Human Resource Management

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HUMAN RESOURCE MANAGEMENT
MASTER OF ENGINEERING
(CONSTRUCTION MANAGEMENT)
(2ND
SEMESTER COURSEWORK)
COMPILED BY:
ENGR. MUHAMMAD MUBEEN SOOMRO
&
ENGR. SAJJAD ALI SANGI
CONSTRUCTION MANAGEMENT DEPARTMENT
POST GRADUATE STUDIES CENTRE
MEHRAN UNIVERSITY OF ENGINEERING & TECHNOLOGY
JAMSHORO

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Chapter# 01
INTRODUCTION AND OVERVIEW
INTRODUCTION
Human resource management is a function in organizations designed
to maximize employee performance in service of an employer's strategic
objectives.
Definition:
The branch of organizational science that deals with the employment
relationship, along with all the decisions, actions, and issues involved
in that relationship.
A strategic approach to managing employment relations which
emphasizes that leveraging people’s capabilities is critical to
achieving competitive advantage. This leveraging being achieved
through a distinctive set of integrated employment policies, programs
and practices
HRM is primarily concerned with the management of people within
organizations, focusing on policies and systems. HR departments and units
in organizations typically undertake a number of activities, including
employee recruitment, training and development, performance appraisal /
assessment, and rewarding (e.g., managing pay and benefit systems). HR is
also concerned with organizational relations, that is, the balancing of
organizational practices with requirements arising from collective
bargaining/negotiation/agreement and from governmental laws.
HRM in construction:
Comprehensive approach to the employment and development of
human resources in construction.
Philosophies and theories related to behavior of people in construction
organizations.
Existing practices of human resource management in construction
industry.

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HISTORY OF HRM
HR is a product of the human relations movement of the early 20th
century, when researchers began documenting ways of creating business
value through the strategic management of the workforce.
The function was initially dominated by transactional work, such
as payroll and benefits administration, but due to globalization, company
consolidation, technological advances, and further research, HR as of
2015 focuses on strategic initiatives like mergers and acquisitions, talent
management, succession planning, industrial and labor relations,
and diversity and inclusion.
The human resources field can be segmented into three eras. The first
era developed in the late 19th
century out of labor tensions as public concern
grew due to the sometimes violent relations between employers and
employees. Some characterize HR’s beginning as a managerial function as
well as a steward of the employee experience. As labor and employment
laws were enacted HR was also tasked with ensuring firms’ legal
compliance.
Over time, HR moved into a second era where it developed
knowledge in employment staffing activities such as recruitment, training,
compensation, and benefits. In the 1980s, the HR function was extended to
include the role of strategic business partner. The evolution of HR has been
driven by enhanced competition for skilled employees, globalization,
increased workforce diversity, and a shift to more technologically grounded
positions.
HR professionals in the third era are expected to be involved in
formulating and implementing business strategy. Nevertheless, HR remains
little more than a cost center in many firms. An efficiency-driven mindset
makes little sense in companies that drive business strategy in other ways,
such as through innovation.
Accordingly, many do not believe HR has indeed transitioned from its
traditional activities in the second era to the strategic role in the third era.

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OVERVIEW
Management:
The nature of management based on Watson (1986) and Reed (1989):
Science perspective
Political perspective
Control perspective
Practice perspective
Management Process:
Planning
Organizing
Staffing
Leading
Controlling
Line and Staff Aspects of HRM:
Line Manager is authorized to direct the work of subordinates and is
responsible for accomplishing the organization’s tasks.
Staff Manager assists and advices the line managers.

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HRM responsibilities of a Line Manager:
Placing the right person on the right job
Starting new employees in the organization (orientation)
Training employees for jobs that are new to them
Improving the job performance of each person
Gaining creative cooperation and developing smooth working
relationships
Interpreting the firm’s policies and procedures
Controlling labor costs
Developing the abilities of each person
Creating and maintaining department morale
Protecting employees’ health and physical condition
What is HR?
Human resources has two meanings depending on the context:
The original use comes from the political economy and economics,
where it is called labor, one of the three main factors of production.
(Land, labor & capita).
The more modern usage within companies and businesses refers to
individuals in the company and the portion of the company's
organization that deals with personnel or staff recruitment, training,
record keeping and other personnel issues.
Basic HR Concept:
The bottom line of managing is getting results. HR creates value by
engaging in activities that produce the employee behaviors that the company
needs to achieve its strategic goals.
Focus of HRM:
Businesses and organizations rely on three major resources
Physical resources (Material and Equipment)
Financial resources (Cash, Credit and Debt)
Human resources (Workers)

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In its broadest sense, HRM refers to the management of all decisions
within an organization that are related to people. However, in practice HRM
is a tool used to try to make optimum use of human resources, to foster
individual development, and to comply with government mandates. Larger
organizations typically have an HRM department and its primary objective
is making company goals compatible with employee goals in so far as
possible. Hence, for a company to attain its goals, it must have employees
who will help it attain them.
History Overview:
Key principles & practices associated with HRM date back to the
beginning of mankind. Mechanisms were developed for the selection of
tribal leaders & knowledge was recorded and passed on to youth about
safety, health, hunting, and gathering. More advanced HRM functions were
developed as early as 1000 and 2000 BC e.g. Employee screening tests have
been traced back to 1115 B.C. in China. And the earliest form of industrial
education, the apprentice system, was started in ancient Greek and
Babylonian civilizations before gaining prominence during medieval times.
Since the inception of modem management theory, the terminology used to
describe the role and function of workers has evolved from "personnel" to
"industrial relations" to "employee relations" to "human resources. While all
of these terms remain in use, "human resources" most accurately
represents the view of workers by contemporary management theory as
valuable resources managed in the same manner as other valuable resources,
according to the authors of Human Resource Management.
The need for an organized form of HRM emerged during the
industrial revolution, as the manufacturing process evolved from a cottage
system to factory production. As the Economy shifted from an agricultural
economy to an industrial economy, companies were forced to develop and
implement effective ways of recruiting and keeping skilled workers.
HRM Activities:
Attract and Orient new employees
Effective compensation system
Effective work environment
Effective relationships
Compliance and procedures

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Objectives of HRM:
To create and utilize an able and motivated workforce, to accomplish
the basic organizational goals.
To establish and maintain sound organizational structure and desirable
working relationships among all the members of the organization.
To secure the integration of individual or groups within the
organization by coordination of the individual and group goals with
those of the organization.
To create facilities and opportunities for individual or group
development so as to match it with the growth of the organization.
To attain an effective utilization of human resources in the
achievement of organizational goals.
To identify and satisfy individual and group needs by providing
adequate and equitable wages, incentives, employee benefits and
social security and measures for challenging work, prestige,
recognition, security, status.
To maintain high employees morale and sound human relations by
sustaining and improving the various conditions and facilities.
To strengthen and appreciate the human assets continuously by
providing training and development programs.
To consider and contribute to the minimization of socio-economic
evils such as unemployment, under-employment, inequalities in the
distribution of income and wealth and to improve the welfare of the
society by providing employment opportunities to women and
disadvantaged sections of the society.
To provide an opportunity for expression and voice management.
To provide fair, acceptable and efficient leadership.
To provide facilities and conditions of work and creation of favorable
atmosphere for maintaining stability of employment.

