Human Resource- is the total of knowledge, skills, creative abilities, talents, aptitudes, values, attitudes & beliefs of an organization’s workforce
HRM views people as an important resource or asset to be used for the benefit of the organization, employees and society. But humans unlike other resources in the context of work and management cause problems.
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Fundamentals of Human Resource Management
1. Fundamentals of HRM
Block one
Human Resource Management in Practice
• Overview of HRM and introduction
• Trends in HRM
• Equal Employment Opportunity
• Human Resource Planning and Job Analysis
• Recruiting
• Foundations of Selection and Placement
1
2. Introduction
• Human Resource- is the total of knowledge, skills, creative abilities,
talents, aptitudes, values, attitudes & beliefs of an organization’s
workforce
• HRM views people as an important resource or asset to be used for
the benefit of the organization, employees and society. But humans
unlike other resources in the context of work and management
cause problems.
• HRM as the process of acquiring, training, appraising, and
compensating employees, and of attending to their labor relations,
health and safety, and fairness concerns.
• HRM is the organizational function that deals with issues related to
people = people dimension in management
• HRM is the art of procuring, developing & maintaining competent
workforce to achieve organizational goals in an effective & efficient
manner
• HRM is the process of bringing people and organizations together
so that the goals of each other are met.
3. Cont...d
• Getting and keeping good people is critical to the success of every organization
whether it is public or private
• HRM functions: two types
• Managerial functions: planning, organizing, directing and controlling = staffing
• Operative functions: consist of procurement, development, motivation &
compensation, maintenance, integration function and emerging issues.
• Procurement: consists of job analysis, human resource planning, recruitment,
selection, induction and orientation, and internal mobility.
• Development: consists of training, executive development, career planning &
development, human resource development
• Motivation and compensation: consists of job design, scheduling, motivation, job
evaluation, performance appraisal, compensation administration, and incentives &
benefits
• Maintenance: deals with health and safety, employee welfare, and social security
measures
• Integration function: discipline, teams and teamwork, collective bargaining,
employee participation and empowerment, industrial relations, trade unions and
employee association
• Emerging issues: personal records, HR audit, HR research, HR accounting, HR
information systems, stress and counselling, and international HRM
4. Nature of Human Resource Management
• HRM
– The design of formal systems in an organization to ensure effective and efficient
use of human talent to accomplish organizational goals.
– As a series of integrated decisions that form employment r/nship
– Since every organization is made up of people, acquiring their services, developing
their skills, motivating them to higher levels of performance & ensuring that they
continue to maintain their commitment to the organization are essential to
achieving organizational objectives
– Scope: starts from the employee’s entry till the exit of the same
5. Cont…d
• Who Is an HR Manager?
– In the course of carrying
out their duties, every
operating manager is, in
essence, an HR manager.
– HR specialists design
processes and systems
that operating managers
help implement.
– Play an advisory role
6. 6
Cont…d
•HRM aims to improve the productive contribution of
individuals while simultaneously attempting to attain other
societal and individual employee objectives.
•Regardless of where they work or what their jobs are, people
are motivated by the same things: inspiring work, fair
compensation, good management, a supportive and friendly
workplace, and open communications. They stay in or leave any
sector
•Employees are the greatest assets of organizations and the
ability to attract and retain them is the key driver of future
success
7. HRM: Importance
• HRM is important for the following reasons:
– HRM deals with the most important resource
• Whose usefulness Increases over time
• Who puts other resources to proper use
• Capable of enlargement- produce extra ordinary things when inspired
– contributes to the development and growth of the organization
– enables the creation of healthy culture in the organization
– assists the organization in its strategic direction; and represents &
advocates for the employees
– manages people for competitive advantage:
• Ensuring employment security
• Build self-managed teams, decentralized decision making
• Set relatively high compensation- contingent on performance
• Arrange for extensive training
• Ensure reduced status differentials
• Facilitate information sharing 7
8. Cont...d
– HRM can help organizations achieve results quickly, efficiently &
effectively
– Helps not to make mistakes like:
– Hiring the wrong person for the job
– Experiencing high turnover
– Having employees not doing their best
– Wasting time with useless interviews
– Having your company taken to court because of discriminatory action
– Having your company cited under federal occupational safety laws for
unsafe practices
– Having some employees think their salaries are unfair and inequitable
relative to others in the organization
– Commit any unfair labor practices
8
9. Human Resources as a Core Competency
• Strategic Human Resources Management
– Organizational use of employees to gain or keep a competitive advantage against
competitors.
