies
December 6, 2022
the picture of the person.
 Job Analysis
Determining pertinent information relating
to the nature of a job

• Job Description Job Specifications

A written statement of
• A written description of a job and the necessary
its requirements qualification of the job
• Job Titles & Location holder
• Duties to be performed • Education
• Characteristic of the job • Experience
• Organizational • Training
• Mental Abilities
• Relationship • Physical Efforts &
• Relation to other jobs Skills
• Machines, tools, and materials • Decision Making
•December
Working
6, 2022 Conditions abilities, etc.
 3. Steps in Job Analysis
1. Determine the purpose of the JA
2. Gather Information about jobs to
be analyzed
3. Write the job Analysis
4. Obtain Approval

December 6, 2022
 3.1 Determine the Purpose of JA
 Job analysis serves several purpose of HRM
 How do you want to use the JA?
• Legal requirement
 Manpower Planning
 Recruiting
 Selection
 Performance appraisal
 Training
 Compensation, etc

December 6, 2022
 3.2 Gather Information about Jobs
 Decide which jobs to include in the job
analysis project
 For similar jobs select representative jobs
 Different methods of gathering data include:
1. Interviews
2. Questionnaire
3. Observation
4. Diary/Logs

December 6, 2022
 Cont’d
Interview Method
Individual
 Several workers are interviewed individually
 The answers are consolidated into a single job
analysis
Group
 Employees are interviewed simultaneously
 Group conflict may cause this method to be
ineffective
◦ The interview method requires that all employees
are asked the same questions in the same order.
December 6, 2022
 Cont’d
Questionnaires
◦ Employees answer questions about the job’s tasks
and responsibilities
◦ Each question is answered using a scale that rates
the importance of each task
 Not all jobs are the same, so questionnaires may
overlook certain aspects of the job. Also, follow-up
methods are not usually organized to gather extra
information.
 Computerized versions of questionnaires can be very
expensive.
December 6, 2022
 Cont’d
Diary Method
◦ Incumbent Employees record information
into diaries of their daily tasks
 Record the time it takes to complete tasks
◦ Must be over a period of several weeks or
months
 This method can be very expensive because of
the time it takes to complete it.

December 6, 2022
 Cont’d
Observation Method
◦ Analyst observes incumbent
 Directly
 Videotape
◦ Useful when job is fairly routine
◦ Workers may not perform to expectations

December 6, 2022
 3.3 Write the Job Analysis
• Many organizations write as job description
combining both job description and
specification.
• However it can also be presented in two parts
as job description and specification.
• The following Items are common to both job
description and specifications:

December 6, 2022
 Cont’d
1. Job Identification (Title, Date, Approvals,
Supervisor’s title ,Salary, Grade level)
2. Job Summary (General nature, Major
functions or activities, Includes general
statements)
3. Relationships (works with who)

December 6, 2022
 Cont’d
Job Description
1. Job Identification (Title, Date, Approvals,
Supervisor’s title ,Salary, Grade level)
2. Job Summary (General nature, Major
functions or activities, Includes general
statements)
3. Relationships (works with who)

December 6, 2022
 Cont’d
4. Responsibilities and Duties (Limits of
authority, what is done-such as sales, lifts,
drives etc.)
5. Standards of Performance (Quality,
quantity etc.
7. Working Conditions and Physical
Environment

December 6, 2022
 Cont’d
Job Specification
[Link] Identification (Title, Date, Approvals,
Supervisor’s title ,Salary, Grade level)
[Link] Summary (General nature, Major functions or
activities, Includes general statements)
[Link] (works with who)
[Link]
[Link]
[Link]
December 6, 2022
 4. Potential Problems of JA

Employees may resist JA because:

Resistance to change
Possible changes to job duties
Changes to pay
Lack of trust of consequences

December 6, 2022
 Who is involved in the job
analysis?

– Management
– Supervisors
– Job analysts
– Job incumbent
– Unions
– Consultants
December 6, 2022
 5. Job Design
• Job design is the process of determining the
specific tasks to be performed, and methods
used in performing these tasks, and the way
the job relates to other work in the
organization.

• There are two major components of job design:

job enlargement and job enrichment.