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Goals of HRM:
Organizational
 Human Resource Planning
 Employee Relation
 Selection
 Training and Development
 Appraisal
Personnel (Employees)
 Training and development
 Appraisal
 Placement
 Compensation
 Assessment
Functional
 Appraisal
 Placement
 Assessment
Societal
 Legal compliance
 Benefits
 Union management relationships

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(Fig: Human Resource Wheel)
HRM Models:
The management task is to cause the people to be as creative and
productive as possible.
The management of most important resources – the people is of utmost
importance.
Until about the 1970s the task of ‘finding and controlling people’ was
handled by Personnel Management which was largely an
administrative function, dealing with the management and control of
subordinates.
The concept of Human Resource Management developed with a more
strategic level of thinking about the nature and role of people (as total
24hr per day human beings) working in organizations which are
‘cultures’ in their own right.

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Recent thinking has moved from the control-based model to the Compliance
model.
The soft edge of the latter involves improving employee commitment
and expecting effectiveness and efficiency to follow.
The hard edge of the latter involves ridding the organization of
unnecessary layers of middle management which, when stripped of
control functions, have very little by way of value added.
Key Functions of HRM Models:
Key functions of most of the models of HRM include:
HR Planning and staffing (including recruitment and selection)
Developing staff
Rewarding and motivating staff
Staff welfare (including health and safety)
Employment relations – managing conflicts
Managing change – response to competition, new technology, laws
Evaluate contribution of HRM
The two vital HR sub-systems i.e. HR Planning & Management and
Competency based HR Development shape the very crucial performance
environment within the bank which facilitates development of enabling
capabilities of people. Through proper developmental inputs, Positive
Attitude & Right Mindset is created among people. Through proper
Communication Medium and an Organizational Culture of sharing,
openness, collaboration & confrontation, autonomy etc people in the
organization are facilitated to give their best output (performance).
The role of HRM departments:
In Personnel Management, Paul S. Green law and John P. Kohl describe
three distinct, interrelated fields of interest addressed by the HRM discipline:
Human relations (individual motivation, leadership & group
relationships)
Organization theory (job design, managerial control & work flow
through the organization)
Decision areas (interests related to acquisition, development,
Compensation & maintenance of human resources.

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The structure of HRM departments:
The departments differ according to the type and size of the
organization that they serve. But many large organizations (including
governments, institutions, manufacturing companies, and service firms)
organize HRM employee development functions around various clusters of
workers - they conduct recruiting, administrative, and other duties in a
central location. Different employee development groups for each
department are necessary to train and develop employees in specialized
areas, such as sales, engineering, marketing, or executive education.
In contrast, some HRM departments are completely independent and
are organized purely by function. The same training department, for
example, serves all divisions of the organization.
Responsibilities of HRM Department:
The management responsibilities of HRM are as under:
Individual management (This entails helping employees identify
their strengths and weaknesses, correct their shortcomings, and then
make their best contribution to the enterprise. These duties are carried
out through a variety of activities such as performance reviews,
training, and testing.)
Organizational development (This focuses on fostering a successful
system that maximizes human, and other, resources. This important
duty also includes the creation and maintenance of a change program,
which allows the organization to respond to evolving outside and
internal influences.)
Career Areas (The third responsibility, career development, involves
matching individuals with the most suitable jobs and career paths.)
Positioning of HRM Department:
In larger organizations the HRM function might be headed by a vice
president, while smaller entities will have a middle-level manager as head of
HRM. In any case, the HRM department is charged with managing the
productivity and development of workers at all levels, the top HRM manager
ideally has access to, and the support of, key decision makers. In addition,
the HRM department should be situated in such a way that it has horizontal
access, or is able to communicate effectively with all divisions within the

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company. Horizontal access allows HRM to integrate, educate, and train the
workforce, and to facilitate changes that affect one division and indirectly
influence other segments of the company or institution.
HRM Implementation Activities:
To fulfill their basic role and achieve their goals, HRM professionals and
departments engage in a variety of activities in order to execute their human
resource plans. HRM implementation activities fall into four functional
groups (acquisition, development, compensation, and maintenance) each of
which includes related legal responsibilities.
Forces changing HRM:
1. Information Technology: This brought about the decentralization of
communications and the shake-up of existing paradigms of human
interaction and organizational theory. Satellite communications,
computers and networking systems, fax machines, and other devices
were facilitating rapid change.
2. Decentralized management systems
Decentralized management systems (scrapping traditional,
hierarchical organizational structures) team approach to management.
3. Globalization: To compete abroad, companies were looking to their
HRM professionals to augment initiatives related to quality,
productivity, and innovation.
4. Cultural changes: It includes concern for employee rights, changing
attitude towards work, balancing work and family.
5. Demographic (population related) and Employee concerns
Demographic changes
Diversity of backgrounds
Age distributions
Gender distribution
Rising level of education

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Chapter# 02
RECRUITMENT
Introduction:
The process of attracting individuals on a timely basis in sufficient
numbers and with appropriate qualifications and encouraging them to apply
for jobs with an organization is called Recruitment.
Recruitment forms the first stage in the process, which continues with
selection and cease with placement of the candidate. Recruitment makes it
possible to acquire the number and type of people necessary to ensure the
continued operation of the organization.
In simple terms Recruitment is understood as a process for searching
and obtaining applicants for jobs, from among the available recruits.
Importance of recruitment:
Value of commitment and motivation
Getting people with exact skills, qualities and attitudes
Workforce is becoming increasingly heterogeneous
Organizational goals in recruitment:
Attract a pool of qualified applicant
Keep pool at a manageable size
Provide Realistic job previews
Individual goals in recruitment:
Meet work-related goals
Meet personal goals
Address personal needs
Recruitment Process:
1. Planning: Planning involves the translation of likely job vacancies
and information about the nature of these jobs into a set of objectives
is targets that specify the number and type of applicants to be planned.

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2. Strategy development
Make or Buy Employees
Technological Sophistication of Recruitment and Selection
Devices
Geographic distribution of labor markets comprising job seekers
Sources Of Recruitment (Internal & External)
3. Searching:
Source Activation: Source Activation takes place when a job
vacancy exists in the organization. If the organization has planned
well and done a good job of developing its source and search
methods, activation soon results in a flood of application.
Selling: In selling, both the Message and Media deserve attention
in the organization. Message refers to the employment
advertisements. Media refers to the source of any recruiting
message. For example, Employment Exchanges, Advertises in
Business magazines.
4. Screening: The purpose of screening is to remove from the
recruitment process at an early stage, those applicants who are visibly
unqualified for the job. Effective screening can save a great deal of
time and money. Care must be exercised to assure that potentially
good employees are not lost.
5. Evaluation and Control: It is necessary as considerable costs are
incurred in the recruitment process. Statistical information should be
gathered and evaluated to know the suitability of the recruitment
process.
Sources for recruiting:
Internal Recruiting: Internal Recruiting is the process of looking
inside the organization for existing qualified employees who might be
promoted to higher level position.
External Recruiting: External Recruiting is the process of looking to
sources outside the organization for prospective employees.