• Core Competency
– A unique capability in the organization that creates high value
and that differentiates the organization from its competitors.
• HR based core competencies
– Organizational Culture: the shared values and beliefs of the workforce
– Productivity
• A measure of the quantity and quality of work done, considering the
cost of the resources used.
• A ratio of the inputs and outputs that indicates the value added by an
organization.
– Quality Products and Services
• High quality products and services are the results of HR-enhancements to
organizational performance.
9
12. 12
• To assist the organization to attract the right quality & number of
employees
• To orient new employees to the organization & place them
• To develop, disseminate and use job descriptions, performance standards
and evaluation criteria
• To help establish adequate compensation systems and administer them in
an efficient and timely manner
• To foster a safe, healthy and productive work environment
• To ensure compliance with all legal requirements in so far as they relate to
management of workforce
• To help maintain a harmonious working relationship with employees and
unions where present
• To foster a work environment which facilitates high employee
performance, and
HRM: Objectives
13. 13
• To help the organization reach its goals
• To utilize the skills and abilities of the workforce efficiently
• To provide the organization with well trained & motivated
employees
• The major aim of the human resource department is to
contribute to organizational effectiveness. Human resource
management is not an end in itself; it is a means of helping
the organization to achieve its primary objectives.
• HRM as a support function and as a function of every
manager
HRM: Organizational Objectives
14. 14
HRM: Societal and employee Objectives
To help to be responsive to the needs and challenges of society
while minimizing the negative impact of such demands upon the
organization.
To increase the employee’s job satisfaction & self actualization to
the fullest level
To assist employees in achieving their personal goals, at least in so
far as these goals enhance the individual’s contributions to the
organization.
16. Features of HRM
Strategic- that is, planned, deliberate, seeking to achieve set objectives
Capabilities- that is, deals with people resources with potential (knowledge, skills,
attitudes) which can be developed to organizational success
Competitive advantage- by taping into and developing these capabilities,
organizations give themselves an edge over their rivals
Integrated- that the range of things under HRM (recruitment, selection of
employees, their training and development, how they are rewarded) is looked at
together not as separate things
Concerned with employees, both as individuals & as a group
Development of HR- covers all levels & categories-
unskilled/skilled/technical/professional/clerical/managerial
Applies to all types of organizations
Is a continuous process
Aims at attaining the goals of the organization
Responsibility of all line and staff managers
16
17. Core Values of HRM
The core values of HRM states that:
The human beings are the crucial aspects of every organization. The greater is
the commitment of the human resource, the more successful is the
organization
An individual is a whole person. He/she brings all aspects of his/her
personality, attitudes, traits and behavior to the work place
All people represent the organization. The building, equipment, and other
resources are productive only because they are being handled by the hyper
generic force of humans
People are different from each other. They vary in abilities, nature, personality,
religion, etc. People are also influenced by social, economic and environmental
factors.
Human resources have to be acquired, developed, and motivated to give
higher performance and also must be retained
The success of an organization depends on the satisfaction of organizational
needs and employees needs. There are various hierarchical levels in an
organization. The people who manage (the managers) and the people who are
at work (subordinates). The effective coordination and commitment between
managers and subordinates is essential for organizational success. Apart from
that, healthy relationships are to be maintained with consumers, share
holders, entrepreneurs, government and suppliers. 17
18. HRM Strategy and Business Result
• Fig. 1.4
HR Strategy
Training &
development
Reward
management
Recruitment
& selection
Performance
mgt
Career mgt
Business
Result
Business
strategy
18
19. 1.2 Trends in HRM
• HRM has evolved considerably over the past century, and
experienced a major transformation in form and function
primarily within the past two decades.
• Driven by a number of significant internal and external
environmental forces, HRM has progressed from a largely
maintenance function, with little if any bottom line impact, to
what many scholars and practitioners today regard as the
source of sustained competitive advantage for organizations
operating in a global economy.
