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Activities in human resource management

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1)HR Planning and Analysis (PLANNING)
2)Equal Employment Opportunity (OPPORTUNITY)
3)Staffing ( STAFFING)
4)HR Development (DEVELOPMENT)
5)Compensation and Benefits ( COMPENSATION)
6)Health, Safety, and Security ( SAFETY)
7)Employee and Labor/Management Relations ( RELATION)

Challenge by human resource managers

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1.Economic and Technological Changes
2.Occupational shift-Shift in jobs for manufacturing and agriculture to service industries and telecommunications. The anticipated increase in jobs is due to the rapid growth of information technology such as databases, system design and analysis, and desktop publishing while the growth in health care jobs is due to demand of an aging population.
3.Workforce availability and quality concern - Pressures of global competition causing firms to adapt by lowering costs and increasing productivity.
4.Growth of information technology (Internet)- technology allow people to work from home, at night and weekend. Need to develop a human resource policies regarding electronic sexual harassment and appropriate internet usage
5.Globalization Of Business – many giant corporation operates from outside of their home country. All the total sales and profit gain from outside United States. Global security and terrorism-Firm around the world have to had to develop terror response and security plans.
6.Growth in Contingent Workforce
7.Increases in temporary workers, independent contractors, leased employees, and part-timers caused by:
8.Need for flexibility in staffing levels which doesn’t need to employ a huge amount of permanent employees. This method is more dependent and will increase the productivity of organization
9.Increased difficulty in firing regular employees.
10.Reduced legal liability from contract employees
11.Demographics and Diversity Issue
12.More diversity of race, gender, age, and ethnicity in the world job market. Global events since 2001 have increased employers attention to individual who are Muslim, and more awareness and accommodation for Islamic religious belief and practices have become common concern.
13.Balancing Work and Family
14.Dual-career couples where both parent is working in daily basis.
15.Single-parent households where only mom or dad only raised the children because of divorce or death of spouse.
16.Decline in the “traditional family”
17.Working mothers and family/childcare
18 .Single employee “backlash” against family-oriented programs.
19.Organizational Restructuring, Mergers, and Acquisitions
20.“Right-sizing”—eliminating of layers of management, closing facilities, merging with other organizations, and out placing workers 21. Intended results are flatter organizations, increases in productivity, quality, service and lower costs.
22. Costs are survivor mentality, loss of employee loyalty, and turnover of valuable employees.

Internal sources for HR

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Internal recruitment is filling vacancies with employees currently employed by an organization and also known as recruitment from within.

Internal sources is
•Organizational database (computerized record system)
•Job posting System
•Promotion and transfer within the company
•Current employee referrals and
•Recruiting former employees

External recruitment sources

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External recruitment is recruiting and finds potential candidates from outside the organization

External recruitment sources include

College and University Recruiting
High Schools and Technical Schools
Labor Unions
Employment Agencies and Search Firms
Competitive Sources
Media Sources and Job Fairs (advertising)
internet recruitment

Advantages and disadvantages of external recruitments

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Advantages

The pool and choices of candidates is larger- using the external recruitment the chances of choosing potential the candidates is very high because of the usage of many advertisement medium include the internet.
New perspective and energy to be bring onside the organization
Cheaper and easier way to hire technical skilled or managerial employees from outside

Disadvantages

Harder to evaluate and potential candidates from outside
Longer time for adjustment and orientation
Maybe need specific training to new employees which increase the training cost.

Guidelines for effective orientation

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Orientation program is

Introducing new hires to the organization and its policies, benefits and culture. Training and familiarization with their roles, organization and other employees.
A procedure for providing new employees with basic background information about the firm

1)Prepare for new employees (co-workers acceptance)-New employees must feel that they belong and important to the organization. Both of supervisor and the HR unit should be prepared to give each new employees this perception .Furthermore, co-workers should be prepared for a new employee’s arrival.

2)Consider using Mentors-Some organization assign co worker or peer to serve as buddies or mentor as part of new employee’s orientation.

3)Use an orientation Checklist-An orientation checklist could be used to cover what the new employees need to know now.

4)Cover needed information (provide information) -It is important to give employees information on the policies, work rules, and benefits of the company. Policies about sick leaves, tardiness, absenteeism, vacation, benefit, hospitalization, and parking and safety rules must be made known to every new employee. The supervisor also, needs to describe the routine of normal work day for the new employee.

