1. Human Resources Management –II
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

2. Prepared by Ibrahim Inan
The aim of this hand out is to help the students for better understanding the subject with a solid examples and explanations.
Prepared by Ibrahim Inan
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

3. Program Introduction to Human Resource Management
What is HRM?
Human Resource Management at Work
Responsibilities of the HR Department
what does HRM involve
Specific HRM Functions
Goals of Human Resource Management
FUNCTION OF Human Resources Management
Recruitment
Selection
Employment Legislation
Discrimination
Development
Training
Rewards Systems
Trade Unions
Desired Outcomes of HRM
Productivity
Human Resources Management : The Strategic Business Partner!
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

4. Specific HRM Functions
Human Resource Planning
Analyzing Jobs
Recruiting
Selecting
Appraising
Training
Developing
Compensating
Benefits
Work Environment
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Yrd. Doç. Dr.İbrahim İnan

5. FUNCTION OF Human Resources Management
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Yrd. Doç. Dr.İbrahim İnan

6. Recruitment
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Yrd. Doç. Dr.İbrahim İnan

7. Recruitment
The process by which a job vacancy is identified and potential employees are notified.
The nature of the recruitment process is regulated and subject to employment law.
Main forms of recruitment through advertising in newspapers, magazines, trade papers and internal vacancy lists.
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

8. Recruitment Job description – outline of the role of the job holder
Person specification – outline of the skills and qualities required of the post holder
Applicants may demonstrate their suitability through application form, letter or curriculum vitae (CV)
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

9. Recruitment
Recruitment External recruiting:
Managers look outside the firm for people who have not worked at the firm before. Managers advertise in newspapers, hold open houses, recruit at universities, and on the Internet. External recruitment is difficult since many new jobs have specific skill needs. A multi-prong approach to external recruiting works best. Internal Recruiting: positions filled within the firm. Internal recruiting has several benefits: Workers know the firm’s culture, may not have new ideas. Managers likely already know the candidates. Internal advancement can motivate employees.
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

10. Selection
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

11. Selection
Selection: determine relative qualifications & potential for a job. Training & Development: ongoing process to develop worker’s abilities and skills.
Performance appraisal & feedback: provides information about how to train, motivate, and reward workers.
Managers can evaluate and then give feedback to enhance worker performance.
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

12. Selection
The process of assessing candidates and appointing a post holder
Applicants short listed – most suitable candidates selected
Selection process – varies according to organisation:
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

13. Selection Interview – most common method
Psychometric testing – assessing the personality of the applicants – will they fit in?
Aptitude testing – assessing the skills of applicants
In-tray exercise – activity based around what the applicant will be doing, e.g. writing a letter to a disgruntled customer
Presentation – looking for different skills as well as the ideas of the candidate
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

14. Selection Selection Process Paper & Pencil Tests:
Either an ability and personality test.
Ability test: assess if applicant has right skills for the job.
Personality test: seek traits relevant to job performance. Be sure test is a good predictor of job performance.
Performance Tests: measure job performance. Typing speed test is one example. Assessment Center: candidates assessed on job-related activities over a period of a few days. References: outside people provide candid information about candidate. Can be hard to get accurate information.
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

15. Selection Process
Selection Process After a pool of applicants are identified, qualifications related to the job requirements are determined: Background Information: includes education, prior employment, college major, etc. Interview: almost all firms use one of two types: Structured interview: managers ask each person the same job-related questions. Unstructured interview: held like a normal conversation. Usually structured interviews preferred; bias is possible. Physical Ability Test: measure strength & endurance. Good for physically demanding jobs.
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

16. Employment Legislation
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

17. Employment Legislation
Increasingly important aspect of the HRM role
Wide range of areas for attention
Adds to the cost of the business
Even in a small business, the legislation relating to employees is important – chemicals used in a hairdressing salon for example have to be carefully stored and handled to protect employees.
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

18. Discrimination Crucial aspects of employment legislation: Race Gender
Disability
Disability is no longer an issue for employers to ignore, they must take reasonable steps to accommodate and recruit disabled workers.
Copyright: Mela,
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

