Professional Documents
Culture Documents
Chen, Qiqi
Submitted to:
Prof. Arthur C. Tria
I. Definition of Terms
II. Readings
Recruitment
Sources of Applicants
Selection
Compensating
III. References
Definition of Terms
Human resource management - is the process of hiring and developing employees so that they
become more valuable to the organization. It also refers to the productive use of people that is
strategic and coherent in a version of management.
Human resource planning -is the process of ensuring that the management is using its most
valuable assets efficiently to attain its organizational objectives.
Sources of Applicant - The searching for suitable candidates and informing them about the
openings in the enterprise is the most important aspect of recruitment process.
Selection- The process of selection should be efficient as possible for the company is defined by the
employees that work in it
Training & Development- the field wherein it concerns itself with the organizational activities that are
aimed to improve the performance of individuals and groups in the organization
Development- focuses on the preparation needed for the future job or jobs that an individual may
potentially hold in the future and is evaluated against those jobs.
Human resource management (HRM) is the process of hiring and developing employees so that
they become more valuable to the organization. It also refers to the productive use of people that
is strategic and coherent in a version of management. Human resources, too, is an increasingly
broadening term that refers to the “human capital”. Due to people in an organization having
different values, aspirations, cultural and family background, education, attitude and temper; it
takes a lot of cleverness, skill and people sensitivity to manage this group of human beings. The
key is to be flexible and avoid implementing a “one size fits all” policies because different
people have different needs that the organization must respond to accordingly.
The main purpose of HRM is maximizing the productivity of an organization by sharpening its
employee’s effectiveness. As what Edward L. Gubman observed in the Journal of Business
Strategy, "the basic mission of human resources will always be to acquire, develop, and retain
talent; align the workforce with the business; and be an excellent contributor to the business.
Those three challenges will never change."
Human resource planning is the process of ensuring that the management is using its most
valuable assets efficiently to attain its organizational objectives. Under selective circumstances
there are changing conditions in a certain organization which is why with proper analysis this
ensures that the right people will be in the right job at the right time. HR planning is a definition
of maximum effort when it comes to man power management.
The overall human resources planning system should be well thought out, systematic and well
documented. The effectiveness of planning depends on the detail, accuracy and reliability of the
information sources. The process of human resource planning allows businesses of any size to
better understand the human resources available to them, determine what human resources they
will need, decide how to best use the human resources at their disposal, and develop a system to
ensure human resources’ needs are sufficiently covered. Both opportunities and problems that
can affect your HRM plan should be identified. Consider the business environment, upcoming
projects, potential drops in revenue, and anything else that may affect how many employees
you’ll need and be able to hire.
Analyzing Forecasting Planning Implementing
Analyzing
The first step in the planning process is to analyze the environmental factors that impact on your
firm’s labour demand. Analyzing the external business environment and its trends must be
understood by the planners to be able to pinpoint possible opportunities and threats to the
organization.
The thrust and direction of the firm must also be carefully thought out. The overall organization
direction and strategy impacts the demand for human resources.
Internal workforce must be analyzed. Strengths and skills of current employees, as well as their
weaknesses must be observed to help planners place each employee in a better position to
achieve their best and avoid problems that might arise when an employee is put into a position
for which he has no aptitude.
Identification of any internal management issues like retention, separation, promotion patterns,
potential area of the workplace that are vulnerable to current or future skill gaps may be factors
that implies for recruitment workforce across the organization.
Forecasting
Forecasting is considering the current and future needs of the organization. Look at the quantity
of employees you will need as well as the job functions they’ll have to perform. Finding a
concrete number is nearly impossible, but estimating projected human resource needs will help
you create a more effective HRM plan. Though forecasting can be subject to certain uncertainties
and inaccuracies this can be minimized by using some scientific methods.
One of the most useful outcomes of this phase is the identification of potential problems or issues
facing your organization. This analysis will be based on the data collected from the information
sources in the analyzing phase. The result of this phase will help to develop the gap analysis and
emergent strategies to manage the future. It involves the identification of any predicted changes
and/or developments that may result from demand and analysis. Business elements may have
varying issues identified based on needs of their organizations. The aim is to create necessary
resources/strategies to optimize the future position of organization.