5)Present orientation information effectively (Favorable impression)-most appropriate ways to present the information must be determined first. The effective presentation will allow new employees to retain more information and also encourage them to learn and participate.

6)Avoid Information Overload-New workers presented with too many facts may ignore the important detail or inaccurately recall much of the information.

7)Evaluate and follow up- The manager can evaluate the effectiveness of the orientation by conducting follow-up interview with new employees a few weeks or months after the orientation

Benefits of Orientation program

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To new employees
a)To reduce anxiety because of
a.New situation-    providing with organizational and job information, the more change and uncertainties the employee will have to cope up with.
b.Problem to entering in a group-    new employee often worry about whether they will be accepted by other group members in the new places.
c.Unrealistic expectation-    New employees often have unrealistically high expectation about the advantages of their new jobs and often shocked at the reality of getting less than they bargained for.
d.Surprise/ nervousness-    Surprise may occur when expectations about one self are unmet, or when the features of the job such as the need to work late hour are unanticipated.
b)Could have realistic job expectation after getting the briefing and information from the supervisor and management.

To The Employer
a)To facilitate socialization and internalization between new and old employees ( the process which new member gain exposure to its values and norms, its policies and procedure and behavior expected from new people), good communication between old and new employees will increase effectiveness in company management and also will help to enhance the organization.
b)Establish a favorable employee impression of the organization and the job.So the new employees will have better understanding and motivational factor to work with the organization.
c)To reduce turn over -    if employees perceive themselves as ineffective , they may react to these feeling by quitting, due to this effective orientation can reduce this costly reaction.
d)To save time-    improper oriented employees must still get the job done, and to do so they need help .The most likely people to provide help is co worker or supervisor , so a good orientation program can save every one time

The role to development of employees

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Identifying strength and weakness- Many workers do not always know where and how to improve .with the performance appraisal the employees will improve the performance that found lack in this process

Identifying areas for growth – performance appraisal will show the strength of employees and could help to focuses on the field that he or she has an advantage to the company. For example if the result found that the problem with a employees is lack of working knowledge in accounting prevent him/her to considered for a management job, then the manager could suggest the employees to take a accounting course.

Development Planning- performance appraisal would give an idea where the training may be beneficial for the future development to the employees.

Career planning- the result will give a clear indication to the employee about its career planning and what the step to be taken

As a primary source of information and feed back for employee- it also will help to reinforce satisfactory employee performance and to address performance defiencies.Positive reinforcement for desired behavior contribute to both individual and organizational development.

Errors in a Performance Appraisal

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RATER ERROR
1.Varying standard/shifting standard-    when appraising employees, a manager should avoid applying different standard and expectation for employees performing similar jobs.
2.Recency effect-    Occurs when a rater gives greater weight to recent events when appraising an individual performance
3.Primary Effect-    Occurs when a rater gives greater weight to information received first when appraising an individual performance
4.Central Tendency errors-    Occurs when a rater gives all employees a score within a narrow range in the middle of the scale
5.Leniency errors -    Occurs when a rater gives all employees a score high on the scale
6.Strictness errors-    Occurs when a rater gives all employees a score low on the scale
7.Rater Bias-        Occur when a raters value or prejudice distort the rating
8.Halo and Horn effect -    Occurs when rater scores an employee high on all job criteria because of performance in one area.
9.Contrast Error-    Tendency to rate people relative to other, rather than against performance standards.
10.Similar to me / Different from me error -    raters is influenced by the type of qualification of the employees based on similarity with the rater.
11.Sampling Errors -    occurs when rater took only the small percentage of work by employees to be rated instead of all work done by the employees.

Factors that contribute successful variable pay plan

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1)Develop clear, understandable plan that are continually communicated.
2)Use realistic performance measures
3)Keep the plan currents and linked to organizational objectives.
4)The financial incentive provided by the company must be linked to a valued behavior
5)The incentive plan must be fair one
6)The quality or performance standard set by the company for the incentive plan must be challenging and achievable
7)The payment made must simple and understandable by the employees.
8)Identify variable pay incentives separately from base pay

Differentiation between base pay and variable pay

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Base Pay-Is the basic monetary compensation that an employee receives, usually as a wage or salary.
Wages- Payments calculated on the amount of time worked.
Salaries- Consistent payments made each period regardless of the number of hours worked in the period.

Variable Pay- Compensation linked to individual, team, or organizational performance.Traditionally known as incentive; variable pay plans to attempt to provide tangible rewards to employees for performances beyond normal expectation.