19
20. HRM Challenges Facing Organizations
• 1. Economic Challenges
• Globalization of Business (sales expansion, cut labor costs, forming
partnerships, seeking new foreign products/services to sell)
• Implication: more competition, pressure to lower costs, to make
employees more productive
• Benefits: some thing better for less to consumers, reaching millions
• Threats: less secure jobs (outsourcing), working harder
– Reflect on the perspective that “globalization is good for the long run as it
lowers the costs of goods and services”. Do you agree? Why/Why not?
– Challenge of Productivity Improvement
– Pressures of global competition causing firms to adapt by lowering
costs- and increasing productivity.
– Threats of terrorism
21. 21
2. Technological Challenges
• Computerization: growth of information technology
• Automation
Occupational shifts from manufacturing and agriculture to service
industries and telecommunications.
• Improved communication & quick dissemination of information
• Decentralized work sites e.g., virtual organizations, telecommuting
• Technological developments will require training & retraining of both
workers and managers. Rise of the international corporation is proving
new challenges for personnel function.
HRM Challenges Facing Organizations…
22. 3. Demographic Challenges
• The Increasing Number of Women in the Workforce
• Shift Towards Knowledge Workers
• Educational Attainment of Workers
• Increasing Racial/Ethnic Diversity
• Younger workforce
• More Part-time and Contract Workers: caused by:
Need for flexibility in staffing levels
Increased difficulty in firing permanent employees.
Reduced legal liability from contract employees
HRM Challenges Facing Organizations…
22
23. 4. Cultural Challenges
• Attitudes Towards Work
• Ethnic Diversity
• Attitudes Towards Governments
Organizational members need to adapt to cultures, systems & techniques different
from their own. HRM must develop mechanisms that will help multicultural
individuals work together. As background, languages, age, custom differences
become more prevalent, employees conflict is likely to increase. HRM must make
every effort to acclimate different groups to each other, find ways to build teams
and thus reduce conflict
HRM Challenges Facing Organizations…
23
24. HRM Challenges facing organizations
• Organizational Cost Pressures and Restructuring
– Mergers and Acquisitions
– “Right-sizing”—eliminating of layers of
management, closing facilities, merging with other
organizations, and out placing workers
• Intended results are flatter organizations, increases in
productivity, quality, service and lower costs.
• Increasing costs, loss of employee loyalty, and turnover
of valuable employees.
– HR managers must work toward ensuring cultural
compatibility in mergers.
24
25. HRM Challenges facing organizations
• Increasing government role: In future private organizations will have to
co-ordinate their labour welfare programmes with those of the
government. Private sector will be required increasingly to support
government efforts for improving public health, education training and
development and infrastructure.
• Occupational health and safety: Due to legislative presence and trade
union movement, HRM will have to be more healthy and safety conscious
in future.
• Organizational development: in future, change will have to be initiated
and managed to improve organizational effectiveness. Top management
will become more actively involved in the development of human
resources.
• New work ethic: greater focus will be on project and team forms of
organization. As changing work ethic requires increasing emphasis on
individual, jobs will have to redesigned to provide challenge.
25
26. HRM Challenges facing organizations
• Development planning: HRM will be involved increasingly in
organizational planning, structure, composition etc. Greater cost-
consciousness and profit-orientations will be required on the part of the
HR department.
• Better appraisal and reward systems: organizations will be required to
share gains of higher periodicity with workers more objectively and result
oriented systems of performance, appraisal and performance linked
compensation will have to be developed.
• New personnel policies: new and better polices will be required for the
work force of the future. Traditional family management will give way to
professional management with greater forces on human dignity.
26
27. Top 10 Overall Trends Affecting HR
and the Workplace
1. Rise in healthcare costs
2. Focus on domestic security
3. Use of technology to
communicate
4. Complexity of legal
compliance
5. Use of technology to perform
HR functions
6. Focus on global security
7. Preparing for next wave of
retirement (i.e., labor shortage)
8. Use and development of e-
learning
9. Exploring of jobs to developing
countries
10.Changing definition of family
27
28. The Role of HR in Organizations
• Boosting Productivity
• Preparing the Organization for Change
• Building Employee Commitment and Morale
• Involvement in Determining and
Implementing the Strategic Direction of the
Organization
28
29. FUTURE ROLE OF PERSONNEL MANAGERS
Some of the emerging trends in the role of personnel manager are as
follows:-
• HR managers of future will have to stress upon overall development of
human resources in all respects.
