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Four Learning Outcomes

Human Resource u L01 – Explain the purpose and scope of HRM in terms of

Management resourcing an organization with talent and skills appropriate

to fulfill business objectives.
HND – Business u L02 – Evaluate the effectiveness of the key elements of HRM
(Accounting and Finance)Y/508/0487 in an organization.

Session 1 – L01: Topic: The Nature and Purpose of Human Resource Management u L03 – Analyse internal and external factors that affect HRM
Le Thu Hanh decision-making, including employment legislation
Banking Academy
u L04 – Apply HRM practices in a work-related context

Aim of the Module Unit Abstract

This unit will explore the tools and techniques used in HRM to maximise
the employee contribution and how to use HR methods to gain
competitive advantage. Students will explore the importance of training
The aim of this module is to enable students to and development in building and extending the skills base of the
appreciate and apply principles of effective Human organisation and ensuring it is relevant to the ever-changing business
Resource Management (HRM). environment. Students will also consider the growing importance of
becoming a flexible organisation with an equally flexible labour force,
and become familiar with techniques of job design and with different
People are the lifeblood of any organisation and being reward systems.
able to attract, recruit and retain talented staff is at
The unit investigates the importance of good employee relations and the
the core of all HRM activity. ways in which employers engage with their staff and possibly with trade
unions. Students will gain an understanding of the law governing HRM
processes as well as the best practices which enable an employer to
become an ‘employer of choice’ in their labour market.

Essential Content
Learning Outcomes

By the end of this unit a student will be able to:

1 Explain the purpose and scope of Human Resource
Management in terms of resourcing an organisation with
talent and skills appropriate to fulfil business objectives.
2 Evaluate the effectiveness of the key elements of Human
Resource Management in an organisation.
3 Analyse internal and external factors that affect Human
Resource Management decision-making, including
employment legislation.
4 Apply Human Resource Management practices in a work-
related context.

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Essential Content

Essential Content

Learning Outcomes and Assessment Criteria

Essential Content

Learning Outcomes and Assessment Criteria

The role of HR has evolved…

https://www.youtube.com/watch?v=ukmC6F0JvQw

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Learning Outcome One - Details

The nature and scope of HRM:
Let’s Begin – What is HRM?
u u Recruitment:
u Definitions of HRM.
u Sources of recruitment: internal vs
u What are the main functions and external recruitment.
activities of HRM.
u The ‘Best Fit’ approach vs ‘Best u Job analysis, job descriptions,
Practice’. personal specifications and
u The hard and soft models of HRM. competency “Human resources are like natural resources; they're often
u Workforce planning. u frameworks.
Types of labour market, labour market
buried deep. You have to go looking for them, they're not just
u u Selection:
trends and PESTLE.
u The internal labour market. u Main methods of selection: strengths lying around on the surface. You have to create the
and weaknesses of each.
u Analysing turnover, stability and
retention. u Reliability and validity as key circumstances where they show themselves.”
u The impact of legal and regulatory criteria.
frameworks. Sir Ken Robinson
u On-boarding and induction:
u The impact that advances in
technology have had upon improving u The issues affecting successful
the
induction and socialisation of https://www.ted.com/talks/sir_ken_robinson_bring_on_the_revolution/transcript?language=en
u efficiency of HR practices. employees.

Human Resource Management

Main functions and activities of HRM
Definition
Human Resource Management (HRM) may be defined as: ‘a strategic approach to
managing employment relations which emphasises that leveraging people’s capabilities is
critical to achieving sustainable competitive advantage, this being achieved through a
1. Organisation
distinctive set of integrated employment policies, programmes and practices.’ 2. Human resource planning and resourcing
(Bratton & Gold, 2007) 3. Performance management
As this definition suggests, the term HRM is often associated with both: 4. Reward management
a) An orientation towards personnel management, viewing its role as proactive, system- 5. Human resource development
wide interventions, linking HRM with strategic planning and cultural change; and 6. Health, safety and welfare
b) An orientation towards the employment relationship, embracing distinctive people-
7. Employee relations
centred values such as trust, commitment, involvement and collaboration.
8. HR services

Organisation Human resource planning and resourcing

u Organisational design: structuring the organization, by grouping activities, assigning Ø Human resource planning: forecasting the organization’s future requirements for labour, skills and
competences, and planning to meet them through subsidiary plans for recruitment, deployment,
accountabilities and establishing communication and authority relationships
development, retention and so on
u Organisational development: planning and implementing interventions in the
Ø Talent management: Ensuring that the organization attracts, retains, motivates and develops the
organization’s social processes to improve effectiveness through techniques such as
talented people it needs: the overall process for recruitment, integration, performance
structural change, team-building, process consultancy, interpersonal skill
management, training and development and employee retention
development and role negotiation
Ø Recruitment: Attracting employment applications from number, type and caliber of people
u Job/role design and definition: structuring the content and size of jobs (for efficient
required by the HR plan
task performance, flexibility and worker satisfaction) and defining their component
Ø Selection: Assessing and selecting suitable employees from applicants
tasks, conditions and competency requirements (for recruitment, appraisal, reward
and a number of other HR processes) Ø Retention: Planning rewards and incentives to control labour turnover and retain high quality staff

u Flexible working: planning and implementing flexible structures and procedures to Ø Exit management: managing the termination of contracts, retirements, resignations, dismissals

maximize the efficiency and adaptability of the organisation and redundancies, in such a way as to comply with legal requirements and minimize human and
financial costs