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Recruiting Advantage Disadvantage
Internal Recruiting 1. Increase
Motivation.
2. Sustains knowledge
and culture.
1. May foster
stagnation
2. May cause a ripple
effect
External Recruiting 1. Brings in new ideas
2. Avoid ripple effect
1. May hurt
motivation
2. Costs more
Methods of Recruiting (Internal Recruiting)
Job Posting: Job posting is mechanism for internal recruiting in
which vacancies in the organization are published through various
media such as company newsletters, bulletin boards, internal memos,
and the firm’s intranet.
Supervisory Recommendation: When a new position needs to be
filled, a manager simply solicits nominations or recommendations for
the position from supervisors in the organizations.
Union Halls: The mechanics of this approach may parallel those of
job posting, job openings are listed, along with application
procedures, and this information is made available to union members
through various channels such as newsletters and bulletin boards.
Methods of Recruiting (External Recruiting)
Source or types of external applicants
 General Labor Pools: The general labor pool is the local labor
market from which a firm hires its employees.
 Referral: A referral is an individual who is prompted to apply
for a position by someone within the organization.
 Direct Applicant: Direct applicants are individuals who apply
for a position with the organization without any action on the
part of the organization.
Techniques for external recruiting
 Word of mouth recruiting (Family or Friends)
 Advertisements
 Public Employment Agency (FPSC, SPSC)
 Private Employment Agencies (NTS, PTS etc)
 Executive Search Firms (semi-government organizations)

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 College Placement Offices (Industrial Liaison Offices)
 Realistic Job Previews: A realistic job preview is an effective
technique for ensuring that job seekers understand the actual
nature of the jobs available to them.
Electronic Recruitment: Recruitment through internet.
 Cost effective, reach large number of applicants & time saving.
 Limited to qualify labor pools, dependent of internet
availability & fake information.
Alternatives to Recruiting:
Overtime
Temporary Workers
Employee leasing
Part-time workers
Contingent Work Force: The contingent workforce includes all
temporary, part-time, or leased employees who are employed by
organizations to fill in for permanent employees during time of peak
demand.
Key Points:
Recruitment is the process by which qualified applicants are attracted
to the organization
It is important to have more applicants than opening. It is not helpful
to have too many applicants per opening
Recruitment from within is preferable because of the motivational
value
External recruitment is necessary for entry-level jobs and brings new
ideas into the organization
Internal recruiting techniques include job posting, Supervisory
recommendation, and reliance on union halls
External recruitment include word of mouth, advertisement, public
and private employment agencies, college placement offices, and
executive search firms.

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Electronic recruiting is having a major impact on both internal and
external recruiting because it allows companies to reach a wider range
of applicants and it is cost-effective, but it does come at a cost in
terms of administrative burdens and the fact that not everyone has
access to computer
Realistic job previews involve telling people the truth about the job
before they begin. Realistic job previews have been found to increase
performance and reduce turnover.
Overtime temporary workers, leased employees and part-time workers
can all serves as alternative to hiring full-time employees
Evaluation of the recruiting function depends on performance as well
as turnover measures.

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Chapter# 03
SELECTION
Definition: It is process of differentiating between applicants in order to
identify and hire those with a greater likelihood of success in a job.
Selection can also be defined as a process of matching the
qualifications of applicants with job requirements. It is a process of weeding
out unsuitable candidates and finally identify the most suitable candidates.
It may also be described as a process of rejection because generally
most candidates are turned away those who do not qualify for the post.
To select means to choose & is part of hiring or staffing function. It is
the process of choosing people by obtaining and assessing information about
the applicants with a view of matching these with the job requirements and
picking up the most suitable candidates. Most suitable applicants are chosen.
Selection vs Recruitment:
Recruitment is the process of enticing, attracting or inviting a
perspective employee to fill in a vacant position through advertising. While
selection is the process of choosing the appropriate candidate from the result
of recruitment.
Recruitment is the introduction of the opportunity for you to apply
and selection is choosing the right candidate for the position. citehr.com is a
good source. (Noah, 2003).
Recruitment Selection
1. Recruitment refers to the
process of identifying and
encouraging prospective
employees to apply for jobs.
2. Recruitment is said to be
positive in its approach as it
seeks to attract as many
candidates as possible.
1. Selection is concerned with
picking up the right
candidates from a pool of
applicants.
2. Selection on the other hand is
negative in its application in
as much as it seeks to
eliminate as many
unqualified applicants as
possible in order to identify
the right candidates.

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Purpose of Selection:
Selection is an important HRM function. An organization cannot
achieve its goals without selecting the right people. Effective selection is
also helpful in increasing the efficiency of the organization.
Selection Process:
Selection is the process concerned with identifying the best candidates
for jobs from among the pool of qualified applicants developed during the
recruiting processes. The information primarily to determining the levels of
requisite Knowledge, Skills and Abilities (KSAs) in the applicants.
Steps in Selection:
The recruiting process
Gather information about pool of qualified applicants
Evaluate qualification of each applicant
Make decision about employment offers
Responsibilities for Selection:
Selection decisions are usually based on how an applicant is rated
(rather, predicted) in terms of the likelihood of success on the job.
The selection criteria must base on job description and specification
derived from job analysis.
Frequently educational qualifications, technical skills and
achievements are used as the basis for selection.
Integrity, loyalty, initiative/drive/resourcefulness and
intelligence/mental alertness are the key attributes influencing the
selection criteria and more specifically to managerial employees.
There should be a special person with an authority to select.
There must be sufficient number form whom the required number of
employees may be selected.
Selection Errors:
An organization or human resource manager can make two types of
errors; false positives and false negatives.
False positives are those applicants who are predicted to be successful
and are hired but who ultimately fails.

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False negatives are those applicants who predicted to be fail and are
not hired, but if they had been hired, they would have been successful.
Criteria for selection:
Educational qualification
Relevant experience
Skills and abilities
Personal characteristics
Selection Techniques:
Application and background checks (An employment application asks
individuals for various facts and information pertaining to their
personal background, personal career goals, experience, and so forth)
Employment tests (An employment test is a device for measuring the
characteristics may include personality, intelligence, or aptitude)
Work simulation (It involves asking the perspective employee to
perform tasks or job-related activity that simulate or represent the
actual work for which the person is being considered)
Personal interviews (Personal Interviews are face to face
conversations between prospective job applicants and representatives
of the organization)
Guidelines for effective interview in selection process:
Clear objectives to be achieved; this should be determined by HR
manager.
Establishing and maintaining a report with the candidates through
several ways such as good listening, candidate being polite, greet
candidate.
Listening to the candidate.
Observe the candidates body language
Give an opportunity to the candidates to ask a question.
Frame the questions clearly
Avoid bias
Subjectivity (assessing an individual either favorably or unfavorably)
Sitting plan
References and recommendations
Physical examinations

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Assessment centers
Reliability (refers to the consistency of a particular selection device)
and viability (to the extent to which a measure or indicator is in fact a
real reflection of what it is assumed to be measure).

