MANAGEMENT

1. MANAGEMENT

2. What is HRM all about? – 15. • Each company needs the combination of the following 3 factors to operate: • M1-Money • M2-Man • M3-Manufacturing Common features of these factors: • a certain level of capacity and efficiency, • they are available in the market, • the price is determined by the relation of supply/demand

3. What is HRM all about? – 15. Special features of M2: • Does not run out: permanent resource • Not storable: the capacity which is not used within a certain time frame is lost! It can’t be reserved for next time! • Innovative: always able to renew, creates new solutions • Makes decisions: resigns from position • Is not owned by the company: although it is not part of the equity, it can increase the value of the company (capacity, performance )

4. What is HRM all about? – 15. 2. Definition: Human resource management is the function performed in organizations that facilitate the most effective use of people (employees) to achieve organizational and individual goals.

5. What is HRM all about? – 15. 3. The Diagnostic Model for HRM This model in HRM is a framework that can be used to help managers focus on a set of relevant factors. There are 3 main factors included in the model: • people; • the internal and external environment; and • the organization itself.

6. What is HRM all about? – 15. External Environmental forces Economic Conditions - Composition of the labor force - Government requirements and regulations - The union External Environmental influences Economic Conditions The labor market Government requirements and regulations The union External Environmental forces Economic Conditions Composition of the labor force Government requirements and regulations The union Human Resource Management Program HRM Activities People Results Planning Employees Job analysis - Abilities Staff Recruitment and selection - Motivations Performance Performance evaluation Career planning and development keep the Benefits and services Scope of activities employee Attendance Discipline - Requirements Satisfaction Labor relations - Compensation Others Internal Environmental influences Organizational procedures Rules of organization Strategy Work group

7. What is HRM all about? – 15. • Results : can be influenced by the HRMactivities. A significant reason for the eventual success of any HRM activity is that the organization’s employees are the best qualified and are performing jobs that suit their needs, skills, and abilities. Having the right staff meansthe future of the company. The goal is to make the staff think, feel and behave positively toward work and the place of work. Satisfaction. Good reputation makes the company easier to recruit new employees.

8. What is HRM all about? – 15. There are other factors which could be important for the organization, such as: safety and health, stress handling, etc. By studying the diagnostic model you should see that in order to work effectively, a number of HRM activities must be efficiently practiced. E.g.: to encourage individuals to use their abilities: it may not be sufficient to only have a properly analyzed job. A sound performance evaluation, equitable benefits and services, and an attractive work schedule may also be needed.

9. What is HRM all about? – 15. HRM activities are all related to each other and have a combined effect on people. The objectives of the HRM functions must be accomplished in order for the organization to remain competitive and to survive in the environment. • Employees – Scope of activities: the basic function of the HRM activity is to create harmony between employees and scope of activities.

10. What is HRM all about? – 15. Some differences between employee performance affecting HRM programs are due to the differences in abilities (mechanical, motor coordination, mental or creative skills) and motivation toward work and the place of work (working hard, being on time). Generally it is said that the performance of an organization is brought about by the abilities and motivation of the employees. Each position has general requirements eg.: level of education, and special requirements like experience on a special field. Requirements need to be rewarded with competitive salary and other benefits, that motivate the employee.

11. What is HRM all about? – 15. • HRM Activities -Planning: Two steps: 1. To make a forecast, based on the company’s business strategy needs, about the quantity and quality of the human resources 2. After the environmental forecast, define the right tasks -Job analysis: The process of defining a job in terms of tasks or behaviors and specifying the education, training, and responsibilities needed to perform the task successfully

12. What is HRM all about? – 15. -Recruitment and selection: The goal is to find the right person for the right task. Sources of recruits: two sources of applicants can be used: internal ( present employees), and external (those not presently affiliated with the organization). External recruitment methods: tests, interviews. -Performance evaluation is a system set up by the organization to regularly and systematically evaluate employee performance.

13. What is HRM all about? – 15. • Career planning and development: internal and external trainings help the employees to reach their dream positions • Benefits and services are a part of the rewards of employment that reinforce loyal service to the employer. Major benefits and service programs include payment for time not worked, insurance, pension funds and services

14. What is HRM all about? – 15. • Labor relations: the continuous relationship between a defined group of employees (represented by a union or association) and an employer. The relationship includes the negotiation of a written contract concerning payment, working hours and other conditions of employment.

15. What is HRM all about? – 15. • Internal environmental influences: involve characteristics and factors that are found within the organization. • Organizational procedures: how the company will change its activities / the human resources / training • Rules of organization: organizational structures (centralized, decentralized) coordination of the human resources and the scope of activities

16. What is HRM all about? – 15. • Strategy: indicates what an organization’s key executives hope to accomplish in the long run. (Human strategy!) • Work group: labor relations - External environmental influences: involve characteristics and factors that are found external to the organization. • Economic Conditions: the general procedures of macro economy influence the financial stability of the micro organizations. Also influence the human resources policy.