4 level of evaluation of training

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Why use external HR consultant

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1)May be less expensive to outsource training- some areas where internal training resource are limited .Instead to provide the training material in house which is more expensive and time consuming ,the the organization could use external consultant to conduct a training for the employees on their consultant specific expertise field.

2)Insufficient time to develop training- usually the training material on the organization is not sufficient enough to cover the training process, the effort to combine and collecting all training material could take a longer time and will drag to training process and delaying the work on the organization. With a consideration of work load and skill required by the workers the training should be conducted by external consultant which have better training material.

3)Lack of expertise- Sometimes the Training Department only specialized in certain field and for training purpose, they don’t have capabilities to train the employees at other field and need external consultant to train the employees.

4)Advantages of interacting with outsiders- There are an advantage to having employees interact with manager and peers in other companies in training program held externally

5 components of executive compensation

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1.Executive Base Salaries
A base salary is given to the executive on a Consistent payment made each period regardless of the number of hours worked in the period. This salary is differing to other organization according to their salary system. Survey data on executive salary are often reviewed by Boards of Director to ensure that their organization is competitive
Example: The management executive at EXXON MOBILE will have monthly basic salary at US 5000.00

2.Regular benefits which available with other non executive employees
Example: Traditional retirement, Health Insurance, and Vacation Plans

3.Supplemental benefits which non executive employees not receive
Example: Executives health plan with no co-payment and with no limitation on deductible or with physician choice. The other include the Corporate –owned insurance on the life of executive.

4.Executives Perks ( perquisites)
Perquisites usually non-cash items for executive like using company car, using company transportation, provide car allowances, giving free financial planning, stress counseling, health club, first class air traveling and many more.

5.Annual bonuses and incentive
It can be determined in several ways. First is using the a discretionary system whereby the CEO and the Board Of Director decide bonuses. Second way is to specific measure such a return on Investment, earning per share, and net profit before taxes.

6.Performance incentive ( short term-long term)
The use is to tie executive compensation to long term growth and success of the organization. Short term reward based on quarterly or annual performance.
Example of long term incentive: Stock Option Plans. A stock option gives individual the right to buy stock in a company, usually at an advantageous price.

why organizations practice safety and health

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1.Moral – managers undertake accident prevention on purely humane grounds. The objective is to minimize the pain & suffering of the injured worker & his family as the result of an accident

2.Legal – today, there are federal, state & municipal laws covering occupational safety & health & penalties for non-compliance have become quite severe. organizations are subject to fines & supervisors can received jail sentences if sound responsible for fatal accidents

3.Economic – the cost to the company of small accident can be quite high. Workers compensation insurance simply compensates the injured worker. Among these are payments for settlements of injury or death claims, legal fees for defence against claims, cost of rescue operation, increased insurance costs & others.

why workers form and join trade union.

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1.Working environment – inadequate staffing, mandatory overtime and poor working conditions

2.Compensation – non-competitive pay, inadequate benefits and inequitable pay raises

3.Management style – arbitrary management decision making, use of fear and intimidation and lack of recognition

4.Employee treatment – job insecurity, unfair discipline and policies, lack of response to complaints and harassment and abusive treatment.

bargaining process stages

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1.Preparation and initial demands – both labor and management representatives spend much time preparing for negotiations. Employer and industry data concerning wages, benefits, working conditions, management and union rights, productivity and absenteeism are gathered.

2.Negotiations – after taking initial positions, each side attempts to determine what the other side values highly so that the best bargain can be struck.

3.Settlement and contract agreement – the bargaining parties usually return to their respective constituencies to determine if the informal agreement is acceptable.

4.Bargaining impasse – regardless of the structure of the bargaining process, labor and management do not always reach agreement on the issues. If they reach an impasse, then the disputes can be taken to conciliation, mediation or arbitration.

5.Strikes and lockouts – if a deadlock cannot be resolved, then an employer may revert to a lockout-or a union may revert to a strike. During the strike, union members refuse to work in order to put pressure on an employer.

organization benefits to the employees

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1.Security benefits – these benefits include some mandated by laws and others offered by employers voluntarily. The primary benefits found in most organizations include workers compensation, unemployment compensation and severance pay.

2.Retirement benefits – the aging of the workforce in many countries is affecting retirement planning for individuals and retirement plan costs for employers and governments. Many pension plans include provisions for early retirement to give workers voluntary opportunities to leave their jobs. Some employers choose to offer their retirees benefits which may be paid for by the retirees the company or both.