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Chapter# 04
JOB ANALYSIS AND DESIGN
The analysis and design of a work:
Many central aspects of strategy formulation address how the work
gets done, in terms of both individual job design as well as the design of
organizational structure that link individual jobs to each other and the
organization as whole. The way a firm competes can have a profound impact
on the ways jobs are designed and how they are linked via organizational
structure. If a firm wants to compete via low-cost strategy, it needs to
maximize efficiency and coordination (breaking jobs into small simple
components). If a firm wants to compete via innovation, it needs to
maximize flexibility.
Flexibility is maximized by aggregating work into larger, holistic
pieces that are executed by teams of higher-wage, higher-skilled workers.
There is no “one best way” to design jobs and structure organizations. The
organization needs to create a fit between its environment, competitive
strategy, and philosophy.
Job analysis focuses on analyzing existing jobs together information
for other HRM practices such as selection, training, performance appraisal,
and compensation. Job design focuses on redesigning existing jobs to make
them more efficient or more motivating to employees.
Work flow design and organizational structure:
Work flow design is the process of analyzing the tasks necessary for
the production of a product or service, prior to allocating and assigning these
tasks to a particular job category or person.
Organizational structure refers to the relatively stable and formal
network of vertical and horizontal interconnections among jobs that
constitute the organization.
Job Analysis:
Job analysis is such an important activity to HR managers that it has
been called the building block of everything that a personnel does.

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Importance of HR managers:
Managers must have detailed information about all the jobs in their
work group to understand the work flow process.
Managers need to understand the job requirements to make intelligent
hiring decisions.
Manager is responsible for ensuring that each individual is performing
satisfactorily.
Staffing:
Staffing is the process of determining the organization’s current and
future human resource needs and then taking steps to ensure that those needs
are met effectively.
Job Analysis:
Job analysis is the process of gathering and organizing detailed
information about various jobs within organization so that managers can
better understand the processes through which they are most performed
effectively.
Knowledge, skills, and abilities & others (KSAOs) are the
fundamental requirements necessary to perform a job. Job families are
groups of job with similar task and KSA requirements.
Job analysis and other HR functions:
Job analysis is interconnected with HR Planning and Basic Line
management functions.
JobAnalysis
Selection Process
Performance
Appraisal
Training and
Development
Compensation

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Job analysis process:
Determining information needs
Determining methods for obtaining information
Determining who will collect information.
Job Analysis Method:
Individuals presumed to be highly knowledgeable about jobs and who
provide data for job analysis; they may be existing job incumbents,
supervisor, or other knowledgeable employees are known as Subject Matter
Experts (SMEs). Human resource experts cannot rely on individual job
analysis techniques so normally all the methods are used collectively.
SMEs will do these activities; observation, interviews, critical
incidents and work diaries, questionnaires and surveys, position analysis
questionnaire and checklist.
Job Description:
A job description lists the task, duties, and responsibilities for a
particular job and specifies the major job elements, provides example of job
tasks, and provides some indications of the relative importance in the
effective conduct of the job.
Job Specification:
Job specialization is the degree to which the overall task of the organization
is broken down and divided into smaller components parts.
A job specification focuses on the individuals who will perform the
job and indicates the knowledge, abilities, skills, and other characteristics
that an individual must have to be able to perform the job. Job
Specialization concept come from the concept of division of labor by Adam
smith in 18th
century describing how division of labor was used in a pin
factory to improve productivity. Smith claimed that ten worker working in
this way were able to produce 48,000 pins a day, whereas each worker
working alone would have been able to produce only 20 pins per day.
Job description and Job analysis are both the integral parts of job analysis.

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Job Analysis
Job Description
 Title
 Location
 Summary
 Reporting to
 Working condition
 Job duties & Hazards
 Machines to be used
Job Specification
 Qualifications
 Experience
 Training
 Skills
 Responsibilities
 Emotional characteristics
 Sensory demands
Competency Models:
Competency modeling is a new approach to job analysis. It focuses on
broader requirements and on those requirements that might be applicable for
a wide variety of jobs within an organization.
Job Design:
Job design is the determination of an individual’s work related
responsibilities.
Job design principles can address problems such as:
Work overload, under load, repetitiveness
Limited control over work, isolation, shiftwork
Delays in filling vacant positions
Excessive working hours
Limited understanding of the whole job process
Ergonomics:
Ergonomics is the study of the interface between an individual’s
physical characteristics and the environmental requirements of the job.
E.g. Helmet
Motivational approaches to job design:
The motivational approach is concerned with designing jobs so that
they will motivate employees to work harder. Motivation is stimulated by
making job more interesting /challenging.

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E.g. Job Rotation, Job Enlargement, Job Enrichment, Job Characteristic
Approach, Team Work.
Goals of job design:
Task Variety
Work Breaks / Rest Breaks
Allowance for an Adjustment Period
Provide Training
Vary Mental Activities
Legal Issues in Job analysis and Job Design:
Job analysis is a critical building block for human resource
management process
Numerous legal issues have been raised with regard to job analysis
Federal, Provisional Government laws related to; gender equality,
disable quota, and Labor laws.

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Chapter# 05
HR POLICIES
What is Policy?
Principle of action adopted or proposed by an organization is known
as Policy. A policy is a written record of a workplace rule.
What are HR Policies?
Human resource policies are systems of codified decisions established
by an organization, to support administrative personnel functions,
performance management, employee relations and resource planning.
Each company has a different set of circumstances, and so develops
an individual set of human resource policies.
Importance of HR Policies:
Policies serve several important functions like;
Keep the organization in compliance with legislation and provide
protection against employment claims
Document and implement best practices appropriate to the
organization
Support consistent treatment of staff, fairness and transparency
Help management to make decisions that are consistent, uniform and
predictable
Protect individuals and the organization from the pressures of
expediency
Communicate values and expectations for how things are done at your
organization
Scope of HR Policies:
The establishment of HR policies can help an organization
demonstrate both internally and externally, that it meets requirements for
diversity, ethics and training as well as its commitments in relation to
regulation and corporate governance of its employees.
For example, in order to dismiss an employee in accordance with
employment law requirements, amongst other considerations, it will