Planning
Analyze the human resources you have available. Look at the strengths and skills of current
employees, as well as their weaknesses. This will help you to better place each employee in a
position to achieve their best and avoid problems that might arise when an employee is put into a
position for which he has no aptitude. Consider your business environment, space and company
culture as well to see how you can best use all of the available resources you have on hand.
Implementing
Create a plan to mesh the demand for human resources with the human resources you have
available. If the demand is greater than the supply, you’ll need to determine how to fill that gap
and find the additional resources you need. This may mean authorizing overtime hours, using
contract or temporary workers, or hiring new employees. If you have more employees than you
need, you’ll have to look for options to help you reduce the workforce in some way. This might
involve early retirements, layoffs or even terminations.
Recruitment
Stages of Recruitment
Identify Vacancy
Prepare Job Description and person Specification
Advertise
Managing the Response
Short-listing
Arrange Interviews
Conduct the Interviews
Conduct The Interview
Reference/Background Checks
Convey The Decision
Offer
Appointment Action
Identify Vacancy
A job description describes the major areas of an employee's job or position. A good job description
begins with a careful analysis of the important facts about a job, such as the individual tasks involved, the
methods used to complete the tasks, the purpose and responsibilities of the job, the relationship of the job to
other jobs, and the qualifications needed for the job. Putting together the Person Specification enables the
employer to profile the ideal person to fill the job. It is important that the skills, experience and knowledge
included are absolutely relevant to the needs of the job.
Key areas:
Advertise
The size of the company, the importance of the position, the urgency, budgetary constraints, and
media announcement would differentiate the path of media announcement or advertising of vacant positions.
Most common means are through:
Bulletin boards
Word of mouth
Professional journals (PMAP’s People Magazine, etc.)
Employment agencies, head hunters
Campus recruitment
Website job market
Job fairs
Newspaper advertisements
Summer cadre training
Managing Response
Announcements of vacancies through bulletin boards or by word of mouth are the easiest means of
inviting interested parties. You should specify both job and person description for the job in order to
discourage those whom are not qualified to apply.
Short-listing
Discarding those who aren’t qualified and those who doesn’t meet the basic requirements should not
take-up most of your time. After short-listing, it may be the appropriate time to do reference and background
checks. You may still be able to lessen the list by casting aside those who had negative results in the reference
and background check.
Arrange Interviews
Once applicants have been screened and individuals to be considered are identified, interviews should
be arranged with those candidates. The following steps may be observed:
References/Background Checks
Reference and background checks should only be made for Candidates who have advanced to the
finalist stage and who are under serious consideration for the job. The company must inform the candidates of
intention to conduct reference and background check; this will protect the organization from later charges of
invasion of their privacy.
Offer to Hire
Once the candidate is chosen, the job will be offered to him. Important issues that should
be addressed in the job offer are:
Sources of Applicant
The searching for suitable candidates and informing them about the openings in the
enterprise is the most important aspect of recruitment process. In order to lead the market,
organization must have competent, experienced and dedicated employees. For this, human
resource management should conduct at least two important functions as getting right man at
right job and improving skills and competencies of employees. Basically, there are two important
sources of recruitment namely internal source and external source.
Promotion
Promotion is the vertical advancement or up gradation in organizational
hierarchy. This is one of the most valuable rewards to the most capable
employees. Succession planning prepares suitable employees for the
higher order responsibility with higher order authority. From among the
employees working in the organization, higher post can be fulfilled.
Promotion becomes source of motivation of employees.
.
Job rotation
Under job rotation, employees are shifted from one job responsibility to
another responsibility. For example, employees working marketing
department will be transfer to human resource department. If the
employees require developing overall skills, job rotation becomes fruitful.
Employee referrals
Under this source, supervisors nominate best performer for the post. This
method of nomination of one employee from another department is called
employee referral. This method is different than job rotation in the sense
that in job rotation employee get shift from one depart to another at certain
interval but in employee referral, only recommended employee will be
transferred.