December 6, 2022
• Job Enrichment
• Job enrichment is the restructuring of the content
and level of responsibility of a job to make it more
challenging, meaningful, and interesting to a
worker. it involves a vertical expansion of duties. it
involves a vertical expansion of duties
• Job Enlargement
• There is a clear distinction between job enrichment
and job enlargement. Job enlargement involves
changes in the scope of a job so as to provide
greater variety to the worker. It provides a
horizontal expansion of duties
December 6, 2022
 chapter 3
Human Resource
Planning
(HRP)

December 6, 2022
 1. HRP: Definition
• Human resource planning (HRP) is the process of analyzing
and identifying the need for and availability of human
resources so that the organization can meet its objectives.
• HR planning involves forecasting the need for labor and
the supply of labor, then planning the programs necessary
to ensure that the organization will have the right mix of
employees and skills when and where they are needed.
• HRP is one of the most important elements in a successful
HRM program, because it is a process by which an
organization ensures that it has the right number and kinds
of people, a the right place, at the right time, capable of
effectively and efficiently completing those tasks that will
help the organization achieve its overall strategic objectives.
December 6, 2022
 2. HRP: Importance
 Helps to determine future human
resource needs
 Coping with change
 Foundation for personnel functions
 Provides information on the status of the
human resource
 Reduces cost and budget of human
resource management
December 6, 2022
 Essence of HR Planning
• Information Gathering (information obtained is used in
the following stage to determine HR needs and HR
supply)
• Forecasting (information obtained form the above stage is
used as a basis for analyses, to actually forecast the
organization’s HR needs and potential HR supply.
• Predictions or assumptions developed in the above
stages are used as a basis for developing HR plans to meet
the organization’s present or future HR requirements.
• HR Plans, policies and programs used to adjust the gap
between HR demand and HR supply,
• Evaluation of the accuracy of forecasts and Hr plans used
toDecember
match 6, 2022 HR surpluses with HR demand
 Purpose of HR Planning
• HR planning link and integrate choices about human
resource activities, it also links the HR choices to the
broader strategic .the aims of human resource planning are
to ensure that an organization:
• Strategically aligns its HR plans, policies and practices
with supporting corporate objectives.
• Is able to anticipate its future HR needs and to estimate
available HR supply, both inside and outside of the
organization,
• Is able to anticipate the problems of potential HR
surpluses or deficits,
• Is able to develop the necessary HR plan and practices
required to obtain and retain the quantity and quality of
December 6, 2022
employees
 Steps in the HRP Process
• Step 1. Studying short and long range plans of
the organization
• Before undertaking the human resource planning
of an organization the short-term and long-term
objectives should be analyzed
• the ultimate mission or purpose is to relate future
human resources to future enterprise needs so as
to maximize the future returns on investment on
human resources”.

December 6, 2022
• Step 2. Forecasting the overall human resource
requirements i.e. defining the skills, expertise, and total
number of employees required in the organization.
• A second element of the planning process is forecasting
human resourced needs based on business strategies,
production plans, and the various indicators of change
in technology and operating methods.
• Forecasting is usually accomplished by utilizing
historical data and reliable ratios (such as indirect/direct
labor) and adjusting them for productivity trends.
• The result of this forecast is a spreadsheet showing
employees in terms of numbers, mix, cost, new skills,
job categories, and numbers and levels of managers
needed to accomplish the
December 6, 2022
• To assist with making such predications about HR demand,
two general approaches to demand forecasting are
commonly used:-
 Statistical / Mathematical Approaches
 Judgmental Approaches
• Statistical Approaches: - some forecasting techniques are
based on statistical methods. Some of them are given below:
 Ratio-trend Analysis-trend will be analyzed
 Econometric Model:- Under the econometric model the
previous data is analyzed and the relationship between
different variables in a mathematical formula is developed
 Work-study techniques:- work-study techniques are
generally used to study work measurement. Under the
workload analysis the volume of workload in the coming yrs
December 6, 2022
• Judgmental Approaches: - Judgmental Approaches are
also known as the conventional method. The forecasts are
based on the judgment of those managers and executives
• two types: -
 Managerial estimate:- Under this method, the managers
or supervisors who are well-acquainted with the
workload, efficiency and ability of employees, think about
their future workload, future capabilities of employees
and decide on the number and type of human resources
to be required
 Delphi Method: - A survey approach can be adopted with
the Delphi technique.

December 6, 2022
• Step 3. Information Gathering
• After engaging in demand forecasting using both
mathematical and judgmental tools , the third
step in the HR planning process is to collect
information to be used for developing HR Supply
forecasts, Two sources of information are
available.
Internal source and
External source.

