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1 STRATEGIC ROLE OF HRM

Talent Management & Nature of Job Analysis

Strategy: A course of action to achieve strategic aims
(cut cost, diversify, expand, innovate?)

Job analysis is a procedure to identify duties, skill
requirements and attitudes of job positions of hires
...
Includes responsibilities, reporting
relationship, working conditions
...

Sections:

Strategic Planning Process

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2 JOB ANALYSIS

job title
job summary
responsibilities/duties
authority level
standards of performance
working conditions
job specifications

Talent Management Process
Job Specification
Job analysis
HR Planning
Forecasting

Orientation
Training &
Development

Performance
appraisal

Def: A lists of education level, skills, personality
...


Recruiting
Talent Pool

Screening
Shortlist

Job Offer

Reward
Compensation

Selection tools

Talent Management: Integrated Process of attracting,
developing, deploying and retaining talent
...
Positions
are mapped alongside information such as potential
replacements, gender and promotion potential
...
Depending on size & complexity of
business, process for preparing skills inventory will
vary
...


Succession Planning
Def: Is a process whereby an organization ensures that
employees are recruited & developed to fill each key
role within the company
...

Forecasting HR Needs
Forecast/estimate HR needs criteria:

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

HR needs (no and type of job positions)
Supply/availability of internal candidates
Supply or availability of external candidates

Tools for Forecasting HR Needs
‒
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• Trend Analysis (HR needs)
Study past variations in employment levels
Also affected by economy, sales, productivity

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• Ratio Analysis (HR needs)
Ratio of sales: salesman, production: worker

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• Scatter Plots (HR needs assume no biz change)
Plots past sales and various staffing levels

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‒

• Markov Analysis
Availability of internal candidates based on job
transitions (sales exec to sales director)
Uses matrix with probabilities of mobility

Forecasting Internal Sources of Candidates
HR replacement charts (Critical positions/top
management)



shows performance level: outstanding, satisfactory,
needs improvement
shows promotion potential : ready, needs training,
questionable

Computerized skills inventory /HRIS (most jobs)

External Sources of Candidates
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Recruiting via internet (company websites, online
job boards like Monster, Jobstreet etc)
Social networking websites (Linked-in)
Mobile recruiting network (texting vacancies)
Job fairs/college recruiting/internship
Recruitment advertisers: gather, screen, compile &
manage applicants
Referrals
Employment agencies
Temporary Agencies
Offshoring/outsourcing
Executive recruiters

4 SELECTION

5 INTERVIEW

Measuring Recruiting Effectiveness / Retention
(Research Findings) : How Can You Attract Quality
Candidates for Long Term

Basics of Interview

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A procedure to obtain information about a person
through oral responses to oral questions

Source of recruitment
Content of recruitment info
Organization image
Early recruitment for entry level
Realistic job preview (+ &-)
Recruiter warmth
Recruitment duration

Why Careful Selection Important for Organization?
Performance: Employees with the right skills, abilities,
knowledge and attitudes will do better job
...

Cost: It’s costly to recruit and hire employees (search
fee, document review, interview time)
...

Legal Obligations: Any misalignment between the job
and selection criteria could open the door for a
candidate to claim discrimination
...
g appraisal interview, exit interview, selection
interview
✤ Selection interview
An interview to predict future job performance of
potential candidates for employment by asking
especially job related traits questions
Classification of selection interview is according to:
 How structured they are
 Types of questions
 how interview conducted
Types of Interview
✤ Structured interview



A set format of sequential questions
More reliable & valid (same questions for all) and
reduce bias
List of questions together with ‘scoring’ for
responses given



Selection Methods
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1
...
Social Posting checks
google applicant name
others : check social network websites
legality : ‘friend’

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o
o
o
o
o
o

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No set format and no formal guide for scoring
responses
Ex: general conversation with interviewer
following up on points of interest raised by
candidate
Most common

3
...

o

✤ Unstructured Interview

Structured
 Straight to the
point
 Stick to time
 Easy to access
candidates
‒ Candidates are
forced to
choose
between the
alternative
answers
‒ Difficult to
obtain reliable
data on
attitudes,
opinions &
values
‒ Too formal

