HRM 5 functional areas
1. Introduction to HRM
2. Recruitment and selection
3. Training and development
4. Compensation and benefits
5. Safety and health
6. Industrial relations and equal opportunity
What is HRM
the policies, practices, and systems that influence employees' behavior, attitudes, and performance - getting results through people
Skill vs. competence
Skills: is general (fx. there are four skills in learning a language; read, write, listen and speak)
Competence: is job based and can only be observed in a situation of work (in HRM we use competence). The ability to do something in an efficient and effective manner.
Talent
The rare combination of rare competences
Human capital is:
- valuable
- Rare
- cannot be imitated
- has no good substitutes
HR is a unique resource
From personnel administration, to personnel management to human resource management
Personal administration: from agriculture to industry based - recruiting/paying workers (paper work)
Personal management: recruiting/paying and protecting/social security
Human resource management: Globalization tricked HRM - proactive, strategic and assisting an organization to gain sustained competitive advantage.
Strategic HRM
The shift from an agrarian economy to a knowledge-based economy have given HRM a more critical role today - HR is strategic
- HR planning (recruit the right people)
- HR talent management (developing employees potential)
- HR rewarding scheme (rewarding performance with a competitive pay-for-performance program)
- HR ethics (encourage the development of appropriate behaviors)
Recruitment and Selection
- Attract: plan recruiting needs
- Recruit: hire the best talents
- Retain: keep organization competitive
Training and development
- Train employees for their current jobs
- Develop skills for their future roles and responsibilities
- Manage talents
Compensation and benefits
- Compensation: pay decent wages and salaries
- Benefits: reward employees
- Implement fair (equal and equitable) compensation and benefits
Safety and health
- prevent and detect health related problems
- Maintain well-being at work
Labor relations and equal opportunity
- promote professional relationships
- Apply the law
- Fight against discrimination
- Discipline employees
Recruitment a five-step process
1. Write a job description and list job specifications
2. Choose appropriate recruitment strategy
3. Attract candidates
4. Pre-select and select candidates
5. Integrate new employees
What includes in a job description
They all describe the job:
- job title
- remuneration
- Duties and responsibilities
- Equipment
- working conditions
- Hazard
What includes in the list of job specifications
They are all specific to the candidate
- education
- previous experience
- Physical and soft skilld
Choose a recruitment strategy; internal (develop employee's skills) - pros and cons
pros:
- Cheaper and quicker to recruit
- People already familiar with the business and how it operates
- Company already knows the strengths and weaknesses of candidates
- Motivating
cons:
- Limits the number of potential applicants
- No new ideas can be introduced from outside
- May cause negative feelings amongst candidates who are not appointed
Choose a recruitment strategy; external (search for new talents) - pros and cons
Pros:
- Outside people bring in new ideas
- Larger pool of workers from which to find the best candidate
- People have a wider range of experience
Cons:
- Longer process
- More expensive process due to advertising and interviews required
- Selection process may not be effective enough to reveal the best candidate
Attract candidates
- Design a great job advertisement
- Select an appropriate communication channel (newspapers, social media..)
Pre-select and select
- pre-selection of applications (to shortlist)
- Selection of succesful applicants (to interview)
Purpose of Orientation Programs - introduction program
- feel welcome and at ease
- Understand the organization
- Know what is expected in work behavior
- begin the socialization process
Increasing employee retention is strategic - replacement cost calculate
Replacement cost = 1.5 X annual gross salary
ex. An organization of 175 employees with an average annual salary of $60,000. 175 employees x €60,000 x 1.5 = €15,750,000.
Organizational impact is high at a:
- financial level (affects finance)
- social level (affects motivation)
- marketing level (affects corporate image)
Human resource planning (GPEC)
Happens at least every 3 years for companies with 300+ employees
Objectives that will lead to competences:
- manage careers
- anticipate job evolution
- adapt skills to economic and technical changes
- remain competitive
Legal obligations - professional interview
to guarantee human capital we use professional interview - to guide the employee is a legal obligation.
An orientation/career interview which occurs every 2 years to discuss the future evolution and the necessary training of an employee.
Objectives:
- to encourage professional and career development (get new qualifications, change position, get promoted)
- To identify training needs
Definition of concepts - 3 training
1. Vocational training - set of actions to enable employees to improve their technical knowledge (hard-skilss, attitudes (the way you think) and behaviors (the way you act - soft-skills). Both are dependent on your values/needs
2. Initial training - before career begins, at the early stage of professional life (Bachelor Degrees, Master Degrees)
3. Continuing training - in the middel of career, for experienced professionals (executive education, MBA's, professional certification)
The personal training account (CPF) - legal obligations
An account that is credited with euros for each hour you work and can be used by any employee throughout his/her working life to undergo qualifying training
Objectives:
- Get new qualification (diploma, professional title ect.)