Rehire
Employees who have left the organization at past can be another source of
recruitment. Because of downsizing of organization, re-engineering of
organization or compulsory retirement some employee need to leave
organization temporarily or permanently. Such employees become
familiar with organizational structure, style, culture and system. They
possess required skills and experience. So, rehiring becomes more
appropriate source of recruitment.
Human resource inventory
Human resource inventory is the summary record of skills, experience,
qualification and number of employees currently and previously working
in the organization. This report provides the information regarding the
surplus, deficit or balance of skills or qualifications. This serves as
important document for human resource planning.
b. External Searches
Group of potential candidates available out of organization is the external source of
recruitment. For the lower level entry or level employees, candidates are recruited from
external sources. Application forms are invited to fulfil the posts through different media
like newspapers, journal, websites, or educational institutions. Some important sources of
recruitment are described as below:
Employment exchange:
Government run employment exchange agencies can be a good source of
recruitment. Such agencies maintain database of vacancies from
employers and potential candidates. Such agencies provide the
information of genuine candidates to organization. Organizations can
precede recruitment process with information provided by such agencies.
Education institutions:
Educational institutions like universities, colleges or training institutions
providing skills oriented education. Organization visits to the concerned
person of those institutions and ask the genuine students fit for the post.
Internee of different educational programme is the good source of
recruitment.
Professional associations:
Professional associations of various professionals like engineers, doctors,
managers, lawyers, accounts, etc. can provide potential candidates for
organizations. Such associations work for improving skills and
maintaining uniformity at work output and procedure.
Trade unions:
Employees of organization establish their union for their welfare. Trade
unions influence to the management in different ways like in
compensation management, employee recruitment and selection.
HR agencies:
HR agencies are the organizations that provide training, and work for
recruitment and selection of employees for organizations. They collect
information of potential candidates through different ways like manual
forms or forms in websites. Such organizations facilitate organizations by
providing information of suitable candidates for recruitment and
organizations conduct selection process. And they sometimes provide
employees after conducting selection procedure by themselves.
SELECTION
Recruitment is a function of attracting the best possible candidate to fill up a vacant position and
the hardest part of this is selecting among the best. The process of selection should be efficient as
possible for the company is defined by the employees that work in it. Businesses that are
constantly successful have leaders that focus intensely and relentlessly on people selection. Next
to planning, Workforce is the most important factor when it comes to business therefore it must
be given proper attention and guidance.
As a prerequisite in choosing the right people for the right job, one must have precise ideas about
what the job requires and what kind of people do you expect to hire. The selection process covers
the following:
Screening applications and resumes
Conducting testing of the applicants
Interviewing
Performing reference background
Deciding whether to hire
The application letter is the common starting point in the selection process. Inside the application
is the bio-data which entails to the applicants education history, career interest and goals though
those are the most common aspects of a bio-data it does not limit it to that alone and unless the
applicant is a fresh college graduate the resume includes work experience as well. The
Philippines also follow the pattern of western countries as they also ask questions about age,
gender, marital status, number of children, race and religion . Though they are essentially
considered as non-job related it gives the employer a good outlook of the applicant which may
help them weigh the pros and cons of hiring him/her.
There are several reasons in which why conducting tests should be considered with caution:
1. They are just one of the tools in the selection; they should not be the sole basis of
selecting the best candidate.
2. Some tests need to be validated by interview, reference and/or background checks
3. Some tests need interpretation by qualified psychometricians.
4. Ethics must be observed in the utilization of these tests
5. Some tests may be “culture bias”
Types of Tests:
o Ability Test- measure an individual’s ability, mental, or physical skills level. This is used
so that the employers may know how capable the applicant is “work-wise”.
o Aptitude Test- determines whether somebody is likely able to develop the skills required
for a specific kind of work. A company grows when their employees grow; therefore the
ability to learn is essential.
o Performance Test- determines how able is the applicant to actually perform the job that
he/she is applying for. This is show how fit the applicant is for the job.
o Personality Test- describes the aspects of a person’s character that she lives as and brings
to work as well. This is to ensure that the company is not hiring somebody that has a
personality disorder which can be manifested at work and create a dysfunctional
organization.
o Honesty or Integrity Tests- to show a person’s inclination to theft and disruptive
behaviour. used for fiduciary responsibilities.