19. Discipline
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Yrd. Doç. Dr.İbrahim İnan

20. Discipline Firms cannot just ‘sack’ workers
Wide range of procedures and steps in dealing with workplace conflict
Informal meetings
Formal meetings
Verbal warnings
Written warnings
Grievance procedures
Working with external agencies
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

21. Development
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Yrd. Doç. Dr.İbrahim İnan

22. Development
Developing the employee can be regarded as investing in a valuable asset
A source of motivation
A source of helping the employee fulfil potential
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

23. Training
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Yrd. Doç. Dr.İbrahim İnan

24. Training Similar to development: Provides new skills for the employee
Keeps the employee up to date with changes in the field
Aims to improve efficiency
Can be external or ‘in-house’
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

25. Types of Training Training Development Apprentice
Ships On-the-job Training On-the-job Training Needs Assessment : Types of Training Classroom Instruction: workers acquire skills in classroom. Includes use of videos, role-playing, simulations. On-the-Job Training: learning occurs in the work setting as worker does the job. Training given by co-workers and can be done continuously. Apprenticeships: worker contracts with a master worker to learn a skill.
Types of Development Varied Work Experiences: Top managers must build expertise in many areas. Workers identified as possible top managers given many different tasks. Formal Education: tuition reimbursement is common for managers taking classes for MBA or similar. Long-distance learning can also be used to reduce travel. Whatever training and development efforts used, results must be transferred to the workplace.
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

26. Training & Development Training
Reliability & Validity Selection tools must be reliable and valid. Reliability: the degree to which the tool measures the same thing each time it is used. Scores should be close for the same person taking the same test over time. Validity: Does the test measure what it is supposed to measure? Example: does a physical ability test really predict the job performance of a firefighter? Managers have an ethical and legal duty to develop good selection tools.
Training & Development Training: teach organizational members how to perform current jobs. Help worker’s acquire skills to perform effectively. Development: build worker’s skills to enable them to take on new duties. Training used more often at lower levels of firm, development is common with managers. A Needs Assessment should be taken first to determine who needs which program and what topics should be stressed.
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

27. Rewards Systems
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

28. Rewards Systems
The system of pay and benefits used by the firm to reward workers
Money not the only method
Fringe benefits
Flexibility at work
Holidays, etc.
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

29. HRM Components Pay and Benefits:
High performing employees should be rewarded with raises, bonuses. Increased pay provides additional incentive. Benefits, such as health insurance, reward membership in firm.
Labor relations: managers need an effective relationship with labor unions that represent workers. Unions help establish pay, and working conditions. If management moves to a decentralized structure, HRM should be adjusted as well.
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

30. Pay and Benefits Pay level
How the firm’s pay incentives compare to other firms in the industry. Managers can decide to offer low or high relative wages. Pay Structure: clusters jobs into categories based on importance, skills, and other issues. Benefits: Some are required (social security, workers comp). Others (health insurance, day care, and others) are provided at the employers option. Cafeteria-style plan: employee can choose the best mix of benefits for them. Can be hard to manage.
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

31. Trade Unions
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

32. Trade Unions
Importance of building relationships with employee representatives
Role of Trade Unions has changed
Importance of consultation and negotiation and working with trade unions
Contributes to smooth change management and leadership
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

33. Unions Unions
Unions Unions represent worker’s interests in organizations. Managers usually have more power over an individual worker. Workers join together in unions to try and prevent this. Unions are permitted by the National Labor Relations Act (1935) which also created the NLRB to oversee unions. Not all workers want unions. Union membership costs money in dues and a worker might not want to strike. Union membership is lower today than 40 years ago. Collective bargaining: process unions and management go through to negotiate work agreements. Results in a contract spelling out agreed terms.
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