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Performance management Reward management

u Objective and competence requirement setting: developing and agreeing u Pay systems: developing and managing salary structures, systems and scales that

frameworks of organizational, unit and individual goals to direct and motivate are equitable, fair and compliant with equal pay legislation
performance
u Performance pay systems: developing and managing ways of relating pay
u Performance monitoring and appraisal: on-going monitoring and periodic
progression or bonuses to results, attainments (eg competence or skill), effort
assessment of performance within agreed requirements
and other measures of performance
u Discipline handling: managing informal and formal processes to confront
u Benefit schemes: developing and managing employee entitlements (eg pensions,
employee behavior or performance which falls below organizational rules and
maternity and sick pay, annual leave) and ‘fringe’ benefits (eg allowances and
standards
services)
u Grievance handling: managing informal and formal processes to address
u Non-financial rewards: building non-monetary rewards (such as recognition,
individual employee grievances or complaints
challenge, personal development) into job design and management style, as part
u Identifying learning and development needs: as part of continuous
of a ‘total reward’ package
improvement and performance

Human resource development Health, safety and welfare

u Learning organization: creating a culture and systems to support individual and
organizational learning, information gathering and sharing and so on
u Occupational health and safety: monitoring and managing work environments,
u Education and training: planning, implementing and evaluating on and of-the-job
practices and culture to ensure that employees are protected from health
learning opportunities and programmes to meet identified gaps in the skills required
hazards and accidents; complying with relevant legislation; actively promoting
by the HR plan
health, fitness and ‘work-life balance’ to improve the wellbeing and
u Personal development: facilitating individual learning plans and opportunities,
performance of staff
beyond the immediate job (eg for general employability)
u Welfare services: providing services such as catering or recreational facilities,
u Career management: identifying potential and planning career development
individual counselling and support (eg for illness, forthcoming redundancy or
opportunities; succession and promotion planning; guiding and mentoring individuals
in career planning retirement, personal health problems)

u Managerial development: providing education, training and opportunities to develop

managerial competencies and support enhanced contribution

HR services
Employee relations
u Managing the employment relationship: contract management
u Industrial relations: managing informal and formal relationships with employee
u HR policies and procedures: developing and administering guidelines and systems for
representatives (trade unions and staff associations); collective bargaining on
all the above, to guide line managers and employees
terms and conditions; resolving collective disputes; implementing consultative
u HR information systems: developing and operating integrated systems for preparation
committees and partnership agreements
of employee record-keeping, management reporting, statistical reports and returns and
u Employee communication: informing employees about matters relevant to their
so on
work or of interest or concern to them
u Compliance: ensuring that all HR policies and practices are compliant with relevant
u Employee voice: creating consultation opportunities for employees to contribute
law, regulation and codes of practice (and ideally, best practice) in areas such as
to decision-making in matters affecting them and their work
employment protection (including dealing with employment tribunals), health and
safety, equal opportunity and diversity, data protection and so on.

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Classification by Graham and Bennett (1998)

Hard and soft models of HRM
Graham and Bennett (1998) classify these activities into three dimensions of
In Chapter 1, we defined HRM as ‘a strategic approach to managing employment
management
relations which emphasizes that leveraging people’s capabilities is critical to
a) The utilization of people at work: recruitment, selection, transfer, promotion,
achieving sustainable competitive advantage’ (Bratton & Gold, 2007).
separation, appraisal, training and development
We have so far suggested that the role of HRM is twofold (leading to some
b) The motivation of people at work: job design, remuneration, consultation,
ambiguity): both business-oriented (concerned with performance) and people-
participation, negotiation and justice
oriented (concerned with the motivation and quality of working life of employees).
c) The protection of people at work: working conditions, welfare services, safety,
However, key writers on HRM (Storey, 1989, Legge, 1998; Guest, 1999) have
implementation of appropriate legislation.
identified two distinct versions of HRM, which they characterize as ‘hard’ and
If this seems too employee-centered a classification, it must be added that the ‘soft’.
overall objective of these dimensions of management is maintained or enhanced
business performance.

Hard HRM
Definition

Karen Legge (1998) defined the ‘hard model’ of HRM as a process emphasizing ‘the
close integration of human resource policies with business strategy which regards
employees as a resource to be managed in the same rational way as any other
resource being exploited for maximum return’.

Features of hard HRM include: Soft HRM

a) A close matching or integration of the strategic objectives of the HR function

Definition
with the business strategy of the organization. ‘Hard strategic HRM’ will
emphasise the yield to be obtained by investing in human resources in the Legge defined the ‘soft’ version of HRM as a process whereby employees are

interests of the business (Storey, 1989) viewed as ‘valued assets’ and as a source of competitive advantage through their
commitment, adaptability and high level of skills and performance.
b) A focus on quantitative, business-strategic objectives and criteria for

management

c) An emphasis on the need for performance management and other forms of

managerial control.

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The soft model of HRM may be

summarised as follows. The main features of soft HRM are:
a) A complementary approach to strategic HRM, in relation to the business
a) Its philosophy towards managing people is based in the human and neo-human relations
strategies of the organization. Brewster (1999) argues that a stakeholder
schools of management thought, which emphasized the influence of socio-psychological
perspective and environmental constraints (such as EU legislation) mean that HR
factors (relationships, attitudes, motivation, leadership, communication) on work
strategies cannot be entirely governed by business strategy. ‘Soft strategic HRM’
behavior.
will place greater emphasis on the human relations aspect of people
b) It views employees as ‘means rather than objects’ (Guest, 1999): ‘treating employees as
management, stressing security of employment, continuous development,
valued assets, a source of competitive advantage through their commitment,
communication, involvement and the quality of working life.
adaptability and high quality (of skills, performance and so on)’ (Storey, 1989).
b) A focus on socio-psychological and cultural objectives and criteria for
c) It focuses on ‘mutuality’, a unitarist viewpoint which assumes that the interests on
management.
management and employees can and should coincide in shared organizational goals,
c) An emphasis on the need to gain the trust and commitment of employees – not
working as members of an integrated team. Employees are viewed as key stakeholders
merely compliance with control mechanisms.
in the organization.

