Week 5 Human Assets and Performance

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Week 5 Human Assets and Performance
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Week 5/1Strategic Human Resource Management
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The Strategic HRM Process
HR PLANNING
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Human Assets
Employees are Human Capital, a concept that is
more meaningful and applicable than human
resources They are valuable Assets of the
organization rather than Resources to be consumed
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Human Assets
Assets bring long term value to an organization.
Thats why many organizations spend 70 - 80 of
their operating cost on employees.
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Human Assets
Human Capital is not a cost to be minimized,
BUT. a strategic asset to be enhanced. (GAO,
1999, page 102)
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Core Function of HRM
Strategic Human Resource Management is the
linking of HRM with strategic goals and
objectives in order to improve business
performance and develop organizational cultures
that foster innovation and flexibility. Strategic
HR means accepting the human resource function as
a partner in formulating company strategies, as
well as in executing those strategies through
activities like recruiting, selecting, training,
and rewarding personnel.
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HR Planning
Involves determining future HR needs in relation
to companys strategic plan, and devise steps to
meet them.

• Job Analysis - Job description/Specs.

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HR Planning
Involves determining future HR needs in relation
to companys strategic plan, and devise steps to
meet them.

• Job Analysis - Job description/Specs.

Systematic collection recording of info about
a jobs purpose. Major duties, conditions under
which it is performed, required contacts with
others, knowledge, skills, and abilities needed
to effectively perform the job.
Statement of duties, working conditions, and any
other requirements
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HR Planning
Involves determining future HR needs in relation
to companys strategic plan, and devise steps to
meet them.

• Job Analysis - Job description/Specs.

• Demand for HR - Major forces

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HR Planning
Involves determining future HR needs in relation
to companys strategic plan, and devise steps to
meet them.

• Job Analysis - Job description/Specs.

• Demand for HR - Major forces

One major force affecting demand for HR is an
organizations environment, including Mega and
Task environments
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HR Planning
Involves determining future HR needs in relation
to companys strategic plan, and devise steps to
meet them.

• Job Analysis - Job description/Specs.

• Demand for HR - Major forces

- Forecasting demand
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HR Planning
Involves determining future HR needs in relation
to companys strategic plan, and devise steps to
meet them.

• Job Analysis - Job description/Specs.

• Demand for HR - Major forces

- Forecasting demand
By several methods e.g. Technology trends,
industry growth, business expansion etc.
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HR Planning
Involves determining future HR needs in relation
to companys strategic plan, and devise steps to
meet them.

• Job Analysis - Job description/Specs.

• Demand for HR - Major forces

- Forecasting demand

• Supply of HR - Internal supply

Any suitable candidate from within department or
company for transfer, job expansion or promotion ?
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HR Planning
Involves determining future HR needs in relation
to companys strategic plan, and devise steps to
meet them.

• Job Analysis - Job description/Specs.

• Demand for HR - Major forces

- Forecasting demand

• Supply of HR - Internal supply

- External supply
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HR Planning
Involves determining future HR needs in relation
to companys strategic plan, and devise steps to
meet them.

• Job Analysis - Job description/Specs.

• Demand for HR - Major forces

- Forecasting demand

• Supply of HR - Internal supply

- External supply
By new recruitment from the countrys own labour
pool, from Schools and Universities, from
overseas etc.
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HR Planning
Involves determining future HR needs in relation
to companys strategic plan, and devise steps to
meet them.

• Job Analysis - Job description/Specs.

• Demand for HR - Major forces

- Forecasting demand

• Supply of HR - Internal supply

- External supply
- Population trends
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HR Planning
Involves determining future HR needs in relation
to companys strategic plan, and devise steps to
meet them.

• Job Analysis - Job description/Specs.