34. Labor Relations
Considers all activities managers perform to ensure there is a good relationship with labor unions. There are laws regulating some areas of employment. Fair Labor Standards Act (1938) prohibits child labor, sets a minimum wage and maximum working hours. Equal Pay Act (1963) men and women doing equal work will get equal pay. Work Place Safety (1970) OSHA mandates procedures for safe working conditions
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

35. Productivity
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

36. Who Appraises Performance?
Self: self appraisals can supplement manager view. Peer appraisal: coworker provides appraisal; common in team settings.
360 Degree: provides appraisal from a variety of people able to evaluate a manager: Peers, customers, superiors, self. Need to be alert to bias from some evaluators.
Effective feedback: appraisals must provide feedback: Formal appraisals: conducted at set times of the year Provides valuable, but infrequent feedback. Informal appraisals: manager provides frequent feedback informally.
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

37. Performance Appraisal & Feedback Trait Appraisals:
Evaluate on traits (skills, abilities) related to the job.
Problem:
Even though a worker has the trait, they may not use it in the job and it is hard to give feedback. Behavior Appraisals: how a worker does the job. Focuses on what a worker does and provides good feedback options. Results appraisals: what a worker accomplishes. Sales reps are usually evaluated on what they sell. Objective appraisals: based on facts (sales figures) Subjective appraisals: based on a manager’s perceptions of traits, behavior, or results. Many rating scales used to overcome subjective problems.
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

38. Productivity Measuring performance:
How to value the workers contribution
Difficulty in measuring some types of output – especially in the service industry
Appraisal
Meant to be non-judgmental
Involves the worker and a nominated appraiser
Agreeing strengths, weaknesses and ways forward to help both employee and organisation
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

39. STRATEGIES FOR HR REQUIREMENT DETERMINATION
The methods for forecasting and planning HR needs are : INTERVIEW … A face to face method for collecting data. It may be formal or informal, questions asked may be structured or unstructured. Success of an interview depends on the skill of the interviewer and on his or her preparation for the interview.
QUESTIONAIRE … A structured questionnaire can be used to collect data. The questionnaire is pre-tested, modified, and used to capture data on a cross-section of HRIS users. There are four parts to the questionnaire: profiles of organizations; application of HRIS; perceptions of the barriers to the implementation of HRIS and perceptions of the benefits achievable through HRIS; and profiles of the respondents.
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

40. Effective Feedback:
1. Be specific and focus on correctable behavior. Provide a suggested improvement.
2. Focus on problem-solving and improvement, not criticism.
3. Express confidence in worker’s ability to improve.
4. Use formal and informal feedback.
5. Treat subordinates with respect and praise achievements.
6. Set a timetable for agreed changes.
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

41. Human Resource Management SYSTEM To sum up
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

42. Human Resource Management
Acquiring the most appropriate people to work in the organization
Maintaining the organization’s relationship with them so that they continue to be motivated to work effectively there
Developing them to their full potential to contribute to the organization.

43. Responsibility for HRM
HRM staff administer the formal aspects of Human Resource Management
Line managers must participate as appropriate in all aspects
HRM is an important area for Line – Staff cooperation / coordination.

44. Human Resource Management
Planning for staffing needs
Recruiting and hiring
Training and development
Appraising performance
Managing compensation and benefits
Overseeing employment status
Human resources management (HRM) encompasses all the tasks involved in acquiring, maintaining, and developing an organization’s human resources. Because of the accelerating rate at which today’s workforce, economy, and corporate cultures are being transformed, the role of HRM is increasingly viewed as a strategic one.
Human resources (HR) managers must figure out how to attract qualified employees from a shrinking pool of entry-level candidates; how to train less-educated, poorly skilled employees; how to keep experienced employees when they have few opportunities for advancement; and how to lay off employees equitably when downsizing is necessary. They must also retrain employees to cope with increasing automation and computerization, manage increasingly complex (and expensive) employee benefits programs, shape workplace policies to address changing workforce demographics and employee needs, and cope with the challenge of meeting government regulations in hiring practices and equal opportunity employment.

