Principles of

HR Management

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 Agenda

1. HR Management : An Overview

2. HR Planning and Recruitment

3. Employee Selection

4. Training and Development

5. Performance Management

6. Career Management

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 Human Resource
Management : An Overview

3
HR Management Cycle

Recruitment & Training & Performance

Selection Development Management

Reward
Management

Career
Management

4
 HR Strategy and Business Result

Recruitment &
Selection

Training & Performance

Business Development Management Business
Strategy Result
HR
STRATEGY

Reward Career
Management Management

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 Manpower Planning &
Employee Recruitment

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 Manpower Planning

Company Strategy
Job Analysis

What staff do we What staff is • Performance

need to do the available within appraisal
job? our • Company data
organization? banks
• Training
Is there a • Employee
match? management and
What is impact development
on wage and
salary program?
If not, what type of people
do we need, and how
should we recruit them?

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 Manpower Planning

Factors in Forecasting Personnel

Requirements

Projected Quality and nature of The financial

turnover (as a your employees (in resources
result of relation to what you available to
resignation and see as the changing your
terminations) need of your organization
organization)

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Technique to Determine Number of Recruits

Trend • Study of a firm’s past employment needs

Analysis over a period of years to predict future
needs

Ratio • A forecasting technique for

Analysis determining future staff needs by using
ratios between sales volume and
number of employees needed

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Recruitment from External Resources

• Recruiting new staff from external sources will be influenced

by several factors, namely :

When the economic conditions are

Macro-
relatively difficult, there will usually be
Economic
an oversupply, or the number of
Conditions applicants will much higher than the
of a Nation demand. In such a case, the company
will find it relatively easier to select new
employees from the large number of
applicants.

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Recruitment from External Resources

When the sector is one that is

Availability
considered a ‘rare’ sector, the company
of Manpower will have more difficulty in recruiting
in Desired staff for this sector. For example,
Sectors computer technology, or cellular
engineering.

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Recruitment from External Resources

It will tend to be easier for a company

Company
to find and recruit the best people if
Reputation the company has a good reputation,
therefore the best fresh graduates will
flock to apply to the company.
Example : Google, McKinsey or
Microsoft.

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 Recruitment Yield Pyramid

• Some employers use a recruiting yield pyramid to

determine the number of applicants they must generate
to hire the required number of new employees.
• Example of Recruitment Curve:
• 1200 - Leads generated
• 200 - Candidates invited
• 150 - Candidates interviewed
• 100 - Offers made
• 50 - New hires

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Recruitment Sources

Advertising (newspaper,
magazine, internet)

Recruitment College
Sources Recruitment

Recruitment Agent
(headhunter)

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Employee Selection

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 Basic Concept of Selection Tests

The quality of an employee selection test is determined by

three main factors, namely :

1. Criterion Validity : A type of validity based on showing

that scores on the test (“predictors”) are related to job
performance (“criterion”).
2. Content Validity : A test that is “content valid” is one in
which the test contains a fair sample of the tasks and
skills actually needed for the job in question.
3. Reliability : The consistency of scores obtained by the
same person when retested with identical or equivalent
test.
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Some Types of Selection Test

1. Cognitive Ability Test

2. Personality Test
3. Interview

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 Cognitive Ability Test
• Cognitive Abilities Tests: Paper and pencil or
individualized assessment measures of an
individual's general mental ability or intelligence.

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 Advantages of Cognitive Ability Test

• highly reliable
• verbal reasoning and numerical tests have shown high
validity for a wide range of jobs
• the validity rises with increasing complexity of the job
• may be administered in group settings where many
applicants can be tested at the same time
• scoring of the tests may be completed by computer
scanning equipment
• lower cost than personality tests

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 Disadvantages of Cognitive Ability Test
• non-minorities typically score one standard deviation
above minorities which may result in adverse impact
depending on how the scores are used in the selection
process
• differences between males and females in abilities (e.g.,
knowledge of mathematics) may negatively impact the
scores of female applicants

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Personality Test
• Personality Tests: A selection procedure measure
the personality characteristics of applicants that are
related to future job performance.
• Personality tests typically measure one or more of
five personality dimensions: extroversion,
emotional stability, agreeableness,
conscientiousness, and openness to experience.

