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Chapter -1 Human Resource Management

Human Resource Management is the process of acquiring, training, appraising and

compensating employees, and attending to their labor relations, health and safety, and

fairness concerns.

Global Village: A concept in which telecommunication and transportation

technologies have essentially reduced time and distance effects to produce a single

worldwide community.

Multinational Corporations (MNCs): Corporations with significant operations in

more than one country (i.e. Coca-Cola, Pepsi, Sony)

Global Leadership and Organizational Behavior Effectiveness (GLOBE)

Research: An ongoing cross-cultural investigation of leadership and national culture.

NINE (9) Dimensions of GLOBE:

1. Assertiveness: Society encourages people to be tough, assertive Vs. modest

Greece

2. Future Orientation: Society encourages and rewards future oriented behavior such as planning and investing Canada

3. Gender Differentiation: maximize gender role differences South Korea

4. Uncertainty Avoidance: Societys reliance on social norms and procedures toalleviate unpredictable of future event Denmark

5. Power Distance: power to be unequally shared Russia

6. Individualism: encourage individuals Germany Hitler

7. In-Group Collectivism: Society take pride in membership in small groups family,close friends China

8. Performance Orientation: Group performance U.S.

9. Human Orientation: Fair, Generous, Caring Malaysia

Knowledge Workers: Individuals whose jobs are designed around the acquisition

and application of information.- Professional worker, floor to clerical and technical

Technology: Any equipment tools or operating methods designed to make work

more efficient.

How Technology affects HRM Practices

Recruiting: Website Vs. newspaper advertising

Employee Selection: Web-based questions

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Training & Development: Online Materials/Online Video Conference Vs. to go

any training Center

Ethics and Employee Rights: Online survey

Motivating Knowledge Workers: Web checking stock prices

Paying Employees Market Values: Company Stock Market situation

Communication: mobile and internet Decentralization Work Sites: can work at home (technology)

Skill Levels: software or hardware manuals

A Legal Concern: sending emails to Authority for harassment/sexual or bias

Workforce Diversity: The varied personal characteristics that make workforce

heterogeneous Indian, Black , Disabilities, White people/ Asian-American-Hispanics

Work/Life Balance: Saturday to Thursday (8 to 9 Hours chunk ) . Friday or after

Office hour ??

Baby Boomers : Individuals born between 1946 and 1965 (U.S. Labor shortage )

Gen-Xers : Individuals born after 1965

Downsizing: An activity in an organization aimed at creating greater efficiency by

eliminating certain jobs.

Outsourcing: Sending work outside the organization to be done by individuals

not employed full-time in the organization. (Garments A to Garments B)

Contingent Workforce: The part time, temporary and contract workers used by

organization to fill peak staffing needs or perform work not done by core employees

Wedding program in winter period-Hotel staffs

Core employees: Full time employee

Quality Management / Continuous Improvement: constantly improving the

quality of products and services

Kaizen: The Japanese terms for an organizations commitment to continuous

improvement.

Components of Continuous Improvement

Intense focus on the customer: internal and external customers

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Concern for Continuous Improvement - commitment to improve

Improvements (Broad way) rapid response to complaints

Accurate Measurement- measure every critical variable

Empowerment finding and solving problems

Work Process Engineering: Radical, quantum change in an organization

Ethics: A set of rules of principles that defines right and wrong conduct

Three Views of Ethics:

1. Utilitarian View of Ethics: Practical view

2. Right View of Ethics: Freedom, privacy

3. Theory of Justice View of Ethics: General country law

Code of Ethics: A formal document that states an organizations primary values

and the ethical rules it expects organizational members to follow.

Chapter 2: Fundamental of HRM

Management Essentials

Management is the process of efficiently achieving organization objectives withand through people.

The Primary Functions of Management are:

1. Planning (establish goals and objectives)2. Organizing (determining what jobs are to be done, by whom,

where decisions are to be made and how to group

employees)3. Leading (ensuring that the right people are on the job with

appropriate skills and motivating them to high productivity

4. Controlling (monitoring activities to ensure goals are met

Importance of HRM in Organization

1. Focus on the Strategic Nature of HR

- Two primary responsibilities: a) assisting the organization for strategic decisions b)

Representing & advocating for the organizations employees

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- HRM must be forward thinking

- HRM is a function of every

managers job, not just those whowork in human resources (HR)

2. Four HRM Internal Functions

1. Staffing: Recruitment, Selection, HR Planning

2. Maintenance: Safety & Health, communication, employee relations3. Training and Development: Orientation, employee training, employee

development, career development

4. Motivation: Performance appraisals, rewards and compensation and

employee benefits3. Four External Functions

1. HRM Strategic Environment: globalization, technology, workforce

diversity, changing skills requirements, decentralize work-sites

2. Government Legislation: Employee retirement act, Equal pay act,Disabilities act, Health & Safety Act, Immigration Act, Medical leave act

