Learning Outcomes

On successful completion of this module, you will be able to:

 Identify the core functions and responsibilities of the HR manager

 Recognise the key challenges facing HRM professionals in the modern business world

 Discuss the role of communication in HRM

 Outline the difference between the strategic HRM plan and the HR plan

 Explain how to develop a compensation plan

 Introduction to Human Resource

Management (HRM)
 Overview
 Human resource management (HRM)
involves employing people, training them,
compensating them, developing policies
relating to them, and developing strategies
to retain them.
 As a field, HRM has undergone many
changes over the last twenty years, giving it
an even more significant role in today’s organisations. In the past, HRM meant
processing payroll, sending birthday gifts to employees, arranging company
outings, and making sure forms were filled out correctly—in other words,
more of an administrative role rather than a strategic role crucial to the
success of the organisation.

 Although Human Resources managers often work with people first and
foremost, they must also have the goals of the whole organisation in mind
when making decisions. Nowadays, HR professionals are ever-increasingly
required to understand how to strategically align the objectives of the HR
function with an organisation’s envisioned future direction.

Introduction to Human Resource Management (HRM)

Key Responsibilities of the HR Manager

Keep in mind that many functions of HRM are also tasks other department managers perform, which
makes this information important, despite the career path taken. Most experts agree on eight prime
roles that HRM plays in organisations, which are as follows:

1. Staffing

Staffing encompasses the whole employment process, from job advertisement to salary negotiation.
Within the staffing function, there are four main steps:
1. Development of a staffing plan
2. Development of policies to encourage multiculturalism at work
3. Recruitment. It involves finding people to fill the open positions
4. Selection

2. Development of Workplace Policies

HRM, management, and executives are all involved in the policy development procedure. For
example, the HRM professional will likely recognise the change or need for a policy, seek opinions on
the policy, write the policy, and then communicate that policy to employees. Some examples of
workplace policies might include the following:
- Discipline process policy
- Vacation time policy
- Dress code
- Ethics policy
- Internet usage policy

3. Compensation and Benefits Administration

Human resource managers must ensure that remuneration is fair, fulfils industry standards, and is
competitive enough to lure employees to work for the organisation. Compensation includes anything
the employee receives for their work. Examples of employee compensation include the following:

- Health benefits
- Pay
- Pension plans- Stock purchase plans
- Annual Leave allowance
- Sick leave
- Bonuses
- Tuition reimbursement

4. Employee Retention and Motivation

HRM professionals are involved in the retention and motivation of employees and thus must
understand the drivers of voluntary employee turnover. Although compensation is an important
factor in employee retention, 90% of employees leave a company for the following reasons:
- The job they are performing
- Challenges with their manager
- Poor fit with organisational culture
- Poor workplace environment

5. Training and Development

We made an effort to find new personnel, and now we want to ensure that they are not only trained
to do the job but also continue to grow and develop new abilities. Examples of training programs
may include the following:
- Job 6. Dealing with Laws Affecting Employment

Human resource people must be aware of all the laws that affect the workplace. An HRM
professional might work with some of these laws:

- Discrimination laws
- Health-care requirements
- Compensation requirements such as the minimum wage
- Worker safety laws
- Labour laws

skills training, such as how to run a particular computer program

- Training in communication
- Team-building activities
- Policy and legal training, such as sexual harassment training and ethics training

7. Employee Health and Safety

Safety is an essential consideration in all organisations. It is up to the human resource manager to be

aware of worker protection requirements and ensure the workplace is meeting both federal and
union standards. Worker protection issues might include the following:

- Physical, biological or chemical hazards

- Heating and ventilation requirements
- Protection of private employee information

8. Awareness of External Factors

The HR manager must take into account external variables that may have an impact on the
organisation in addition to controlling internal factors. Outside forces, or external factors, are those
things the company has no direct control over; however, there may be things that could positively or
negatively impact human resources. The growing trends toward flexible schedules and
telecommuting are examples of external aspects.

Introduction to Human Resource Management (HRM)

Key Skills Required to Work in HR

There are several skills crucial to human resource management, which can include the following:

 Organisational skills - It implies that the ability to organise and multitask is required. An HR
manager must handle files while working continuously in many business units.

 Communication skills are necessary for HRM as well. The ability to present negative and
positive news, work with various personalities, and coach employees are essential in HRM.

 Critical thinking skills - Critical and creative thinking and writing are abilities that will aid the
HR manager. One of the primary duties of an HR department is to connect the HR strategic
plan with the strategic business planning.
  Specific job skills - Computer skills, knowledge of employment legislation, writing and
establishing strategic plans, and general creative thinking skills are essential in any
management position, notably in human resource management.

Furthermore, a strong sense of fairness and ethics will make for the ideal HR manager. Because HR
collaborates with various departments to manage conflict and negotiate union contracts and salaries,
the HR professional must have a strong understanding of business ethics and the ability to maintain
confidentiality.

Introduction to Human Resource Management (HRM)

Today’s HRM Challenges

The following are some of the significant problems that HRM experts face in today's business world:

 There are many contemporary challenges associated with HRM. First, it is up to everyone in
the organisation to contain costs. HR managers must examine their specific departments and
illustrate the importance and usefulness of their functions to the organisation. HR managers
can also help cut costs by controlling beneficiary programs and salaries and offering training.

 The rapidly changing nature of technology is also a challenge in human resource

management. As new technologies are created, workers could be able to apply creative
working arrangements like flextime.HR managers are also responsible for developing policies
dealing with "cyberloafing" and other workplace time wasters revolving around technology.
Employee stress and lack of work-life balance are also greatly influenced by technology.

 The human resource manager can effectively prepare for staffing cutbacks and additions by
being aware of the state of the economy.


The ageing and changing workforce is another potential challenge facing HR. As baby
boomers retire, there will likely be few people to replace them, and many of the talents they
possess may be lost. Furthermore, working simultaneously with multiple generations might
provide difficulties because multigenerational workforces have diverse expectations and
needs.

Bibliography

1. CIPD. (2019). The HR Role | CIPD. [online] Available at:

https://www.cipd.co.uk/knowledge/strategy/hr [Accessed 31 May 2019].

2. O'Riordan, J. (2017). The Practice of Human Resource Management. [online] Institute of

Public Administration. Available at:
https://www.ipa.ie/_fileUpload/Documents/THE_PRACTICE_OF_HRM.pdf [Accessed 31 May
2019].
Role of Communication in HRM

Introduction

Our communication styles can influence how successfully we communicate with others, how well we
are understood, and how well we get along. Communication plays an essential role in HRM.

However, mind that no one person "always" has one style. Depending on the situation, we can adapt
our style. The better we communicate, the more we grasp our dominant communication style and
the styles of others. Thus, strong communication skills are invaluable for those working in HR
professions.

There are four main types of communication. Given below is a description of them:

Expresser Driver Relater Analytical

People with an They like challenges Depending on the These individuals are
expresser and rely heavily on type of business, this easily identified
communication style hunches and feelings. can be a downfall as because they dislike
tend to get excited. sometimes hard data lengthy information or
should be used for dry explanations and
decision-making become agitated if
purposes. they believe their time
is being wasted.