3.Health-care benefits – employers provide a variety of health-care and medical benefits, usually through insurance coverage. The most common plans cover medical, dental, prescription drug, and vision care expenses for employees and their dependents.

4.Financial benefits – employers may offer workers a wide range of special benefits that provide financial support to employees: financial services; relocation assistance, insurance benefits, educational assistance and others

5.Time-off benefits – time-off benefits represent an estimated 5%-13% of total compensation. Employers give employees paid time off in a variety of circumstances

method for on-the-job training

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1.Job rotation – involves providing management trainees with a series of job assignments in various functional areas of the company or movement among jobs in a single functional area or department.

2.Action learning – team training approach where management trainees are allowed to work full time and analyzing and solving problems in other departments.

3.Coaching/understudy approach – the trainee works directly with a coach (peer to manager) who will motivate him, help him develop skills and provide reinforcement and feedback.

4.Inside seminars – for develop and motivated the employee.

5.Committee assignment – assigning promising employees to important committees may broaden their experiences and help them understand the personalities, issues and processes governing the organization.

tests conducted to choose the worker

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1.Ability tests – cognitive ability tests measure an individual’s thinking, memory, reasoning, verbal and mathematical abilities. Tests such as these can be used to determine applicants basic knowledge of terminology and concepts, word fluency, spatial orientation, comprehension and retention span, general and mental ability and conceptual reasoning. Physical ability tests measure an individual’s abilities such as strength, endurance and muscular movement.
2.Personality tests – personality is a unique blend of individual characteristics that affect interaction with a person’s environment and help define a person. They are big five personality characteristics ; 1) conscientiousness , 2) agreeableness, 3) extroversion, 4) emotional stability and 5) openness to experience
3.Honesty/integrity tests – honesty/integrity tests may be valid as broad screening devices for organizations if used properly. However, it is important that the tests be chosen, used and evaluated in ways that ensure that they are and remain valid and reliable

how to gather information in Human Resources

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1.Questionnaires – the questionnaire is a widely used method of gathering data on jobs. The questionnaire method offers a major advantage in that information on a large number of jobs can be collected inexpensively in a relatively short period of time
2.Interviews – the interview method of gathering information requires a manager or an HR specialist to visit each job site and talk with the employees performing each job. A standardized form is used most often to record the information. Frequently, both the employee and the employee’s supervisor must be interviewed to obtain a complete understanding of the job.
3.Observation – with the observation method, a manager, job analyst or industrial engineer observes the individual performing the job and takes notes to describe the tasks and duties performed. One types of observation, work sampling, does not require attention to each detailed action throughout an entire work cycle.
4.Logs/diaries – another method requires employees to observe their own performances by keeping a diary/log of their job duties, noting how frequently those duties are performed and the time required for each one.

Advantage a separate human resource department

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1.Coordinates career plans and employee development efforts
2.Prepares skill-training materials
3.Coordinates training efforts
4.Provides input and expertise for organizational development
5.Conduct and monitor continuing on the job training

grievance procedure

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1.The employee discusses the grievance with the union steward and the supervisor
2.The union steward discusses the grievance with the supervisor’s manager and/or the HR manager.
3.A committee of union officers discusses the grievance with appropriate company managers.
4.The representative of the national union discusses the grievance with designated company executives or the corporate industrial relations officer.
5.If the grievance is not solved at this stage, it goes to arbitration. An impartial third party may ultimately dispose the grievance.

collective bargaining process

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1.Preparation and initial demands – both labor and management representatives spend much time preparing for negotiations. Employer and industry data concerning wages, benefits, working conditions, management and union rights, productivity and absenteeism are gathered.
2.Continuing negotiations – after taking in initial positions, each side attempts to determine what the other side values highly so that the best bargain can be struck.
3.Settlement and contract agreement – after reaching an initial agreement, the bargaining parties usually return to their respective constituencies to determine if the informal agreement is acceptable.
4.Bargaining impasse – regardless of the structure of the bargaining process, labor and management do not always reach agreement on the issues. If they reach an impasse, then the disputes can be taken to conciliation, mediation or arbitration.
5.Strikes and lockouts – if a deadlock cannot be resolved, then an employer may revert to a lockout-or a union may revert to a strike. During a strike, union members refuse to work in order to put pressure on an employer.