• Demand for HR - Major forces

- Forecasting demand

• Supply of HR - Internal supply

- External supply
- Population trends
Demographic changes in terms of gender, age,
educational level, income level, marital status
etc.
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HR Strategy
Formulating Strategy
Executing Strategy

through activities like recruiting, selecting,
training, and rewarding personnel, that are in
alignment with companys strategic goals and
objectives to improve business performance and
develop organizational cultures that foster
innovation and flexibility.
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Staffing

• Recruitment / Decruitment
• Selection
• Orientation Training and Development

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Decruitment

• WHY?
• Restructuring exercise
• Closing down a department / unit / section
• Job redundancy

• HOW?
• Natural Attrition
• Transfers
• Reduced workdays / weeks
• Pay Cut
• Retrenchment

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Some Key Environmental Considerations

• Labour Unions
• Laws Regulations

• Employment Act
• Bona Fide Occupational Qualification (BFOQ a
  legal discriminatory defense tactic)
• Affirmative Action Programs
• Employment of Children and Young Persons
  Regulations

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Factors influencing the scope recruitment
methods

• Size of organization
• Level of position to be filled
• Size and supply trend of the labour market

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The Recruitment and Selection Process
Personnel Planning Job Analysis
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Employee Recruiting Methods

• Current employees
• Advertising
• Employment agencies
• Temporary help agencies
• Executive recruiters
• Referrals and walk-ins
• College recruiting
• Workforce diversity (recruiting older workers,
  minorities and women)
• Companys web site
• Free and fee-paying Website services

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Employee Selection
Application Form
Interviews
Written Tests
Verification of Application data
Work Samples
Reference Checks
Assessment Center
Physical Exam
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Quality of Selection Devices as Predictors
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-
-
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Scale (highest) to (lowest)
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Interviewing Guidelines

• Plan the Interview
• Structure a fixed set of questions for all
  applicants
• Have a detailed job specification
• Minimize any prior knowledge of applicants
  background, experience etc
• Ask behavioral questions requiring applicants to
  give detailed accounts of actual job behaviors
• Use a standardized evaluation form
• Take notes during interview
• Avoid short interviews that encourage premature
  decision making
• Close the interview, leaving time for questions
  by candidates
• Review promptly

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Examples of Inappropriate Interview Questions

• What is your date of birth?
• Have you ever filed a workers compensation
  plan?
• What is your place of birth?
• Do you own a home?
• What is your native language?
• Do you have children? Plan to have children?
  Have child care?
• Do you have physical or mental disability that
  would prevent you from doing this job?
• What religion do you practice?

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Training, Development and Evaluation
Phases of Training Process
Needs Analysis
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Types of Training Program
Orientation
Technical Skill Training
Management Development Programs
Preparing employees to do the job
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Compensation and Benefits
Factors that Influence Compensation and Benefits
Packages
Job Specs Skills
Kind of Business
Union Membership
Labour / Capital Intensive
Management Philosophy
Geographic Location
Company Profitability
Company Size
Tenure Performance
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HR Topics
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Maintaining Work Force Relationship
In Singapore, this is a tripartite
responsibility The Employer The
Government The Union - NTUC
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Human Resources Legal Framework

• Equal Employment Laws
• Affirmative Action Programs
• Sexual Harassment
• Occupational Safety and Health
• Labor-Management Relations
• Other Employment Law Issues

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Current HRM Issues
Workforce Diversity
Sexual Harassment
Family Concerns
AIDS in the Workplace
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Guidelines for Interviewees

• Be prepared - Learn all you can about the
  employer, the job, and industry
• Uncover interviewers real needs
• Relate yourself to those needs
• Think before answering pause, think, speak
• Look professional appropriate clothing,
  grooming, a firm handshake
• Remember first impressions - Most interviewers
  make up their minds about applicants during the
  first few minutes
• Watch non-verbal behavior maintaining eye
  contact

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HRM Model
HR Planning
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Reminder!
Please read up Human Resource Issues in Small,
Entrepreneurial Enterprises
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End of LectureThank youfor your attention!