Role of Communication in HRM

Listening

Listening is another significant part of communication. There are three main types of listening:

1. Competitive or combative listening - occurs when we are focused on sharing our point of
view instead of listening to someone else.

2. Passive listening - happens when we are interested in hearing what the other person is
saying and assume we hear and understand what the person says correctly without verifying.

3. Active listening - occurs when we are engaged in what the other person has to say and
includes confirming our interpretation of what the speaker says is right. For example, we
could restate what the person said and then double-check that our understanding is correct.

Generally speaking, active listening tends to work best in practice as it provides feedback. Active
listening involves four phases:

1. Sensing - hearing, seeing, and receiving verbal and nonverbal aspects of the message.

2. Interpreting - this phase entails the receiver interpreting the message into a meaningful
context.

3. Evaluation - this phase requires the receiver to sort fact from opinion, including logic and
emotion.

4. Response - this stage requires providing feedback to the sender on how well their message
was perceived.
Role of Communication in HRM

Nonverbal Communication

Nonverbal language accounts for a large part of communication. It is easier to have

misunderstandings without seeing and hearing nonverbal clues.
For example, consider the use of digital forms of communication, such as e-mail and text messaging.
These forms of communication do not allow us to read another’s body language, which can often
result in misconceptions about what another is saying. It can be advisable to converse in person or
over the phone if you have anything vital to say.

Nonverbal language can include:

 Facial expressions

 Eye contact

 Standing or sitting posture

 Tone of voice

 Physical gestures

 Positioning of hands

The more adept we get at understanding body language—our own and of others—the better we will
be at effectively communicating with others. For instance, using the same tone, speed, and posture
might assist the listener in feeling more at ease and make concepts easier to understand.

Strategic HRM Plans and HR Plans

Introduction to Strategic HRM Planning

Personnel management was the previous name for human resource management (HRM). Personnel
management deals with activities related to the hiring process and legal compliance. HRM today
involves a high degree of strategic planning, which requires working with other departments and
managers.

Examples of the prime differences between Personnel Management and HRM include the following:

Personnel Management Focus HRM Focus

Administering of policies Helps to achieve strategic goals through people.

Stand-alone programs, such as training HRM training courses that align with the goals and
principles of the business

Personnel department responsible for Line managers share joint responsibility in all areas
managing people of people hiring and management.

Creates a cost within an organisation It contributes to the profit objectives of the

 organisation.

Strategic HRM Plans and HR Plans

Strategic HRM Plans - The Ulrich HR Model

A popular method for strategic HRM planning is the Ulrich HR model, which proposes categorising
HR functions into four groups:

1. Strategic Partner - this HR role is focused on developing strategies that align with the goals
and objectives of the organisation as a whole.

2. Change Agent - when an organisation needs to expand, evolve or alter its goals or objectives,
the change agent is the HR role that communicates those organisational changes internally
and helps adapt the organisation for its next stage of growth or evolution.

3. Administrative Expert and Functional Expert - the function of this HR role is to understand
and implement policies, procedures, and processes that relate to the strategic HRM plan.

4. Employee Advocate - the function of this HR role is to assist, support and protect current
employees within the organisation.

According to Ulrich, the model's execution must consider the corporate objectives, obstacles, and
opportunities. For example, the HR professional must understand the dynamic nature of the HRM
environment, such as changes in labour markets, company culture and values, customers,
shareholders, and the economy. Once this occurs, HR may decide how to effectively serve the
organisation's needs in these five crucial areas.

Strategic HRM Plans and HR Plans

How to Develop a Strategic HRM Plan

Keeping the Ulrich model in mind, consider these four aspects when creating a good HRM strategic
plan:

Make it applicable

People often spend excessive time developing plans, but the plans sit in a file somewhere and are
never actually used. A good strategic plan should be the guiding principle for the HRM function. It
should be reviewed and changed as aspects of the business change. The involvement of all members
in the HR department (if it’s a large department) and communication among everyone within the
department will improve the plan.

Be a strategic partner

The alignment of corporate values in the HRM strategic plan should be its core objective.
Additionally, the mission and goals of the organisation as a whole should be in line with the HRM
strategic plan. For example, if the organisation's objective is to promote social responsibility, the
recruiting criteria in the HRM strategy plan should reflect this

Involve people
An HRM strategic plan cannot be written alone and should include input from various people in the
organisation, such as management. It should involve everyone in the organisation. For example, as
the plan develops, the HR manager should meet with various people in departments and find out
what skills the best employees have. Then the HR manager can make sure the people recruited and
interviewed have similar qualities as the best people already doing the job.

Understand the use of technology

Organisations frequently lack the funds or motivation to research software and identify inexpensive
implementation solutions. People are sometimes nervous about new technology. The finest
organisations, however, are those that embrace technology and find the best technological
applications for their industries. Numerous HRM software choices exist that help streamlines,
simplify, and improve HRM procedures. Good strategic strategies take into account this factor.

Strategic HRM Plans and HR Plans

Elements to Consider and Research before Creating a Strategic HRM Plan

Strategic HRM plans must have several elements to be successful. It is important to note that the
design of the HRM strategic plan is to focus on and align the core objectives the organisation wants
to achieve. In contrast, the HR plan consists of detailed strategies to achieve strategic plan objectives.

Considering the follwing steps are essential before creating the strategic HRM plan:

1. Conduct a Strategic Analysis

2. Identify Strategic HR Issues

3. Prioritize Issues and Actions

4. Develop the HR Plan

A strategic analysis looks at three aspects of the individual HRM department:

- Understanding the company's mission and values
- Understanding of the HRM department's mission and values
- Understanding the challenges facing the department

For HRM to be effective, it must collaborate with the organisation and help it achieve its objectives. It
needs to be taken into account while designing HRM in all areas.

Strategic HRM Plans and HR Plans

Key Steps for Creating a Strategic HRM Plan

The development of the HR plan can begin to address specific issues within the human resource
department after creating the strategic HRM plan. The HR plan differs from the strategic plan as it is
more comprehensive and concentrates on immediate goals.

Generally speaking, the HRM plan should include the six following elements:
 1. Determine human resource needs - this section assesses the organisation's present and
future employee needs and is closely related to the strategic strategy (e.g. the number of
people, skills, etc.)

2. Determine recruiting strategy - create a plan that addresses the best way to hire the
appropriate individuals at the right time.

3. Select employees - the selection process consists of the interviewing and hiring process.

4. Develop training - based on the strategic plan, what training needs are needed?

5. Determine compensation - establish pay scales and other compensation such as health care
and bonuses.

6. Appraise performance - develop methods to assess and support the productivity of

employees.

Changes in a strategic plan and goal setting are necessary as the internal and external environments
change. Changes in predictions, for instance, should constantly be brought to the HR manager's
attention so that the plan can adapt.

Bibliography

1. David Ulrich and Wayne Brockbank, The HR Value Proposition (Boston: Harvard Business
Press, 2005), 9–14.

Compensation and Benefits

Introduction

A compensation plan refers to all aspects of a compensation package (e.g. wages, salaries and
benefits). There are a few fundamental aspects of compensation packages that must be taken into
account before devising the compensation strategy. These foundations can help formulate a
compensation strategy that satisfies the organisation’s objectives and is in line with the strategic
HRM plan.