Strategic HRM
Strategic integration or fit
The term ‘strategic human resource management’ emerged in the 1980s to
describe a variety of models which attempt to explain how human resource policies
can be integrated with business strategy.

Definitions

u Strategic management ‘denotes a specific pattern of decisions and actions

undertaken by the upper echelon of an organization in order to accomplish

specific outcomes and/or performance goals’.

u Strategic HRM is ‘the process of linking the human resource function with the

strategic objectives of the organization in order to improve performance’.

(Bratton & Gold, 2007)

The ‘Best Fit’ approach vs ‘Best Practice’

The ‘Best Fit’ approach vs ‘Best Practice’
Fit as an ideal set of practices: ensuring that internal practices reflect ‘best practice’. The
Fit as contingency: ensuring that internal practices suit the particular (and best practice approach is based on the belief that adopting certain broadly-applicable HRM
changing) context of the firm, and its business strategy. The ‘best fit’ approach (or practices will lead to superior organizational performance.
contingency approach) is based on the belief that there is no ‘one best way’ or set
Several sets of best practices, based on benchmarking, have been developed, including
of universal prescriptions for strategy: it all depends. Benchmarked ‘good practices’
elements such as: employment security; sophisticated recruitment and selection processes;
must be selected and adapted to fit specific needs identified by analysis of the
self-managed teams; high compensation contingent on performance; high-level participation
firm’s context both external (opportunities, threats an constraints) and internal
processes; information sharing; coherent appraisal; skill flexibility; motivating job design
(culture, structure, technology and processes). Purcell et al (2003) note that the
(including responsibility, flexibility and development); on-going training; use of quality
contingencies or variables in HR decision-making are so complex that it is impossible
improvement teams; and harmonized (single status) terms and conditions (Armstrong, 2003).
to isolate them all: the important thing is to be sensitive to changing needs and
Armstrong himself notes that while ‘these could all be regarded as “good practice” … it is
circumstances.
difficult to accept that they will universally constitute “best practice”. What works well in
one organization will not necessarily work well in another.’

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Best Practice Best Fit

Best fit reflects local human resource management practices that consider
This concept relates to Human Resource Management, not Business
culture and local industry practices.
Management
u For example: Companies prefer to hire friends and family because there
u Best Practices are a series of activities that reflect industry or
is less risk that an employee will reject corporate culture.
international standards related to relationship between employees and
employers. u For example: Preferential hiring will be given to males in certain

occupations and females in others; such as nurses, teachers, and tourism

u For example: Most companies do not perform Job Analysis because it is too
staff.
expensive.

Human resource planning

Web Source
Human resource planning may be defined as ‘a strategy for the acquisition,

Best Fit Vs. Best Practice utilization, improvement and retention of the human resources required by the
enterprise in pursuit of its objectives.’
The relationship between human resource management and performance can
be connected to best practice or best fit. Best fit argues that human resource The traditional ‘manpower planning’ model may be broadly outlined as follows.
policies should align with business strategy. “Designing and implementing an
a) Forecast demand for specific skills, competences or grades of employee.
appropriate reward system that complement human resource strategies and fits
business competitive strategies is currently an important issue” (Hsieh, 2011).
b) Forecast supply of these skills, competences or grades, both within and outside

the organization.
https://www.linkedin.com/pulse/best-fit-vs-practice-amy-kimble/
c) Plans to remove any discrepancy between demand and supply. If there is a

shortage of labour, for example, you would need to reduce demand (say, through
improved productivity), or improve supply (through training and retention of
current staff, or recruitment from outside, for example).

Liff (2000) notes that ‘there has been a shift from reconciling Human resource plan
numbers of employees available with predictable, stable jobs,
towards a greater concern with skills, their ‘development and
deployment’.

a) Recruiting the required number and type/quality of staff

b) Retaining the required number and type/quality of staff – and therefore letting

go those who are not required (by natural labour turnover and/or by planned
downsizing)

c) Utilising staff in the most efficient and effective manner: increasing productivity,

introducing multi-skilling and other forms of flexibility and so on

d) Improving the skills, capabilities and motivation of staff, so that they become a

more flexible resource, capable of fulfilling emerging requirements.

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The labour market Internal labour market

When forecasting the supply of labour and skills available to the organization to
Definition
meet the demands of its activities and objectives, the HR planner must take into
The labour market is the sphere in which labour is ‘bought’ and ‘sold’, and in which account:
market concepts such as supply, demand and price operate with regard to human
u The current skill base, size and structure of its existing workforce
resources.
u The potential for change in that skill base, size and structure

This constitutes an internal labour market.

Internal labour market Measuring labour turnover

If the organization faces a demand for a particular skill, that demand may be satisfied from within
Definition
the existing labour force by:
a) Retaining skilled individuals, against the flow of labour turnover Labour turnover is the number of employees leaving an organization and being
replaced. The rate of turnover is often expressed as the number of people leaving,
b) Transferring or deploying individuals with the relevant skills from their current job to the job
as a percentage of the average number of people employed, in a given period. The
where those skills can more effectively be utilized
term ‘natural wastage’ is used to describe a ‘normal’ flow of people out of an
c) Training and developing individuals in the required skills and abilities
organization through retirement, career or job change, relocation, illness and so on.
d) Exploiting contacts with present employees, friends and family of employees, and former

external applicants, who might be referred (and to an extent, pre-appraised) for vacancies.

Labour turnover rate Labour stability

Here we try to eliminate short-term employees from our analysis, thus obtaining a
Crude labour turnover rate (The BIM Index, British Institute of Management, 1949)
better picture of the significant movements in the workforce.
Here we express turnover as a percentage of the number of people employed.

