Human Resource Management

PGDM-EM (Slot 3)
Introduction
Look at the questions given below and try answering them.

• Whom do you send your resume to when you see a job opening that
interests you?

• Who gives you the job offer and discusses your pay package with you?

• Who inducts you into the organization when you are a new employee?

• Whom do you contact when you have any doubts regarding your pay
package, perks, benefits, conveyance, leave management etc.?
• Who helps you in the final exit formalities when you leave an
organization?

• Who takes care of your training and development needs?

 Evolution of Management
• Bureaucracy Theory (Weber, 1990)
– Hierarchy (superior-subordinate relationship and
chain of command)
– System of policy, rules and regulations with no
consideration on interpersonal relationship
– Legal power derived from official position held by
an individual.
– Standardization of methods, systems, processes,
job contents and tools for smooth operation.
– Division of work based on competence and
functional foremanship.
 Evolution of Management
• Scientific Management (F W Taylor, Frank
Gilberth, Lillan Gilberth and Henry Gantt).
– Taylor (father of scientific management)
– Separation of planning and doing
– Functional Foremanship
– Time and motion study
– Standardisation
– Scientific Selection and Training
– Differential Piece rate system
– Financial incentives
– Maximum output and development of workers
 Evolution of Management
• Process management Theory (Henry Fayol)
– 14 Principles of Management
• Division of Labour
• Parity of authority and responsibility
• Discipline
• Unity of Command
• Unity of Direction
• Subordination of Individual to general interest
• Fair remuneration to employees
• Centralisation and Decentralisation
• Scalar Chain
• Order
• Equity
• Stability of tenure of personnel
• Initiative
• Esprit de corps
 Evolution of Management
• Human Relation Era:
– Hawthorne Studies (Elton Mayo at Western
Electric)
• Relay Assembly Experiment
• Illumination Experiment
• Mass Interview
• Bank Wiring Experiment
 Evolution of Management
• Human Relation Era:
– Need Hierarchy Theory-Abraham Maslow
• Physiological Needs
• Security Needs
• Social Needs
• Self esteem
• Self actualization
– Theory X and Y- McGregor
• Theory X
• Theory Y
 Evolution of Management
• Modern Management Theories
– Re-engineering
– Empowerment
– Systems approach to Management (Technical,
Social and power)
– Contingency Theory of Management
– Total Quality in Human Resource Management
• Deming’s pioneering work
• Juran’s Framework
• Philip B Crosby’s approach
What is Human Resource Management (HRM)?

It is a science as well
because of the precision and
rigorous application of
theory that is required.

Human Resource Management

(HRM) is an ‘art and science’.

Thus, HRM is both the art of

managing people by recourse to
creative and innovative
approaches.
 Scope of Human Resource Management
The scope of HRM covers but is not limited to the following functions:
Training and Development Industrial Relations

Hiring (Recruitment
Grievance Handling and Selection)

HR planning

Payroll Management

Rewards and Recognitions Legal

Procedures
Therefore, HRM is about developing and managing harmonious relationships at
workplace and striking a balance between organizational goals and individual goals.
Job Analysis and Design
 HRM Practices – Job Analysis & Job Design
There are a few key concepts involved in defining a job, which is a key role of
HRM, such as follows:

Let us look at each in detail.

 The Vocabulary of Job Analysis
• Tasks: coordinated and aggregated series of work elements
used to produce an output
• Position: the responsibilities and duties performed by an
individual. There are as many positions in an organization as
there are employees
• Job: group of positions that are similar in their duties, such as
computer programmer
• Job family: group of jobs that have similar duties

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Job Analysis
 Job analysis is vital to any HRM program
and answers such questions as…

How long does it take to complete important tasks?

Which tasks are grouped together as a job?

Can a job be designed so that performance is enhanced?

What behaviors are needed to perform the job?

What traits and experience suit a person to the job?

Can job analysis information help to develop HRM programs?