The following fundamental inquiries should be answered to evaluate the performance of the
organisation's current pay programmes (if any):

1. From the employee’s perspective, what is a fair wage?

2. Are wages too high to achieve financial health in your organisation?

3. Does the pay scale reflect the importance of various job titles within the organisation?

4. Is your compensation good enough to retain employees?

5. Are state and federal laws being met with your compensation package?
 6. Is your compensation philosophy evolving along with changes in the labour market, the
industry, and the organisation?

Compensation and Benefits

Understanding Compensation Philosophy

After addressing the fundamental questions, the HR manager can identify where the company may
have weaknesses in their compensation package and develops new philosophies in line with the
strategic plan, which benefits the organisation. Some possible compensation policies might include
the following:

 Are salaries higher or lower depending on

the location of the business?

 Are salaries lower or higher than the

average in your region or area?

 Should there be a specific pay scale for

each position in the organisation, or
should salaries be negotiated on an
individual basis? If there is no set pay
scale, how can you ensure individual
salary offers are non-discriminatory?

 What balance of salary and other

rewards, such as bonuses, should be part of your compensation package?

 When giving raises, will the employee’s tenure be a factor, or will pay increases be merit-
based only or a combination of both?

Compensation and Benefits

1. Internal and External Factors in Determining Compensation Strategy

One major internal factor is the compensation strategy that the organisation chooses to adopt. There
are three main types of compensation strategies which are as follows:

1. Market Compensation Policy - involves paying the going rate for a particular job within a
specific market based on research and salary studies.

2. Market Plus Policy - refers to paying higher salaries than average. For example, this type of
policy may be more suited to highly competitive and rapidly changing high-technology
industries.

3. Market Minus Policy - involves paying less than the market rate. For example, an
organisation may decide to pay lower salaries but offer more benefits.

External pay factors can include the current economic state. Inflation and the cost of living in a given
area can also help determine compensation in a given market. After an organisation has evaluated
the internal and external influences influencing pay, it can begin to build an internal payment system.
It is also essential to ensure that all compensation plans are legally compliant in the country or
countries an organisation operates within. For example, employers cannot pay employees under the
minimum wage rates set by the government.

Compensation and Benefits

2. Job Evaluation Systems

Once you have determined your compensation strategy based on internal and external factors, you
will need to evaluate jobs, develop a pay system, and consider pay theories when making decisions.

There are several ways to determine the value of a job through job evaluation. Usage of a job
evaluation system is critical to assess the relative worth of one job vs another. It is the first step in
setting up a payment system.
There are several ways to perform a job evaluation:

 Job Ranking System - job titles are listed and ranked in order of importance to the
organisation.

 Paired Comparison System - individual jobs are ranked against one other, and an overall
score is assigned to each work, determining the highest-valued job to the lowest-valued job.

 Job Classification System - every job is classified and grouped based on the knowledge and
skills required for the job, years of experience, and amount of authority for that job.

 Point-Factor System - determines the value of a job by calculating the total points assigned
to it. The points given to a specific job are called compensable factors. These can range from
leadership ability to specific responsibilities and skills required for the job.

 Compensation and Benefits

 3. Developing a Pay System
 Once you have performed a job evaluation, you can move to the third step,
developing a payment system or pay grading. It is the process of setting the
pay scale for specific jobs or types of jobs.
 Click on the tabs below to find out more about the main types of pay
systems organisation's use.

The first method to pay grade is to develop various pay grade levels. Then once
these levels are developed, each job is assigned a pay grade. When employees
Pay Grade receive raises, their raises stay within the range of their pay grade until they
receive a promotion that may result in a higher pay grade.
 Since there is little opportunity for pay discrimination, this system has the
advantage of being fair. Another advantage of this method is that it can be
Scale easier for HR to manage as pay grades are streamlined.
One of the downsides of pay grading is the possible lack of motivation for
employees to work harder, as pay progression is not based on managerial
judgement.
A few businesses use the going rate model. In this model, the creation of the
pay package considers an examination of the going rate for a specific job at a
Going Rate particular time.
Model This model can work well if market pressures or labour supply-and-demand
pressures massively impact your particular business.
For instance, if you want to hire the finest project managers, but more of them
are already working (lack of supply), you will probably need to pay the same
amount or more due to supply and demand in the labour market.

According to this paradigm, each manager chooses who gets paid what when
that individual is employed.
Manageme The risk of prejudice and/or discrimination within the organisation may be the
nt Fit drawback to this concept. Naturally, these circumstances may lead to low
morale, which is the very situation we want to avoid when paying personnel.
Model

This type of system provides employees with a pay basis but then links the
attainment of certain goals or achievements directly to their pay.
Variable
Pay System For example, a salesperson may receive a certain base pay but earn more if he
or she meets the sales quota.

Broadbanding Broadbanding is similar to a pay grade system, except all jobs in a particular
Systems category are assigned a specific pay category.
For example, everyone working in customer service, or all administrative
assistants (regardless of department), are paid within the same general band.
In its corporate headquarters, McDonald's employs this compensation system
and claims that it permits flexibility in terms of pay, employee movement, and
professional development.

Compensation and Benefits

4. Pay Decision Considerations

Besides the motivational aspect of creating a pay structure, there are some other considerations.

1. Size of the Organisation

First, the size of the organisation and the expected expansion of the organisation will be a factor. For
example, if you are the HR manager for a ten-person company, then a going rate or management fit
model may be the most appropriate choice. But if your company expands, it could be wise to create
a more formal pay structure.

2. Whether the Organisation operates Internationally or Globally

If your organization also operates overseas, consideration is how domestic workers will be paid in
comparison to the global market and in what currency. It is essential to ensure that the chosen pay
structure is fair to employees who live and work in more expensive countries.

3. Level of communication and employee involvement in compensation

If you want to increase the motivation that can be produced by fair and equal compensation, you
must outline your payment system. Furthermore, if practicable, requesting that your employees
complete pay attitude surveys, for example, can help to develop a clear compensation structure that
results in higher performing employees.

Compensation and Benefits

5. Determining Types of Pay

After a payment system has been developed, we can begin to look at specific methods of paying our
employees. We can divide our total pay system into three categories: pay, incentives, and other types
of compensation:

 Pay is the hourly, weekly, or monthly salary an employee earns.

 Incentives, commonly known as pay-for-performance incentives, are frequently granted for

exceeding predetermined performance benchmarks, such as set sales goals.

 Other types of compensation can relate to health benefits (e.g. health, dental or life
insurance), fringe benefits (e.g. sick leave, paid vacation time, gym membership) and
retirement plans (e.g. 401(k) plans in the US).