Number of employees with one or more years’ service

Number of leavers in a period X 100 = %turnover X 100 = %stability
Number of employees employed at the beginning of the year
Average number of people employed in the period

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Causes for labour turnover

Some reasons for leaving will be largely unavoidable, or unforeseeable. ‘Natural wastage’ Labour Market Trends
occurs through:

a) Illness or accident (although transfer to lighter duties, excusing the employee from What is happening in Vietnam?
shiftwork or other accommodations might be possible)

b) A move from the locality for domestic, social or logistical reasons

c) Changes to the family situation: for example, when an individual changes job or gives up

work to accommodate parental responsibilities

d) Retirement

e) Career change.

Other causes of labour turnover, however, may be to do with the organization, management, http://www.worldbank.org/en/country/vietnam/publication/vietnam-development-report2014-skilling-up-vietnam-
preparing-the-workforce-for-a-modern-market-economy
terms and conditions and so on: in other words, job dissatisfaction.

Growth in GDP Unemployment levels in Vietnam

Date Value Change, %

2016 6.2 -7.01 %

2015 6.7 11.61 %

2014 6.0 10.37 %

2013 5.4 3.34 %

2012 5.2 -15.91 %

2011 6.2 -2.85 %

2010 6.4 18.99 %

2009 5.4 -4.66 %

2008 5.7 -20.58 %

2007 7.1 2.16 %

2006 7.0 -7.54 %

2005 7.5
http://economists-pick-research.hktdc.com/business-news/article/Research-Articles/Vietnam-s-Youthful-Labour-
Force-in-Need-of-Production-Services/rp/en/1/1X000000/1X0A9MQG.htm
https://knoema.com/atlas/Viet-Nam/Real-GDP-growth#

Population by Age Group in Vietnam Age Distribution in Vietnam

http://economists-pick-research.hktdc.com/business-news/article/Research-Articles/Vietnam-s-Youthful-Labour- http://economists-pick-research.hktdc.com/business-news/article/Research-Articles/Vietnam-s-Youthful-Labour-
Force-in-Need-of-Production-Services/rp/en/1/1X000000/1X0A9MQG.htm Force-in-Need-of-Production-Services/rp/en/1/1X000000/1X0A9MQG.htm

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Educational Demographics in Vietnam Vietnam Workforce Training

http://economists-pick-research.hktdc.com/business-news/article/Research-Articles/Vietnam-s-Youthful-Labour-
Force-in-Need-of-Production-Services/rp/en/1/1X000000/1X0A9MQG.htm http://economists-pick-research.hktdc.com/business-news/article/Research-Articles/Vietnam-s-Youthful-Labour-
Force-in-Need-of-Production-Services/rp/en/1/1X000000/1X0A9MQG.htm

Balance between education and Companies hiring – Vietnam Works

employment in Vietnam October 15, 2017
u Hanoi – 4,173

u Ho Chi Minh City – 588

u Da Nang City - 113

Circa 2013

https://www.slideshare.net/challengefuture/challengefuture-global-unemployment-a-case-study-in-vietnam

Hoteljob.vn – October 15, 2017 Employment Agencies - Recruiters

8,379 job postings u https://www.navigosgroup.com/

u Sales – 860
u https://headhuntvietnam.com/
u Receptionist – 1,216

u Waiter – 1,567 u http://www.employmentvietnam.com/

u Chef – 959
u http://www.farorecruitment.com.vn/

u http://vnmanpower.com/

u https://www.adecco.com.vn/en/jobs/

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Vietnam Government Statistics

Industry Reports – Occupancy Released Publications
u Statistical Yearbook of Viet Nam 2016
u Vietnams exports and imports of goods - International integration and development 2005-2015
u https://auschamvn.org/savills-report-on-hanoi-real-estate-market-q12017/ u International merchandise trade Vietnam 2015
u Results of tourist expenditure survey in the period 2003-2015
u http://www.colliers.com/-/media/files/apac/vietnam/pdf/hanoi-quarterly- u Results of the survey on non-farm individual business establishments 2016

knowledge-report-q3-2016-eng.pdf?la=en-GB u Statistical Handbook of Vietnam 2016

u Report on Labour force survey: Quarter 1, 2017
u http://www.cbrevietnam.com/Vietnam-Property/pressrelease/cbre-releases- u Result of the Vietnam household living standards survey 2014

q1-2017-quarterly-report-highlights-hanoi-market u Report on Labour force survey: Quarter 4, 2016

u Report on Labour force survey Quarter 3, 2016
u http://www.grantthornton.com.vn/globalassets/1.-member- u The 2015 National Internal Migration Survey
u Major findings: The 1/4/2015 time-point population change and family planning survey
firms/vietnam/media/executive-summary---hotel-survey-2016---eng.pdf
u Survey of Bussiness establishments producing non-agricultural individual period 2005-2015
u The 2014 Viet Nam intercensal population and housing survey: Fertility in Viet Nam: Differentials, trends,
and determinants
u The 2014 Viet Nam Intercensal Population and Housing Survey: Population sex-age structure and related
socio-economic issuses in Viet Nam
https://www.gso.gov.vn/Default_en.aspx?tabid=515

Chambers of Commerce Robots coming to Vietnam

u http://www.amchamvietnam.com/ u https://www.youtube.com/watch?v=LzxpzPZ6lv4

u http://jbav.vn/en/ u https://www.youtube.com/watch?v=xlPeQ7BBV4g

u https://auschamvn.org/ u https://www.youtube.com/watch?v=c91UwLDipkU

u http://www.sbav-hanoi.org/ u https://www.youtube.com/watch?v=xhEsXBV7dFI

u http://cbah.org.vn/index.php?newlang=english u https://www.youtube.com/watch?v=YKQ-6YnrKNc

u http://vccinews.com/ u https://www.youtube.com/watch?v=bE4DnQ5GlTc

u https://www.youtube.com/watch?v=cLVCGEmkJs0

Questions? Is Vietnam the new China?