THE INTERVIEW
This is the cornerstone of the selection process. Getting to know the applicant beyond the stacks
of papers he/she has answered and submitted. One must be trained to do an interview so that the
company will have properly examined and observed fresh hires.
1. To elicit information
2. To observe and record behaviour
3. To evaluate information received and behaviour observed
This is the field wherein it concerns it with the organizational activities that are aimed to improve
the performance of individuals and groups in the organization. The essence of training is to make
employees grow and perform better in the company. Though training and development sound
noticeably similar they have slightly different needs.
Development- focuses on the preparation needed for the future job or jobs that an individual may
potentially hold in the future and is evaluated against those jobs.
Both cases are needed in company growth and improvement and therefore they are necessary in
the changing times making industries competitive and challenging.
o Increase in …
Job satisfaction and morale
Employee motivation
Effectiveness in processes, resulting in financial gain
Capacity to adopt to new technologies and methods
Innovation in strategies and products
o Reduced employee turnover
o Enhanced company image (customer service training)
o Improved risk management and ethical behaviour in businesses
CAVEAT ON TRAINING
Training and development must not be seen as the answer to all the problems of the industry.
Some problems might be found in the systematic or physical resources in origin. If there is lack
of materials or equipment no matter how efficient your employees are the company will cease to
improve and rise above the ranks.
1. Training Needs Analysis (TNA) - this systematic assessment of the organization, the task
and the employees. The overall corporate strategy is the center point for the assessment
of the company’s training needs. The needs are explored within the context of the firm’s
goals and strategies.
Organization Analysis- what are the strategies and goals?
Task Analysis- in what do they need training?
Person Analysis- who needs training?
As mentioned, a company’s success relies on its employees and a large amount of these success
strivers are from the managerial side of the firm. The industry must not only retain them inside
the company as an asset but they must also develop them so that with their enhanced abilities the
firm may have a chance to be prominently competitive and unique. To reach this goal, the
management team is often encouraged to train in decision making, leadership, motivating
employees, communication and so on. On-the-job training is also important even if the managers
are often taught in a classroom setting. With the mix of physical and mental training managers
are likely to be able to broaden their knowledge, skills, competencies and abilities that will
rightly affect the firm’s progress.
Compensating
Compensation
- A systematic approach providing monetary value in exchange for work performed.
Compensation may achieve several purposes assisting in recruitment, job
performance, and job satisfaction.
Incentive Pay – is designed to encourage the employee to render extra effort over
normal production.
o Commissions
o Overtime Pay
o Stock Options
o Bonuses, Profit sharing, Merit Pay
There are various approaches in evaluating performance. The most common are the following:
1. Comparative Approach – it is an approach that consists of techniques that require the
rater to compare one individual against those other employees.
Ranking – The manager simply rank the employees from highest to the lowest or from
the best to the worst.
Forced distribution – Employee’s performance is ranked in groups. Companies usually
done this approach at the initial stage of their performance appraisal system to avoid
frequent change of ratings especially on the high side.
Paired Comparison – Also known as pair wise comparison, it is the process of
comparing entities in pairs to judge which of each pair is preferred or has a highest
performance. This method takes a lot of time for manager because of the number of
employees reporting to him.
Graphic rating scale – The rate with the provided list of traits with a number of different
points which he/she will simply place a check mark.
Mixed standard scale – It defines relevant performance standards dimensions, and then
develops statements representing good, average, poor performance along each dimension.
Use the scale of 5 (Poor, adequate, commendable, excellent, distinguished) or of 3 (High,
medium, low) employees are rated against these attributes.
Management by Objectives (MBO) – The term “MBO” was first popularized by Peter
Drucker in his book “The practice of management.” It is a process of agreeing upon
objectives within an organization so that management and employees agree to the
objectives and understand what they are in the organization. The focus is on the future
rather than on the past. Goals and standards are set for performance for the future with
periodic reviews and feedback.
Productivity Measurement and Evaluation System (PROMES) – Its main goal is to
motivate employees to higher levels of productivity. Productivity measurement is a
required management tool in evaluating and monitoring performance of a business
organization.