December 6, 2022
Internal audit-determining the internal labor supply
• The first major type of information to be gathered
is obtained form inside the organization.
• It is about maintaining accurate information
concerning the composition, assignments, and
capabilities of the current work force.
• This information includes job classifications, age,
gender, ethnicity status, organization level, rate of
pay, and functions.
• Employee information may also include data, such
as skills, education, training received, and career
interests.
December 6, 2022
• External environmental scanning-determining
the external labor supply
• The second source of information is obtained
form data received form the external
environment (which includes obtaining
informational the current conditions or
predicted changes in the general economy, the
economy of the specific industry, the relevant
technology, competition, government
legislation, demographic and social trends and
the labor market’s present and future
conditions
December 6, 2022
• Step.4 Taking an inventory of present human resources
• developing a profile of current status of human
resources.
• Once the demand for labor is predicated, and relevant
information is obtained about the internal and external
labor markets, it is now necessary to actually forecast
the supply of labor that the organization will require to
meet such demand.
• Supply forecasting therefore involves estimating the
labor supply or the availability of workers, in terms of
number or the required skills sets, to meet the
organization’s labor demand

December 6, 2022
• Step 5. The process of Matching (Forecast of total HR
requirement – Internal supply of HR = Net HR
requirement.)
• This stage involves matching the predications made for HR
demand against the predictions made for HR supply-to
determine the outcomes.
• For instance, does HR demand exceed available HR supply
or does HR supply exceed HR demand? The aim is to attain
a balance between them.
• If HR demand is greater than HR supply, or
• If HR supply is greater than HR demand; the under-
mentioned approaches may be used to create equilibrium.
• That is, to ensure that HR supply matches HR demand the
various techniques can be used.
December 6, 2022
• Step 6. Outcomes of the HR Planning Process
• Action plan
• Having made demand and internal supply
forecasts and considered the state of the
external labor market, the HR planner can
anticipate future problems with the matching
of HR demand with employee supply.
• As such, if such problems do occur,
appropriate HR or personnel plans and
programs will need to be put in place to off-
set any imbalances between HR demand and
supply
December 6, 2022
 Cont’d
• After estimating human resource demand
and supply for a future period the net
requirement situation can be one of:
• Shortages
• Surplus
• Balanced
• Each situation requires a different set of
responses.
December 6, 2022
 Surplus of human resource

• Supply exceeds the labor demand.

• The reasons for surplus human resource
can be:
• Company contraction,
• Over employment
• Poor human resource planning.

December 6, 2022
 Action Plan
Action Plan involves managing the net
manpower requirement- the surpluses or
shortages
Action plan for surplus include:
• Freeze hiring
• Reducing the number of hours worked
• Do not replace those who left

December 6, 2022
 Cont’d
• Reduce overtime work
• Offer early retirement incentives
• Reduce outsourced work
• Expand operations
• Lay offs

December 6, 2022
 Shortage of human resource
• In this scenario, the firm will need more
workers than will be available.
• The reasons for shortages can be:
• Expansion of the company and its jobs
• Poor human resource planning
(Underemployment)
• Turnover

December 6, 2022
 Cont’d
Action Plan for shortages include:
•Training or retraining existing workers,
•Grooming current employees to take over
vacant positions (succession planning),
promoting, transferring from within,
•Recruiting and hiring new permanent
employees,
•Subcontracting part of the work to other
firms,
December 6, 2022
 Cont’d
•Hiring part-timers or temporary workers,
•Paying overtime to existing employees
•Offer incentives to postpone retirement
•Rehire retirees part-time
•Redesign job processes so fewer employees
are needed
•Reduce operation

December 6, 2022
 Recruitment, Selection,
Placement &
Induction/Orientation

December 6, 2022
 1. Recruitment
1.1. Definition
•Recruitment is the process of reaching out
and attempting to attract potential and
qualified job candidates for a particular job
•To avoid costs, the recruiting effort should
be targeted solely at applicants who have
the basic qualifications for the job.

December 6, 2022
• the objective is to find these applicants at the lowest
possible cost.
• This process begins when new recruits are sought, and end
when applicants have submitted application forms or
resumes. The result is a pool of job-seekers form which the
firm can then select the most qualified.
• In effect, it involves:
• Identifying the sources where the required number and kind
of employees are/will be available
• Developing suitable techniques to attract the desirable
candidates
• Stimulating as many candidates as possible and be able to
attract large number of candidates.
• The higher the number of applicants the better chance of
December 6, 2022
being selective in the hiring process.
 Constraints on Recruitment
• Logically, firms would seek to recruit in a
manner that guarantees the greatest number of
qualified applicants.
• However, there are often constraints on the
recruitment process which prohibit some
methods, some of these constraints re
• Organization Policies
• Affirmative-action Programs
• Recruiter Habits
• Environmental Conditions
• Job Requirements
December 6, 2022
 Recruitment Process
Human Resource Planning

Recruitment

Internal Sources External Sources

Internal Methods External Methods

Recruited
Individuals
December 6, 2022
 Cont’d
1.3 Sources of Recruitment
• Sources of recruitment are the places,
agencies and institutions, recruiters go to seek
potential and qualified candidates that will
fill the vacant jobs.
• There are two practical sources from which
recruiters seek potential candidates to fill job
needs-internal source and external source.