https://www.youtube.com/watch?v=RIMZG9aMyaY

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Retention Planning
Workforce Planning

Strategic Planning, Human Resource Planning, and Job Analysis

Chapter 4 in the text

Strategic Planning Process Corporate Mission Statement - Marriott

1. Mission Determination

1. Decide what is to be accomplished Our core values make us who we are. As

2. Determine principles that govern we change and grow, the beliefs that are
most important to us stay the same—
2. Environmental Assessment – SWOT Analysis
putting people first, pursuing
3. Objective Setting excellence, embracing change, acting

1. Challenging and Measurable with integrity and serving our world.

Being part of Marriott International
2. Time specific
means being part of a proud history and
3. Documented
a thriving culture.
4. Strategy Setting

5. Strategy Implementation http://www.marriott.com/culture-and-values/core-values.mi

Environmental Assessment Set Department Objectives

SWOT Analysis
u Let’s watch a Prezi prepared Marriott SWOT Analysis
u Annual rate of turnover

u Average length of employment

u Average length of position opening

u Average educational completion

u Sales per employee

u Units produced per employee

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Strategy Setting Porter’s Competitive Strategy

A firm's relative position within its industry determines whether
a firm's profitability is above or below the industry average.
u Low-cost
The fundamental basis of above average profitability in the

u Product differentiation long run is sustainable competitive advantage. There are two
basic types of competitive advantage a firm can possess: low
u Monopolist
cost or differentiation. The two basic types of competitive
u High value-low volume
advantage combined with the scope of activities for which a
u Market Position firm seeks to achieve them, lead to three generic strategies for
achieving above average performance in an industry: cost
u Porter’s Competitive Strategy – low-cost or differentiation
leadership, differentiation, and focus. The focus strategy has
two variants, cost focus and differentiation focus.
https://www.ifm.eng.cam.ac.uk/research/dstools/por
ters-generic-competitive-strategies/

Let’s watch a video about competitive Employee Role Associated with

strategy Competitive Strategies
https://www.youtube.com/watch?v=V14kuqYEsxE u Low-cost

u Reduce output costs per employee

u Repetitive and predictable behavior

u Short-term focus

u Focus on results

u Differentiation

u Highly creative behavior

u Long-term focus

u More risk-taking

Human Resource Planning

Strategy Implementation Requirements and Availability
u Leadership vs. Management
Strategic Planning
(Mondy & Martocchio, 2016, p. 107)

Human Resource Planning

Forecasting Comparing Forecasting

Human Resource Requirements Human Resource
Requirements and Availability Availability

Demand Surplus Shortage

= of of
Supply Workers Workers

https://www.linkedin.com%2Fpulse%2Fsale-leadership-vs-sales-management-ray- Recruitment
guerin&psig=AOvVaw1lB1YXrgEKc3gEboOr16U0&ust=1508138203957601 No Action Downsizing
Selection

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Zero-Base Forecast Bottom-Up Forecast

u Use the current level of employment as base u Start at the bottom of the pyramid

u Similar to zero-based budgeting u Each unit manager makes his/her forecast

u Justify each employee each year u Creates an aggregate forecast for the company

u Do not automatically replace employees that leave u Forces managers to justify their hiring requirements

Relationship between Volume of Sales Forecasting Human Resource Availability

and Number of Workers Required
u Managers use sales to predict required employment u Compare internal and external sources

u Hotels and seasonal businesses use this model u Identify the training and skills level of potential employees

Example

u Open a new hotel in Hanoi or Da Nang City?

Shortage or Surplus of Workers Succession Planning

u Innovative Recruiting u Replacing key managers

u Compensation Incentives u Process to replace key managers

u Alternatives to Layoffs u Normal wastage

u Termination

u Temporary Actions

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What Is Job Analysis? The Basics of Job Analysis

uWork activities
uJob Analysis – is the procedure through which you uHuman behaviors
determine the duties and skill requirements of a uMachines,tools,
job and the kind of person who should be hired for equipment, and work
it. aids
uPerformance standards
uJob context
uHuman requirements

Job Analysis: A Basic Human Resource

Management Tool Job Analysis

1. What physical and mental tasks does the worker accomplish?

2. When is the job to be completed?

3. Where is the job to be accomplished?

4. How does the worker do the job?

5. Why is the job done?

6. What qualifications are needed to perform the job?

(Mondy & Martocchio, 2016, p. 113)

When do we do job analysis? Reasons for conducting Job Analysis

1. When the organization is founded… u Staffing

2. When new jobs are created … u Training and Development

3. When jobs are changed … u Performance Appraisal

1. New technologies u Compensation

2. New methods or procedures u Safety and Health

3. New systems
u Employee and Labor Relations

u Legal Considerations
(Mondy & Martocchio, 2016, p. 113-114)

(Mondy & Martocchio, 2016, p. 114-115)

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Questionnaires
Job Analysis Methods
u Typically quick and economical
u Potential problems:
u Questionnaires
u Employees might lack verbal skills
u Employees might exaggerate the significance of
u Observation
their tasks
u Interviews

u Employee Recording

u Combination of Methods

(Mondy & Martocchio, 2016, p. 116)

https://www.sampletemplates.com/business-
templates/job-analysis-template.html

Observation
Interviews
u Analyst watches worker perform job tasks and records u Interview both employee and supervisor
observations
u Interview employee first, helping him or her
u Used primarily to gather information emphasizing describe duties performed
manual skills
u After interviews, analyst normally contacts
u Often insufficient when used alone supervisor for additional information
u Difficult when mental skills are dominant in a job