- Validate the acquired experience (VAE).
Evaluating performance
Evaluating performance can be quantitative (results) or qualitative (efforts). We evaluate the financial and the social performance of an individual
- Ex. Target objective is 10.000. John reaches 10.000 = John is efficient or productive (Quentity/cost; resources, time, money) = quantiative
- Ex. The target objective is 10.000 with no defaults. John reaches 10.000 no defaults = John is efficient and effective - he works a lot and well (Quality/cost) = qualitative
Train vs. development
Train for the present job and develop for the future job
Vestibule
a small room in which patient or clients (i.e., at doctors or lawyers) wait to hear what the situation is
Skills assessment interview
Task based interview and they will observe the way you do it
The individual training leave vs. Personal training account
Personal training account - outside work hours (you pay)
Individual training leave - during worktime (companay pays)
Economic balance - compensation issues
Guarantee the profitability of the company and contain the level of its playroll
Internal equity - balance
adjust wage differences among employees in the same company
External equity - balance
ensuring competitive play levels in the labor markets. make sure your competitors dont pay their employees more than yours
A strategic lever for HR
Attract the best candidates
Retain employees
Motivate individually
Engage collectively
Maintain a serene social climate
Limit staff costs
Adjust expenses to the company's situation
Salary pay
base salary + fixed premiums (a 13th month pay of 15% bonus for extra hours)
Variable pay
Incentives and bonuses
3 criteria used to determine salary - job evaluation
1. Job classification - job technicity
2. Job description - duties, responsibilities, working conditions
3. Job specifications - diploms and qualifications, communication skills
Incentives vs. bonus
Incentive (before the result - pull and it's promised)
- to motivate
Bonuses (after the results - push) - to reward
Benefits or fringe benefits
They are going to make you happy and contribute to your well-being at work
ex. healthcare, retirement savings, paid time off, maternity/paternity leave, life insurance
Perquisites (perks)
These factors are going to increase your performance - work faster, more efficient and effective
ex. company car, free food/restaurant vouchers, mobile phone, computer
INRS survey facts
48% of employees report working in emergency
63% of employees claim that their pace of work is imposed by a demand to be met immediately
1 in 4 employees working in contact with the public reports experiencing verbal aggression
Ill-health at work
State of a person who is subject to unusual demands or constraints at work
6 factors why people crack
- workload is heavy
- realization of work (short deadline - taking work home)
- professional relationships (conflicts)
- Functioning of the organization (slow communication)
- Profession ethics (torn between you and the company)
- Personal difficulties
Job overload
quantitative - too much work /qualitative - too much quality
Job underload
quantitative - too little work /qualitative - too little quality
Realization of work
‒ Role ambiguity (poor job description)
‒ Role conflict (opposing or conflicting goals) ‒ Absence of power
‒ Inadequate work schedules
Professionals relationships
- Lack of recognition
‒ Interpersonal problems
‒ Lack of participation in decisions
‒ Information deficit
‒ Psychological or even sexual harassment
Functioning of the organization
‒ Poor advancement opportunities
‒ Rigid organizational structure (eg. Functional or staff organization)
‒ Poor working conditions
Family difficulties
‒ Change in family situation
‒ Conflicts or family problems
Professional ethics
‒ Ethical dilemma (personal advantage resulting from an unethical choice) ‒ Ethical dissonance (conflicting organization/individual values)
Financial problems
‒ Budgetary difficulties
‒ Lower income level
Physiological problems
‒ Health problems ‒ Difficulties related to personality
Psychosocial risks
‒ Burnout
‒ Anxiety disorders
‒ Suicide...
Organizational risks
‒ Absenteeism and turnover
‒ Poor working climate
‒ Diminished performance
Reputation risks
‒ Liability (CSR, moral, criminal)
‒ Alteration of image (commercial and employer brand)
Legal risks
- € 3750 fine for breaches of hygiene and safety rules and a prison sentence of 1 year and € 9,000 fine for repeated offenses ‒ Closure of premises or work stoppage in case of serious and imminent danger
‒ 3 years imprisonment and 45 000 € fine for injuries or manslaughter
‒ 2 years imprisonment and 30 000 € fine in case of injury resulting in an ITT greater than 3 months
‒ 1 year of imprisonment and 15 000 € of fine in case of injury leading to an ITT less than or equal to 3 months or for endangering another person
Social cohesion - solutions
‒ Empathy, recognition and respect for everyone
‒ Healthy workplace relationships
‒ Climate of mutual aid and solidarity
Performance - solutions
‒ Responsibility and content of work
‒ Circulation of information
‒ Satisfactory working conditions
‒ Flexible organization
Reputation - solutions
‒ Exercise of responsibility
‒ Image enhancement
‒ Attractiveness and loyalty
