HR PROCESS OR FUNCTIONS Human Resource Management comprise of several processes or functions. They are shown in the next slide.

Acquisition -Job Analysis A job analysis refers to studying a job in order to understand what is needed to help the job holder perform a job successfully. Knowledge Skills Abilities Attitudes

Acquisition - HR Planning (Forecasting) Demand Forecasting Determining the number of employees that the organization will need at some point in the future as well as the knowledge, skills, and abilities that these employees must possess. Supply Forecasting Determining what human resources will be available, both inside and outside the organization.

Acquisition - Recruitment The process of finding and attracting job candidates who are qualified to fill job vacancies. Internal recruitment Identifying candidates from inside the organization and encouraging them to apply for jobs that are vacant. External recruitment Advertising for and soliciting applicants from outside the organization.

Acquisition - Selection Selection is the process of evaluating and choosing the best qualified candidate from the pool of applicants recruited for the position. It entails the exchange of accurate information between employers and job candidates to optimize the person-job match. Although organizations usually make these decisions, applicants also self-select by choosing to join, not to join, or to leave, organizations according to their individual needs.

Selection Methods Application forms and resumes Tests Interviews Physical exams and drug tests

Application Forms and Resumes Application forms and/or resumes are usually the first sources of information about a potential employee. Applications and resumes usually record the applicant’s desired position and job-related qualifications and experience. Both serve as prescreening devices to help determine whether an applicant meets the minimum requirements of a position. Both also allow for preliminary comparisons with the credentials of other candidates.

Written Tests Test the applicant in a variety of areas: Knowledge Ability Skill Intelligence Interest

Performance Tests Performance tests require the job candidate to actually perform it the job, usually in a small part or for a short time. There are two common types of performance tests: Work samples Assessment centers

Work Sample Performance Tests Work samples are more appropriate for jobs that are more routine and/or more specific. If work samples are designed and selected well, then the person’s performance in the work sample should accurately predict their performance on the job. Work samples do show high validity scores, especially when compared to written aptitude, personality or intelligence tests.

Assessment Center Performance Tests Assessment centers are usually more appropriate to judge a candidate’s predicted performance in a more complex job. The candidate typically is presented with a fairly large number and varying types of tasks to do (sometimes more than can reasonably be done). The intent of the assessment center is to judge how a candidate would behave and perform in selected tasks to predict performance on the job.

Personality or Personal Tests Judge whether a person “fits” into the organization. The goal is to hire people who already have characteristics and attitudes that are line with the core values of the organization and it’s culture. It is assumed that it is easier to teach a person the details of a job than it is to teach him or her to change deeply help attitudes or change personality characteristics.

Interviews Interviews are relatively formal, in-depth conversations conducted for the purpose of assessing a candidate’s knowledge, skills and abilities Interviews also provide the candidate information about the organization and potential jobs. Interviews tend to have low validity. While many people conduct interviews, few are trained in how to do them well. Interviews also tend to be fairly informal and no two are alike which raises issues with reliability.

Realistic Job Preview The interviewer explains to the applicant what the job “really” requires rather than giving just the positive points of a job or company and avoiding the negative.

Training A planned effort to assist employees in learning job-related behaviors in order to improve performance. Companies train employees in an effort to prepare them to work toward achieving the goals and objectives of the organization.

Types of Training Programs Orientation Technical training On-the-job training Management development programs

Performance Appraisal A systematic process of evaluating employee job-related achievements, strengths, weaknesses, as well as determining ways to improve performance. Uses of performance appraisal information: Motivation Personnel movement Training Feedback for improvement and personal development

Graphic Rating Scales Assess employee’s on a series of performance dimensions such as: Initiative Tardiness Accuracy of work Performance dimensions on a graphic rating scale tend to be fairly general. As a result the scales are relatively flexible and can be used to evaluate individuals in a number of different jobs.

Problems with Performance Appraisal Halo Effect Rater Patterns Contrast Error Recency Error

Direct Compensation Base pay Incentives Refers to wages and salaries employees receive in exchange for performing their jobs. Incentives Compensation beyond base pay used to attract, retain, and motivate employees. Bonuses, commissions, profit-sharing plans, stock options.

Indirect Compensation Benefits Rewards employees receives as part of their employment relationship with the organization. Benefit categories Required and voluntary security Retirement Time-off Insurance and financial Social and recreational

Designing Equitable Reward Systems Compensation designers are concerned with three sources of fairness expectation: External Fairness Is the pay for the job fair in one organization relative to the pay for the same job in other organizations? Internal Fairness Is the pay for the job within the organization fair relative to the pay of other jobs in the same organization? Employee Fairness Is the pay fair relative to what coworkers are making on the same job?

Labor-Management Relations The formal process through which labor unions represent employees to negotiate terms and conditions of employment, including: Pay Hours of work Benefits Other important aspects of the working environment

HR Laws In the US, Equal employment opportunity (EEO) laws prohibit the consideration of race, color, religion, national origin, or gender in employment decision-making. In addition, there are laws prohibiting employment decisions based on biases against qualified individuals with disabilities and the elderly. What about Malaysia?

Safety and Health Occupational Safety and Health is a general area of concern in employment which spans the physiological and psychological needs and well-being of persons engaged in occupations; work-related trauma and death; the prevention of work-related trauma and death; the protection from, or from risk of work-related-trauma and death; and the rehabilitation and retraining of persons who have suffered work-related trauma (CCH Occupational Health and Safety: Glossary, CCH International, 1992)

The roles of a human resource manager. administrative The roles of a human resource manager administrative employee advocate strategic role

HR Management Roles Administrative Role Processing and record keeping Technology is transforming how HR services are delivered. HR services are being outsourcing to reduce HR staffing costs, utilize vendor expertise and technology, and increase focus on strategic HR activities. Operational and Employee Advocate Role Identify and implement programs and policies “Champion” for employee issues and concerns

Strategic Role for HR Strategic Role “Having a seat at the table” by contributing to organizational results and success. HR becomes a strategic business partner by: Focusing on developing HR programs that enhance organizational performance. Involving HR in strategic planning at the onset. Participating in decision making on mergers, acquisitions, and downsizing. Redesigning organizations and work processes Accounting and documenting the financial results of HR activities.

FIGURE 1.2 Changing Roles of HR Management