 Nature of Job Analysis
• Work Activities (Activities, Procedures,
Accountability/Responsibility, Human behaviours,
Elemental Motions).
• Machines, tools, equipments and Work-aids used
• Work performance (measurement, standard,
error and other aspects).
• Job context (Physical, organizational and social
context, schedules and Incentives).
• Personal Requirement (Job-related knowledge
and personal attributes).
Job Description
Job Specification
Job Description and Job Specification
Nature of Job Analysis ()

Source: Dale S. Beach, Personnel—The Management of People

at Work, p. 166
The Purpose of Job Analysis ()
 Who Should Conduct the Job Analysis?

• Part of the planning process involves choosing

the people who will conduct the analysis
– Hire a temporary analyst from outside
– Employ a full-time job analyst
– Use supervisors, job incumbents, or some
combination of these
 Methods Of Data Collection
 When collecting job analysis data, these basic methods
can be use separately or in some combination:
• Observation
• Interview
• Questionnaires
• Job incumbent diaries or logs
 In each method, information about the job is collected
and then studied in terms of:
• Tasks completed by the job incumbent (job-oriented
analysis)
• Behaviors, or what the job incumbent does to perform
the job (work-oriented analysis)
Job Design
 Job Design
 The logical sequence to job analysis is job design
 Job design involves conscious efforts to organize tasks, duties,
and responsibilities into a unit of work to achieve certain
objectives.
 Thus, job design involves three steps:
 The specification of individual tasks,
 The specification of the method(s) of performing each task
 The combination of tasks into specific jobs to be assigned to
individuals
 Job Design Approach
• Job Rotation
• Job Engineering
• Job Enlargement
• Job Enrichment
The Job Characteristics Model
 Nature of Recruitment
• In simple terms, recruitment is understood as the process of
searching for and obtaining applicants for jobs, from among
whom the right people can be selected.
• Recruitment refers to the process of receipt of applications
from jobseekers. It focus on attracting maximum number of
applicants for the job.
• There is difference between the two terms—recruitment and
selection
 Purposes and Importance
• Determine the present and future requirements of the firm in
conjunction with its personnel planning and job-analysis activities.
• Increase the pool of job candidates at minimum cost.
• Help increase the success rate of the selection process by reducing the
number of visibly under qualified or overqualified job applicants.
• Help reduce the probability that job applicants, once recruited and
selected, will leave the organization only after a short period of time.
• Meet the organization's legal and social obligations regarding the
composition of its workforce.
• Begin identifying and preparing potential job applicants who will be
appropriate candidates.
• Increase organizational and individual effectiveness in the short term and
long term.
• Evaluate the effectiveness of various recruiting techniques and sources
for all types of job applicants.
Factors Governing Recruitment
 Pause and Ponder

Think of a firm you want to submit job application.

Which factors attract you towards the company?

30
Recruitment Process
Recruitment Process

Source: Herbert G. Heneman III, et. al.,

Personnel/Human Resource Management, p. 226
 Recruitment Process

• Recruitment Planning
Number of Contacts
Type of Contacts

Recruiting Yield Pyramid

Sources of Recruitment
 Recruitment Process

• Strategy Development
‘Make’ or ‘Buy’
Technological Sophistication
Where to Look
 How to Look
Recruitment Process
 Evaluation and Control
• The costs generally related to recruitment process are:
 Salaries for recruiters
 Management and professional time spent on preparing job
description, job specifications, advertisements, agency liaison, and so
forth
 Cost of advertisements or other recruitment methods, that is, agency
fees
 Cost of producing supporting literature
 Recruitment overheads and administrative expenses
 Costs of overtime and outsourcing while the vacancies remain
unfilled.
 Cost of recruiting suitable candidates for the selection process
 Evaluation and Control
• Criteria for Evaluation
Cost of the recruitment process
Number of initial enquiries received
Number of candidates at various stages of the
recruitment and selection process
Number of candidates recruited
Number of suitable candidates for selection
Retention and performance of the candidates selected
 Selection
• Selection is the process of picking individuals (out of the pool
of job applicants) with requisite qualification and competence
to fill jobs in the organization.
• Recruitment is said to be positive in its approach as it seeks to
attract as many candidates as possible. 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.
• Successful selection doesn’t always mean finding someone
with the most of a given quality.
• The goal is an optimal match between the job and the
characteristics an applicant possesses.
Selection as a Source of Competitive Advantage