The following are desirable traits of incentive plans:

 Clearly communicated

 Attainable but challenging

 Easily understandable

 Tied to company goals

The key points from this module are:

Human resource management (HRM) is the process of hiring people, training them, compensating
them, developing policies relating to them, and developing strategies to retain them. HRM can be
divided into the following areas:

 Staffing

 Development of Workplace Policies

 Compensation and Benefits Administration

 Employee Retention and Motivation

 Training and Development

 Dealing with Laws Affecting Employment

 Employee Health and Safety

  Awareness of External Factors

The key challenges for HRM professionals in the modern business world include:

 Cost containment - HR Managers of human resources must demonstrate to the organisation

the necessity and importance of their roles.

 Fast-changing technology - HR managers are also responsible for devising policies dealing
with 'cyberloafing' and other workplace time wasters revolving around technology.

 Economic factors - changes in the economy can represent challenges for the human resource
manager.

 Ageing and changing workforce - working with multiple generations at once can create
challenges as different expectations and needs arise from a multigenerational workforce.

Communication plays an essential role in HRM. There are four main styles of communication:

 Expresser - people of this style rely primarily on intuition and feelings and dislike facts.

 Driver - people with a driver style like to have their way and tend to be decisive.

 Relater - people with a relater style like positive attention and want to be regarded warmly.

 Analytical - people with this analytical communication style will ask a lot of questions and
behave methodically.

Listening is another essential central part of communication. There are three main types of listening:

 Competitive or combative listening - occurs when we are focused on sharing our point of
view instead of listening to someone else.

 Inpassive listening -happens when we are interested in hearing what the other person says
but assume that we hear and understand what the person says correctly without verifying.

 Active listening - involves verifying that our understanding of what the speaker says is
correct. This style has four key phases: sensing, interpreting, evaluation and response.

Nonverbal language accounts for a large part of communication. Misunderstandings are more likely
when nonverbal cues are not seen and heard. Nonverbal language can include facial expressions,
eye contact, tone of voice, posture and physical gestures.

The Ulrich HR model is a common approach to strategic HRM planning, which suggests that HR
functions should be classified into four categories:

1. Strategic Partner - aligning the HR function with the organisation's needs.

2. Change Agent - the ability to foresee and adapt to change throughout the entire
organisation.

3. Administrative Expert and Functional Expert - the capacity to comprehend and put into
practice rules, procedures, and processes related to the HR strategic plan.

4. Employee Advocate - The ability to help, defend, and support present employees inside an
organisation.

The following steps should be taken into consideration before creating the strategic HRM plan:
 1. Conduct a Strategic Analysis

2. Identify Strategic HR Issues

3. Prioritise Issues and Actions

4. Develop the HRM Plan

After creating the HRM strategic plan, the HRM plan can be developed to address specific issues
within the human resource department.

A compensation plan refers to all aspects of a compensation package (e.g. wages, salaries and
benefits). Five guidelines should be taken into consideration when developing a compensation
strategy:

Internal and External Factors Internal and External Factors in Determining

Compensation Strategy:

Internal factors include the selection of a

compensation strategy such as a market
compensation (i.e. going rate) policy, market
plus or market minus policy.
External pay factors can include the current
economic state, such as inflation and the cost of
living
Job Evaluation Systems A job evaluation system is used to determine
the relative value of one job to another. There
are several ways to perform a job evaluation:
- Job Ranking System - job titles are listed and
ranked in order of importance to the
organisation.
- Paired Comparison System - individual jobs
are compared to one another using a rating
system, and each work receives an aggregate
score that ranks it from highest to lowest value.
- Job Classification System - every job is
classified and grouped based on the knowledge
and skills required for the job, years of
experience, and amount of authority for that
job.
- Point-Factor System - determines the value of
a job by calculating the total points assigned to
it. Points can be allocated over a range of areas
or skills.
Developing a Pay System Setting the wage scale for particular jobs or job
categories takes place in this process. There are
five primary categories of pay systems,
including the following:
- Pay Grade Scale
- Going Rate Model
- Management Fit Model
 - Variable Pay System
- Broadbanding Systems
Pay Decision Considerations Besides the motivational aspect of creating a
pay structure, there are some other
considerations such as:
- The size of the organisation.
- Whether the organisation operated
internationally or globally.
- Level of communication and employee
involvement in compensation.
Determining Types of Pay fter a payment system has been developed, we
can begin to look at specific methods of paying
our employees. We can divide our total pay
system into three categories: pay, incentives,
and other types of compensation:

- Pay is an employee's hourly, weekly, or

monthly wage.
- An incentive, often called a pay-for-
performance incentive, is given for
meeting certain performance standards, such as
meeting sales targets.

- Other types of compensation can relate to

health benefits, fringe benefits and retirement
plans.
 Modile 2
Learning Outcomes

On successful completion of this module, you will be able to:

 Identify the main stages in the recruitment process.

 Discuss the importance of developing a job analysis and job descriptions.

 Outline the different types of recruitment strategies.

 List the advantages and disadvantages of different recruitment strategies.

The Recruitment Process

Introduction

The recruitment process is an important part of human resource management (HRM). Recruitment is
defined as a process that provides the organisation with a pool of qualified job candidates from
which to choose.

Companies must execute proper staffing strategies and forecasting to ascertain the number of
employees they will require before hiring. The organisation's annual budget, and short- and long-
term intentions, such as potential expansion, will serve as the foundation for the forecast.

Forecasting is based on both internal and external factors, which can include the following:

Internal Factors External Factors

Budget constraints Changes in technology
Expected or trend of employee turnover Changes in laws
Production levels Shifts in population or location demographics
Sale increases or decreases Unemployment rates
Global expansion plans Competition

he Recruitment Process

Stages of the Recruitment Process

1. Staffing plans

Before recruiting, businesses must execute proper staffing strategies and projections to predict how
many people they will require. This plan allows HRM to see how many people they should hire based
on revenue expectations and can also include the development of policies to encourage
multiculturalism at work.
Once the HR manager has completed the needs assessment and knows exactly how many
individuals, what jobs, and when they need to be hired, he or she may begin recruiting.

2. Develop job analysis

Job analysis is a formal system developed to determine what tasks people perform in their jobs. The
information obtained from the job analysis is utilised to create the job description and job
descriptions.

3. Write job description

The next stage of the recruitment process is to develop a job description, which should outline a list
of tasks, duties, and responsibilities of the job.

4. Job specifications development

A job description is a list of a position's tasks, duties, and responsibilities. Position specifications, on
the other hand, outline the skills and abilities required for the job. The two are tied together as job
descriptions are usually written to include job specifications.

5. Know laws relating to recruitment

One of the most important parts of HRM is to know and apply the law in all activities the HR
department handles. Specifically, with hiring processes, the law is very clear on fair hiring that is
inclusive to all people applying for a job. Given this, it is the responsibility of the HR professional to
research and apply the laws relating to recruitment in their respective industry and country.

6. Develop a recruitment plan

A successful recruitment plan includes actionable steps and strategies that make the recruitment
process efficient. Although it might seem easy, recruitment of the right talent at the right place and
at the right time takes skill and practice, but more importantly, it takes strategic planning. HR
professionals should develop a recruiting plan before posting any job description.

7. Implement a recruitment plan

This stage requires the implementation of the actions outlined in the recruitment plan.

8. Accept applications

The first step in selection is to begin reviewing résumés. But even before you do that, it's crucial to
create standards by which you'll evaluate each applicant. Both the job description and the job
requirements might provide this information.