45. Acquiring Human Resources
Acquiring the most appropriate people to work in the organization
Human Resource Planning
Job Analysis
Recruiting
Selection
Orientation

46. Human Resource Planning
Forecasting the number and nature of people needed to work in the organization
Based on organization’s future plans
Forecasting availability of people from within
Replacement chart
If someone left today, who would take over?
Skills inventory
What skills, experience do current employees have?

47. Matching Human Resources with organizational needs
If more people are needed
Recruit and Hire appropriate new employees
If fewer people are needed
Layoffs (temporary suspension of employment)
Attrition (don’t replace those who leave voluntarily)
Encourage early retirement
Terminate some employees employment

48. Job Analysis What do we need to have done?
What kind of people do we need to do it?
Job Description
Elements that make up a job
Job Specification
Qualifications deemed necessary to do the job

49. Recruiting Attracting the right number of qualified applicants through
Advertising, college visits, career fairs, employment agencies, networking
Implementation is important
Be specific to avoid unqualified applications
Cannot exclude on any basis not related to job
This is the firm’s first impression on applicants

50. Internal / External Recruiting
Seeking applications from outside the organization
Brings fresh perspective and ideas
Less knowledge to go on about new hire
More expensive, time consuming
Encouraging applications from current employees
Very good for morale
Employee already knows company, and vice versa
Organization can become “inbred”

51. Selection
Choosing the most appropriate applicant & impressing candidates with the firm
Select candidates for further consideration
Employment application or Resume info.
Select most appropriate candidate
Employment tests / Assessment Centres
Interviews and Reference checks

52. Orientation Acquainting new employees with the organization
Helps them to “fit in” an be comfortable
Makes them more productive sooner
First impressions are important!
For the new employee and for the organization

53. Maintaining Human Resources
Maintaining the organization’s relationship with employees so that they continue to be motivated to work effectively there
Compensation & Benefits
Closely related to motivation theories

54. Compensation Decisions
Wage level
Relationship to comparable firms
Wage structure
Relative pay for different jobs within organization
Based on Job Evaluation
Individual wages
Specific wage within positions’ range

55. Types of Compensation Hourly wage Salary Commissions Bonuses
Payment for time worked
Salary
Payment for responsibilities assumed
Commissions
Payment as a percentage of sales
Bonuses
Lump-sum salary increases
Profit sharing

56. Employee Benefits
Non-compensation advantages paid for at least in part by employer
Insurance, tuition, child care, recreation facilities, cafeteria, other perks, etc.

57. Training and Development
Enhancing employees’ ability to contribute to the organization
Employee training
Teaching people how to be effective and efficient
Management Development
Preparing people for increased responsibility

58. Training & Development Methods
On-the-job training
learn by doing
Vestibule training
Simulating on-the-job training in a non-work location
Classroom teaching
Conferences and seminars
Role playing
Relates to the Case Method

59. Performance Appraisal
Evaluation of employees’ current and potential level of contribution to organization
Basis for professional development, promotion and compensation decisions, and evaluation of Human Resource Management.

60. Performance Appraisal Methods
Objective methods
Concrete quantitative measures of performance
May obscure relevant differences
Judgmental methods
Rating scales, qualitative impressions
Course / professor evaluation uses both

61. Performance Appraisal Pitfalls
Over / under emphasizing specific aspect
Allowing assessment of aspect of performance to influence assessment of other aspects
Overemphasizing recent performance
Discrimination on non-job related basis
Lack of frankness due to awkwardness

62. Performance Feedback
Identify achievements, and “opportunities for improvement”
Make suggestions / plan to achieve improvements in designated respects
Two stages should be done in two separate interviews

63. Legal issues in HRM
Canadian Charter of Rights and Freedoms protects against workplace discrimination
Race, age, gender, religion, national origin, sexual orientation
Labour law protects employees’ rights
Workplace safety, minimum wages, maximum workweek, notice or severance pay upon termination, right to organize
Comparable worth
equal pay for work of equal value