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Advantages of Personality Test

• can result in lower turnover due if applicants are

selected for traits that are highly correlated with
employees who have high longevity within the
organization
• can reveal more information about applicant's abilities
and interests
• can identify interpersonal traits that may be needed for
certain jobs

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Disadvantages of Personality Test
• difficult to measure personality traits that may not be well
defined
• responses by applicant may be altered by applicant's
desire to respond in a way they feel would result in their
selection
• lack of diversity if all selected applicants have same
personality traits
• lack of evidence to support validity of use of personality
tests

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 Interview

• Interviews: A selection procedure designed to predict

future job performance on the basis of applicants'
oral responses to oral inquiries.

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 Advantages of Interview
• useful for determining if the applicant has requisite
communicative or social skills which may be necessary for
the job
• can assess the applicant's job knowledge
• can be used for selection among equally qualified
applicants
• enables the supervisor and/or co-workers to determine if
there is compatibility between the applicant and the
employees
• allows the applicant to ask questions that may reveal
additional information useful for making a selection
decision
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Disadvantages of Interview
• subjective evaluations are made
• decisions tend to be made within the first few minutes of
the interview with the remainder of the interview used to
validate or justify the original decision
• interviewers form stereotypes concerning the
characteristics required for success on the job
• research has shown disproportionate rates of selection
between minority and non-minority members using
interviews
• negative information seems to be given more weight
• not as reliable as tests

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Training & Development

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Training Process

Training Training Training

Training
Need Objectives Evaluation
Delivery
Analysis

What are Objective Techniques Measure

the training should be include on- reaction,
needs for measurable the-job- learning,
this person and training, behavior,
and/or job? observable action and results
learning, etc.

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Assessing Training Needs

Task Analysis A detailed analysis of a job to

identify the skills required, so
that an appropriate training
program can be instituted

Competency Careful study of competency level

Analysis to identify a deficiency and then
correct it with a training program, or
some other development
intervention.

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Competency Analysis

Current Competency Required

competency Gap competency
level of the level for certain
employee position

Competency
Training and
Assessment
Development
Program

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Competency Profile Per Position
Required Level
Position Required Competency 1 2 3 4 5
Communication Skills
Public Speaking
Training &
Leadership
Development
Manager Training Need Analysis
Material Development
Training Evaluation

Communication Skills
Interview Skills
Recruitment Analytical Thinking
Supervisor Understand Selection Tools
Teamwork
Customer Orientation

Score Required
Competency Type

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 Competency Profile Per Position
Managerial competency 1 2 3 4
Leadership Required Level
Actual Level

Achievement Orientation

Teamwork

Planning & Organizing

Functional competency 1 2 3 4
Mechanical Engineering

Mechanical Equipment Maintenance

Competency
Position Relevant Training Modules
Requirements

 Leadership I
SUPERVISOR Leadership
 Communication Skills I

 The Art of Motivating Employees

 Providing Effective Feedback

 Goal Setting Technique

Achievement
Orientation  Work Motivation

 Planning & Organizing

 Continuous Self Improevement

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 Training Matrix for Competency Development

Service Excellence

Building Productive
Motivation Training
Effective Leader 1

Effective Leader 2

Creative Problem
Communication

Seminar Series
On Becoming

On Becoming

Achievement
for Customer

Management

Professional
Productive

Teamwork
Strategic
Training Title

Solving
Series
Position Managerial Competency

Communication Skills V
Leadership V
Teamwork V
Supervisor
Achievement Orientation V
Customer Focus V
Job Functional Skills V

Communication Skills V
Leadership V
Teamwork V
Achievement Orientation V
Manager
Customer Focus V

Strategic Thinking V
Problem Solving & Decision Making V
Job Functional Skills V

V = compulsory training

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Enhance Training Effectiveness

Make the
material
meaningful

Provide for Training

transfer to Effectiveness
learning

Motivate
the trainee

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 Enhance Training Effectiveness

• At the start of training, provide the

Make the
material trainees with a bird’s-eye view of the
meaningful material to be presented. Knowing the
overall picture facilitates learning.
• Use a variety of familiar examples when
presenting material
• Organize the material so that it is
presented in a logical manner and in
meaningful units
• Try to use terms and concepts that are
already familiar to trainees
• Use as many visual aids as possible
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 Enhance Training Effectiveness

• Maximize similarity between the training

Provide for
transfer to situation and the work situation
learning • Provide adequate training practice
• Identify each feature of the step in the
process

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 Enhance Training Effectiveness

• People learn best by doing. Try to

Motivate
the trainee provide as much realistic practice as
possible
• Trainees learn best when correct
response on their part are immediately
reinforced.
• Trainees learn best when they learn at
their own pace. If possible, let trainees
pace themselves.