3. Labor Union: Third-Party Representative-work for its members to securewages, hours and other terms & conditions of employment. Grievance

Procedure or a specified process for resolving conflicts between workers

and management

4. Management Thought: Current Management Thought and Practice

Management Thought Theories:1. Frederick Taylor (Scientific Management)-to enhance worker productivity

2. Hugo Munsterberg: training, performance evaluations and job efficiency

3. Mark Parker Follet: teamwork concept and group cohesiveness4. Elton Mayo (Hawthorne Studies) a series of studies that provided new insights

into group behavior

1) Staffing Function

Activities in HRM concerned seeking and hiring qualified employees The goal of recruiting is to give enough information about the job to attract a large

number of qualified applicants and simultaneously discourage the unqualified from

applying.

Job Analyzes on specific skills, knowledge and abilities Many companies use a variety of steps to assess the applicants

2) Training & Development Function

1. Employee Training: Acquiring better skills for their current-job

2. Employee Development: Necessary talent internally available for future3. Career Development: To provide necessary information and assessment

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4. Organization Developments: Change the attitude and values of employees

according to new strategic directions

3) The Motivation Function

Activities in HRM concerned with helping employees exert at high energy level A level of respect between management and workers

Two factors: Ability & Willingness to do job

Understand the implications of motivational theories (Exhibit 2-4, Page - 44)

Motivation Theory (Exhibit 2-4)

1. Adam Maslow

2. Douglas McGregor

3. Fredrick Herzberg

4. David McClelland5. Stacey Adams

6. Victor Vroom

1) Abraham Maslow's Hierarchy of Needs Motivational Model (1943):

1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep, etc.

2. Safety needs - protection from elements, security, order, law, limits, stability, etc.

3. Belongingness and Love needs - work group, family, affection, relationships, etc.

4. Esteem needs - self-esteem, achievement, mastery, independence, status, dominance,prestige, managerial responsibility, etc.

5. Self-Actualization needs - realizing personal potential, self-fulfillment, seekingpersonal growth and peak experiences.

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Extended 8 Level Hierarchy of Needs (Abraham Maslow)-2000 :

1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep, etc.

2. Safety needs - protection from elements, security, order, law, limits, stability, etc.

3. Belongingness and Love needs - work group, family, affection, relationships, etc.4. Esteem needs - self-esteem, achievement, mastery, independence, status, dominance,

prestige, managerial responsibility, etc.

5. Cognitive needs - knowledge, meaning, etc.6. Aesthetic needs - appreciation and search for beauty, balance, form, etc.

7. Self-Actualization needs - realizing personal potential, self-fulfillment, seeking

personal growth and peak experiences.

8. Transcendence needs - helping others to achieve self actualization.

Douglas McGregor - Theory x y

Theory x ('authoritarian management' style)

The average person dislikes work and will avoid it he/she can.

Therefore most people must be forced with the threat of punishment to worktowards organizational objectives.

The average person prefers to be directed; to avoid responsibility; is relatively

unambitious, and wants security above all else.

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Theory y ('participative management' style)

Effort in work is as natural as work and play.

People will apply self-control and self-direction in the pursuit of organizationalobjectives, without external control or the threat of punishment.

Commitment to objectives is a function of rewards associated with their

achievement. People usually accept and often seek responsibility.

The capacity to use a high degree of imagination, ingenuity and creativity in

solving organizational problems is widely, not narrowly, distributed in thepopulation.

In industry the intellectual potential of the average person is only partly utilized.

Fredrick Herzberg's Motivation-Hygiene Theory (Two Factor Theory)

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Leading to Dissatisfaction Leading to Satisfaction

Company policy

Supervision

Relationship w/Boss

Work conditions

Salary

Relationship w/Peers

Achievement

Recognition

Work itself

Responsibility

Advancement

Growth

David McClelland's needs-based Motivational Model

The need for achievement (n-ach)

The n-ach person is 'achievement motivated' and therefore seeks achievement,

attainment of realistic but challenging goals, and advancement in the job. There is a

strong need for feedback as to achievement and progress, and a need for a sense of

accomplishment.

The need for authority and power (n-pow)

The n-pow person is 'authority motivated'. This driver produces a need to be

influential, effective and to make an impact. There is a strong need to lead and fortheir ideas to prevail. There is also motivation and need towards increasing personal

status and prestige.

