Principles of

HR Management

Training Agenda
1. HR Management : An Overview
2. HR Planning and Recruitment
3. Employee Selection
4. Training and Development
5. Performance Management
6. Career Management

Human Resource
Management : An Overview

HR Management Cycle

Recruitment &
Selection

Training &
Development

Performance
Management

Reward
Management

Career
Management

HR Strategy and Business Result

Recruitment &
Selection

Business
Strategy

Training &
Development

Performance
Management

Business
Result

HR
STRATEGY

Reward
Management

Career
Management

Manpower Planning &

Employee Recruitment

Manpower Planning
Company Strategy
Job Analysis

What staff do we
need to do the
job?

What staff is
available within
our
organization?
Is there a
match?

What is impact
on wage and
salary program?

Performance
appraisal
Company data
banks
Training
Employee
management and
development

If not, what type of people

do we need, and how
should we recruit them?

Manpower Planning
Factors in Forecasting Personnel
Requirements

Projected
turnover (as a
result of
resignation and
terminations)

Quality and nature of

your employees (in
relation to what you
see as the changing
need of your
organization)

The financial
resources
available to
your
organization

Technique to Determine Number of Recruits

Trend
Analysis

Study of a firms past employment needs

over a period of years to predict future
needs

Ratio
Analysis

A forecasting technique for

determining future staff needs by using
ratios between sales volume and

number of employees needed

Recruitment from External Resources

Recruiting new staff from external sources will be influenced

by several factors, namely :
MacroEconomic
Conditions
of a Nation

When the economic conditions are

relatively difficult, there will usually be
an oversupply, or the number of
applicants will much higher than the
demand. In such a case, the company
will find it relatively easier to select new
employees from the large number of
applicants.

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Recruitment from External Resources

Availability
of Manpower

in Desired
Sectors

When the sector is one that is

considered a rare sector, the company
will have more difficulty in recruiting
staff for this sector. For example,
computer technology, or cellular
engineering.

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Recruitment from External Resources

Company
Reputation

It will tend to be easier for a company

to find and recruit the best people if
the company has a good reputation,
therefore the best fresh graduates will
flock to apply to the company.
Example : Google, McKinsey or
Microsoft.

12

Recruitment Yield Pyramid

Some employers use a recruiting yield pyramid to

determine the number of applicants they must generate
to hire the required number of new employees.

Example of Recruitment Curve:

1200 - Leads generated

200 - Candidates invited

150 - Candidates interviewed

100 - Offers made

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- New hires

13

Recruitment Sources
Advertising (newspaper,
magazine, internet)

Recruitment
Sources

College
Recruitment

Recruitment Agent
(headhunter)

14

Employee Selection

15

Basic Concept of Selection Tests

The quality of an employee selection test is determined by
three main factors, namely :
1. Criterion Validity : A type of validity based on showing
that scores on the test (predictors) are related to job
performance (criterion).
2. Content Validity : A test that is content valid is one in
which the test contains a fair sample of the tasks and
skills actually needed for the job in question.
3. Reliability : The consistency of scores obtained by the
same person when retested with identical or equivalent
test.
16

Some Types of Selection Test

1. Cognitive Ability Test

2. Personality Test
3. Interview

17

Cognitive Ability Test

Cognitive Abilities Tests: Paper and pencil or

individualized assessment measures of an
individual's general mental ability or intelligence.

18

Advantages of Cognitive Ability Test

highly reliable
verbal reasoning and numerical tests have shown high
validity for a wide range of jobs
the validity rises with increasing complexity of the job
may be administered in group settings where many
applicants can be tested at the same time
scoring of the tests may be completed by computer
scanning equipment
lower cost than personality tests

19

Disadvantages of Cognitive Ability Test

non-minorities typically score one standard deviation

above minorities which may result in adverse impact
depending on how the scores are used in the selection
process
differences between males and females in abilities (e.g.,
knowledge of mathematics) may negatively impact the
scores of female applicants

20

Personality Test

Personality Tests: A selection procedure measure the

personality characteristics of applicants that are
related to future job performance.

Personality tests typically measure one or more of

five personality dimensions: extroversion,
emotional stability, agreeableness,
conscientiousness, and openness to experience.

