There are 3 main phases of HRM: personnel
management, HRM and strategic HRM
PM: after the ındustrial revoluation
HRM: after 20th century’s second half
SHRM: especially after 1990’s
Through the 1960s and 1970s the human aspirations of
senior people in companies and public sector
operations tended to produce large staffs, with
heavyweight
businesses.
By the end of the twentieth century financial imperatives
had generated huge reactions to this in the general
direction of
that were
lean, fit and flexible.
of staff and many functions were
of
the business, concentrating
on core expertise at the
expense
of
peripheral
activities, which were then
bought in as needed from
consultants or specialist
suppliers.
Reducing
headcount
became
a
fashionable criterion for
success.
By the beginning of the twenty-first
century the problems of the scales
being tipped so considerably towards
rationalisation were beginning to
show. Businesses became more than
slim; some became anorexic. Cost
cutting achieved impressive shorttem
results, but it cannot be repeated year
after year without impairing the basic
viability of the business. Steadily the
number of problem cases mounted.
PERSONNEL
MANAGEMENT
HUMAN RESOURCE
MANAGEMENT
TIME AND PLANNING
Short term,
reactive,
ad hoc,
marginal
Long term,
proactive,
strategic, integrated
PSYCHOLOGICAL
CONTRACT
Compliance
Commitment
CONTROL SYSTEMP
External controls
Self-controls
EMPLOYEE RELATIONS
PERSPECTIVE
Pluralist,
collective,
low trust
Unitarist,
individual,
higt trust
PREFERRED
STRUCTURES/SYSTEMS
Bureaucratic/mechanistics Organic,
, centralised,
devolved,
formal,
flexible roles
defined roles
ROLES
Specialist/professional
Largely integrated into
the management
EVALUATION CRİTERİA
Cost minimisation
Maximum utilisation
(human asset
It is more helpful to focus on the concept of strategic
HRM than on HRM strategy as the former directs us to
consider strategic thinking and a strategic orientation,
rather than a ‘strategy’ which is written down and exists
as a physical entity.
The nature of the link between business strategy and
HR strategy is critical and can be played out in a variety
of ways.
Three theoretical perspectives on strategic HR
management can be identified: universalist/ best
practice; contingency/fit; and the resource-based/human
capital view.
The extent to which HR specialists are involved in HR
strategy is influenced by the environment of the
business, its culture, the perspective of the Chief
Executive, HR board membership and the qualities,
characteristics and working relationships of the most
senior HR specialist.
HUMAN RESOURCE MANAGEMENT
(HRM)
THE FUNCTION OF ATTRACTING, DEVELOPING AND
MAINTAINING SUFFICIENT NUMBER OF SKILLED
EMPLOYEES TO PERFORM ACTIVITIES TO ACHIEVE
ORGANIZATIONAL GOALS
ACTIVITIES AND FUNCTIONS IN HRM
HR PLANNING
HR RECRUITMENT AND SELECTION
HR TRAINING AND DEVELOPMENT
HR PERFORMANCE APPRAISAL
HR COMPENSATION/WAGE MANAGEMENT
PERFORMANCE
OBJECTIVES
CHANGE-MANAGEMENT
OBJECTIVES
ADMINISTRATION
OBJECTIVES
STAFFING
OBJECTIVES
HUMAN
RESOURCE
GENERALIST
LINE MANAGERS
HUMAN RESOURCE
SPECIALISTS
CONSULTANTS AND
ADVISERS
SUBCONTRACTOR
S
Figure 1.1. HRM roles and
objectives
ENVIRONMENTAL INFLUENCES
ON HRM
EXTERNAL
ENVIRONMENTAL
FACTORS
WORKFORCE DIVERSITY
EXTERNAL SOURCES OF HR
COMPETITORS
REGULATORS
INTERNAL
ENVIRONMENTAL
FACTORS
PERSONAL FACTORS
JOB CHARACTERISTICS
INTERPERSONAL
RELATIONS
ORGANIZATIONAL
FACTORS
Figure 2.3. Strategic management and environmental pressures (Source: C.