• The scope of HRM will be extended to cover career planning and
development, organization development, social justice, etc.
• Enlightened trade unions will become an active participant in the
organization and management of industry.
• The HR manager will be required to act as a change agent through greater
involvement in ‘environmental scanning and development planning. They
will have to devote more time to promote changes than to maintain the
status quo.
29
30. FUTURE ROLE OF PERSONNEL MANAGERS
• The HRM function will become more cost-conscious and
profit oriented. Instead of merely administering HR activities,
the HR department will have to search out opportunities for
profit improvement and growth.
• Greater authority and responsibilities will be delegated to HR
managers particularly in the field of employee welfare
services.
• HR managers will have to continuously retrain themselves to
avoid obsolescence of their knowledge and skills.
30
31. Changing Roles of HR ManagementChanging Roles of HR Management
Fig. 1.5 Note: Example percentages are based on various surveys.
32. Strategic Role for HR
• Administrative Role
• Operational Role
• Employee Advocate Role
• Strategic Role
– “Contributing at the Table” to organizational results
– HRM becomes a strategic business partner by:
• Focusing on developing HR programs that enhance organizational
performance.
• Involving HRM 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.
• Some HR people get this, some don’t…CEOs want those that
do and oust those that don’t
34. Trends for HR in the 21st
Century
• Becoming the employer of choice
• Winning the war for talent
• Contributing to the organization as a strategic business
partner
• Cultivating leadership through e-learning and development
• Recognizing the workforce as a profit center
• Thinking globally while complying locally
• Incorporating flexibility and adaptability into the organization
• Embracing technology as the underlying facilitator
34
35. Ethics and HR Management
Firms with High Ethical Standards
Are more likely to reach strategic goals.
Are viewed more positively by stakeholders
Are better able to attract and retain human
resources.
Ethics and Global Differences
Different legal, political, and cultural factors in
other countries can lead to ethical conflicts for
global managers.
38. 1.3 Legal Issues in HRM
• Must consider the law when deciding:
◦ Which employee(s) to hire
◦ How to compensate employees
◦ What benefits to offer
◦ How to accommodate employees with dependents
◦ How to accommodate employees with disabilities
◦ How and when to fire employees
◦ How to manage health and safety
38
39. Why obey the law (related to employment)?
Organizations are embedded in society
◦ Must also serve social interests
It’s all about fairness
◦ Employment laws are intended to ensure fair
treatment of employees
◦ Clarifies rights and responsibilities for all
parties
Other benefits
◦ Fair treatment of employees may have
positive organizational impact
39
40. Ethiopian Basic labor law information
1. Constitutional law
• Constitution of the Federal Democratic Republic of Ethiopia 1994
2. Labor codes, general labor and employment acts
Labor Proclamation No. 377/2003.
3. Human rights
• Political Parties Registration Proclamation (No. 46 of 1993).
• Peaceful Demonstration and Public Political Meeting Procedure Proclamation
(No. 3 of 1991).
• Ethiopian Human Rights Commission Establishment Proclamation No. 210 /
2000
4. Employment policy, promotion of employment and employment services
Private Employment Agency Proclamation (No. 104 of 1998).
5. Disabled workers
• Right to Employment of Persons with Disability Proclamation No. 568/2008.
40
41. Ethiopian Basic labor law
information…6.Education, vocational guidance and training
• Higher Education Proclamation No. 650/2009.
• Technical and Vocational Education and Training Proclamation No. 391/2004.
7. Hours of work, weekly rest and paid leave
• Public Holidays and Rest Day Proclamation (No. 16 of 1975).
8. Protection against particular hazards
• Radiation Protection Proclamation No. 571/2008.
9. Administration and financing
• Social Security Authority Establishment Proclamation (No. 38 of 1996).
10. Public and civil servants
• Federal Civil Servants Proclamation No. 515/2007.
• Public Servants' Pensions Proclamation. Proclamation No. 345/2003
11. Migrant workers
• Immigration Proclamation No. 354/2003.
12. Seafarers
• Maritime Code of 1960.
• Maritime Sector Administration Proclamation No. 549/2007.