21

Advantages of Personality Test

can result in lower turnover due if applicants are

selected for traits that are highly correlated with
employees who have high longevity within the
organization

can reveal more information about applicant's abilities

and interests

can identify interpersonal traits that may be needed for

certain jobs

22

Disadvantages of Personality Test

difficult to measure personality traits that may not be well

defined

responses by applicant may be altered by applicant's

desire to respond in a way they feel would result in their
selection

lack of diversity if all selected applicants have same

personality traits

lack of evidence to support validity of use of personality

tests

23

Interview

Interviews: A selection procedure designed to predict

future job performance on the basis of applicants'
oral responses to oral inquiries.

24

Advantages of Interview

useful for determining if the applicant has requisite

communicative or social skills which may be necessary for
the job

can assess the applicant's job knowledge

can be used for selection among equally qualified

applicants

enables the supervisor and/or co-workers to determine if

there is compatibility between the applicant and the
employees

allows the applicant to ask questions that may reveal

additional information useful for making a selection
decision
25

Disadvantages of Interview

subjective evaluations are made

decisions tend to be made within the first few minutes of
the interview with the remainder of the interview used to
validate or justify the original decision
interviewers form stereotypes concerning the
characteristics required for success on the job
research has shown disproportionate rates of selection
between minority and non-minority members using
interviews
negative information seems to be given more weight
not as reliable as tests

26

Training & Development

27

Training Process

Training
Need
Analysis

What are
the training
needs for
this person
and/or job?

Training
Objectives

Objective
should be
measurable
and
observable

Training
Delivery

Techniques
include onthe-jobtraining,
action
learning, etc.

Training
Evaluation

Measure
reaction,
learning,
behavior,
and results

28

Assessing Training Needs

Task Analysis

A detailed analysis of a job to

identify the skills required, so
that an appropriate training
program can be instituted

Competency

Careful study of competency level

to identify a deficiency and then
correct it with a training program, or
some other development
intervention.

Analysis

29

Competency Analysis
Current
competency
level of the
employee

Competency
Gap

Competency
Assessment

Required
competency
level for certain
position

Training and
Development
Program

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Competency Profile Per Position

Required Level
Position

Required Competency

Communication Skills
Training &
Development
Manager

Public Speaking
Leadership
Training Need Analysis
Material Development
Training Evaluation
Communication Skills
Interview Skills

Recruitment
Supervisor

Analytical Thinking
Understand Selection Tools
Teamwork
Customer Orientation

Score Required
Competency Type

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Competency Profile Per Position

Managerial competency

Leadership

Required Level
Actual Level

Achievement Orientation

Teamwork

Planning & Organizing

Functional competency

Mechanical Engineering

Mechanical Equipment Maintenance

Position

Competency
Requirements

SUPERVISOR

Leadership

Achievement
Orientation

Relevant Training Modules

Leadership I

Communication Skills I

The Art of Motivating Employees

Providing Effective Feedback

Goal Setting Technique

Work Motivation

Planning & Organizing

Continuous Self Improevement

32

Teamwork

Achievement Orientation

Customer Focus

Job Functional Skills

Communication Skills
Leadership

V
V
V

Teamwork
Manager

Achievement Orientation
Customer Focus

V
V

Strategic Thinking
Problem Solving & Decision Making
Job Functional Skills

Professional
Seminar Series

Building Productive
Teamwork

Strategic
Management

Creative Problem
Solving

Leadership
Supervisor

Achievement
Motivation Training

Service Excellence
for Customer

Position

On Becoming
Effective Leader 2

Communication Skills

Training Title

On Becoming
Effective Leader 1

Managerial Competency

Productive
Communication
Series

Training Matrix for Competency Development

V
V

V = compulsory training

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Enhance Training Effectiveness

Make the
material
meaningful

Provide for
transfer to
learning

Training
Effectiveness

Motivate
the trainee
34

Enhance Training Effectiveness

Make the
material
meaningful

At the start of training, provide the

trainees with a birds-eye view of the
material to be presented. Knowing the
overall picture facilitates learning.

Use a variety of familiar examples when

presenting material

Organize the material so that it is

presented in a logical manner and in
meaningful units

Try to use terms and concepts that are

already familiar to trainees

Use as many visual aids as possible

35

Enhance Training Effectiveness

Provide for
transfer to
learning

Maximize similarity between the training

situation and the work situation

Provide adequate training practice

Identify each feature of the step in the

process

36

Enhance Training Effectiveness

Motivate
the trainee

People learn best by doing. Try to

provide as much realistic practice as
possible

Trainees learn best when correct

response on their part are immediately
reinforced.

Trainees learn best when they learn at

their own pace. If possible, let trainees
pace themselves.