Fombrun)
HR PLANNING
DETERMINING THE RIGHT AMOUNT OF PEOPLE,
WITH THE RIGHT QUALIFICATIONS AT THE RIGHT
TIME AND THE RIGHT PLACE
DETERMINING
THE RIGHT
NUMBER
PAST EXPERIENCES
EVALUATING WORK
LOADS
PRODUCTION
TECHNOLOGY
PRACTICES OF OTHER
FIRMS
DETERMINING
THE RIGHT
QUALIFICATION
JOB ANALYSIS
JOB DESCRIPTIONS
JOB SPECIFICATIONS
JOB EVALUATIONS
Figure 3.2. A model of traditional manpower planning
Analyses fall broadly into two categories:
analyses of staff leaving, and analyses of
internal
movements.
The
following
calculations are the most popular forms of
analysing staff leaving the organisation.
Even in a context of rapid and discontinuous
change HR planning still has a valuable
contribution to make, but as human resource
planning deals with people, planners need to plan
for what is acceptable as well as what is feasible.
The scope of human resource planning covers
not only numbers of people and skills, but also
structure, culture, systems and behaviour.
An integrated framework which attempts
to cover all aspects of HR planning
involves:
– analysing the external environment and
business strategy;
– analysing where do we want to be?
(forecasting HR requirements);
– analysing where are we now? (defining the
current HR position and projecting this
forward);
– comparing the two and forming plans to
bridge the gap.
Human resource planning is a
continuous process rather than a one-off
activity.
JOB ANALYSIS METHODS
Job analysis have 2 main outputs: job
descriptions and job requirements.
INTERVIEW METHOD
STRUCTURED QUESTIONNAIRE METHOD
OBSERVATION METHOD
DIARY METHOD
HR RECRUITING AND SELECTION
RECRUITING
SELECTION
(CANDIDATE SEARCH
AND FIND PROCESS)
(SELECT THE QUALIFIED
EMPLOYEES AMONG
CANDIDATES)
INTERIOR SOURCES
EXTERIOR SOURCES
INTERIOR SOURCES
EXTERIOR SOURCES
Recruitment is an area; there are
important social and legal implications, but
perhaps most important is the significant
part played in the lives of individual men
and women by their personal experience
of recruitment and the failure to be
recruited.
If your decision is that you are going to
recruit, there are four questions to
determine the vacancy:
1. What does the job consist of?
2. In what way is it to be different from the job
done by the previous incumbent?
3. What are the aspects of the job that specify the
type of candidate?
4. What are the key aspects of the job that the
ideal candidate wants to know before deciding
to apply?
The conventional HR approach to these
questions is to produce job descriptions
and personnel specifications. Methods of
doing this are well established.
– Breaking the job down into its component parts.
– Working out what its chief objectives will be
– Recording this on paper.
Many organisations prefer to invite
applications from internal candidates
before they look to their external labour
markets for new staff.
– less expensive
– typically able to take up new posts
– more knowledgeable than new starters
– more familiar with the organisation’s culture,
rules and geography
– Limited field of candidates
– Tend to enter the selection process with
higher expectations
– to pursue claims of unfair discrimination
Many
employers
deal
with
recruitment advertising agency
a
– Name and brief details of employing
organisation
– Job role and duties
– Training to be provided
– Key points of the personnel specification
or competency profile
– Salary ? (sometimes)
– Instructions about how to apply
Internet recruitment takes two basic forms.
The first is centred on the employer’s own
website,
The second approach makes use of the
growing number of cyber-agencies
emailing CV to the employer.
online application forms.
TESTS AND INTERVIEWS
TESTS
COGNITIVE ABILITY
TESTS
PHYSICAL ABILITY
TESTS
PERSONALITY AND
INTEREST TESTS
ACHIEVEMENT
TESTS
INTERVIEWS
STRUCTURED
INTERVIEW
INTERVIEW
ACCORDING TO THE
PURPOSE
INTERVIEWS
ACCORDING TO
THEIR CONTENT
INTERVIEWS
ACCORDING TO THE
WAY THEY ARE
CONDUCTED
1. Selection criteria for the post to be filled.
2. Acceptability and appropriateness of the
methods.
3. Abilities of the staff involved in the
selection process
4. Administrative ease.
5. Time factors.
6. Accuracy.
7. Cost.
Used in 80 per cent
–
There is heavy use of CVs for managerialprofessional posts, many organisations, require both
–
There is increasing interest in providing more
information to applicants concerning the job. This
may involve a video, an informal discussion with job
holders or further information sent with the
application form.