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normally be necessary to meet provisions within employment contracts and
collective bargaining agreements.
The establishment of an HR Policy which sets out obligations,
standards of behavior and document disciplinary procedures, is now the
standard approach to meeting these obligations.
HR Procedure:
A procedure tells members of the organization how to carry out or
implement a policy. Policy is the "what" and the procedure is the "how to"
policies are written as statements or rules. Procedures are written as
instructions, in logical steps.
How to develop a HR Policy?
Steps in HR policy development are mentioned below:
1. Establish need for a policy (Policy is developed when):
a. There is legislation that expressly requires an organization has a
policy in place
b. There is legislation that does not expressly require an organization
have a policy, but the regulations and steps to be followed are tightly
defined and a policy will help to ensure the organization is in
compliance
c. There is inconsistency in how employees behave or managers make
decisions that is negatively impacting the work environment or
accomplishment of business
d. There is significant confusion about certain areas of the business or
how things are done and the organization would benefit from a
policy
e. Areas where the policies are commonly established i.e. (Code of
conduct, Confidentiality, Conflict of interest, Working conditions,
Attendance hours of operation, Termination leave, Workplace health
& safety, Accident reporting, Workplace violence, Use of illicit
substances, Use of company equipment, recruitment, compensation,
Performance management, learning and development, benefits and
eligibility overtime, Formal complaint process, disciplinary
discrimination and harassment, etc.
2. Develop policy content
a. Legal considerations
b. Operational considerations

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c. Consultations
d. At minimum consider the following too;
i. Employment or labor standards
ii. Privacy legislations
iii. Occupational safety and health
iv. Human rights
v. Workers compensations
3. Draft the policy (It includes the following)
a. Purpose scope
b. Statement
c. Responsibility
d. Definitions
e. Questions
f. References
g. Effective and review dates
h. Approval
4. Write the procedure
a. Policies often have a related procedure, which may be a section of
the policy or a separate document that the policy refers to.
b. The procedure gives step-by-step instructions for carrying out the
policy. If you determine that a procedure will be developed be sure
to include a statement that it is intended as a guide only
c. Legislation specifically requires procedures be developed so be
aware of the legislative requirements that govern organization
d. Example: A vacation policy would say how much vacation
employees are allowed. A related procedure would tell employees
how to schedule their vacation time and get approval.
5. Review the policy by key parties
It is good practice to ask a representative group of managers and employees
to review the policy. For some policies you may also want to involve
stakeholders (Manager, Legal and Employee).
6. Approve the policy
a. If a board is responsible for giving the final approval on policies, it
is often done with a formal, recorded motion
b. Provide the board with information on why the policy is needed and
the steps you took in developing the content for the policy
c. Consult with the board on the scheduled review date
d. After the board approval, add the date of approval to the policy

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7. Implement the policy
There are various ways to implement and communicate about the policies
like;
a. Employee handbooks
b. Personal policy and procedure manuals
c. Internet and shared drives
d. Emails
e. Informational sessions
f. Policy training sessions
g. Statements of understanding
h. Ongoing communications
8. Policy review and update
a. Policies should be scheduled to be reviewed and updated regularly
b. A reasonable period between complete reviews is two to three years,
although some provinces have legislation that requires certain
polices be reviewed annually
c. Policies that are affected by changes to government legislation
should be reviewed as soon as there are any changes to the law
d. When reviewing policies consider these:
i. Has the legal environment or regulations changed in a way that
impacts the policy? At minimum you will want to review
employment/labor standards, privacy legislation, occupational
health and safety, human rights, workers compensation?
ii. Has the policy been effectively implemented?
iii. How effective has it been in dealing with relevant situations?
iv. What feedback have you received from managers and employees
on the policy?
v. Is the policy accomplishing the objective for which it was
intended?
vi. Changes to policies will usually require it goes through your
organization’s approval process
9. Communication of changes to the policy
a. Some changes to policy may be so fundamental that they could
attract claims of constructive dismissal
b. It is critical to provide employees with sufficient notice of any
fundamental change in a term or condition of their employment. If it
is uncertain prudent to seek legal advice
c. Make sure that significant updates to policies are communicated and
that if employees are required to a statement of understanding, this
forms part of the communication of the updated policy

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Role of the board of directors in HR Policy Development:
Boards can play a variety of roles in HR policy development. It is
helpful to have the board clearly define the role they want to take in policy
development, whether they want to be involved in shaping the content or be
involved only at the approval stage.
They may decide that only some fundamental policies require their
review and other policies can be approved and managed by the executive
director. Alternatively, a board may form an HR committee to write policies
and procedures.
The board may set a time frame for reviewing HR policies, or they
may delegate this responsibility.
If your organization develops a policy on the development, review
and update of organization policies, the role of the board can be outlined in
it.

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Chapter# 06
GLOBAL CHALLENGES OF HRM
The rapidly transforming business landscape means that there are
currently many human resource management challenges which will continue
to evolve for years to come. As the business world changes, so does the role
of HR professionals also change.
Since human resources is a business-driven function, effectiveness
depends on a thorough understanding of the strategic corporate direction, as
well as the ability to influence key policies and decisions.
In addition, human resource management challenges must be defined
and solutions determined in order to succeed.
Globalization poses various challenges for human resource (HR)
executives. At the macro (or organizational) level, some businesses still
struggle with the extent to which human resource management (HRM)
policies and practices are standardized while respecting local customs,
traditions and needs. (Reference: (Chen & Eldridge, 2010; Tregaskis,
Heraty, & Morley, 2001)
Today’s top 10 HRM Challenges:
Due to the fluctuating economy as well as local and global
advancements, there are many changes occurring rapidly that affect HR in a
wide range of issues.
In the Survey of Global HR Challenges: Yesterday, Today and
tomorrow, conducted by PricewaterhouseCoopers on behalf of the World
Federation of Personnel Management Associations (WFPMA), several
challenges for human resource management were revealed. This survey,
which concluded that "despite national and regional differences, there was
remarkable unanimity," disclosed the following top 10 human resource
management challenges.

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Challenges Percentages
1. Change Management
2. Leadership development
3. HR Effectiveness Measurements
4. Organizational Effectiveness
5. Compensation
6. Staffing: Recruitment and availability of skilled
labor
7. Succession planning
8. Learning and development
9. Staffing: Retention
10.Benefit costs: Health and Welfare
48%
35%
27%
25%
24%
24%
20%
19%
16%
13%
Top 3 HRM Challenges:
1. Change Management
a. Since this is generally not a focal point for HR professional training
and development, change management represents a particular
challenge for personnel management.
2. Leadership Development
a. As the second of the biggest challenges for human resource
management, leadership development needs to be a critical strategic
initiative.
b. HR professionals are faced with being expected to provide the
essential structures, processes, tools, and points of view to make the
best selection and develop the future leaders of the organization.
3. HR Effectiveness Measurements
a. Utilizing metrics to determine effectiveness is the beginning of a
shift from perceiving HR's role as purely an administrative function
to viewing the HR team as a true strategic partner within the
organization.
b. Where HR departments have traditionally focused on measuring
their own effectiveness, there is an evolving recognition that they
can provide organizational value by measuring the effectiveness of
the entire business organization.
c. The shift is significant as it represents movement from simply
counting the numbers hired to determining the ROI of collective and
individual hires on a long-term basis.