41
42. Labor Proclamation No. 377/2003
Part 1: General (short title, definitions and scope)
Part 2: Employment relations (contract of employment, termination of
employment, home work contract, contract of apprenticeship)
Part 3: Wages (determination and payment)
Part 4: Hours of work, weekly rest and pubic holidays
Part 5: Leave (annual leave, leave for family events, union leave, leave for
special purposes, sick leave)
Part 6: Working conditions of women and young workers (general
provisions, minimum age -14 years -, maternity leave, limits of hours of
work and night and overtime for young workers)
42
43. Labor Proclamation No. 377/2003
Part 7: Occupational safety, health and working environment
(preventive measures, occupational injuries, degree of
disablement, employment accident benefits)
Part 8: Collective relations (trade unions and employers
associations and collective agreements)
Part 9: Labor dispute (definitions, labor courts, conciliation,
the Labor Relations Board, strike and lock-out)
Part 10: Period of limitation and priority of claims
Part 11: Enforcement of labor law (labor administration,
employment service, labor inspection)
Part 12: Penalty and transitory provisions
43
44. EEO
• Equal Employment Opportunity
– The right to employment and advancement without regard to race, religion,
sex, color or national origin
• Has implication for almost every activity in HRM
• HR officials and managers in every functions of the organization are
involved
• EEO programs are implemented to:
– Prevent employment discrimination in the workplace
– Take remedial action to offset employment discrimination
• Top managers must get involved in EEO issues and programs
• Operating managers must assist:
– Attitude changes about protected-category employees
– Help all employees adjust to changes EEO brings to the work place
44
45. How did EEO emerge?
• Three main factors that led to the development of EEO:
– Changes in societal values
– The economic status of women and minorities
– The emerging role of government regulation
• Civil Rights Act
– Prohibits discrimination against employees on the basis of: Race, Colour, Religion, Sex, &
National origin
– Prohibits discrimination with regard to any employment condition
• Discrimination
– When someone is denied a job or position for non job related reasons
– Giving unfair advantage or disadvantage to members of one group over
members of another group
– Two categories:
45
46. Discrimination
• Disparate Treatment: Intentional discrimination
• Unequal treatment
• Prejudiced actions
• Employers apply different standards or treatment to different groups of
employees or applicants based upon a protected category
• Plaintiff must first establish a prima facie case proving disparate
treatment
• Disparate impact
• Unintentional discrimination
• Focus on impact not intent
• Unequal consequences or results
• Same rule different consequence
• Occurs when a racially neutral employment practice has the effect of
disproportionately excluding a group based upon a protected category
46
47. Bona Fide Occupational Requirements
• Text refers to them as BFO Qualifications
• What is a BFOR / BFOQ?
– A job requirement that legally overrides human
rights protection
– Allowed when characteristics needed to carry out
the essential job requirements are related to a
prohibited ground
– E.g., religious schools may hire only teachers of a
particular faith
47
48. Bona Fide Occupational Requirements
Examples of court cases involving BFORs
– Policy of mandatory retirement for firefighters
after age 60
– 1982 Supreme court decision stated that being
under 60 was not a BFOR
• Inadequate evidence suggesting that reaching age 60
resulted in inability to perform the job
48
49. Bona Fide Occupational Requirements
Examples of court cases involving BFORs
• Canadian Coast Guard
– Applicant with complete hearing loss in one ear
was excluded from officer cadet training
– Coast guard cited the condition was a safety risk
– BFOR claim was denied because employer’s
evidence of the safety risk was inadequate
49
50. Supreme Court Case re:
BC Fire Fighter
• Woman employed in elite firefighting unit by
province of BC for more than 2 years
• New fitness tests were introduced for unit
• She failed one of new tests (run 2.5 km in 11
minutes) and was fired
• Union grieved – got appealed to Supreme Court
• Court sided with complainant
– BC gov’t had failed to establish the fitness
requirement as a BFOR – lack of evidence
showing inability to meet it was a safety risk
50
51. Bona Fide Occupational Requirements
When BFORs are upheld:
Theatrical productions
◦ That require actors with particular characteristics
Use of gender as selection criterion
◦ E.g., Male nursing attendants to provide bathing,
etc. for male hospital patients
◦ E.g., prison guards must be of same sex as
prisoners being guarded
51
52. Criteria used to assess BFOR
In this decision, the court established 3 criteria to
assess appropriateness of BFORs
1. Is the standard rationally connected to the
performance of the job?