The Interview Interviewing Guidelines

1. Typical Questions
u What is the job being performed?
u What exactly are the major duties of your position?
u What physical locations do you work in? u Establish rapport with the interviewee. Know the person’s name, speak
u What are the education, experience, skill, and [where applicable] understandably, briefly review the interview’s purpose, and explain how
certification and licensing requirements? the person was chosen for the interview.
u In what activities do you participate? u Use a structured guide that lists questions and provides space for
u What are the job’s responsibilities and duties answers. This ensures you’ll identify crucial questions ahead of time and
that all interviewers (if more than one) cover all the required questions.
2. Structure Interviews (However, also ask, “Was there anything we didn’t cover with our
questions?”)
3. Pros and Cons u Make sure you don’t overlook crucial but infrequently performed
activities—like a nurse’s occasional emergency room duties. Ask the
4. Interviewing Guidelines worker to list his or her duties in order of importance and frequency of
occurrence.
u ●After completing the interview, review the information with the
worker’s immediate supervisor and with the interviewee.

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Employee Recording( Participant Diary /Logs)

Combination of Methods
u Employees describe daily work activities in diary or log u Analysts usually use more than one method
u Valuable in understanding highly specialized jobs u Clerical and administrative jobs (example):
u Problem: Employees might exaggerate job importance u Questionnaires supported by interviews and limited
observation
u Production jobs: Interviews supplemented by
extensive work observation

Job analysis results

Writing Job Descriptions

• Job description
1

• Job specification
2

• Performance standard
3

Job Description
Writing Job Descriptions
u Document that states:
uJob identification
u Tasks
uJob summary
u Duties
uResponsibilities and duties
u Responsibilities
uAuthority of incumbent
uStandards of performance
uWorking conditions
uJob specifications

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Job Identification Job Summary

SUMMARY (Write a brief summary of job.)
The person in this position is responsible for selling
college textbooks, software, and multimedia
products to professors, via incoming and outgoing
telephone calls, and to carry out selling strategies to
meet sales goals in assigned territories of smaller
colleges and universities. In addition, the individual
in this position will be responsible for generating a
FIGURE 4-7 Sample Job Description, Pearson Education
designated amount of editorial leads and
Source: Reprinted and electronically reproduced by permission of Pearson communicating to the publishing groups product
Education, Inc., Upper Saddle River, New Jersey.
feedback and market trends observed in the
assigned territory.

Relationships Writing Job Specifications (2 of 2)

uEducation level
uExperience
uKnowledge and skill
uPersonal traits

Standards of Performance
Competencies and Competency Modeling
u Competencies refer to an individual’s capability to A “standards of performance” section lists the standards
orchestrate and apply combinations of knowledge, the company expects the employee to achieve for each
skills, and abilities consistently over time to perform of the job description’s main duties and responsibilities.
work successfully in the required work situations
u Competency modeling specifies and defines all the
competencies necessary for success in a group of jobs
For example:
that are set within an industry context Duty: Accurately Posting Accounts Payable
1. Post all invoices received within the same working day.
2. Route all invoices to the proper department managers for approval no later
than the day following receipt.
3. Commit an average of no more than three posting errors per month.

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Job Design Concepts

Skills vs Competency based job
descriptions
u Process of determining specific tasks to be performed,
the methods used in performing these tasks, and how a https://www.youtube.com/watch?v=DsuTasol2QY
job relates to other work in an organization
u Methods:
u Job enrichment
u Job enlargement
u Job rotation
u Re-engineering

Job Design Concepts – Employee Global Talent Management

Engagement
u Job enrichment … is a strategic endeavor to optimize the use of human capital, which enables an
organization to drive short- and long-term results by building culture, engagement,
u Job enlargement
capability, and capacity through integrated talent acquisition, development, and
u Job rotation
deployment processes that are aligned to business goals.
u Cross-training

u Reengineering
(Mondy & Martocchio, 2016, p. 125)

(Mondy & Martocchio, 2016, p. 124) https://wikispaces.psu.edu/display/PSYCH484/10.+Job+Design

Job Analysis - Recruitment and Placement

Human Resource Management
https://www.youtube.com/watch?v=KEYFxxM85Cg

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Recruitment Process
Environment of Recruitment

u Labor market conditions

u Active or passive job seekers
u Legal considerations

Internal Recruitment Methods External Recruitment Sources (1 of 4)

u Human resource databases u High schools and vocational schools

u Job posting u Community colleges
u Job bidding u Colleges and universities
u Employee referral

External Recruitment Sources (2 of 4) External Recruitment Sources (3 of 4)

u Competitors in the labor market u Unemployed workers

u Former employees u Military personnel

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External Recruitment Sources (4 of 4) External Recruitment Methods: Online

and Mobile Recruiting
u Self-employed workers u Online Recruiting:
u Ex-offenders u Biggest change in way that organizations recruit
u Revolutionized the way companies recruit and job
seekers find jobs
u Recruiting via mobile technology is moving at light-speed
u Mobile recruiting has generated blogs, webinars,
seminars, e-newsletters, and online groups committed to
learning more

Improving Online Recruiting Effectiveness

Online and Mobile (1 of 2)
Ineffective Ad, Recycled Effective Web Ad
from Magazine to the Web (Space Not an Issue)
Process Engineer Pay: $65k–$85k/year Do you want to help us make this a better
u Internet recruiter Immediate Need in Florida for a world?
Wastewater Treatment Process Engineer. We are one of the top wastewater
u Virtual job fair Must have a min. 4–7 years Industrial treatment companies in the world, with
Wastewater exp. Reply installations from Miami to London to
u Corporate career web sites [email protected] Beijing. We are growing fast and looking
for an experienced process engineer to
u Weblogs join our team. If you have at least 4–7
years’ experience designing processes for
u General purpose job boards wastewater treatment facilities and a
dedication to make this a better world,
we would like to hear from you. Pay
range depending on experience is
$65,000–$85,000. Please reply in
confidence to KimGD@ WatersCleanX.com

