Human Resource Management

1. Human Resource Management Human Resource Management (HRM)– all the activities involved in acquiring, maintaining and developing an organization’s human resources. Previously called Personnel Management and/or Staffing

2. HRD Societies • ASHRM – Arabian Society for Human Resource Development (Saudi Arabia) • BSTD – Bahrain Society for Training and Development • BMS – Bahrain Management Society • IFTDO – International Federation of Training and Development Organizations (US)

3. HRM Activities • Acquisition includes planning and various activities that lead to hiring new personnel which may include: • HR Planning– determining the firm’s needs • Job Analysis– determining the exact nature of the jobs to be filled • Recruiting– attracting people to apply for positions in the firm • Selection– choosing and hiring the most qualified applicants • Orientation– introducing new employees to the firm

4. HRM Activities. . . (continued) • Maintenance activities consist primarily of encouraging employees to remain with the firm and to work effectively by using a variety of HRM programs which may include: • Employee Relations– increasing job satisfaction • Compensation– rewarding employee effort through monetary payments • Benefits– providing rewards to ensure employees’ well-being

5. HRM Activities. . . (continued) • Development is concerned with improving employees’ skills and expanding their capabilities and may include: • Training and Development– teaching employees new skills, new jobs and more effective ways of doing their current jobs. • Performance Appraisal– assessing employees’ current and potential performance levels.

6. Responsibility for HRM • In small firms, handled by owner • When firm grows, HR manager is appointed. • In general, HRM is a shared responsibility between line managers and HRM specialists. • Planning and job analysis – HR specialists with line managers • Recruiting and selection – HR specialists with line managers helping in the final hiring decision

7. Responsibility for HRM. . .(continued) • Orientation – HR specialists devise program and line managers carry it out • Compensation and Benefits – designed and administered by HR specialists, but line managers make recommendations for pay increases and promotions • Training and Development – HR staff and line managers • Performance Appraisals – HR staff design appraisal system and line managers carry it out

8. Human Resource Planning Human Resource Planning is the development of strategies to meet a firm’s future human resource needs. • Forecast the future HR demand for the firm – use the overall strategic plan for guidance • Forecast if the needed HR’s will be available • Match supply with demand

9. Human Resource Planning. . .(continued) Forecasting HR Demand: • Overall strategic plan will provide information about future business ventures, new products, projected expansions and contractions of product lines. • Info on past staffing levels, evolving technologies, industry staffing practices, and projected economic trends. • Increase and decrease in proportion to sales revenue. • Computer-based models are available. • HR Specialists use all of this info to project the number of employees needed and their qualifications (experience, knowledge and skills).

10. Human Resource Planning. . .(continued) Forecasting HR Supply: • Must examine present work force and allow for promotions, retirements and exits. • Must examine present work force to determine who may be retrained to perform required jobs. (need 200 faculty by 2010; have 100 employed) • Replacement Chart– a list of key personnel and their possible replacements. • Skills Inventory– a computerized data bank containing information on skills and experiences of all present employees. (Knowledge Management)

11. Human Resource Planning. . .(continued) Matching Supply with Demand: • Demand greater than Supply– must recruit new employees. Action depends on position to be filled – senior positions sooner • Demand lower than Supply– must reduce work force size by some method: • Lay offs – used when oversupply is temporary • Attrition – employees who retire, die or move to another firm are not replaced • Early retirement – encourage employees to leave at earlier age at full benefits • Firing – final solution, very negative effects on firm

12. Job Analysis Job Analysis is a systematic procedure for studying jobs to determine their various elements and requirements. • Job Description is a list of elements that make up a particular job. • Job Specification is a list of the qualifications required to perform a particular job. Job Analysis is the basis for recruiting and selecting employees for existing or new jobs and is used to prepare job evaluation forms and to determine compensation levels.

13. Recruiting, Selection & Orientation Recruiting is the process of attracting qualified job applicants. • Attract the ‘right number’ of applicants • External Recruiting– attracting job applicants from outside the firm • Internet (Monster.com, bayt.com, HotJobs.com, CollegeGrad.com, CareerBuilder.com, Dice.com, AfterCollege.com, TheLadders.com) • Newspapers, private and public employment agencies, college campuses, recommendation of present employee, conducting open houses, etc.

14. Recruiting, Selection & Orientation (continued) • Internal Recruiting is the practice of considering present employees for available positions. • Job Posting– informing current employees of job openings • Good way to retain quality employees • Primary disadvantage is two employees to be retrained and still cost of recruiting for the open position • Sometimes impossible to recruit internally due to nature of job

15. Recruiting, Selection & Orientation(continued) • Selection is the process of gathering information about applications for a position and then using that information to choose the most appropriate applicant. • Information is collected through: • Employment application (resume) • Employment tests (aptitudes, skills, abilities, knowledge, basic IT skills) • Interview– (structured interview format for comparison) • References – personal and professional

16. Recruiting, Selection & Orientation(continued) • Orientation is the process of acquainting new employees with the organization. • Make employees familiar with the simple items such as where is the cafeteria to more complicated issues such a the promotion ladder, etc. • Can be a ½-hour informal program or may run for 2-3 days depending on the company.