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Type of Training Program
OFF THE JOB

Formal course • Does not interfere with job

• Provides for fact learning

Simulation • Helps transfer of learning

• Creates lifelike situations

Wilderness Trip • Builds teams

• Builds self-esteem

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Type of Training Program
ON THE JOB

Job instruction • Facilitates transfer of learning

training • Does not require separate facilities

Apprenticeship • Does not interfere with real job performance

training • Provides extensive training

Job rotation • Gives exposure to many jobs

• Allows real learning

Mentoring • Is informal
• Is integrated into job
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 Evaluation of Training Effectiveness

Level 1 - Reaction

Level 2 - Learning
Four Levels
of Training
Level 3 – Behavior Effectiveness
Application

Level 4 – Business
Impact

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Evaluation of Training Effectiveness

Evaluate trainees’ reactions to Level 1 -

the program. Did they like the Reaction
program? Did they think it
worthwhile?

Test the trainees to determine if Level 2 -

they learned the principles, Learning
skills, and facts they were to
learn.

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 Evaluation of Training Effectiveness

Ask whether the trainees’ behavior on the job Level 3 –

changed because of the training program. For Behavior
example, are employees in the store’s complaint Application
department more courteous toward disgruntled
customers than previously?

What final results were achieved in terms of the Level 4 –

training objectives previously set? Did the number Business
of customer complaints about employee drop? Did Impact
the reject rate improve? Was turnover reduced,
and so forth.

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 Employee
Performance Management

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Why Performance Appraisal?

• Appraisal provide information upon which promotion and

salary decision can be made.

• Appraisal provide an opportunity for a manager and

his/her subordinates to sit down and review the
subordinate’s work-related behavior, and then develop a
plan for corrective action.

• Appraisal provide a good opportunity to review the

person’s career plans in light of his/her exhibited
strengths and weaknesses.

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Performance Management Cycle

Performance Regular Feed back

Planning Review and
(Setting Monitoring
Performance
Corrective
Targets)
Action

• Training &
Development Performance
Plan Appraisal and
• Salary/Bonus Evaluation
Adjustment
• Career
Development
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Performance Management Cycle

Defining 1. Defining the performance standards

Performance means making sure that you and your
Standard/ subordinate agree on his/her duties and
Targets targets that you expect

Appraising 2. Appraising performance means

Performance comparing your subordinate’s actual
performance to the standard/targets set
in step one.

Providing 3. Providing feedback means discussing

Feedback for plans for any development that is
Development required.

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Problems in Performance Appraisal

Poor Poor
Lack of
feedback to measures of
standards
employee performance

Irrelevant or Failure to
Negative
subjective apply
communication
standards evaluation
data

Common Performance Evaluation Problems

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Bias in the Appraisal Process

The "halo" effect occurs when a supervisor’s

Halo rating of a subordinates on one trait biases the
Effect rating of that person on other traits

A tendency to rate all employees the same

Central way, such as rating them all average
Tendency

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Bias in the Appraisal Process

The problem that occurs when a supervisory

Leniency has a tendency to rate all subordinates either
high or low

The tendency to allow individual differences

Bias such as age, race, and sec affect the appraisal
rates these employees receives.

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Performance Appraisal Element

1. Competencies: It
represents soft or qualitative
Performance
aspects of performance
appraisal
(process)
elements
has two main
categories: 2. Performance Result:
Hard or quantitative aspects
of performance (result)

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Performance Appraisal Element

1. Competencies Score

Overall Score

2. Performance Result
Score
Will determine the employee’s
career movement, and also
the reward to be earned

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 Element # 1 : Competencies
Competency : Collaboration
Basic Intermediate Advanced Expert

Actively listens, and clarifies Actively listens, and clarifies Actively listens, and clarifies Actively listens, and clarifies understanding
understanding where required, in understanding where required, in understanding where required, in where required, in order to learn from others.
order to learn from others. order to learn from others. order to learn from others.

Empathise with audience and Empathise with audience and Empathise with audience and Empathise with audience and formulates
formulates messages accordingly. formulates messages accordingly. formulates messages accordingly. messages accordingly.

Shares resources and information. Shares resources and information. Shares resources and information. Shares resources and information.

Responds promptly to other team Balances complementary strengths Actively builds internal and external Builds internal and external networks and uses
members’ needs. in teams and seeks diverse networks. them to efficiently to create value.
contributions and perspectives.