December 6, 2022
 Cont’d
Internal Sources:
• Vacant positions in organizations could be filled by
those existing employees through transfers, promotions
and recall from layoff
• Internal source recruitment is recruiting from within the
organization (in-house)
• Many organizations have internal recruitment policy.
Unions require internal source
• Internal recruitment is usually done through promotion
and transfer.
• The way in which internal applicants are located is
often through job posting and job bidding
December 6, 2022
 Advantages of Internal Recruitment
The company has better knowledge of the
strength and weakness of job candidates
Inside job candidates have better knowledge of
the organization and job operations.
Employees see that competence is rewarded
and moral and performance may thus be
enhanced. .
The return on investment that an organization
has on its present work force is increased.

December 6, 2022
 Dis-advantages of Internal
Recruitment
• People can be promoted to the point where
they cannot successfully perform the job.
• Infighting for promotions can negatively affect
morale.
• Inbreeding of ideas can stifle new ideas and
innovations

December 6, 2022
 Cont’d
– Transfer: Is moving people to positions that
are similar and equal in status usually
horizontal
– Promotion: Moving people to higher level
position with higher status usually vertical

December 6, 2022
 Cont’d
– External Sources
• External source is recruiting from outside the
organization.
• Locating applicants from outside the
organization has many more options
• The entire labor market is a potential
source.

December 6, 2022
• Advantages:
• The pool of talent is much larger
• New insights and perspectives can be brought to
the organization
• Disadvantages:
• Attracting, contracting, and evaluating a
potential employee is more difficult:
• Adjustment or orientation time is longer for
external candidates.
• Morale problem can develop among internal
employees who feel qualified to do the job.
December 6, 2022
 Methods of Recruitment
• Job Posting: It means posting notices of job openings
on organization bulletin boards for recruiting :
• Job Advertisement: . There are four basic guidelines
job advertisements should follow:
 Attract attention
 Develop/Create interest in the job:
 Create desire:
 action

• College Recruiting .
• Employment Agencies
• Employee Referrals
• Executive Recruiters (“head hunters”):
• Walk-ins/Write-ins or Unsolicited Applicants:
December 6, 2022
 Cont’d
External Sources and Methods of Recruitment
Sources
• Employee referral programs
• Other companies
• Employment agencies
• Temporary help agencies
• Trade associations and Unions
• Schools
• Foreign nationals

December 6, 2022
 2. Selection
• Selection is the process of deciding which
candidate, out of the pool of applicants
developed in recruitment, has the abilities,
skills, and characteristics most closely
matching job demands.
• Series of steps are used for selection decision.
• The selection philosophy is either to screen out
the unqualified candidate at each step or to
screen in the qualified ones.

December 6, 2022
 Cont’d
2.1 Why Select the Right Person?
• Customers will receive the right quality
service within the right time and get
satisfied and delighted.
• Fellow workers will receive a cooperative
and compatible service and satisfied and
delighted to work with
• Fellow workers will be happy to work and
stay at their organization

December 6, 2022
 Cont’d
• Superiors (supervisors) will be satisfied and
delighted to work with
• There will be cooperation and harmony
among workers which will result in positive
synergy
• The organization will have a good image
• The organization will achieve its goals and
mission efficiently and effectively
• The company will grow, develop and become
prosperous
December 6, 2022
 Cont’d
2.2. Consequences of Poor
Selection Decision
•Increased induction, training, development
and performance management costs
•Dissatisfaction of customers because of
poor service
•Frustrations for, or loss of, other key staff
that have to work with the new employee
•Impaired image and reputation for the
company
December 6, 2022
• Environmental Factors Affecting the Selection
Process
• Compare your answer with the following
descriptions of environmental factors that impact
the selection process.
• Legal considerations
• Organizational hierarchy
• Applicant Pool (labor market)
• Probationary Period: Many firms use a
probationary period that permits them to
evaluate an employee’s ability based on
established performance
December 6, 2022
 Selection Process
1. Application Form
2. Preliminary Interview
3. Employment Tests
i) Aptitude tests
 Verbal ability –
 Numerical test-
 Perception speed test –
 Spatial tests –
 Reasoning tests –
ii. Job Knowledge and Proficiency Test
 Job knowledge tests .
 Proficiency test
iii. Interest Test
December 6, 2022
iv. Personality Tests
[Link] Interview
5. Reference Checking/Background Investigation
6. Physical Examinations
7. Final Employment Decision
•