37

Type of Training Program

OFF THE JOB
Formal course

Does not interfere with job

Provides for fact learning

Simulation

Helps transfer of learning

Creates lifelike situations

Wilderness Trip

Builds teams
Builds self-esteem

38

Type of Training Program

ON THE JOB
Job instruction
training

Facilitates transfer of learning

Does not require separate facilities

Apprenticeship
training

Does not interfere with real job performance

Provides extensive training

Job rotation

Gives exposure to many jobs

Allows real learning

Mentoring

Is informal
Is integrated into job
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Evaluation of Training Effectiveness

Level 1 - Reaction

Level 2 - Learning
Level 3 Behavior
Application

Four Levels
of Training
Effectiveness

Level 4 Business
Impact
40

Evaluation of Training Effectiveness

Evaluate trainees reactions to

Level 1 -

the program. Did they like the

Reaction

program? Did they think it

worthwhile?
Test the trainees to determine if

Level 2 -

they learned the principles,

Learning

skills, and facts they were to

learn.

41

Evaluation of Training Effectiveness

Ask whether the trainees behavior on the job
changed because of the training program. For
example, are employees in the stores complaint
department more courteous toward disgruntled
customers than previously?

What final results were achieved in terms of the

training objectives previously set? Did the number
of customer complaints about employee drop? Did
the reject rate improve? Was turnover reduced,
and so forth.

Level 3
Behavior
Application

Level 4
Business
Impact

42

Employee
Performance Management

43

Why Performance Appraisal?

Appraisal provide information upon which promotion and

salary decision can be made.

Appraisal provide an opportunity for a manager and

his/her subordinates to sit down and review the
subordinates work-related behavior, and then develop a
plan for corrective action.

Appraisal provide a good opportunity to review the

persons career plans in light of his/her exhibited
strengths and weaknesses.

44

Performance Management Cycle

Performance
Planning
(Setting
Performance
Targets)

Training &
Development
Plan
Salary/Bonus
Adjustment
Career
Development

Regular
Review and
Monitoring

Feed back

Corrective
Action

Performance
Appraisal and
Evaluation

45

Performance Management Cycle

Defining
Performance
Standard/
Targets

1. Defining the performance standards

means making sure that you and your
subordinate agree on his/her duties and
targets that you expect

Appraising
Performance

2. Appraising performance means

comparing your subordinates actual
performance to the standard/targets set
in step one.

Providing
Feedback for
Development

3. Providing feedback means discussing

plans for any development that is
required.
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Problems in Performance Appraisal

Lack of
standards

Poor
feedback to
employee

Irrelevant or
subjective
standards

Negative
communication

Poor
measures of
performance

Failure to
apply
evaluation
data

Common Performance Evaluation Problems

47

Bias in the Appraisal Process

Halo
Effect

Central
Tendency

The "halo" effect occurs when a supervisors

rating of a subordinates on one trait biases the
rating of that person on other traits

A tendency to rate all employees the same

way, such as rating them all average

48

Bias in the Appraisal Process

Leniency

The problem that occurs when a supervisory

has a tendency to rate all subordinates either
high or low

Bias

The tendency to allow individual differences

such as age, race, and sec affect the appraisal
rates these employees receives.

49

Performance Appraisal Element

Performance
appraisal
elements
has two main
categories:

1. Competencies: It
represents soft or qualitative
aspects of performance
(process)
2. Performance Result:
Hard or quantitative aspects
of performance (result)

50

Performance Appraisal Element

1. Competencies Score

Overall Score
2. Performance Result
Score

Will determine the employees

career movement, and also
the reward to be earned

51

Element # 1 : Competencies
Competency : Collaboration
Basic

Intermediate

Advanced

Expert

Actively listens, and clarifies

understanding where required, in
order to learn from others.

Actively listens, and clarifies

understanding where required, in
order to learn from others.

Actively listens, and clarifies

understanding where required, in
order to learn from others.

Actively listens, and clarifies understanding

where required, in order to learn from others.

Empathise with audience and

formulates messages accordingly.

Empathise with audience and

formulates messages accordingly.

Empathise with audience and

formulates messages accordingly.

Empathise with audience and formulates

messages accordingly.

Shares resources and information.

Shares resources and information.

Shares resources and information.

Shares resources and information.

Responds promptly to other team

members needs.

Balances complementary strengths

in teams and seeks diverse
contributions and perspectives.

Actively builds internal and external

networks.

Builds internal and external networks and uses

them to efficiently to create value.

Involves teams in decisions that

effect them.

Uses cross functional teams to draw

upon skills and knowledge
throughout the organization.