17. What is HRM all about? – 15. ( good economical conditions more benefits for the employees, poor economical conditions no benefits for the employees) • The labor market: the supply and demand situations influence the HRM activities. • Government requirements and regulations: the government regulates and influences some aspects of personnel more directly than others (employees’ and employers’ rights). Hungary: Code of Labour.

18. What is HRM all about? – 15. • The union: the presence of a union affects most aspects of HRM- recruiting, selection, performance evaluation, promotion, compensation, and benefits among others.

19. Job Analysis and Design – 16. • The goal, the methods and the results of the job analysis 1. a. Definitions • Job: the basic element of an organization. In a narrow sense: consists of duties performed by an individual In a broad sense: /out of duties/ responsibilities, relations, the place of work and the policy

20. Job Analysis and Design – 16. • Job analysis: the process of defining a job in terms of tasks or behaviors and specifying the education, training, and responsibilities needed to perform the job successfully. The job analysis process /6/: • Examine the total organization and the fit of each job • Determine how job analysis information will be used

21. Job Analysis and Design – 16. 3. Select jobs to be analyzed 4. Collect data by using acceptable job analysis techniques 5. Prepare job description 6. Prepare job specification

22. Job Analysis and Design – 16. 1.b. Job analysis: methods of data collection: 2 main groups: • Observation: direct ~ is used for job that require manual, standardized, and short-job cycle activities. The job analyst must observe a representative sample of individuals performing these jobs • Functional job analysis - based on observation - focuses on the purpose of the job and the tasks within the organization

23. Job Analysis and Design – 16. - jobs are concerned with data, people and things (quantitatively rated!) - mental resources are used to describe data; interpersonal resources are used with people; physical resources are applied to people • Workday analysis - based on observation – but not constantly - sampling method - focuses on the workflow, and its elements - similar to the task inventory, - professional analyst needed!

24. Job Analysis and Design – 16. II. • Job Incumbent Diary/Log - it’s a recording by job incumbents of job duties, frequency of the duties and when the duties were accomplished - this technique requires the job incumbent to keep a diary/log on a daily basis - comparisons on a daily, weekly or monthly basis can be made

25. Job Analysis and Design – 16. • the diary/log is useful when attempting to analyze jobs that are difficult to observe, such as those performed by engineers, scientists and senior executives • Questionnaires: - the least costly method for collecting information

26. Job Analysis and Design – 16. • It is an effective way to collect a large amount of information in a short period of time • It includes specific, mainly standardized, questions about the job, job requirements, working conditions and equipment • The ~ should be short and simple • Explain what the ~ is being used for • Test the ~ before using it • Disadvantage: no time for customized questions, the result can be false

27. Job Analysis and Design – 16. • Task inventory: a coordinated and aggregated series of work elements to produce an output • It is easy to prepare, if we have a good questionnaire • Fast evaluation – by computers • Results can be used: job evaluation, training plans • Disadvantage: takes a long time to make an inventory about the tasks

28. Job Analysis and Design – 16. • Interview - the most widely used job analysis data collection technique - they permit the job analyst to talk face to face with job incumbents - the job incumbent can ask questions of the job analyst : feedback! - usually a structured set of questions will be used in interviews - major problem: inaccurate information may be collected

29. Job Analysis and Design – 16. 2. Job design Def.: ~ is the procedure that identifies the tasks and functions of the job Methods • Specialization: complex work procedures can be divided into small parts, that do not require specialized knowledge and can be easily described -Problems: high fluctuation, dissatisfaction at the workplace (monotonity!)

30. Job Analysis and Design – 16. • Job Enlargement: a group of two or more jobs that have similar job duties - reverse of the specialization - tried to reduce monotonity – was not successful • Rotation: within certain timeframes the employee has to change his/her job • reduce monotonity, BUT! • do not increase efficiency

31. Job Analysis and Design – 16. • Job Enrichment: a method of designing a job so that employees can satisfy needs while performing the job Key job core dimensions: • Skill variety • Task identity • Task significance • Autonomy • Feedback

32. Job Analysis and Design – 16. 3. Job evaluation’s methods Def.: ~ is the formal process by which the relative worth of various jobs in the organization is determined for pay purposes. 3.1. Global comparison methods • Ranking: the system used primarily in smaller, simpler organizations. Instead of analyzing the full complexity of jobs by evaluating part jobs, the job-ranking method has the evaluator rank order whole jobs from the simplest to the most challenging

33. Job Analysis and Design – 16. • Classification: classification or grading system groups a set of jobs together into a grade classification. Then these sets of jobs are ranked in levels of difficulty or sophistication 3.2. Factor comparison methods • Point system: it is the most frequently used because it is more sophisticated than ranking and classification systems, but it is relatively easy to use. The point system requires evaluators to quantify the value of the elements of a job.