December 6, 2022
 Cont’d
• The following tests are usually applied in the
selection process:
• Personality Test
• Achievement Test
• Aptitude Test
• Intelligence Test
• Dexterity Test: Disposition ( tendency)

December 6, 2022
 Cont’d
. Interview:
• It provides opportunity managers to verify
information on hand and to find out more about the
applicant’s interests, aspirations, and expectations.
• In addition, it will provide opportunity to share
information about the company, the job and its
environmental condition.
• Hence, the aim is to have a two-way communication
that is mutually beneficial.
• Interview could be structured or unstructured.

December 6, 2022
 Cont’d
Structured interview:
• Interview questions are predetermined before
the interview takes place.
• It applies a series of job-related questions
with predetermined answers consistently
across all interviews for a particular job.

December 6, 2022
 Cont’d
Structured interview advantages:
 The content of a structured interview is, by
design, limited to job-related factors.
 The questions asked are consistent across all
interviewees.
 All responses are scored the same way.

December 6, 2022
 Cont’d
Unstructured interview
 Interview questions are not predetermined
before the interview takes place.
◦ Questions are raised during the interview
session.

December 6, 2022
 Cont’d
The unstructured (non-directive) interview
Advantages:
• Allows the applicant the maximum amount of
freedom in determining the course of the
discussion.
• The interviewers ask broad and open questions.
• Permits applicants to talk freely with minimum of
interruption.
• Helps to reduce the possibility of legal charges of
unfair discrimination.

December 6, 2022
 Cont’d
Guidelines for Employment Interviews:
 Establish an interview plan
 Establish and maintain support
 Be an active listener
 Pay attention to non-verbal clues
 Provide information honestly
 Use questions effectively
 Separate facts from inferences
 Recognize biases
 Control interview
 Standardize the questions
December 6, 2022
 Cont’d
2.4. Validity and Reliability of Selection
Instruments
• Selection instruments such as tests and
interviews must be valid and reliable.
• Tests and interviews need to predict success
on a job if those tests are used to make the
decisions to hire.

December 6, 2022
 Cont’d
Validity:
 Tests and interviews are supposed to discover
and predict the ability to do the job required.
 If a potential candidate is interviewed or
tested and scores ‘A’ he must also score ‘A’ in
his job performance.
 Concurrent method and predictive method can
be used to evaluate the validity.

December 6, 2022
 Cont’d
◦ Concurrent validation: administer the tests to
employees presently on the job. You then
would compare their test scores with their
current performance.
◦ Predictive validation: the test is administered
to applicants before they are hired. After they
have been on the job for some time, you
measure their performance and compare it to
their earlier tests.

December 6, 2022
 Cont’d
Reliability:
• The test should yield consistent scores when a
person takes the same test on two or more
different occasions. Test re-test method and
equivalent-half helps to test the reliability
• Test-retest Method: If for example a person
scores 70% on a test administered on Monday
and 90% on Tuesday, people would not have
much faith in the test.

December 6, 2022
 3. Placement, Induction/Orientation
Placement:
 Placement is the process of assigning a
selected applicant to the job for which he/she
applied for.
Induction/Orientation:
 It is the process of introducing the new
employee to the organization, to his job, to
colleagues and superiors to bring him/her
into the mainstream of the organization as
quickly as possible.

December 6, 2022
 Cont’d
• A large number of new starters resign in
the first few weeks of their employment
because of lack of appropriate induction.

December 6, 2022
 Typical Purpose of P and O
• The typical components of a standard
induction program which can run for hours,
days or even weeks is as follows:
– The organization, its history, development,
management and activity.
– Personnel policies.
– Employee benefits.
– Physical facilities in the work place.
– An outline of the different jobs and work
entailed in the organization.
December 6, 2022
 Cont’d
– Health and safety measures.
– Social interaction with other employees.
– Physical orientation to the work place

• Indeed, secondary, tertiary or follow-up

induction programs are used by many
organizations to ensure all the information
they wish to impart is properly disclosed to
employees over a period of time.
December 6, 2022
 THANK YOU!!

ANY QUESTION?

December 6, 2022