Principles of Management
M G M T- 1 4 2
Mujeeb Rashid
HUMAN RESOURCE MANAGEMENT
CP - SESSION
• How would you define Human Resource?
• When does a ‘Human being’ become HR?
• Distinguish between ‘Demographic’ and ‘Psychographic’
Human Resources.
• Does Gender influence Human Resource?
• How does HR become a source of Competetive Advantage?
• Give reasons why companies hire ‘Internally” or ‘Externally’?
• Why spend on Training & Development of HR?
• Who should appraise an Employees’ Performance?
• What are the fundamental aspects of a Reward System?
• How do ‘Unions’ & ‘Labor Laws’ influence HR Management?
HUMAN RESOURCE – Opposing Attributes
• Myers Briggs Personality Types.
• Extroverts (E) Vs Introverts (I).
• Sensing (S) Vs Intuitive (N).
• Thinking (T) Vs Feeling (F).
• Perceptive (P) Vs Judgemental (J).
• ENTJ are the rare (CEO) types
Human Resource a Competitive
Advantage
HR will be effective when they Create Value, are Rare (skills,
knowledge and experience), difficult to Imitate (unique
culture of teamwork)and Organized
Organizations are best served when HR leaders are strong
advocates for at least four sets of values: strategic, ethical,
legal and financial
To succeed companies must align their Human Resources to
their strategies
Right number and type of employees to suit strategic plan
Companies that compete on Cost, Quality and Service
should use their staffing, training, appraisal and reward
systems to reinforce behaviors that underlie their strategies
for Competitive Advantage.
HR – Processes & Activities
The Human Resource Management Processes
HR – Reasons for Internal and External Hiring
Internal Hiring is best when more staff is needed having
the skills that are already internally available and are
familiar with the organizational policies, values and for
opening opportunities to lower staff for promotion and
career growth thus building employee morale.
If existing employees lack skills and talent needed for
growth it would be better to look for outside candidates.
External Hiring brings in new blood to a company and
can inspire innovation. Among the frequently used sources
for outside applicants are Internet Job Boards, Company
websites, Employee referrals, Newspaper advertisements
and College Campus recruiting
It brings in new Knowledge, Skills and methods of applying
the same to generate further value addition
HR – Selection Layoffs and Termination
Selection Process includes: Resumes, Interviews,
Reference & Background checks, Personality tests,
Cognitive ability Integrity and Performance tests.
Workforce Reductions includes planned Layoffs driven
by restructuring, mergers and acquisitions.
Terminations are sometimes necessary for poor
performance.
Termination is as stressful for
the the employer as for the
employee. The bad news
should be delivered by the
immediate superior of the
employee. The meeting should
be held in the presence of an
HR manager who take notes
and provides guidance on the
legal aspects and the
procedures to be followed
HR – Developing the Workforce
Training usually refers to teaching lower level employees
how to perform their current jobs. Development usually
involves teaching managers and professional employees
broader skills needed for their present and future jobs.
Processes include:
-Needs assessment-Job assessment- Desired outcomes
-Designing the training- Content required for the Objectives
Training methods to be used and deciding if it must be on the
job, in-house or outside.
Training delivery methods used in the
US
HR – Performance Appraisal
Performance Appraisal can assess three basic categories of
employee performance:
-Personality Traits, Interpersonal Behaviors and Personal
achievements
-Dimensions that are usually measured include Initiative,
Leadership and Attitude on a 5 to 7 point scale
Personal achievements are measured as Key Performance
Indicators (KPI’s) that are preferably quantified as SMART-
Specific, Measurable, Attainable Realistic and Timely
KPI’s are set before the beginning of the year between the
subordinate and his superior that are fully aligned to the
Organization’s business and corporate objectives.
Sometimes peer appraisal known as 360 degree appraisal is
used provide feedback to managers for development. It is not
used for determining compensation or promotions
HR – Example of Performance Dimension
TQM
HR – Reward Systems
Three types of systems are crucial for designing an effective
pay plan: pay level, pay structure and individual pay.
An individual’s compensation is based on his/her level of
responsibility, e.g., Jr., Middle or Senior Manager, market value
for the Skills and Knowledge possessed and consistency of
her/his performance rating
Factors Affecting the Compensation of Employees
HR – Labor Relations
Labor laws are enacted in all countries to bring about a
uniformity of treatment to labor and the protection of their
basic rights from unfair exploitation
Labor Unions are established to look after the rights of the
workers with respect to e.g., minimum wages, working
hours, medical, pension & social security-(usually covered
by the governments)
Agreements are made between the Company and the
Labor Union (also known as the collective bargaining
agent) usually for 3 years.
In the event of a dispute during the period regarding the
interpretation of the agreement, the matter is referred to a
pre agreed arbitrator