Unstructured
 Creates open
& relax
environment
for honest
answer
‒ May go off
topic
‒ Exceed time
‒ Not easy to
access
candidates

6 TRAINING & DEVELOPMENT (1)

5 Steps Process Overview

Importance of Training to an Organization

Analyse training needs: strategic / long term & current
needs

Addressing weakness – Most employees have some
weaknesses in their workplace skills
...
A development program
brings all employees to a higher level so they all have
similar skills and knowledge
...
The training may also build the employee's
confidence because he has a stronger understanding of
the industry & responsibilities of her job
...
All employees
need to be aware of the expectations & procedures
within company
...

Employee satisfaction – Employees with access to
training & development programs have the advantage
over employees in other companies who are left to seek
out training opportunities on their own
...


Design overall training program: objectives, delivery
methods & evaluation
Develop the training course: creating the training
contents and materials
Implement training: OJT (on-the-job training),
internship, job instruction training/shop floor, lecture,
programmed/self-learning, online training,
simulated/scenario learning, interactive learning
Evaluate training effectiveness: (reaction, learning,
behaviour change in job, results)
7 TRAINING & DEVELOPMENT (2)
Types of Training & Development:
OJT (on-the-job training)
Def: Learning a job while working on it
...

Apprenticeship

Orientation New Employees / Onboarding

Def: Train to become skilled workers
...




To have basic information to perform job - work
station, access card, employment handbook
...




Understanding expectation – Each organization has
its own set of rules & policies regarding areas such
as dress, attendance, conduct & the orientation
should make it clear what is & isn’t acceptable
...
Each step shows how it is done and
why (key points)
e
...


Lectures & Audio-visual / Live Online / Delayed
Seminar
These can be delivered in combination:
Lectures - quick and simple verbal way to present
knowledge to large no of people

Team Training
Def: Team-building program
...

Areas trained:


Audio-visuals - DVDs, film, PowerPoint - simulate
problems/customer complaints & reaction



Online / delayed seminar - distant training



Programmed Learning / Programmed Instruction

technical - cross training/multiskilling: job
flexibility
interpersonal - listening, handling conflict,
negotiating
issue management - problem solving, decision
making & leadership
Management Development Program

Def: Step-by-step self-learning method
Medium: textbook, pc-based, internet-based

Def: Training to improve current & future performance
...




Action learning : analyse and solve actual problems
(groups)

Purpose:

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Case Study: written organization problem

‒

when too costly or dangerous to train on the job
 uses : firefighting etc

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Management Games: make realistic decisions in
simulated situations

Electronic Performance Support System

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Role Play: trainees assume roles in simulated
situations

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Behaviour Modelling: show right model, practice
and provide feedback and on job application

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Leadership Development

Def: Computerized tools and displays that automate
training, recording and telephone support
...

Purpose: effective when paired with supervised actual
work
Virtual reality training: simulated work environment
(race car driver, fighter pilot)

8 PERFORMANCE APPRAISAL (1)

9 PERFORMANCE APPRAISAL (2)

Performance Appraisal

Appraisal Methods

Def: Evaluating an employee’s past/current
performance based on performance standards

Design of actual appraisal tool based on:


Reasons for performance appraisal:
•

Basis for compensation / rewards – Can be used to
compensate employees by increasing their pay &
other incentives
...


•

Identify training & development needs – Can be
used to find out whether an employee requires
additional training & development
...


Set work standards

What performance dimensions to measure (eg
quality, timeliness, specific goals or KPI)
How to measure them (appraisal tools or methods)
Transparency
Fairness

Communication
Organization know-how
Personal effectiveness
Teamwork
Achieving results
Measurement:
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Below expectation (even with guidance, fails)
Meets expectations (with guides able to)
Role model (independent & hardly needs guidance)

Starting point: Overall company goals (develop new
product, increase in sales, increase in profits, increase
market share etc)

Adaptation:

Decide what to measure

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Used for actual KPI tied to organization goals (use
not strong to average to very strong)
Job competencies (quality, problem solving,
planning, interpersonal skills etc)

Set SMART goals for each employee: Specific,
Measurable, Achievable, Relevant, Timely
2
...