64. HR Trends 1. Social change 2. Demographics 3. Advancing Technology
More women in the work force
More people changing jobs
2. Demographics
More diverse work force
3. Advancing Technology
enables more outsourcing
enables more telecommuting
4. Global Competition
adaptable employees, need for language training & cultural orientation

65. Planning for Staffing Needs
Evaluating Job Requirements
Hiring Process
Forecasting
Business Plan
Résumé
HIRED!
Estimate Demand for Employees
Estimate Supply for Employees
Perform Job Analysis
Write Job Descriptions
Write Job Specification
One of the six functions of the human resources staff members is to plan for a company’s staffing needs. Proper planning is critical because a miscalculation could leave a company without enough employees to keep up with demand, resulting in customer dissatisfaction and lost business. Yet if a company expands its staff too rapidly, profits may be eaten up by payroll, or the firm may have to lay off people who were just recruited and trained at considerable expense.

66. Case study: incentive plan
2/19/2019
Yrd. Doç. Dr.İbrahim İnan

67. Incentive Plans Variable Pay
plan that links pay to productivity or profitability

68. 10.1, 10.2 Total Compensation Cash Non-Cash Base Salary Variable Pay
Premiums/Overtime
(benefits and services)
Non-Cash
Training and development
Culture
Projects
Status
environment

69. 10.2 Variable Pay Incentives Bonuses Merit Pay Profit sharing
Stock ownership
Piecework
incentives
Bonuses
Spot bonuses
Merit Pay
Pay for Performance

70. 10.3 Incentives (4 types) Profit sharing (gain sharing)
Stock ownership
Piecework
Incentives

71. 10.3 Profit sharing / Gain sharing
Goal is to align employee behaviour and goals to organization wide goals (improve profitability, reduce costs, improve efficiency, reduce scrap, improve quality)
High performing co’s use more than low (p. 260)
Typically used across an organization (management, professional, operating, clerical)
Requires specification of standard (controversial)
Trend to reduce base pay and increase profit/gain sharing opportunities (more risk, more reward)

72. 10.3 Stock Ownership
Longer term focus – guaranteed purchase price (fixed)
Betting on stock appreciating over and above price at which can buy (exercise option)
Used for retention of top talent (hi tech) – may lose option if leave
Start up stage may trade off short term salary for longer term stock options (help with financing required)
Co may subsidize cost of stock purchase (50/50)
Most common for mid to senior level management
Issue around disclosure of exec comp and shareholder activism (e.g. $300K base plus up to $2 million in stock options)
Type of deferred compensation (value when exercise options)
Trade off – individual gain (push up price of stock to may options worth more versus long term company gain – lower stock price, more investment and higher operating costs)
Non publicly traded – “Phantom Stock Plans”

73. 10.3 Piecework
Used primarily for operating personnel in production environments
Focus is on volume produced (quantity)
Set standard rates expected
Bonus for achieving over standard
Controversy over “trigger” – raise if too many achieve standard?
May impact on quality (rush to produce)
Standard Hour Plan is variation (# units per unit of time)

74. 10.3 Other Incentive Plans Spot Bonus
spontaneous incentive awarded to individuals
for accomplishments not easily measured by a
standard
Annual bonus for Managers (meet MBO targets)
Commission Plan (meet sales targets)
Team or Group Incentive (meet group objectives)
Merit Pay (Pay for Performance)
Piecework/standard hours plan
Gain sharing/profit sharing
Stock options

75. 10.3 Incentives for Other Professionals
Merit Pay
Traditional Merit Pay Characteristics
merit pay granted as higher base salary (a raise)
usually based on individual performance only
New Merit Pay Characteristics
merit pay awarded as lump sum once per year
(NOT a raise)
merit pay tied to both individual and organizational
performance

76. Success Factors (Expectancy theory)
10.4 Incentive Plans
Success Factors (Expectancy theory)
Cooperation between management and labour
Joint development of the plan
Effective and timely communication
Clear guidelines regarding plan changes
Setting achievable goals

77. 10.4 Developing Effective Incentive Plans
Employee Recognition Programs
Lack of recognition and praise
is the #1 cause of
employee turnover