• Work performance
• Cost incurred

Source: Thomas H. Stone, Understanding

Personnel Management, p. 175
Outcomes of the Selection Decision

39
 Selection Process

Source: Adapted from Personnel—The Management of Human Resources

by R. Wayne Mondy and Robert M. Noe III, p. 156
 •

 Types of Interview
Employment Interview
 Objectives of Interviews
Selection Process

Source: William B. Werther and

Keith Davis, Human Resources and
Personnel Management, p. 243
41
 Selection Criteria
Understanding the characteristics of jobs and applicants is
essential for high performance
Characteristics are
They must be reflected in
identified during job
the job specification
analysis
The goal of any The system must distinguish
selection system is to… between characteristics
Determine which
Needed at the time of
applicants possess the
hiring
knowledge, skills,
Acquired during training
abilities, and KSAOs
Developed on the job
dictated by the job
 Reliability & Validity of Selection Criteria

Application blanks Reference

& biodata forms Once criteria have checks
been decided on, a
technique for assessing
Interviews them must be chosen Physical and
medical tests

Aptitude &
personality Work sample
tests tests

Regardless of the method chosen, information must be reliable & valid

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 Employment Interview
 Common Interview Problems
• Interviewers do not seek applicants’ information dimensions
needed for successful job performance.
• Interviewers may make snap judgments early in the interview
• Interviewers permit one trait or job-related attribute to influence
their evaluation of the remaining qualities of an applicant
• Interviewers have a tendency to be swayed by negative
information about the applicants
• Information from interviews is not integrated or discussed in a
systematic manner
• Interviewers’ judgments are often affected by the pressure to
favour a candidate
• Interviewer’s judgment regarding an applicant is often affected by
the list of available applicants
• Some other problems are worth recollecting
• Gender, race and attitudes similar to those of the interviewer may
lead to favourable evaluations

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 Tactic for Interview
• A data-based approach rather than interviewer’s intuition.
– Notion of likeability
– High card vs Low card
• A standard established interview format (steps, questions, time)
– Eliminate the risk
– Loop Back Mechanism
– Learn and Improve
• Utilize a team approach (consistent team throughout the process)
– Saves time
– Common set of data
– Better Listening
– Two heads are better than one
• Prepare before the interview
– Who will be primary
– Career path (upward /downward, job switch make sense)
– Anything need clarification
• Interview Format
– Don’t form opinion in first 45 minutes
– Resume Gaps
– Pattern of compensation and Success
– Focus on past performance vs. Personality
– Clarify Boasting
• Sufficient time of reference checking
Errors That Can Occur in the Interview