The need for affiliation (n-affil)

The n-affil person is 'affiliation motivated', and has a need for friendly relationships

and is motivated towards interaction with other people. The affiliation driver

produces motivation and need to be liked and held in popular regard. These people

are team players.

Adams Equity Theory Diagram

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Victor Vroom Expectancy Theory

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The Expectancy Theory of Motivation explains the behavioral process of why

individuals choose one behavioral option over another. It also explains how theymake decisions to achieve the end they value. Vroom introduces three variables

within the expectancy theory which are valence (V), expectancy (E) and

instrumentality (I).

Three components of Expectancy theory:

Expectancy, Instrumentality, and Valence

1. Expectancy: Effort Performance (EP)

2. Instrumentality: Performance Outcome (PO)

3. Valence- V(R)

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Expectancy: Effort Performance (EP)

Expectancy is the belief that one's effort (E) will result in attainment of desiredperformance (P) goals. Usually based on an individual's past experience, self

confidence (self efficacy), and the perceived difficulty of the performance standard

or goal. Factors associated with the individual's Expectancy perception are selfefficacy, goal difficulty, and control. Self efficacy is the persons belief about their

ability to successfully perform a particular behavior.

Instrumentality: Performance Outcome (PO)

Instrumentality is the belief that a person will receive a reward if the performanceexpectation is met. This reward may come in the form of a pay increase, promotion,

recognition or sense of accomplishment. Instrumentality is low when the reward is

given for all performances given.

Valence- V(R)

Valence: the value the individual places on the rewards based on their needs, goals,

values and Sources of Motivation. Factors associated with the individual's valence

for outcomes are values, needs, goals, preferences and Sources of MotivationStrength of an individuals preference for a particular outcome.

4) Maintenance Function

Activities in HRM concerned with maintaining employees commitment and

loyalty to the organization. Communication Program: HRM programs designed to provide information to

employees.

Some programs help employees know what is occurring around them and ventfrustrations- through teleconferencing, intranet, bulletin boards and hall meetings

How are HRM Functions Translated into Practice?

Employment: activities surroundings the staffing and selection function

Training and Development helps employees and the organization to achieve

greater productivity Compensation & Benefits: paying employees and administering benefits packages

Employee Relations: ensuring open communication exists for all employees

Effective Communication Program Involve:

Top Management Commitment Effective upward communication

http://en.wikipedia.org/wiki/Self_efficacyhttp://en.wikipedia.org/wiki/Self_efficacy

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Determining what to communicate

Allowing for feedback

Accurate information source

Chapter: 5 - Human Resource Planning and Job Analysis

Human Resource Planning: Process of determining an organizations

human resource needs.

An Organization Framework

SWOT Analysis

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PESTEL Analysis

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Human Resource Information System (HRIS): A computerized system

that assists in the processing of HRM information.

Exhibit 5-2: Information Categories of Human Resource Information

System (HRIS):

Group 1: Basic Non-confidential Information

Employee Nam

Organization Name

Work Location & Phone Number

Group 2: General Non-confidential Information

Info previous record

Social Security Number (Bangladesh TIN Number)

Other organization information (code, effective date)

Position info (code, title, effective date)

Group 3: General Information with Salary

Info previous wages record

Current Salary, effective date, amount of last change, type of

last change and reason for last change

Group 4: General Information with Salary

Info previous wages record + Education Data

Group 5: Extended Confidential Information with Salary

Bonus info Projected Salary increase info + performance record

Replacement Chart: HRM organization charts indicating position that

may become vacant in the near future and individuals who may fill the

vacancies. See the chart Exhibit 5-3

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Job Analysis: Provides information about jobs currently being done and

the knowledge, skills and abilities that individuals need to perform the

job adequately.

Job Analysis Methods

1) Observation Method: A job analysis techniques in which data are

gathered by watching employers work.

2) Individual Interview Method: Meeting with an employee to

determine what his or her job entails

3) Group Interview Method: Meeting with a number of employees to

collectivity determines what their job entails.4) Structured Questionnaire Method: A specifically designed

questionnaire on which employees rate tasks they perform in their

jobs.

5) Technical Conference Method: A job analysis technique that

involves extensive input from the employees supervisor.

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Focus Five (5) Specific Constraints:

1. Organization Image: The image of the organization , can be a potential

constraint2. Job Attractiveness: wide range of facilities

3. Internal Organization Policies: Promote from within wherever possible

(internal hiring)4. Government Influence: Bangladesh

5. Recruiting Costs: Recruiting efforts are expensive

Recruiting: A Global Prospective

Host-Country National (HCN): A citizen of the host country hired by an

organization based in another country.