Traditional External Recruitment Methods

(1 of 4)
Mass media

u Media advertising
u Private employment agencies
u Public employment agencies
u Executive search firms

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Internet
Mua và bán

Internet Internet Microsoft Word

Document

Vietnamworks Vietnamworks

MBA Lê tThu MBA Lê tThu

Hạnh Hạnh

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Advantages of recruiting through social Advantage of recruiting through social

media media
u Positive brand experience: With potential employees using social media to u Develop your relationships: Trusted relationships are imperative when using

research companies online, a positive brand experience is vital to being seen social media to recruit. By sharing engaging content, like industry news and
as an attractive employer. Candidates want to work for an organisation trends, you can develop relationships with potential employees before you’ve
they’ve heard of and a name they trust. even posted a job advert. That way, when it comes to hiring, some of the
u Target your candidates: When posting jobs on Facebook, LinkedIn or Twitter, hard work is already done.
you’re actively targeting people who are already engaged with and already
follow your company. They’re more likely to have an understanding of your
business and be more enticed to submit an application. You therefore have
access to a talent pool, including passive candidates, at relatively little cost.

https://www.rullion.co.uk/media/1610/guide3_socialforclients_v1.pdf https://www.rullion.co.uk/media/1610/guide3_socialforclients_v1.pdf

Disadvantage of recruiting on social media

Disadvantage of recruiting on social
media
u It’s time-consuming: The process of reviewing CVs and job applications is

notoriously time consuming. Put your opportunities out there to a significantly u Privacy issues: Although social media can provide a greater insight into an

wider audience on social media and expect the volume to increase. applicant’s abilities, we’re also being given a window into their private lives,
offering us information whether we were looking for it or not.
u It’s not all positive: Social media provides a forum for negative comments and

feedback, and that’s no different when recruiting through social media. Prepare u Legal implications: As a relatively new tool for recruiting, social media holds a

for disgruntled employees, or unhappy customers, to voice their negative few blind spots in terms of legal pitfalls. Using social networking sites, it’s
opinions. easy to stumble across information usually protected, such as age, race or

u Equality and diversity: Relying on social media for recruitment could unfairly
gender.

disadvantage those who don’t have a social media presence.

https://www.rullion.co.uk/media/1610/guide3_socialforclients_v1.pdf https://www.rullion.co.uk/media/1610/guide3_socialforclients_v1.pdf

Recruiting on Social Media Online technology to manage recruiting

u https://www.youtube.com/watch?v=e-B5CJQHz-4 u Clear Company HRM

u https://www.youtube.com/watch?v=5vrIsYxedjY u Kronos Workforce Ready

u Sage

u APS

u Benefit Mall

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Traditional External Recruitment Methods

Cloud-based recruitment management (2 of 4)

systems
u Pros: Cloud recruitment software is initially cheaper than hosting in-house. u Recruiters
Rather than paying a lump sum up front (and ongoing salary for the IT staff),
u Job fairs
you’re typically paying monthly costs, which is a great solution for those with a
smaller budget or waiting for the new financial year.
u Internships

u Cons: It’s not all sunshine and rainbows behind the cloud, though. If you opt for a

cloud-based solution, extra subscriptions for when your business grows will
induce extra costs. You can often find yourself locked in to lengthy contracts
where you end up ultimately paying many multiples of the equivalent one-time
fee. If your provider decides to up their fees on a whim – they can. You’ll
always be dependent on the cloud provider.
http://www.recruitment-software.co.uk/cloud-vs-desktop-recruitment-software-2/

Traditional External Recruitment Methods Traditional External Recruitment Methods

(3 of 4) (4 of 4)

u Professional associations u Event recruiting

u Unsolicited applicants u Sign-on bonuses
u Open houses u Competitive games

Methods and Sources of Recruitment for an

Tailoring Recruitment Methods to Information Technology Manager
Sources
u Tailored to each firm’s needs
u Sources and methods vary according to position being
filled

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Alternatives to Recruitment Promotion from Within

u Promotion policies u Filling vacancies above entry-level positions with current

u Overtime employees

u Onshoring u Incentive to strive for advancement

u Organization usually aware of employees’ capabilities
u Good goal: 80%

Overtime Onshoring

u Most commonly used method of meeting short-term u Moving jobs not to another country but to lower cost
fluctuations in work volume American cities
u Avoids recruitment, selection, and training costs u Government may require onshore handling of certain
u Employees benefit from increased profit financial, health, and defense data

u Potential problems

Head-hunter company
Zoho Recruit ST Công ty Địa chỉ
T
https://www.youtube.com/watch?v=n05zYF8V0xI 1 Navigos Add: 6F V-Building 125 -127 Ba Trieu, Hanoi, Vietnam
Search Phone: (84 4) 6278 5199
website: navigossearch.com
2 NIC Human Office: 3rd Flr., Gemadept Bldg., 108 Lo Duc Str., Hanoi
Resources Tel: (+84 4) 3971 2763
Information Website: nicvn.com

3 Man Power Add:Lầu 8, Capital Tower, 109 Trần Hưng Đạo, Hoàn Kiếm, Hà Nội
Tel; (84 4) 39748574
Website/; candidate.manpower.com
4 Hr2B Add: 22nd Floor, Capital Tower, 109 Tran Hung Dao, Hanoi
Tel: +84 4 3736 6843
Website: hr2b.com
5 Talentnet Add: Unit 6, 6th floor International Centre 17 Ngo Quyen, Ha Noi,
Tel: (84 4) 3936 7618
MBA Lê tThu
Website: talentnet.vn Hạnh