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d. Going beyond measuring turnover, this new approach considers 'bad'
turnover and 'good' turnover along with the overall cost of
replacement hires.
New Trends in Pakistan’s HR Profession:
Pakistani organizations are witnessing a continuous change in
systems, management cultures and philosophy due to the global
alignment.
Role of HR manager is shifting from that of a protector and screener
to the role of a planner and change agent.
Organizations now need to prepare themselves in order to address
people centered issues with commitment from the top management,
with renewed thrust on HR issues, more particularly on training.
To leapfrog ahead of competition in this world of uncertainty,
organizations have introduced six- sigma practices.
Six- sigma uses rigorous analytical tools with leadership from the top
and develops a method for sustainable improvement.
These practices improve organizational values and helps in creating
defect free product or services at minimum cost.
With the increase of job mobility, recruiting competent people is also
increasingly becoming difficult; organizations are also required to
work out a retention strategy for the existing skilled manpower.
Training and development extends beyond information and
orientation training to include sensitivity training and field
experiences.
Compensation systems should support the overall strategic intent of
the organization but should be customized for local conditions.
HR Managers are focusing attention on the following:
Policies: HR policies based on trust, openness, equity and consensus.
Motivation: Create conditions in which people are willing to work
with zeal, initiative and enthusiasm; make people feel like winners.
Relations: Fair treatment of people and prompt redress of grievances
would pave the way for healthy work-place relations.
Change agent: Prepare workers to accept technological changes by
clarifying doubts.

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Quality Consciousness: Commitment to quality in all aspects of
personnel administration will ensure success.

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Chapter# 07
EMERGING CHALLENGES IN HRM
HR managers are facing many challenges in present business scenario
like Globalization workforce diversity, technological advances and changes
in political and legal environment change in information technology. All
these challenges increase the pressure on HR managers to attract, retain and
nurture talented employee.
HR professional can’t ignore these challenges rather they resolve
these issues through design and execute innovative mechanisms of
developing skills and competencies of human resources to prepare them to
accept the emerging challenges.
Challenges of HRM in modern management:
1. Globalization
a. Globalization is the process of denationalization of markets,
politics and legal systems i.e. the use of the so-called global
economy.
b. Globalization refers to an extension beyond national borders of
the same market forces that have operated for centuries at all
levels of human economic activity (village markets, urban
industries, or financial centers).
c. It means that world trade and financial markets are becoming
more integrated.
d. Growing internationalization of business has its impact on
HRM in terms of problems of unfamiliar laws, languages,
practices, competitions, attitudes, management styles, work
ethics etc.
e. HR managers have a challenge to deal with more functions,
more heterogeneous functions and more involvement in
employee’s personal life.
2. Workforce Diversity
According to Thomas (1992), dimensions of workplace diversity
includes age, ethnicity, ancestry, gender, physical abilities/qualities,
race, sexual orientation, educational background, geographical
location, income, marital status, military experience, religious beliefs,
parental status, work experience.

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a. The challenge and problems faced of workplace diversity can
be turned into a strategic organizational asset if an organization
is able to capitalize on this melting pot of diverse talents.
b. With the mixture of talents of diverse cultural backgrounds,
genders, ages and lifestyles, an organization can respond to
business opportunities more rapidly and creatively, especially
in the global arena, which must be one of the important
organizational goals to be attained.
c. More importantly, if the organizational environment does not
support diversity broadly, one risks losing talent to competitors.
d. This is especially true for multinational companies (MNCs)
who have operations on a global scale and employ people of
different countries, ethical and cultural backgrounds. Thus, a
HR manager needs to be mindful and may employ a Think
Global, Act Local approach in most circumstances.
e. Thus, many local HR managers have to undergo cultural-based
Human Resource Management training to further their abilities
to motivate a group of professional that are highly qualified but
culturally diverse.
f. In many ways, the effectiveness of workplace diversity
management is dependent on the skilful balancing act of the HR
manager.
3. Technological Advances
a. There is a challenging task of adapting workplace to rapid
technological changes which influence the nature of work and
generate obsolescence.
b. Advanced technology has tended to reduce the number of jobs
that require little skill and to increase the number of jobs that
require considerable skill.
c. In this situation organizations have to change it technology.
New technology creates unemployment and in other hand, there
comes scarcity of skilled manpower. Like this, technological
change brings difficulties and challenges in organization.
4. Changes in Political and Legal Environment
a. Changes in political and legal environment means changes in
political parties and rules regulation due to which new laws are
come and you have to follow all laws while doing business.

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b. Many changes taking place in the legal and political framework
within which the industrial relation system in the country is
now functioning.
c. It is the duty of human resource and industrial relations
executives to fully examine the implication, of these changes
and brings about necessary adjustment within the organization
so that later utilization of human resource can be achieved.
d. It is the responsibility of Human Resource manager to
anticipate the changes and prepare organization to face them
without any breakdown in its normal functioning.
5. Changes in Economic Environment
It includes examination of the impact of a number of factors on
production.
a. Some of the key factors are the scarcity of raw materials and
other inputs including power and electricity, encouragement of
the culture of consumerism, increasing consumer awareness and
demand for quality products, continuing upward trend in the
inflationary pressures with decrease in the purchasing power of
rupee and its spiraling effects in the ever increasing aspirations
of workers for higher wages and other material benefits and
mounting costs on the employee welfare and other benefits.
b. In an inflationary economy, the resources tend to become scarce
and the costs of machine, materials and labor multiply. These
push up the capital and running costs.
6. Revolution in Information Technology
a. Information technology has influenced HRM through human
resources information systems (HRIS) that streamline the
processing of data and make employee information more
readily available to managers.
b. More recently. there has been and in the future there will be
impact of revolutionary computerized information system in the
management it covers two primary areas Application of
computer in the managerial decision making process.
How can we overcome with these challenges?
Here are few tips through which we can overcome with these
challenges.

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Cross cultural training of HR personnel so that they understand other
cultural people.
Motivate Professional personnel more and more so that do not change
organization more frequently financial motivation is not always
required you can motivate through non-financial motivation like
encouragement, training of employee, job satisfaction.
HR should adopt the change at internet speed.
Shifting HR strategy with changing economy – strategy of HR should
be agile, capable of flexing and adaptive to changes in the economy.
Technical changes in the workplace often require the implementation
of additional training for workers.
Training of HRIS – Human resource information system should be
given to the HR managers or HR professional so that they can
overcome Information Technology challenges.
Proper performance evaluation system and proper career development
plans should be used in the organization to reduce professional
mobility.