Involves teams in decisions that Uses cross functional teams to draw Uses cross functional teams to draw upon
effect them. upon skills and knowledge skills and knowledge throughout the
throughout the organization. organization.

Encourages co-operation rather than Builds and maintains relationships Drives and leads key relationship groups
competition within the team and with across The company. across The company.
key stakeholders.

Manages alliance relationships through

complex issues such as points of competing
interest.

Ensures events and systems, eg IT, for

collaboration are in place and used.

Draws upon the full range of relationships

(internal, external, cross The company) at
critical points in marketing and negotiations.

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 Element # 2 : Performance Results

No. Main Performance Target Target to be

Achieved
1 Conduct an assessment of the All employees submit their performance assessment form
employee's performance on time

2 Improve the system for Target : completed 100 %

performance assessment in November 2008

3 Conduct training activities Target : to conduct 6 training modules

in one year

4 Carry out on the job training Target : 90 % of the total employees

activities who attend the training
experience an increase
in skill and knowledge

Target should be measurable and

specific
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Employee Career
Management

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Career Planning and Development

Providing employees
Career the assistance to form
Planning & realistic career goals
Development and the opportunities
to realize them

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Typical Career movement

Entry Level Join Company 22 years old

First Line Supervisor/Ass. Manager 26 - 29 years old

Middle Managers 29 - 35 years old

Management

Senior
Management GM/Senior Managers 35 - 45 years old

Top CEO/BOD 45 - 55 years old

Management

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Career Stage

Trial Stage The period from about age 25 to 30 during

which the person determines whether or
not the chosen field is suitable and if it is
not, attempts to change it.

Stabilization The period, roughly from age 30 to 40,

Stage during which occupational goals are set
and more explicit career planning is made
to determine the sequence for
accomplishing goals

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Career Stage

Mid career The period occurring between the mid-

Crisis Stage thirties and mid-forties during which people
often make a major reassessment of their
progress relative to their original career
ambitions and goals

Maintenance The period form about ages 45 to 65 during

Stage which the person secures his or her place
in the world of work

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Career Stage

Decline Stage The period during which many people are

faced with the prospect of having to accept
reduced levels of power and responsibility.

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Career Anchors

Career Anchor :

A concern or value that someone will not give up if

choice has to be made

Career anchors, as their name implies, are the

pivots around which a person’s career swings; a
person becomes conscious of them as a result of
learning about his or her talents and abilities.

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 Five Career Anchors

Technical/ Managerial
Creativity as a
Functional Competence as a
Career Anchor
Career Anchor Career Anchor

Autonomy and Security as a

Independence as Career Anchor
Career Anchor

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 Five Career Anchors

• People who have a strong

Technical/
technical/functional career anchor
Functional
Career Anchor tend to avoid decisions that would
drive them toward general
management.
• Instead, they make decisions that will
enable them to remain and grow in
their chosen technical or functional
field

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Five Career Anchors

• People who show strong motivation

Managerial
to become managers
Competence
• Their career experience enables
them to believe that they have the
skills and values necessary to rise to
such general management position

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Five Career Anchors

• People who go on to become

Creativity
successful entrepreneurs
• These people seem to have a need to
build or create something that is
entirely their own product – a product
or process that bears their name, a
company of their own, or a personal
fortune that reflects their
accomplishments.

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 Five Career Anchors

• People who are driven by the need to

Autonomy and
be on their own, free from the
Independence
dependence that can arise when a
person elects to work in a large
organization.
• Some of these people decide to
become consultants, working either
alone or as part of relatively small
firm. Others choose to become
professors, free-lance writers, or
proprietors of a small retail business.

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Five Career Anchors

• People who are mostly concern with

Security
long-run career stability and job
security.
• They seem willing to do what is
required to maintain job security, a
decent income, and a stable future in
the form of a good retirement
program and benefits.

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Career Management and the First
Assignment
• Factors to keep in mind about the important first
assignment, include :
1. Avoid reality shock (reality shock refers to the result
of a period that may occur at the initial career entry
when the new employee’s high job expectations
confront the reality of boring, unchallenging jobs.
2. Provide challenging initial jobs
3. Provide realistic job preview in recruiting
4. Be demanding

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Career Management and the First
Assignment
5. Provide periodic job rotation
6. Provide career-oriented performance appraisals
7. Encourage career-planning activities

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Recommended Further Readings

1. Gary Dessler, Human resource Management, Prentice Hall

2. Susan Jackson and Randall Schuler, Managing Human Resource : A

Partnership Perspective, South-Western College Publishing

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Thank You!!!

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