Expatriate: An individual who lives and works in a country of which he or she is

not a citizen

BMW Car German parts plant, China assembly operations, U.S. Marketing Team

Recruiting Sources

1. Internal Search2. Employee Referrals/Recommendations

3. External Search

4. Alternatives

1) Internal Search

A promotion-from-within concept

Advantages:

It is good public relations

It builds morale

It encourages good individuals who are ambitious

It is less costly than outside recruitment

Training Devices for developing middle top level

A good selection : individual performance is available

2) Employee Referrals & Recommendation

A recommendation from a current employee regarding of a job applicant

Employee referrals are an excellent means of locating potential employees for hard

to fill positions (i.e. IT professionals, Computer Programmer, Engineers)

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3) External Search

1. Advertisements : Newspaper Blind box ad: An advertisement that does not identify the advertising

organization (i.e. pls send your CV to P.O. Box 1234)

2. Employment Agencies3. School, College and Universities4. Professional Organization: Labour Union, Professional Clubs/Association

5. Unsolicited Applicants: Letter/e-mail/phone

6. Cyberspace Recruiting Websumes: Web Pages that are used as resume

4) Alternatives

1. Temporary Help Services : 6 month2. Employee Leasing: Individuals hired by one firm and sent to work in another for a

specific time3. Independent Contractors: Consultant

Getting into the Organization

Getting a job Full-Time

Start Early

Prepare Your Resume

Hard Copy

Soft Copy

Mini-Compact Disk

Website Blog Research Copy

Chapter 7: Foundation of Selection

The Selection Process:

The Selection Process consists 8 -Steps:

1. Initial Screening Interview2. Completing the Application Form3. Employment Tests

4. Comprehensive Interview

5. Back-ground Investigation6. Conditional Job Offer

7. Medical or Physical Examination

8. Permanent Job-Offer

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The Selection Process

1. Initial Screening Interview: The first steps in the selection Process whereby job

inquiries are sorted. Two Steps Procedure:

Screening Inquiries Screening Interview

2. Completing the Application Form: Company specific employment form used togenerate specific information the company wants; name, address, telephone number

Weighted Application Form: A special type of application form that usesrelevant applicant information to determine the likelihood of Job success

3. Employment Tests: intelligence, aptitude, ability and interest tests

Performance Simulation Tests: Work sampling and assessment centers

evaluation abilities in actual job activities

Work Sampling: A selection device requiring the job applicant to actually

perform a small segment of the job Assessment Center: A facility where performance simulation tests are

administered.

Testing in a Global Arena: U.K. Honesty Tests

4) Comprehensive Interview: A selection device used to obtain in-depth information

about a candidate.

a. Impression Management: Influencing performance evaluations by

portraying an image desired by the appraiser.b. Behavioral Interviews: Observing job candidates not only for what they say

but for how they behave.

c. Realistic Job Previews (RJP): A selection device that allows job candidatesto learn negative as well as positive information about the job & org.

5) Background Investigation: The process of verifying information job candidates

provide, USA-Employment Eligibility Verificationa. Qualified Privilege: The ability for organizations to speak candidly to one

another about employees. Good-Faith Reference

6) Conditional Job Offer: A tentative job offer that becomes permanent after certain

conditions are met.7) Medical/Physical Examination: An examination to determine an applicants

physical fitness for essential job performance

8) Job Offers: completing 7 steps offer job.

a. Comprehensive Selection: Applying all steps in the selection process beforerendering a decision about a job candidate

Key Elements for Successful Predictors

Reliability: A selection devices consistency of measurement. i.e. IQ Test

Validity: The proven relationship of a selection device to relevant criterion.

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Content Validity: The degree to which test content, as a sample, represents all

situations that could have been included, i.e. Computer Test

Construct Validity: The degree to which a particular trait relates to successful job

performance.

Criterion-related validity: The degree to which a particular selection device

accurately predicts the important elements of work behavior, as in the relationshipbetween a test score and job performance

Predictive Validity: Validating tests by using prospective applicants as the studygroup

Concurrent Validity: Validating tests by using current employees as the study group

Cut score: A scoring point below which applicants are rejected.

Validity Coefficients: The statistical relationships existing between an individuals

test score and his/her performance. The range 1 to + 1 in magnitude

Validity Generalization: A test valid for screening applicants for a variety of jobs

and performance factor many occupations Meta-Analysis: What distinguishes validity generalization is its use of a statistical

technique. i.e. numerous variables and correct or adjust any variances

Effectiveness of Interviews

Most appropriate for high-turnover jobs

Most effective when they are structured and measure job-related factors

Most valuable when they are used to assess level of motivation and interpersonal

skills