9. Selection process

This stage will require the HR professional to determine which selection method will be used. The
next step of the selection process is to determine and organise how to interview suitable candidates.

The Recruitment Process

How to Develop Recruitment Strategy

Although it might seem easy, recruitment of the right talent at the right place and at the right time
takes skill and practice, but more importantly, it takes strategic planning. An understanding of the
labour market is key for devising strategic recruiting processes. Based on this information, when a job
opening occurs, the HRM professional should be ready to fill that position.

The key steps for developing a recruitment strategy include:

1. Refer to the staffing plan.

2. Confirm the job analysis is correct through questionnaires.

3. Write the job description and job specifications.

4. Review internal candidate experience and qualifications for possible promotions.

5. Determine the best recruitment strategies for the position.

6. Implement a recruiting strategy.

Once these tasks are complete, the hope is that you will have a diverse group of people to interview
(called the selection process). However, knowing ahead of time is critical to ensuring that the right
applicants are selected.

Job Analysis and Job Descriptions

Job Analysis - Introduction

Job analysis is a formal system developed to determine what tasks people perform in their jobs. The
goal of a job analysis is to guarantee that the job and the person are a good fit, as well as to evaluate
the employee's performance.

As shown in the image below, the job analysis process usually consists of six steps:

Process for Writing the Job Analysis

Job Analysis and Job Descriptions

Methods of Job Analysis

Two different types of job analyses can be conducted: a task-based analysis and a competency-based
analysis, which can be defined as follows:
  A task-based analysis focuses on the duties of the job.

 A competency-based analysis focuses on the specific knowledge and abilities an employee

must have to perform the job.

Consider the legal implications of how job analysis is used. Because a

competency-based job analysis is more subjective, it might be more difficult to
tell whether someone has met the criteria.

Once you've decided how you'll conduct the analysis, you should select a tool
for the job. Most organisations use questionnaires (online or hard copy) to
determine the duties of each job title.
Some organisations will use face-to-face interviews to perform this task,
depending on time constraints and the size of the organisation.

Job Analysis and Job Descriptions

Job Analysis - How to Identify Sources of Data:

A major part of the job analysis includes research, which may mean reviewing the job responsibilities
of current employees, researching job descriptions for similar jobs with competitors, and analysing
any new responsibilities that need to be accomplished by the person with the position. Some sources
of data that can be helpful include:

1. Direct observation can be beneficial when analysing

repeated manual tasks, for example.

2. A conversation with the present job holder and their

supervisor or line manager is another helpful way to
get information. Questionnaires or interviews are often
used for this purpose.

3. Using a checklist method allows you to cross off the

many facets of the project as you think about them.

Job Analysis and Job Descriptions

Job Description - Introduction

Adequate job descriptions and work specifications can be created based on the job analysis. A job
description lists the components of the job, while job specifications list the requirements to perform
the job. The job description, which usually includes a job specification, helps specify the type of
applicant you are looking to recruit.

Job descriptions should always include the following four basic components:

1. Job functions (the tasks the employee performs).

2. Knowledge, skills, and abilities (what an employee is expected to know and be able to do, as
well as personal attributes).

3. Education and experience are required.

 4. Physical requirements of the job (ability to lift, see, or hear, for example).

Job descriptions come in many forms, but accuracy is vital. An accurate job
description is beneficial for a few reasons. It can be used, for instance, to
evaluate performance during upcoming check-ins and appraisals. It can also be a
guide for potential training needs.

Job Analysis and Job Descriptions

Tips for Writing a Good Job Description

 Be sure to include pertinent

information such as the job title,
department, duties and
responsibilities, terms of employment,
and qualifications needed.

 Think of the job description as a

snapshot of the job.

 Communicate clearly and

concisely. Avoid acronyms.

 Make sure the job description will

spark the interest of the appropriate
applicant.

 Don’t try to fit all job aspects into the

job description.

 Proofread the job description.

Recruitment Strategy

Introduction

HR professionals must have a recruiting plan before posting any job description. The proposal calls
for the use of documents like resumes. Part of the plan should also include the expected cost of
recruitment. The primary ways of recruitment are listed below.

Recruiters

Some organisations choose to have specific individuals

working for them who focus solely on the recruiting function
of HR. Recruiters use similar sources to recruit individuals,
such as professional organisations, websites, and other methods discussed in this chapter. Recruiters
are excellent at networking and usually attend many events where possible candidates will be
present. Recruiters maintain a steady pipeline of potential applicants in case a position that might be
a suitable match arises.

There are three main types of recruiters:

1. Executive search firm - These firms are primarily interested in high-level positions such as
management and CEO. They often charge 10-20% of the first year's pay, making them highly costly.

2. Temporary recruitment or staffing firm - Assist in locating skilled candidates ready to work on
shorter-term contracts. Typically, the employer pays the employee's salary and the recruitment firm,
so you do not need to add this person to your payroll.

3. Corporate recruiter - A corporate recruiter is a corporation employee solely responsible for

recruiting for their organisation. Corporate recruiters work for the business they are seeking
candidates to represent. This type of recruiter may specialise in a particular field, such as technical
recruiting.

Campus Recruiting

Colleges and universities can be excellent sources

of new candidates, usually at entry-level positions.
Universities can provide people that may lack
experience but have formal training in a specific
field. Many companies use their campus recruiting
programs to develop new talent, who will
eventually develop into managers

Professional Associations

Typically nonprofit organisations and professional associations work to advance a particular

profession. There is a professional organisation for almost every profession. In most cases, there is a
price, and membership in this organisation could be necessary to post jobs. For example, in the field
of human resources, the Society for Human Resource Management in the U.S. allows companies to
post jobs relating to HR.

Websites

If you have ever had to look for a job, you know there
are numerous websites to help you do that. From the
HR perspective, there are many options to place an ad,
most of which are inexpensive. The downside to
this method is the immense number of résumés you may
receive from these websites, all of which may or may not be qualified. Many organisations, to
combat this, implement software that searches for keywords in résumés, which can help combat this
problem.

Social Media

Facebook, Twitter, LinkedIn and

YouTube are excellent places to
obtain a media presence to attract
numerous workers. The goal of
using social media as a recruiting
tool is to create a buzz about your
organisation, share stories of
successful employees, and
promote an appealing culture.
Even smaller businesses might benefit from this technology by posting job openings as status
updates. This technique is relatively inexpensive, but there are some things to consider. For example,
tweeting about a job opening might spark interest in some candidates, but the trick is to show your
personality as an employer early on.

Events

Recruiting at special events such as job fairs is another option. Some

organisations have specific job fairs for their company, depending on the
size. Others may attend industry or job-specific fairs to recruit specific
individuals

Referrals

Most recruiting plans include asking current employees, “Who do

you know?” The quality of referred applicants is usually high since
most people would not recommend someone they thought
incapable of doing the job. E-mailing a job opening to current
employees and offering incentives to refer a friend can be a quick
way of recruiting individuals. Because most formal referral
programs are successful, it is recommended that programs be
incorporated into the HRM strategic plan and recruitment strategy.
However, be wary of using referrals as the only method, as this can lead to a lack of diversity in the
workplace.

advertisements

Newspaper and radio advertisements are also common kinds of

traditional job advertising. This method can allow you to target specific
segments such as demographics (e.g. local newspaper or radio station
advertisements.) However, it can be an expensive form of advertising. For
example, a TV advert campaign may not be the most appropriate or cost-effective method if hiring
for one job role

Recruitment Strategy

Advantages and Disadvantages of Recruiting Methods

The table below summarises the key advantages and disadvantages of each recruitment method.