6 Harvey Nash Wesite: harveynash.com/vn/

E.town 1, 6F, 364 Cong Hoa, Ward 13,Tan Binh Dist, Ho Chi Minh

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The Selection Process

Selection

u Process of choosing the individual best suited for

particular position and organization from a group of
applicants
u Goal is to properly match people with jobs and
organization
u Selecting wrong person for any job can be costly

The Environment of Selection (1 of 2) The Environment of Selection (2 of 2)

u Other HR functions u Type of organization

u Legal considerations u Probationary period
u Decision-making speed u Organizational fit
u Organizational hierarchy u Selection technology
u Applicant pool

Preliminary Screening and Review of Selection Tests

Applications and Resumes
u Preliminary screening: removes obviously unqualified u Reliable and accurate means of selecting qualified candidates
individuals u Advantages:
u Review of applications u Cost is small in comparison
u Essential information in a standardized format u Identify attitudes and job-related skills that interviews
cannot recognize
u Informational needs and EEO requirements u Disadvantages/Potential problems:
u Résumé: Goal-directed summary of a person’s experience, u Can do versus will do
education, and training u Test anxiety
u Legal liabilities

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Characteristics of Properly Designed Test Validation Approaches

Selection Tests
u Criterion-related validity: Comparing scores on
u Standardization: Uniformity selection tests to some aspect of job performance
u Objectivity: Everyone scoring a test obtains same results u Concurrent validity
u Norms: Frame of reference for comparing applicant's u Predictive validity
performance with that of others u Content validity: Includes certain tasks actually
u Reliability: Provides consistent results required by job
u Validity: Measures what it is supposed to measure u Construct validity: Measures certain traits or qualities
u Requirement for job relatedness: Must not have adverse important in performing job
impact on minorities, women, and individuals with
backgrounds or characteristics protected under law

Employment Tests Types of Employment Tests

u Achievement test: A test of current knowledge and skills u Cognitive ability tests
u Cognitive Ability test: A test that determines general u Psychomotor abilities tests
reasoning ability, memory, vocabulary, verbal fluency, and u Personality tests
numerical ability
u Job knowledge tests
u Aptitude test: A test of how well a person can learn or
acquire skills or abilities u Job performance and Work-samples

Employment Interview (1 of 2) Employment Interview (2 of 2)

u Goal-oriented conversation where interviewer and u Interview planning

applicant exchange information u Content of the interview
u Continues to be primary method used to evaluate u Seek additional job-related information and examples
applicants of past job-related behaviors:
u At this point, candidates are assumed to be qualified u Occupational experience
u Academic achievement
u Interpersonal skills
u Personal qualities

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Types of Interviews Methods of Interviewing (1 of 2)

u Unstructured u One-on-one interview: Applicant meets one-on-one with

u Structured interviewer

u Behavioral u Group interview: Several applicants interact in presence

of one or more interviewers
u Situational
u Board interview: Several firm representatives interview
candidate at same time
• Multiple interviews: Applicants typically interviewed by
peers, subordinates, and supervisors

Methods of Interviewing (2 of 2) Potential Interviewing Problems (1 of 3)

u Stress interview: interviewer intentionally creates anxiety u Inappropriate questions

u Realistic Job Preview (RJP): provides both positive and u Basic rule: Ask only job-related questions
negative job information to applicant in unbiased manner u Permitting non-job-related information
u If candidate begins volunteering personal information
not related to job, interviewer should steer
conversation back on course

Potential Interviewing Problems (2 of 3) Potential Interviewing Problems (3 of 3)

u Interviewer bias u Interviewer domination

– Stereotyping bias u Lack of training
– Positive halo bias u Nonverbal communication
u Horn error bias
u Contrast bias
u Premature judgment bias
u Interview illusion bias

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Kỹ thuật phỏng vấn STAR Concluding the Interview

u S - Situation (Hoàn cảnh)
u mô tả thật chi tiết những sự kiện, chi tiết,kinh nghiệm mà bạn dã từng trải
qua từ những công việc đã từng làm u When interviewer has obtained necessary information and
u T - Task (Nhiệm vụ) answered applicant’s questions, he or she should conclude
u mục tiêu và kết quả mà bạn đặt ra cho dự án bạn đã từng làm the interview
u A - Action (Hành động) u Tell applicant he or she will be notified of the selection
u chính là quá trình, các bước mà bạn thực hiện dự án đó. Hãy nêu những khó decision shortly
khăn gặp phải và cách bạn giải quyết chúng.
u R - Result (Kết quả) u Management must then determine whether candidate is
u đưa ra kết quả của dự án đó, những kinh nghiệm cũng như lợi ích mà bạn thu
suitable for the open position and organization
được

Pre-Employment Screening and Background

Checks Continuous Background Investigation

u Determine accuracy of information submitted or u Some employers are screening their employees on an
determine if vital information was not submitted ongoing basis
u Principal reason is to hire better workers u Financial devastation, marital collapse, or a medical crisis
u Background investigations involve obtaining data from can send a person with a clean record over the edge
various sources u Background investigations with social networking:
u Intensity of background investigations depends on the increasingly being used
nature of the open position u Use an applicant’s Facebook, LinkedIn, and postings
made on an industry blog to find out about individuals
they are considering hiring

Selection Decision and Evaluating the Evaluating Selection Decisions

Effectiveness of Selection Decisions
u Most critical step u Quality of hire
u Person whose qualifications most closely conform to u Time required to hire
requirements of open position and organization should be u New hire retention
selected
u Hiring manager overall satisfaction
u Making the selection decision
u Turnover rate
u Medical examination
u Cost per hire
u Notification of candidates
u Yield rate

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Questions? Recruitment – Social Media

https://www.youtube.com/watch?v=lqXlUneLVlk

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