Provide feedback (strengths & weaknesses)

Continuous feedback ideal
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What doing wrong
What doing right
Align efforts to job standards
Align efforts to achieve KPI (Key performance
indicator)
Address performance problem immediately
Objective compensation/rewards & promotions

Alternation Ranking
Ranking employees from best to worst on selected
dimension using list
...

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Pair & compare every subordinate with each other
( rating + or -)
Use table with column: employee rated & row: as
compared to
Add up the pluses to get most highly ranked
employee
Forced Distribution

Similar to grading on a curve as used by GE for
managers
...

Every 6 months review them with employees

Graphic
Rating
Scale

provides way to eliminate deficiencies
May not be useful for comparing employees or salary
decisions

Alternation
Ranking

Strength
 Less time
consuming
 If well
defined fair
&
transparent
 Fast

Supervisor provides a written narration on following:
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Areas that meet job standards
Areas that need improvement in next 6 months
Factors beyond employees control
Strengths demonstrated
Finally suggestion on what supervisor and
employee can do in the next 6 months

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Used as a basis for employee rating
Narrative Form

Weakness
‒ May change
standards
(meet
expectation)

Paired
Comparison


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Forced
Distribution
/ Ranking



Critical
Incident



Narrative
Form
BARS



Create
competition
Easy to
compare

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Behavioural Anchored Rating Scale (BARS)
Fair & transparent appraisal tool provided following
steps used to develop it:
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Write critical incidents of effective & ineffective
performance for each dimension
Develop behavioural based performance
dimensions ( 3-5 point scale )

Bars for product knowledge: 1: poor knowledge of all
products, 2: average knowledge of some products, 3:
average knowledge of all products, 4: strong knowledge
of some products 5: strong knowledge of all products
Management by Objectives
Used to supplement other rating methods
...

Implication:
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Behaviour that leads to rewards tends to be
repeated
Behaviour can be changed by providing scheduled
rewards (punishment)

11 REWARDS (2)
Establishing Pay Rates: Types
Frederick Hertzberg’s Motivators
Hygiene factors (lower level needs: pay/incentives
& working conditions) : extrinsic motivator
Motivators (higher level needs : challenging work,
accomplishment & recognition): intrinsic motivator
Implication:
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Relying only on financial incentive risky
People desire recognition and challenging work
Edward Deci ’s Demotivators

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Piecework plan
Merit /Incentive plan
Professional Incentive plan
Non-Financial Recognition Awards
Sales incentive plan
Manager/Executive Incentive Plan
Short term incentive & annual bonus plan
Long Term Incentive plan
Team/Organization incentive plan
Others: Profit/gain sharing & Employee Stock
options

Establishing Pay Rates: Piecework Plan

Extrinsic rewards can demotivate highly motivated
employees
...
plan

Implication:

Piece rate payment for each unit produced
...


Stock options: right to purchase specific number of
shares at a specific price during a specific period

Differentiate superior performance from normal ones
...


•

Merit pay options: salary increase, short term
bonus, tied to individual & organisation
performance

•

EPR: Professional Incentive Plan
Professionals: those who apply learnt knowledge
to solve problems (doctors, economist, engineers,
systems analyst)
Plan: higher pay with advanced technical skills
Usually well paid and produce high calibre work
Dual career ladder (professional path vs managerial
path)

Issues: reward even for poor performance, scandal
(manipulating dates receive options), risk taking
behaviour to maximise returns

Other plans: performance contingent restricted stock,
time-based restricted stock options (5 years B4
exercising)
EPR: Team / Organization Incentive Plan
Payment based on team performance
Reward tied to achieving overall standard of group
performance
•

Ex: monthly production goal exceeded share 5% of
marginal profit

Fosters collaboration
•

Issue : ‘free-rider’

EPR: Non-Financial Recognition Rewards

EPR: Other Plans

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Profit sharing: Share of annual profits

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Employee of month
Social recognition: praise, approval, appreciation
for job well done
No sick leave award
Wellness award
Years of service
Group/individual travel award