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 Job Evaluation

 Job Evaluation is the process of analyzing and assessing

various jobs systematically to ascertain their relative worth in
an organization.
 Scope of Job Evaluation
 In theory, application of job evaluation is universal
 In organizations where job evaluation is not followed, wage and salary
differentials are established, not on the basis of systematic job ranking,
but on such factors as demand for and supply of labour, ability to pay,
industrial parity, collective bargaining and the like.
 Even in such organizations, job evaluation will be useful in as much as
the technique provides objective pay structure from which
modifications can be made.
Methods of Job Evaluation
 Line and Staff Aspects of Human
Resource Management
• Authority is the right to make decisions, to direct the work of
others, and to give orders.
• Line authority traditionally gives managers the right to issue orders
to other managers or employees. Line authority therefore creates a
superior (order giver)–subordinate (order receiver) relationship.
Managers with line authority are line managers.
• Staff authority gives a manager the right to advise other managers
or employees. It creates an advisory relationship. Staff (advisory)
authority are staff managers. Staff managers generally run
departments that are advisory or supportive, like purchasing and
human resource management. Human resource managers are
usually staff managers. They assist and advise line managers in
areas like recruiting, hiring, and compensation.
 Span of Accountability
• The total resources under a manager’s direct
control.
• Span of control includes not only people, but also
balance sheet assets and intangible assets such
as information infrastructure under a manager’s
direct control.
• It is a function of the formal decision rights
embedded in an organization’s structure: it is
typically defined as the number of people who
report to a boss
 Span of Control
• Span of accountability represents the range of tradeoffs
inherent in the measure(s) for which a manager is
accountable. This can range from narrow to wide.
• Hierarchy of span of accountability for financial and non-
financial measures.
• At the bottom of the funnel, measures such as headcount
and line-item expense budgets allow few tradeoffs.
Managers accountable for these measures have relatively
few degrees of freedom and, therefore, a narrow span of
accountability. The measures at the top of the funnel, such
as competitive position and market value, are much
broader allowing many tradeoffs and creating a wide span
of accountability.
 Verona Group
• The role of Salesperson
– Operate relatively autonomously
– Interact with key personnel in each store by
phone/email
– Present new collection to retailers and take orders
– Price and contract terms are set largely on company
wide basis
– Eyes and ears of the company (share customer
feedback)
– Work with retailers to maximize sales potential
• advice (e.g., display of products)
• allocation of company resources
 Verona Group
• The role of Salesperson
– Control of resources
• Travel budget
• Marketing and merchandising budget
• Size of budget is proportional to annual sales goal
• Percentage of budget allocation is standard across the
firm
 The Anna George Situation
• Span of accountability (measured used for
performance measurement) > Span of control
(resources controlled by individual).
• Difference between span of accountability and
span of control is entrepreneurial gap.
– Entrepreneurship: pursuing opportunity without
regard to resources currently controlled.
 The Anna George Situation
– Georg’s span of accountability is wider than span of
control.
– George has an aggregate sales and customer
satisfaction goal but no direct control over the
product itself and minimal control over the pricing,
merchandising and marketing of the product.
– George’s works in the region in which the company
doesn’t have a big presence.
• Marketing budget is relative to sales goal and no extra
resources is allocated to emerging areas.
• Georg’s influence in the company is limited (based on
interaction in JULIET). It might be due to Georg’s short
tenure in the company or relatively low presence of his
territory.
 Mary Stern Situation
• Stern has relatively low span of accountability.
– Her scorecard metrics pertain largely to the apparel
she designs.
– She seems to have more resources- she has a
dedicated team.
– She didn’t react on George’s information as reacting
on feedback was not her performance evaluation
metrics.
– Stern’s profitability measures include only profitability
hence she focussed on profitability.
– There is no incentive for Stern for helping George.
 Verona Group analysis
• George may show entrepreneurial activity
• Exercising more influence in convincing the George by
follow up and meeting by financial figures.
• The wide span of control is intentional on Edward’s
part.
• Although firm may narrow the entrepreneurial gap
• Someone (e.g., COO) who could control both sales and
design department by resolving disputes.
• Alter George’s performance metrics
• Alter Stern’s metrics including goals related to sales,
especially in new territories.
• Incentive to Stern for helping the George
• Interdepartmental collaboration
 Job Crafting
• Job crafting principally refers to constructive,
legitimate actions (may not be explicitly authorised by
the employer) carried out by job performer to make
sense of their work roles through trying a different way
to accomplish a task. (Hornung et al., 2010, p. 190).
• The actions employees take to shape, mould, and
redefine their jobs through acting upon the task and
relational boundaries of the job, changing their identity
and the meaning of the work (Wrzesniewski and
Dutton, 2011, p. 179).
• The changes that employees may make to balance
their job demands and job resources with their
personal abilities and needs (Tims et al., 2012, p. 174).
 Forms of Job Crafting/Crafting Techniques
1. Number, type, or nature of tasks (Altering physical task boundaries)
• change the form, scope, or quantity of tasks (opt to perform
lesser/additional tasks other than the formal defined job).
• emphasising tasks in actual occupation related to one’s passion; and
• taking on additional tasks related to one’s passion.
2. Interactions with others (Adjusting relational boundaries)
• change the quality and/or the frequency of interactions with persons at job.
• building meaningful, helpful, or energising relationship with others;
• expanding roles to make a greater impact on beneficiaries;
• reprimanding or dismissing unpleasant beneficiaries;
• changing relationship to cope with adversity.
3. Cognitive perception of work (Modifying cognitive task boundaries )
• reframing the social purpose of work with one’s passion.
• changing thoughts or beliefs about job to cope with adversity.