– Telephone interviews can be used if speed is
particularly important, and if geographical
distance is an issue, as interviews with
appropriate candidates can be arranged
immediately.
– Those in favour of testing in general point to the
unreliability of the interview as a predictor of
performance and the greater potential accuracy
and objectivity of test data.
– Validity
– Reliability
– Use and interpretation
– Tests are not outstanding predictors of future
performance
– Validation procedures are essential to the
effective use of tests.
– They are subjective
– Tests are often job specific
– Tests may not be fair as there may be a social,
sexual or racial bias in the questions and scoring
system
– It is difficult to relate competencies readily to
psychological tests
Aptitude tests can be
grouped into two categories:
– measuring general mental ability
– measuring specific abilities
used to measure a
potential employee’s ability to be trained,
usually for craft-type work.
measure skills that have
already been acquired
mainly used for
management, professional and graduate
jobs,
1. Leaderless groups:
2. Command or executive exercises:
3. Group problem solving:
Assessment centres incorporate multiple selection
techniques, and group selection methods outlined above
form a major element, together with other work simulation
exercises such as in-basket tasks, psychological tests, a
variety of interviews and presentations.
Assessment centres are used to assess, in depth, a group
of broadly similar applicants, using a set of competencies
required for the post on offer and a series of behavioural
statements which indicate how these competencies are
played out in practice.
– For some jobs, such as photographers and
artists, a sample of work in the form of a
portfolio is expected to be presented at the
time of interview.
1. The factual check
2. The character reference
– Physiognomy, phrenology, body language,
palmistry, graphology and astrology...
Selection criteria are typically presented in
the form of a person specification
representing the ideal candidate, and
cover such areas as skills, experience,
qualifications,
education,
personal
attributes, special attributes, interests and
motivation.
Three perspectives can be used to determine
selection criteria;
– organisational fit,
– team/functional fit
– job fit.
Alternatives to filling a vacancy include
reorganising the work; using overtime; mechanising
the work; staggering the hours; making the job part
time; subcontracting the work; using an employment
agency.
Recent trends indicate a greater use by employers
of recruitment agencies and executive consultants,
open days, recruitment fairs, etc. Relocation
constraints have also prompted a move towards the
use of regional as opposed to national recruitment
advertising.
Advertising agencies and specialist publications
provide a wealth of information to ensure that
advertisements reach the appropriate readership.
E-recruitment provides great potential advantages
for employers but is not seen as being especially
effective at present.
Employer branding involves actively selling the
experience of working for an organisation by focusing
on what makes the experience both positive and
distinct.
Increasing the amount of information provided to
potential applicants reduces the number of
inappropriate applications.
Care with shortlisting increases the chances of
being fair to all applicants and lessens the likelihood
of calling inappropriate people for interview.
NON-MANAGERIAL LEVEL
TRAINING PROGRAMS
ON-THE-JOB
TRAININGS
APPRENTICESHIP
TRAINING
JOB INSTRUCTION
TRAINING
OFF-THE-JOB
TRAININGS
CONFERENCES
CLASSROOM GROUPS
PROGRAMMED
INSTRUCTIONS
AUDIOVISUAL
TECHNIQUES
LECTURES
SIMULATION METHODS
COMPUTER-BASED
TRAININGS
MANAGERIAL LEVEL TRAINING
PROGRAMS
ON-THE-JOB
TRAININGS
COACHING
UNDERSTUDY
ASSIGNMENTS
JOB ROTATION
OFF-THE-JOB