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current profit sharing (same year)
deferred profit sharing (on retirement)

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Gain sharing : to achieve productivity objectives
especially cost savings/productivity increase

EPR: Sales Incentive Plan

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% gains (cost savings, profit increase) is shared
equally for team/ individual



Employee Stock options : stocks provided to
employees (discount rate) and kept until retirement

‒

Fixed Salary (with bonus)
Commission plan: payment on results only
 Issues: neglect servicing, focus on sales &
not cultivating customers, high in boom,
low recession
Combination (70% base & 30% incentive for
example)

EPR: Manager / Executive Incentive Plan
Top management: base salary, short (cash) & long term
incentives (stock options) and perks
Incentives tied to strategic goals / profitability of
company
EPR: Short-term Incentive & Annual Bonus Plan
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Trend towards short term incentives
Factors affecting incentives:
Eligibility: all employees contribute to performance
based on salary grade/band
Fund Size: usually financial results/profits
Individual performance
Formula: based on performance rating: excellent,
good & average

12 EMPLOYEE RELATIONS

Ethics, Justice & Fair Treatment

Union & The Law: Why Form Unions

Ethics: standards used to decide what work conduct
should be (e
...


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Distrust that management will consider the impact
of strategic decisions on employees
...

Organizational justice:
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Role of Unions
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union security (automatic membership or nonmember but pay union dues)
improved wages
improved hours of work
improved benefits

Legal Rights of Union
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‒ Legal rights of employees
Cannot be prevented from joining union
Cannot bribe, use spies, black list sympathizers to
weaken union
Cannot discriminate union leaders
Cannot refuse to bargain collectively with union
‒ Legal rights of organization/ management
Right to express views on union actions to
company
Bring disagreement to industrial relations
department for mediation (Malaysia)
If mediation fail, take it to industrial court
(Malaysia)
Apply for Court injunction restraining strike
Manage the way business is run as long as in
accordance with laws (HSE Act Consumer
Protection Act etc as in Malaysia)

Forces Shaping Ethical Decisions
Employee personal traits: for personal gain
Company pressure: during financial difficulties to
save company
Boss/superior pressure: do whatever needed to
achieve results
Policies /Code of conduct tested against: is it legal? is
it right?, does it fit our values? How do we feel
afterwards? will it reflect poorly on company? how will
it look in newspapers?
Organization Culture: values, tradition and behaviours
of managers generally
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Process to escalate unhappiness/dissatisfaction
•
•
•
•

Definition:

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Reps of union and management meet to negotiate a
labour/collective agreement
Has to be endorsed by Industrial Court (Malaysia)

Collective agreement content:
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wages
hours of work
new productivity initiatives
revision of existing terms and conditions
questions arising from its execution etc

Good faith bargaining
•

proposals are matched with counter proposals with
firm data supporting them where

Mandatory bargaining items: pay, hours of work
...
Offer the opportunity
to move within the company to jobs that may fit their
skills & interests better
...


Layoffs: take time off & return when economy
improves
Downsizing: permanent dismissal of large no to
improve productivity/competitiveness
...
Termination
compensation (based on years of service)
...

Labour unions play a role in productivity – If
employees are happy, if they are well represented and if
their welfare is looked after, then they would perform
better
...

Unions have the power to negotiate better wages and
benefits - Which otherwise would be elusive for the
workers
...

Unions ensure that there is no discrimination – Be it
on gender, race, religion or any other grounds
...

Cons:
Unions can often be expensive - They may have a high
membership fee and they may demand a certain budget
from the company
...

Consistent demands or unjust demands of unions
have often led to businesses going kaput – If unions
are not pragmatic, then the business is doomed
...
Only some people who are within that
inner circle may get most of the perks while normal
workers may not get benefited at all or equally
benefited
...
When
management doesn’t update the employees on financial
& business state of company & when rumours can be
counted by the minute, turnover goes up & productivity
goes down
...

Provide skills & opportunity – Getting ppl into degree
/ certificate programs is almost a guarantee that they
will remain with your firm until they complete the
program
...
All will be
better-educated & hopefully more productive
...
Start clubs & social
groups within company so that people can work and
play together

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