1. Was the standard established in an honest and good
faith belief that it was necessary to accomplish the
purpose identified in stage 1?
1. Is the standard reasonably necessary to accomplish
its purpose? (i.e., must show it is impossible to
accommodate employees without imposing undue
hardship on employer)
52
53. Cont...d
• Retaliation : revenge
• EEO laws prohibit retaliation against employees who:
– Oppose discriminatory practices or
– Participate in a protected investigation, proceeding or hearing
• Retaliation includes:
– Termination
– Denial of promotion or job benefits
– Demotion, suspension or threats
53
54. Harassment
• Harassment based on any of the prohibited grounds
– No clear definition
– Occurs when a member of an organization treats an
employee in an offensive manner because of
employee’s sex, race, religion, etc.
– Unwanted behaviour that creates a hostile work
environment
– May include verbal abuse, threats, display of
offensive material, practical jokes that cause
embarrassment, unwelcome remarks, innuendo, etc.
• Sexual Harassment
• Considered as a form of sex discrimination under the Civil Rights
Acts
54
55. Sexual Harassment
• Unsolicited or unwelcome sex- or gender-based conduct that
has adverse employment consequences for target
• Includes range of behaviours
◦ Verbal – comments, etc.
◦ Non-verbal – display of pornographic material
◦ Physical – unwelcome touching
◦ Other – sexual activity exchanged for positive
employment consequences; threats of negative
consequences if advances are rejected
◦ Quid pro quo- exchange of sexual favors for job benefits
55
56. Sexual Harassment
3 characteristics of SH identified:
1. Encounters must be unsolicited, unwelcome,
and expressly or implicitly known by the
respondent to be unwelcome;
2. The conduct must either continue despite
complainant’s protests or, if the conduct
stops, the complainant’s protests must have
led to negative employment consequences;
and
3. The complainant’s cooperation must be due to
employment-related threats or promises 56
57. Pregnancy Discrimination Act
• To protect pregnant women from employment discrimination
• Prohibits employers from discrimination in providing
employee benefits such as:
– Vacation time
– Sick leave
– Health insurance
• Pregnancy to be treated on same basis as any other medical
problem or disability
57
58. Civil Rights Act
• Allows plaintiffs (a person who brings suit in a court) to seek
compensatory and punitive damages for intentional
discrimination
• Allows plaintiffs to demand jury trial for intentional
discrimination claims
58
59. Cont...d
Equal Pay Act
Established the concept of equal pay for equal work
Prohibits wage differentials based on gender between men and women
performing the same work in organizations
Comparable Worth
Persons performing jobs of similar worth should receive comparable pay
Age Discrimination in Employment
Protects individuals 40 years of age and older from employment
discrimination based on their age
The act covers the actions of:
Private employers with 20 or more employees
Employment agencies
Labour organizations with at least 25 members
Federal, state and local governments
59
60. Cont...d
Disabilities Act
Prohibits discrimination against qualified individuals with disabilities on the
basis of these disabilities in all aspects of employment
Private employers with 15 or more employees
State and local government employers
Affirmative Action in Organizations
An effort to give preference in employment to women or other minorities
Employment criteria justified by capacity to perform a job
Actions appropriate to overcome the effects of past or present
practices, policies or other barriers to EEO
Two types of affirmative action plans:
Voluntary
Involuntary
60
61. Cont...d
• EEO programs are designed to eliminate bias
in HRM programs
• The role of EEO and the law as a significant
force in shaping HRM policies and programs is
an accepted fact in society
• The law, executive orders, and court
interpretations will continue to influence
every phase of HRM programs and activities
61
62. 62
Glass Ceiling
Invisible barrier in
organizations that
prevents many women
and minorities from
achieving top-level
management positions
63. 63
Affirmative Action Programs
An approach developed by
organizations with government
contracts to demonstrate that
workers are employed in proportion
to their representation in the firm's
relevant labor market
Notas del editor
Chapter 1: Strategic Importance of Human Resource Management
Chapter 1: Strategic Importance of Human Resource Management