TRAININGS
CASE STUDY
MANAGEMENT GAME
METHOD
ROLE PLAYING
METHOD
HR PERFORMANCE APPRAISAL
IDENTIFYING THE EMPLOYEES’ ACTUAL PAST
PERFORMANCES IN THEIR JOBS AND THEIR POTENTIAL
IMPROVEMENTS
HR PERFORMANCE APPRAISAL METHODS
METHODS USING ABSOLUTE STANDARTS
METHODS USING RELATIVE STANDARTS
METHODS USING OBJECTIVES
HR PERFORMANCE APPRAISAL
METHODS USING ABSOLUTE
STANDARTS
ESSAY METHOD
CHECKLIST METHOD
CRITICAL INCIDENT METHOD
FORCED CHOICE METHOD
RATING SCALE METHOD
HR PERFORMANCE APPRAISAL
METHODS USING RELATIVE
STANDARTS
INDIVIDUAL RANKING METHODS
PAIRED COMPARISON METHOD
GROUP ORDER RANKING METHOD
(FORCED DISTRIBUTION METHOD)
HR COMPENSATION MANAGEMENT
MANAGING THE WAGES, SALARIES, INCENTIVES,
VOLUNTARY OR MANDATORY FRINGE BENEFITS WITHIN
THE ORGANIZATONS
DIRECT
COMPENSATIONS
WAGES
SALARIES
INCENTIVES
INDIRECT
COMPENSATIONS
VOLUNTARY FRINGE
BENEFITS
BENEFITS AS LEGAL
OBLIGATIONS
JOB EVALUATIONS
SYSTEMATIC PROCEDURES TO COMPARE JOBS
IN ORDER TO DETERMINE THE WORTH OF ONE
JOB RELATIVE TO OTHER EXISTING JOBS
STEPS OF JOB EVALUATIONS
GET INFORMATION ABOUT JOB
DETERMINE THE SIGNIFICANT COMPENSABLE
FACTORS
CHOOSE A PROPER JOB EVALUATION METHOD
COMPARE AND EVALUATE THE JOBS
ESTABLISH THE JOB HIERARCHY
COMPENSABLE FACTORS
BASIC FACTORS THAT THE JOBS HAVE IN COMMON
BUT IN DIFFERENT AMOUNTS
SOME COMPENSABLE FACTORS
SKILLS
EFFORT
ACCOUNTABILITY
RESPONSIBILITY
CREATIVITY
KNOW-HOW
JUDGEMENT
WORK PRESSURE
WORK CONDITIONS
PROBLEM SOLVING
JOB EVALUATION METHODS
NON-QUANTITATIVE
METHODS
QUANTITATIVE
METHODS
(NON-ANALYTICAL)
(ANALYTICAL)
RANKING METHOD
GRADE DESCRIPTION
METHOD
POINT METHOD
FACTOR
COMPARISON
METHOD
INCENTIVES
EXTRA ALLOWANCES OFFERED TO AN EMPLOYEE TO
ENCOURAGE HIM TO INCREASE HIS EFFORT IN
PERFORMING HIS TASK
TYPES OF
INCENTIVE PLANS
INDIVIDUAL
INCENTIVE PLANS
GROUP-BASED
INCENTIVE PLANS
COMPANY-BASED
INCENTIVE PLANS
SOME EXAMPLES OF
INCENTIVES
PIECEWORK PLANS
TIME-BASED PLANS
COMMISSION PLANS
ANNUAL BONUS PLANS
STOCK OPTION PLANS
PROFIT SHARING PLANS
STOCK OWNERSHIP PLANS
FRINGE BENEFITS
NON-FINANCIAL VOLUNTARY OR MANDATORY BENEFITS
AND SERVICES OFFERED TO EMPLOYEES
VOLUNTARY FRINGE
BENEFITS OFFERED
BY THE EMPLOYER
PAYMENT FOR TIME NOT
WORKED
PROTECTION AGAINST
HAZARDS
RETIREMENT BENEFITS
SERVICES AS FRINGE
BENEFITS
MANDATORY
BENEFITS
SECURITY BENEFITS
SAFETY BENEFITS
HEALTH BENEFITS
• Human resource management is fundamental
to all management activity.
• It is possible to identify two distinct definitions
of the term ‘human resource management’.
The first describes a body of management
activities, while the second signifies a particular
approach to carrying out those activities.
• Human resource managers are concerned with
meeting four distinct sets of organisational
objectives: staffing, performance, change
management and administration.
• HRM activities are carried out in various ways
through various forms of organisational structure. In
some larger organisations HR generalists work
alongside specialists in particular HR disciplines.
• Human
resource
management
can
be
characterised as the latest in a series of
incarnations that personnel practitioners have
developed since the origins of the profession over
100 years ago.
• The philosophy of human resource management in
this book is that it is a series of activities which:
first, enables working people and the business
which uses their skills to agree about the nature
and objectives of their working relationship; and,
second, ensures that the agreement is fulfilled.
• Most current debates about human resource
management in general focus on the extent and
nature of the responses needed in the face of
developments in the business environment.
• Three of the most prominent current debates
focus on the nature of the psychological contract,
the relative wisdom of the ‘best fit’ and ‘best
practice’ approaches and predictions about the
future of work.