34. Job Analysis and Design – 16. On the basis of the job descriptions or interviews with job occupants, points are assigned to the degree of various compensable factors. An advantage of the point system is that it can be easily interpreted and explained to the employees. On the other hand, it is time-consuming process to develop a point system. • Factor comparison: it permits the job evaluation process to be done on a factor by factor basis. It is differs from the point method in that jobs are evaluated or compared against a ”benchmark” of key points.

35. Job Analysis and Design – 16. Five universal job factors used to compare jobs are: • Responsibilities – the money, human resource, records and supervisor responsibilities of the job • Skills • Physical efforts – sitting, standing, lifting, etc. • Mental efforts – the intelligence, problem solving, reasoning, etc. • Working conditions – the environmental factors such as noise, ventilation, hours, heat, etc.

36. Job Analysis and Design – 16. The results of the 4 job evaluation methods can be used at the HRM activities such as: planning, career planning, benefits and service programs.

37. Human Resource Planning– 17. • Strategy and policy within the framework for management action Mission: What is the organization for? Where is it going? It is general and visionary. Strategy: The overriding mission is then continuously implemented by developing a programme of initiatives to define and achieve the organization’s objectives Policy: The overall mission and strategy are guided by a series of policies to channel decision and action, shaping the organization and providing the direction that is needed

38. Human Resource Planning– 17. Procedures: procedures are more familiar to personnel managers than to most management specialists as they form the substance of much employee relations activity, but in our action framework they have the more general meaning of being the drills that implement the policy, so that a policy decision to advertise all vacancies within the organization before external advertising begins is implemented by a procedure to specify who does what, in what order, when and with what authorization, or other trigger to action

39. Human Resource Planning– 17. Planning: Strategy, policy and procedures can all be coordinated and moved into action by planning. Not only does each stage benefit from planning, but a planning approach can ensure that all three are thought through and put into operation together Practice: The final element is what actually happens. No organization has a procedure for everything, and no procedure is so comprehensive as to rule out the need for interpretation and judgment.

40. Human Resource Planning– 17. Practice is a mixture of implemented procedures , ad hoc decisions, reaction to policy and the ebb and flow of interaction between the organization and its environment. The effectiveness of a policy can only be determined by the practice that ensues.

41. Human Resource Planning– 17. Policy Procedures Strategy Mission Practice Planning

42. Human Resource Planning– 17. • What is human resource strategy? : A part of the organizational strategy. Human resource strategy involves a central philosophy of the way that people in the organization are managed and the translation of this into personnel policies and practices. • Elements: 1. Putting together the goals of human resource strategy ( quantity-quality needs) 2. Working out the action plans

43. Human Resource Planning– 17. 3. Defining the activities (replacement, career planning, trainings) which are needed for the chosen strategy, and the way of the controlling methods • Human policy: is a framework within which other people operate using their own discretion and making their own decision. Human policy is declared! Why managers try to use statements? 1. Clarification 2. Reducing dependence on individuals 3. Producing consistent management behaviour

44. Human Resource Planning– 17. 4. Knowing where we stand 5. Responding to legal and other external pressure As a policy is as good as the practice it produces! To develop human strategy the methods of business strategy is used. Eg.: brainstorming, patterning, SWOT, STEP analyses

45. Human Resource Planning– 17. The content of the strategical human resource planning Strategic management decisions Strategic HR decisions HR planning

46. Human Resource Planning– 17. 2. a. Types of staff number requirements If adequate or shortage If surplus • Basic staff number requirement - Layoff • Reserve staff number requirement - Retirement -------------------------------------------- Total staff number requirement - Shortage: overtime, recruitment

47. Human Resource Planning– 17. 2.b Influencing factors 1. Task Identification: the complexity of the job structure; type of service or product; scheduling of the tasks, contribution proportions. 2. Work process: the level of the practice (routine), cooperation with other systems 3. Technology: machines, tools 4. The person: qualification, performance of the coworkers, job specification 5. The environment: company’s targets, rules, development tendencies, worktime

48. Human Resource Planning– 17. 3. Employment forecasting techniques • Determining techniques: employees have to accomplish certain tasks within a certain time frame 1.a. Analytic requirements determination - Index number technique: we match the volume of the tasks to the time needed for execution (objective) - Workplace technique: it is not dependant of the volume of the tasks; set plan for scope of activities

49. Human Resource Planning– 17. 1.b. Summing requirements determination - Plan for scope of activities: civil service area: set plan for scope of activities for different periods of time

50. Human Resource Planning– 17. 2. Stochastical techniques: based on a mathematical procedure in which predictions of the dependent variables are made through knowledge factors known as independent variables. Results must always be completed by forecasts! Types: - Regression analysis,- Correlation analysis, - Exponential finishing Problems: past staff number records are often incorrectly regarded as number requirement dataChanges in production are often mistaken for changes in work volumeThe method requires too many figures from the past years