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Chapter# 08
PERFORMANCE MANAGEMENT
Performance Management is about creating a culture that encourages
the continuous improvement of business processes and of individuals’ skills,
behavior and contributions.
Performance Management centers on the role and effectiveness of line
managers in setting goals and reviewing and strengthening the performance
of their staff. The formal recording of this information is done through the
Performance Management and Development System.
Performance management is integral to the success of any business or
enterprise. Performance management is indispensable when it comes to
tracking, sustaining and boosting the company’s performance and staying a
mile ahead of the competition. Performance management techniques can be
understood to be industry specific practices that enable a company to clearly
formulate their goal plans and apply the same to achieve greater results each
time.
Performance management solutions are essentially integrated
processes that enable a company to execute carefully thought of decisions
and streamline business processes and employee activity in a manner that is
guaranteed to produce results. Performance management, whatever form it
might be in, ranging from sales performance management, workforce
performance management or employee performance management, is best
affected with reliable performance management tools.
Performance management software programs are also a very popular
option. Technology is making performance management more and more
advanced by the day.
The typical performance management model revolves around
structuring objectives for the company, defining specific targets and setting
up milestones and measuring units by which to keep a track of the
company’s performance on the whole and an employee’s performance at the
individual level.
The purpose of tracking the performance is to be able to measure it in
order to appraise the recent trends of how the company and its employees

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have been performing: this knowledge is further used as a base to devise
new ways in which the company might accomplish better results in future.
All business intelligence procedures and strategic planning, along
with analytics, financial reporting and future decision making is done on the
basis of the data that is gathered during the performance monitoring and then
observed to appraise the state of the company’s growth curve.
Performance management is an ongoing process of communication
between a supervisor and an employee that occurs throughout the year, in
support of accomplishing the strategic objectives of the organization. The
communication process includes clarifying expectations, setting objectives,
identifying goals, providing feedback, and reviewing results. An effective
performance management process sets the foundation aligning the
individual's efforts with the university's goals. By linking individual
employee work efforts with the organization’s mission and objectives, the
employee and the organization understand how that job contributes to the
organization. By focusing attention on setting clear performance
expectations (results + actions & behaviors), it helps the employee know
what needs to be done to be successful on the job. Through the use of
objectives, standards, performance dimensions, and other measures it
focuses effort. This helps the department get done what needs to be done and
provides a solid rationale for eliminating work that is no longer useful.
Through regular check-in discussions, which include status updates,
coaching, and feedback, it promotes flexibility, allowing you and the
employee to identify problems early and change the course of a project or
work assignment. By emphasizing that an annual review should simply be a
summary of the conversations held between you and the employee during
the entire cycle, it shifts the focus away from performance as an “annual
event” to performance as an on-going process.
The organization uses the performance manage to ensure the same
direction at all levels of the organization. The top management sets the
business strategy and defines the strategic initiatives. The top management
defines the desired steps to be taken during one year. The performance
management is not focused on measuring the standard performance resulting
from the job description (other processes should be used for keeping the
consistent and reliable output of any job)

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The performance management is focused on performing the strategic
tasks of the organization. It is focused on the development of the key talents,
top performers and successors. The process identifies the best potentials in
the organization, and it differentiates them from the rest of the population.
Role of HR in Performance Management
The performance management system has to be well connected with
other HR processes like the Compensation and Benefits, Talent
Management and Training and Development.
HR cannot run the performance appraisals without using the outcomes
from discussions. The performance management process is expensive.
Each manager has to prepare for the appraisal, and the discussion has
to last at least one hour per employee. It is a massive loss of
productivity if the results are not used.
The performance management has to be consistent with the business
strategy, and most processes have to be managed top-down.
Employees do like to receive the positive feedback, but they do not
like the ranking. Many organizations use the normal distribution for
the performance rating of employees.
Managers have to be trained in providing the honest feedback about
the performance of the employee. Managers have to be trained in the
consequences management.
The role of HR in the PM is about making the process transparent,
clear and consistent across the organization. The results of employees
have to be comparable as the outputs can be used in other HR
processes.
The top management will not take HR proposals relevant if they do
not trust the fairness and transparency of the performance appraisal
process.
HR has to make the process as easy as possible. It has to focus on
collecting the most valuable information. HR has to lead the
development of the application for the performance management
system as the data collection is run automatically.
Performance Management Process
Cornell is striving to standardize administrative processes and tools
across campus to create efficiencies and to increase effectiveness.

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Consistent performance management processes, assessment tools,
ratings, and development plans help increase the effectiveness of
supervisors and employees within and across units.
Effective Performance Management Process:
Maximizes staff engagement, development, and performance
Is consistent across units to enhance full development and
utilization of talent
Provides better alignment of staff roles and goals with the university’s
mission
Promotes on-going and proactive succession management
Engages and develops employees throughout the year
Establishes goals and measures performance to those goals
Depends on the supervisor giving clear, developmental feedback
Includes a review of past performance and goals and focuses on future
development opportunities that are aligned to individual, unit, and
university goals.

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Chapter# 09
TRAINING AND DEVELOPMENT
Training and Development Program:
Training is the process of planned programs and procedures
undertaken for the improvement of employee's performance in terms
of his attitude, skills, knowledge and behavior.
These training and development programs can significantly improve
the overall performance of organization.
Training is normally viewed as a short process. It is applied to
technical staff, lower, middle, senior level management.
When applied to lower and middle management staff it is called as
training and for senior level it is called managerial development
program/executive development program/development program.
Objectives, Purposes or Goals of Training and Development:
The purpose of training and development can be explained as follows:
Improving Quality of Workforce: Training and development
programs can help in improving the quality of work produced by the
workforce of organization.
Enhance Employee growth: By attending these training and
development programs, employees are able master the work of their
jobs and that's how they develop and grow themselves in a
professional way.
Prevent Obsolescence: These programs help employees to keep
themselves up to date with the new trends in latest technology, which
reduces the chances of termination of the job.
Assisting new comer: These programs help new employees to adjust
themselves in a new working environment, culture and technology.
They feel themselves as regular employees of that organization.
Bridging the gap between planning and implementation: It helps
organizations to easily achieve their targets and goals what they
actually planned for. Employees know their job better and they deliver
the quality performance according to needs of top management.
Health and safety measures: Training and development program
clearly identifies and teaches employees about the different risk

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involved in their job, the different problems that can arise and how to
prevent such problems. This helps to improve the health and safety
measures in the company.
Function of Training:
The singular function of training is to produce change. It is important
to understand that training in and of itself cannot motivate a work force.
However, it is an integral part of what is needed to accomplish the long-term
goals of the agency.
Value of Training:
There are many reasons for that the agencies provide trainings to their
employees. Some of them are mentioned below:
To foster growth and change
to provide opportunities for employees to accept greater challenges
to aid employees in contributing to the achievement of department
goals and the agency’s mission and vision
to build employee self-confidence and commitment
to produce a measurable change in performance
to bring about the desired changes that can solve a variety of problems
Benefits of Training:
Improving an employee’s performance
Developing the group and team skills needed to achieve
organizational goals
Giving employees the needed skills and knowledge to complete
assigned jobs, duties and tasks
Motivating employees to achieve higher standards
Increasing overall efficiency
Improving customer service, which leads to customer satisfaction
Preparing employees for promotional opportunities
Decreasing employee turnover, which reduces down time