Uses cross functional teams to draw upon

skills and knowledge throughout the
organization.

Encourages co-operation rather than

competition within the team and with
key stakeholders.

Builds and maintains relationships

across The company.

Drives and leads key relationship groups

across The company.
Manages alliance relationships through
complex issues such as points of competing
interest.
Ensures events and systems, eg IT, for
collaboration are in place and used.
Draws upon the full range of relationships
(internal, external, cross The company) at
critical points in marketing and negotiations.

52

Element # 2 : Performance Results

No.

Main Performance Target

1 Conduct an assessment of the

employee's performance

Target to be
Achieved
All employees submit their performance assessment form
on time

2 Improve the system for

performance assessment

Target : completed 100 %

in November 2008

3 Conduct training activities

Target : to conduct 6 training modules

in one year

4 Carry out on the job training

activities

Target : 90 % of the total employees

who attend the training
experience an increase
in skill and knowledge

Target should be measurable and

specific
53

Employee Career
Management

54

Career Planning and Development

Career
Planning &
Development

Providing employees
the assistance to form
realistic career goals
and the opportunities
to realize them

55

Typical Career movement

Entry Level

First Line

Join Company 22 years old

Supervisor/Ass. Manager 26 - 29 years old

Middle
Management

Managers 29 - 35 years old

Senior
Management

GM/Senior Managers 35 - 45 years old

Top
Management

CEO/BOD 45 - 55 years old

56

Career Stage
Trial Stage

The period from about age 25 to 30 during

which the person determines whether or
not the chosen field is suitable and if it is
not, attempts to change it.

Stabilization
Stage

The period, roughly from age 30 to 40,

during which occupational goals are set
and more explicit career planning is made
to determine the sequence for
accomplishing goals

57

Career Stage
Mid career
Crisis Stage

The period occurring between the midthirties and mid-forties during which people
often make a major reassessment of their
progress relative to their original career
ambitions and goals

Maintenance
Stage

The period form about ages 45 to 65 during

which the person secures his or her place
in the world of work

58

Career Stage
Decline Stage

The period during which many people are

faced with the prospect of having to accept
reduced levels of power and responsibility.

59

Career Anchors
Career Anchor :

A concern or value that someone will not give up if

choice has to be made

Career anchors, as their name implies, are the

pivots around which a persons career swings; a
person becomes conscious of them as a result of
learning about his or her talents and abilities.

60

Five Career Anchors

Technical/
Functional
Career Anchor

Managerial
Competence as a
Career Anchor

Autonomy and
Independence as
Career Anchor

Creativity as a
Career Anchor

Security as a
Career Anchor

61

Five Career Anchors

People who have a strong

technical/functional career anchor
tend to avoid decisions that would
drive them toward general
management.

Instead, they make decisions that will

enable them to remain and grow in
their chosen technical or functional
field

Technical/
Functional
Career Anchor

62

Five Career Anchors

People who show strong motivation

to become managers

Their career experience enables

them to believe that they have the
skills and values necessary to rise to
such general management position

Managerial
Competence

63

Five Career Anchors

People who go on to become

successful entrepreneurs

These people seem to have a need

to build or create something that is
entirely their own product a product
or process that bears their name, a
company of their own, or a personal
fortune that reflects their
accomplishments.

Creativity

64

Five Career Anchors

People who are driven by the need to

be on their own, free from the
dependence that can arise when a
person elects to work in a large
organization.

Some of these people decide to

become consultants, working either
alone or as part of relatively small
firm. Others choose to become
professors, free-lance writers, or
proprietors of a small retail business.

Autonomy and
Independence

65

Five Career Anchors

People who are mostly concern with

long-run career stability and job
security.

They seem willing to do what is

required to maintain job security, a
decent income, and a stable future in
the form of a good retirement
program and benefits.

Security

66

Career Management and the First

Assignment

Factors to keep in mind about the important first

assignment, include :
1. Avoid reality shock (reality shock refers to the result
of a period that may occur at the initial career entry
when the new employees high job expectations
confront the reality of boring, unchallenging jobs.

2. Provide challenging initial jobs

3. Provide realistic job preview in recruiting

4. Be demanding

67

Career Management and the First

Assignment
5. Provide periodic job rotation
6. Provide career-oriented performance appraisals
7. Encourage career-planning activities

68

Recommended Further Readings

1.

Gary Dessler, Human resource Management, Prentice Hall

2.

Susan Jackson and Randall Schuler, Managing Human Resource : A

Partnership Perspective, South-Western College Publishing

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End of Material

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