Recruitment Method Advantages Disadvantages

Outside recruiters, executive - Expensive
search firms, and temporary - Less control over final
employment agencies - Can be time saving candidates to be interviewed
- Can hire people to grow with
the - Time consuming
Campus recruiting/educational organisation - Only appropriate for certain
institutions - Plentiful source of talent types of experience levels
- May be a fee to place an ad
Professional organisations and - Industry specific - May be time-consuming
associations - Networking to network

Recruitment Strategy

Advantages and Disadvantages of Recruiting Methods

The table below summarises the key advantages and disadvantages of other common recruitment
methods.

Recruitment Method Advantages Disadvantages

- Diversity friendly -Significant number of
Websites/Internet - Low cost unqualified candidates
recruiting - Quick - Lack of personal touch
- Time consuming
Social media - Inexpensive - Overwhelming response
- Can be expensive
- Access to specific target - May not be the right
Events markets of candidates target market
- Higher quality people - Concern for lack of
Referrals - Retention diversity
Traditional - Can target a specific
advertisements audience - Can be expensive

Recruitment Strategy

Internal Candidates vs. External Candidates

The key advantages and disadvantages of hiring internal or external candidates are summarised in
the table below:

Advantages Disadvantages
Internal Candidates Rewards contributions of Can produce “inbreeding,”
current staff which may reduce diversity
 and difference perspectives
Can be cost effective, as May cause political infighting
opposed to using a traditional between people to obtain the
recruitment strategy promotions
Knowing the past performance
of the candidate can assist in Can create bad feelings if an
knowing if they meet the internal candidate applies for a
criteria job and doesn’t get it
Brings new talent into the Implementation of recruitment
External Candidates company strategy can be expensive
Can help an organisation Can cause morale problems for
obtain diversity goals internal candidates
New ideas and insight brought Training and orientation may
into the company take more time

Recruitment Strategy

Costs of Recruitment

Our last consideration in the recruitment process is recruitment costs. We can determine this by
looking at the total amount we have spent on all recruiting efforts compared to the number of hires.

The example below outlines how you can calculate the cost of recruitment for a
particular candidate/campaign:
cost per hire = advertising costs + recruiter costs + referral costs + social media costs +
event costs

Furthermore, we can assess the yield ratio to determine the effectiveness of our recruiting strategies.
A yield ratio is the percentage of applicants from one source who make it to the next stage in the
selection process (e.g., they get an interview).

For example, if you received two hundred résumés from an online advert and fifty-two of those make
it to the interview stage, this means a 26% yield (52/200). We can use these calculations to
determine the optimal location to recruit for a specific role. Additionally, different yield ratios can
vary depending on the project, and a higher yield ratio must consider the method's cost.

The key points from this module are:

The Recruitment Process is a significant element of human resource management (HRM).

Recruitment is the process that provides the organisation with a pool of qualified job candidates
from which to choose.

The key steps for developing a recruitment strategy include:

1. Refer to the staffing plan.

2. Confirm the job analysis is correct through questionnaires.

3. Write the job description and job specifications.

4. Review internal candidate experience and qualifications for possible promotions.

5. Determine the best recruitment strategies for the position.

 6. Implement a recruiting strategy.

Job Analysis is a formal system developed to determine what tasks people perform in their jobs. A
job analysis can either be a task-based or competency-based analysis.

A job description lists the components of the job, while job specifications list the requirements to
perform the job.

The main recruitment methods include:

 Recruiters

 Campus recruiting

 Professional associations

 Websites

 Social media

 Events

 Referrals

 Traditional advertisements

The key advantages and disadvantages of hiring internal or external candidates are summarised in
the table below:

Internal Candidates

Advantages:
- Rewards contributions of current staff.
- Can be cost-effective, as opposed to using a traditional recruitment strategy.
- Knowing the past performance of the candidate can assist in knowing if they meet the criteria.
Disadvantages:
- Can produce “inbreeding,” which may reduce diversity and different perspectives.
- May cause political infighting between people to obtain promotions.
- Can create bad feelings if an internal candidate applies for a job and doesn’t get it.

External Candidates

Advantages:
- Brings new talent into the company.
- Can help an organisation obtain diversity goals.
- New ideas and insight brought into the company.
Disadvantages:
- Implementation of a recruitment strategy can be expensive.
- Can cause morale problems for internal candidates.
- Can take longer for training and orientation.

Our last consideration in the recruitment process is recruitment costs. We can determine this by
looking at the total amount we have spent on all recruiting efforts compared to the number of hires.
The following formula can be used to calculate the cost of recruitment for a certain
candidate/campaign:

cost per hire = advertising costs + recruiter costs + referral costs + social media costs + event costs
 Module 3
Learning Outcomes

On successful completion of this module, you will be able to:

 Outline the key stages of the overall selection process.

 List the different types of interview methods.

 Explain the differences between situational and behaviour description interview questions.

 Recognise the different types of tests and selection methods.

Overview of the Selection Process

Introduction

After you've designed your recruitment strategy, recruited candidates, and have a large pool of
candidates to pick from, you may begin the selection process. The actions involved in selecting
persons with the necessary qualities to fill a current/future job opening are referred to as the
selection process. Managers or supervisors are typically ultimately responsible for recruiting
personnel, although human resource management (HRM) supports and guides managers in this
process.

Similar to the recruitment process, the selection process is expensive. The time for all involved in the
hiring process to review résumés, assess the applications and interview the selection of candidates
takes away time (and costs money) that those individuals could spend on other activities. In addition,
there may be costs for administering testing for candidates.

The selection process consists of five distinct aspects:

1. Criteria development

2. Application and résumé/CV review

3. Interviewing

4. Test administration

5. Making the offer

Overview of the Selection Process

1. Criteria development

The interviewing procedures, such as defining criteria, examining resumes, developing interview
questions, and weighing the prospects, should be thoroughly taught to everyone involved in the
hiring process.
 The first step in the selection process is to plan the interview procedure,
which includes developing criteria. Choosing which information sources to
utilise and how to grade those sources during the interview is part of the
generating criteria process. The criteria selection should be related directly to
the job analysis and specifications.

Some components of the job analysis and job descriptions may be the criteria. Include aspects like
personality or cultural fit, which would be part of the criteria creation process. This process usually
involves discussing which skills, abilities, and personal characteristics are required to be successful at
any given job.

By developing the criteria before reviewing any résumés, the HR manager or manager can be sure if
they are being fair in selecting people to interview. Some organisations may need to develop an
application information sheet. Most of these are completed online and include details about the
candidate, education and previous job experience.