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Enhancing employee morale, motivation, and creativity
Enabling managers to reach unit goals and objectives
Giving employees the tools needed to analyze interpersonal and
situational factors that create obstacles to achieving high performance
Determining Training Needs:
There are a number of ways to determine the type of training an
employee will need.
Request from employee – Employees usually are the first to recognize
the need for additional training. This need can result from the
assignment of a new task, technological changes, or just a realization
that additional training would result in a more efficient work product.
Before assigning new duties and responsibilities to employees, decide
if the employees will need additional training.
Determination through performance management review – An
excellent time to determine training needs is when a performance
review is completed on employees.
Levels and Types of Formal Training:
There are three levels of formal training available to employees. The
type of training selected should be based on the need of the individual,
which can be determined through the performance management review,
individual request, reorganization efforts, or supervisor observation.
1. Orientation Training
 This training is geared for the newly hired or reassigned
personnel. These programs are designed to give new employees
the basic knowledge, understanding, and skill needed for
successful job performance.
 Programs include orientation and various job skills training
such as computer usage, communication techniques, phone
usage, etc.
2. Remedial Training
 This training is designed to correct observed deficiencies in
employee knowledge, skill, and attitudes. Programs include
stress reduction, time management, presentation skill building,

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assertiveness building, business writing, hands-on experiences
in word processing, computer software, etc.
3. Upgrading or Advanced Training
 This training is designed to improve or upgrade individual job
skills and knowledge. Programs include advanced computer
training, decision making, employment laws, managing
conflict, conducting performance evaluations, sensitivity
training, supervisory responsibilities, resolving grievances, etc.
 Once the direction is known, organizations may develop short
and long-term plans in relation to staffing objectives, career
ladders, organization development, etc.
 After knowing their focus and have developed their plans, they
can determine the exact training needed to meet objectives
through a needs assessment. There are four types of needs
assessment.
i. Organizational Needs Assessment: Organizational needs
emerge from organizational goals, objectives, and
priorities. This type of need can be universal for all
employees, such as reducing stress, improving
productivity, etc.
ii. Group Needs Assessment: These types of needs are
easier to determine because they are closely related to
specific job levels and categories of employees, such as
team-building, problem solving, etc.
iii. Individual Employee Needs Assessment: The needs
uncovered with this type of assessment are more specific
and can be easily identified by reviewing the individual’s
background, education, training, experience, skills,
knowledge, and past performance. Individual needs are
those skills needed to do the employee’s current job,
future assignments, and career plans.
iv. Job Needs Assessment: Based on the job in question, this
type of need can be the most difficult or easiest to
identify. Occupational, job, and task analyses are
conducted to determine the type of training needed.

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Training Program Development Model:
Needs assessment and learning objectives: This part of the framework
development asks you to consider what kind of training is needed in
your organization.
Consideration of learning styles: Making sure to teach to a variety of
learning styles is important to development of training programs.
Delivery mode: What is the best way to get your message across? Is
web-based training more appropriate, or should mentoring be used?
Can vestibule training be used for a portion of the training while job
shadowing be used for some of the training, too? Most training
programs will include a variety of delivery methods.
Budget: How much money do you have to spend on this training?

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Delivery style: Will the training be self-paced or instructor led? What
kinds of discussions and interactivity can be developed in conjunction
with this training?
Audience: Who will be part of this training? Do you have a mix of
roles, such as accounting people and marketing people? What are the
job responsibilities of these individuals, and how can you make the
training relevant to their individual jobs?
Content: What needs to be taught? How will you sequence the
information?
Timelines: How long will it take to develop the training? Is there a
deadline for training to be completed?
Communication: How will employees know the training is available
to them?
Measuring effectiveness of training: How will you know if your
training worked? What ways will you use to measure this?
KIRKPATRICK'S FOUR LEVELS OF EVALUATION MODEL:
Donald Kirkpatrick was president of the American Society for
Training and Development (ASTD) in 1975. Kirkpatrick has written several
other significant books about training and evaluation, more recently with his
similarly inclined son James, and has consulted with some of the world's
largest corporations.
Donald Kirkpatrick's 1994 book Evaluating Training Programs
defined his originally published ideas of 1959, thereby further increasing
awareness of them, so that his theory has now become arguably the most
widely used and popular model for the evaluation of training and learning.
Kirkpatrick's four-level model is now considered an industry standard
across the HR and training communities. More recently Don Kirkpatrick
formed his own company, Kirkpatrick Partners, whose website provides
information about their services and methods, etc.
Kirkpatrick model, has four levels:
1. Reaction: How did the participants react to the training program?
2. Learning: To what extent did participants improve knowledge and
skills?
3. Behavior: Did behavior change as a result of the training?

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4. Results: What benefits to the organization resulted from the training?

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Chapter# 10
COMPENSATION
The compensation is about managing the personnel expenses budget,
setting the performance standards, setting the transparent compensation
policies and introducing the competitive benefits for employees.
The organization with effective compensation and benefits drives its
personnel costs, manages the performance of employees and rewards the
extraordinary performance.
Compensation is one of many human resource (HR) tools that
organizations use to manage their employees. For an organization to receive
its money's worth and motivate and retain skilled employees, it needs to
ensure that its compensation system is not an island by itself.
Not only is it important for an organization to link compensation to its
overall goals and strategies, it is important that its compensation system
aligns with its HR strategy.
Compensation’s Role:
The compensation introduce the transparency into Human
Resources and rewarding employees for the achieved performance.
The compensation department monitors the external job market and
optimizes the personnel expenses budget of the organization.
Compensation’s Responsibilities:
The compensation department is usually responsible for
the transparency in the compensation practices in the organization and
keeping the internal fairness of the total cash.
The compensation has to supervise the development of new
compensation components and keeping the general rules for the
design of the compensation component.
The compensation department is responsible for the personnel
expenses budget of the organization.
The compensation department sets the standards for the individual
salary increase, the mass salary review and the rules for the bonus
payout as the organization keeps the financial stability and the
planned personnel expenses budget is kept.

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The compensation department has special processes to monitor the
external job market as it can set the right compensation policy, which
is compliant with the approved compensation strategy.
The compensation department is responsible for the extensive
monitoring of the market and designing the new compensation
components inspired by the HR Best Practices in the compensation
area.
The compensation department is always closely attached to the
development of the new compensation components, which support the
performance and affectivity of the organization.
It co-operates with the different business units and it aligns their
requests into the general rules for the compensation components,
which are transparent and fair.
The compensation designs new adjustments to the compensation
strategy and the compensation policy as the organization does not lose
its competitive advantage on the job market.
Types of Compensation or Compensation Packages:
1. Non-Monetary Compensation: Any benefit an employee receives
from an employer or job that does not involve tangible value.
2. Direct Compensation: An employee’s base wage which can be an
annual salary or hourly wage and any performance-based pay that an
employee receives.
3. Indirect Compensation: Including everything from legally required
public protection programs such as Social Security to health
insurance, retirement programs, paid leave, child care or moving
expenses.
Compensation Strategy:
There are three levels of compensation strategy that exist within an HR
department.
1. The first level is a strategy that is only understood and supported by
the HR department.
2. The second is a strategy that is supported by the HR department and
translated into practical solutions, policies and decisions
Compensation’s Role in Human Resource Strategy

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3. The third level, which should be an organization's ultimate goal, is the
most difficult to achieve. It is a compensation strategy that supports a
pay-for-performance system that transforms and permeates all levels
of the organization.

Human Resource Management

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