Overview of the Selection Process

2. Application and Résumé/CV Review

Once the criteria have been developed (step one), applications can be reviewed. People have
different methods of going through this process, but there are also computer programs that can
search for keywords in résumés and narrow down the number of résumés that must be looked at
and reviewed.

Overview of the Selection Process

3. Interviewing
The HR manager and/or management must choose those applicants for interviews after determining
which applications match the minimal requirements. Most people do not have time to review twenty
or thirty candidates, so the field is sometimes narrowed even further with a phone interview.

Overview of the Selection Process

4. Test Administration

Various exams may be administered before making a hiring decision. These consist of physical,
psychological, personality, and cognitive testing. Some businesses also do reference checks, credit
reports, and background checks.

The major employment categories of tests include the

following:

 Cognitive ability tests

 Personality tests

 Physical ability tests

 Job knowledge tests

 Work sample
Overview of the Selection Process

5. Making the Offer

The last step in the selection process is to offer a position to

the chosen candidate. Development of an offer via e-mail or
letter is often a more formal part of this process.

The Interview Process

Introduction

Interviewing people costs money. As a result, after candidates are selected, good use of time is
critical to ensure the interview process allows for selecting the right candidate. Typically interviews
can be unstructured or structured:

 In an unstructured interview, questions are tailored to the applicant in question; For

example, there may be questions concerning the candidate's background and resume.

 A structured interview consists of a series of standardised questions based on a job analysis

rather than individual candidates' résumés.

Generally speaking, a structured interview can be preferable as the expected or desired answers are
determined ahead of time, which allows the interviewer to rate responses as the candidate provides
answers. It helps to ensure that the interview process is fair for all candidates.

The Interview Process

Types of Interviews

Interview processes can be time-consuming, so it makes sense to choose the right type of
interview(s) for the individual job. Some jobs, for example, may only need one interview, while
another may necessitate a telephone interview and at least one or two traditional interviews. The
table below lists the six main types of interviews:

1. Traditional Interview

This type of interview usually takes place in the office. It consists of the interviewer and the
candidate, and a series of questions are asked and answered.

2. Telephone Interview

A telephone interview is often used to narrow the list of people receiving a traditional interview. It
can be used to determine salary requirements or other data that might automatically rule out giving
someone a traditional interview.
For example, if you receive two hundred résumés and narrow these down to twenty-five, it is still
unrealistic to interview twenty-five people in person. At this point, you may decide to conduct phone
interviews of that twenty-five, which could narrow the in-person interviews to a more manageable
ten or so people.

3. Panel Interview

A panel interview takes place when numerous persons interview the same candidate at the same
time. While this interview style can be stressful for the candidate, it can also be a better use of time.
Consider businesses that want three to four persons to interview job candidates. It makes sense for
them to be interviewed by everyone at once because it would be unreasonable to ask the candidate
to come in for three or four interviews

4. Information Interview

Informational interviews are typically conducted when there isn't a specific job opportunity, but the
applicant is looking into potential career paths. These kinds of interviews have the advantage of
helping employers find excellent individuals before a position opens up.

5. Group Interview

Two or more candidates are interviewed concurrently during a group interview. This type of
interview can be an excellent source of information if you need to know how they may relate to
other people in their job.

6. Video Interview

Video interviews are the same as traditional interviews, except that video technology is used. This
can be cost saving if one or more of your candidates are from out of town. Skype, for example, allows
free video calls. An interview may not feel the same as a traditional interview, but the
same information can be gathered about the candidate.

However, remember that there are other ways to analyse a

candidate's potential, such as testing methods that can be used
before or after the original interview.
The Interview Process

The Interviewing Plan

Once the criteria have been selected and interview questions developed, it is time to start
interviewing people using the interviewing plan.

Your interviewing plan can determine the direction and process that should be followed:

1. Recruit new candidates.

2. Establish criteria for which candidates will be rated.

3. Develop interview questions based on the analysis.

4. Set a timeline for interviewing and decision-making.

5. Connect schedules with others involved in the interview process.

6. Set up the interviews with candidates and set up any testing procedures.

7. Interview the candidates and perform any necessary testing.

8. Once all results are back, meet with the hiring team to discuss each candidate and make a
decision based on the established criteria.

The Interview Process

Question Types

Most interviews include a wide range of questions. However, they tend to favour situational
interviews or behaviour description interviews. A situational interview is one in which the candidate
is given a hypothetical situation and asked how they would handle it. A behaviour description
interview questions the candidate on how they performed in diverse settings.

Situational Interview Questions

Situational questions are based on hypothetical situations. These might be interview scenarios that
mimic work environments. This kind of inquiry evaluates the candidate's ability, knowledge,
experience, and judgement.
Examples of situational interview questions might include the following:

- What would you do if you caught someone stealing from the company?
- A coworker has told you she called in sick three days last week because she decided to take
a vacation. What would you do?
- You disagree with your supervisor on her handling of a situation. What would you do?

Behaviour Description Interview Questions

In this sort of interview, the premise is that someone's past experiences or behaviours are predictive
of future behaviour. These types of questions tend to assist the interviewer in knowing how a person
would handle or has handled situations.

Examples of behaviour description interview questions might include the following:

- Tell me about a time you had to make a hard decision. How did you handle this process?
- Give an example of how you handled an angry customer.
- What accomplishments have given you the most pride and why?

The Interview Process

Tips for Effective Interviewing

The following tips should be taken into consideration when conducting interviews:

 Interview questions about national origin, marital status, age, religion, and disabilities are
illegal. To avoid any legal issues, interviewers need to be trained on which questions cannot
be asked.

 Listen to the candidate and try to develop a rapport with them. Understand how nervous
they must be and try to put them at ease.

 Be realistic about the job. Do not try to paint a “rosy” picture of all aspects of the job. Being
truthful up front enables an applicant to understand exactly what they will face once they
start their work.

 Be aware of your stereotypes and do not let them affect how you view a potential candidate.

 Watch your body language during the interview and that of the candidate. Body language is
a powerful tool in seeing if someone is the right fit for a job.

 Stick to your criteria for hiring. Do not ask questions that have not been predetermined in
your criteria.

 Learn to manage disagreement and determine a fair process if not everyone on the
interviewing team agrees on who should be hired.

The Interview Process

Tips for Effective Interviewing

The following tips should be taken into consideration when conducting interviews:

 Interview questions about national origin, marital status, age, religion, and disabilities are
illegal. To avoid any legal issues, interviewers need to be trained on which questions cannot
be asked.

 Listen to the candidate and try to develop a rapport with them. Understand how nervous
they must be and try to put them at ease.

 Be realistic about the job. Do not try to paint a “rosy” picture of all aspects of the job. Being
truthful up front enables an applicant to understand exactly what they will face once they
start their work.
  Be aware of your stereotypes and do not let them affect how you view a potential candidate.

 Watch your body language during the interview and that of the candidate. Body language is
a powerful tool in seeing if someone is the right fit for a job.

 Stick to your criteria for hiring. Do not ask questions that have not been predetermined in
your criteria.

 Learn to manage disagreement and determine a fair process if not everyone on the
interviewing team agrees on who should be hired.

Testing and Selecting

Introduction

Besides the interview, we can also look at several other aspects that may predict success on the job.
Before interviews and testing start, criteria on specific test results and expectations should be set
and communicated to all interviewers if any test is to be used as a criterion for evaluating candidates.

Various tests could be administered upon successful completion of an interview. These employment
tests can gauge a person’s KSAOs (Knowledge, Skills, Ability and Other Characteristics) about another
candidate.

The major categories of tests include the following:

1. Cognitive ability tests

2. Personality tests

3. Physical ability tests

4. Job knowledge tests

5. Work sample

Several written tests can be given depending on the project; one or both will be more suitable.

Testing and Selecting

Types of Testing Methods

Click the tabs below to find more information on each of the main testing methods that can be used
as part of the selection process.

Cognitive Ability Tests

A cognitive ability test measures intelligence, such as numerical ability and reasoning. The Scholastic
Aptitude Test (SAT) is an example of a cognitive ability test. Some sample test categories might
include the following:
- Mathematical questions and calculations
- Verbal and/or vocabulary skills
Mechanical aptitude and clerical aptitude are two examples of aptitude exams (e.g., speed of typing
or ability to use a particular computer program). Typically, an aptitude test will offer specific
questions about the job needs.

Personality Tests

Meyers-Briggs and the "Big Five" personality traits can be tested and compared to effective
employee scores. The Big Five test focuses on these personality traits: extroversion, agreeableness,
conscientiousness, neuroticism, and openness.
Self-assessment statements might include the following:
- I have an assertive personality
- I am generally trusting
- I am not always confident in my abilities
- I have a hard time dealing with change

Physical Ability Tests

Some institutions also require physical ability tests; for example, to earn a position in a fire
department, you may have to be able to carry one hundred pounds up three flights of stairs.
If you use tests in your hiring processes, the key to making them useful is to determine a minimum
standard or expectation specifically related to the job requirements. An HR manager should also
consider the legality of such tests.

Job Knowledge Tests

A job knowledge test measures the candidate’s understanding of a particular job.

For example, a job knowledge test may require an engineer to write code in a given period or may
ask candidates to solve a case study problem related to the job.

Work Sample

Work sample tests ask candidates to show examples of work they have already done. Work sample
tests can be a beneficial way to test for KSAOs.
For example, in the advertising business, this may include a portfolio of designs, or for a project
manager, this can contain past project plans or budgets.
These work samples can often be a good indicator of someone’s abilities in a specific area. As always,
the interviewer should have explicit expectations or criteria defined before looking at samples to
ensure that each candidate is evaluated equally.

Testing and Selecting

Selecting - Introduction

Following the interview and testing, additional ways to verify KSAOs include reviewing references,
driving records, criminal histories, and credit histories. Some businesses even evaluate a candidate's
professionalism by looking at their Facebook page.
Reference checking is essential to verify a candidate’s background. It is an added assurance that the
candidate’s abilities are consistent with what you were told in the interview.

Even though past employers can confirm employment dates and job titles, many companies won't
check anything beyond what is stated in the employment record due to privacy regulations. A list of
questions is appropriate if you do manage to locate someone eager to talk about more than simply
dates and jobs, though.

Some of these questions might include the following:

 What were the title and responsibilities of the position the candidate had while at your
company?

 Does this person show up on time and have good attendance?

 Would you consider this person a team player?

 Would you rehire this person?

Testing and Selecting

Selection Methods

A clinical selection approach is probably the most common selection method. This strategy allows
decision makers to analyse the data and select who should be hired for a job based on what they
learn from the candidate and the information accessible to them. Because interviewers have varying
perspectives of a candidate's skills, this method leaves space for inaccuracy.

One consideration is disparate treatment, in which one’s biases may result in not hiring candidates
based on their age, race, or gender. One way to handle this and limit the personal stereotypes and
perceptions of the interviewers is to use a statistical method in hiring. A typical statistical procedure
might be as follows:

1. The HR professional/s and the hiring team review the job analysis and job description and
then determine the criteria for the job.

2. You assign weights for each area and score ranges for each aspect of the criteria, rate
candidates on each area as they interview and then score tests or examine work samples.

3. Once each hiring manager has scored each candidate, the hiring team can compare scores in
each area and hopefully hire the best person in the best way.

A simple sample selection method (with sample scores and weighting filled in) is shown
on the next page.
Testing and Selecting

Sample Selection Model, with Sample Scores and Weighting Filled In

Testing and Selecting

Making the Offer

Human resources professionals frequently believe their work is done after the choice to hire a
candidate has been made. However, extending an offer to the selected candidate can be just as
crucial as the interviewing procedure. If the offer is not appropriately handled, you can lose the
candidate, or if the candidate takes the job, the candidate could start on the wrong foot.
 Once you've made the decision to recruit someone, extend the offer
as soon as possible to the applicant. It is often accomplished with a
phone conversation and a subsequent email that describes the
offer's specifics.

It is not unusual for someone to negotiate salary or benefits. Know

how far you can negotiate and also be aware of how your current
employees will be affected if you offer this person a higher salary.

Lesson Summary

The actions involved in selecting persons with the necessary qualities to fill a current/future job
opening are referred to as the selection process. The selection process consists of five distinct
aspects:

1. Criteria development - this entails determining which sources of information will be used
and how those sources will be scored during the interview.

2. Application and résumé review - people have different methods of going through this
process, but there are also computer programs that can search for keywords in résumés
and help shortlist candidates.

3. Interviewing - after the HR manager and/or manager have determined which

applications meet the minimum criteria, the candidate must select those people to be
interviewed.

4. Test administration - any number of tests may be administered before a hiring decision is
made. These include drug tests, physical tests, personality tests, and cognitive tests.

5. Making the offer - development of an offer via e-mail or letter is often a more formal part of
this process.

Typically interviews can be unstructured or structured. There are six main types of interviews:

 Traditional interview

 Telephone interview

 Panel interview

 Information interview

 Group interview

 Video interview

Most interviews consist of many types of questions, but they usually lean toward situational
interviews or behaviour description interviews:
  Situational questions are based on fictitious scenarios, such as a simulated job environment.

 Behavioural questions can assist the interviewer in knowing how a person would handle or
has handled situations.

Various tests could be administered upon successful completion of an interview. These tests can
gauge a person’s KSAOs (Knowledge, Skills, Ability and Other) about another candidate. The key
types of tests include:

 Cognitive ability tests

 Personality tests

 Physical ability tests

 Job knowledge tests

 Work sample

A clinical selection approach is probably the most common selection method. This strategy allows
decision makers to analyse the data and select who should be hired for a job based on what they
learn from the candidate and the information accessible to them.

Make the offer to the candidate as soon as you have decided to recruit someone. Typically, this is
accomplished with a phone conversation and a subsequent email that describes the offer's specifics.
Training and Development

Learning Outcomes

By the end of this module, you should be able to:

 Discuss the importance of training and development from an HR perspective

 Identify the steps in preparing a training and development plan

 Indicate the different types of training

 Outline the different types of training delivery methods

The Training and Development Process

Introduction

Making sure our new hires are successful comes after we have planned our staffing, recruited
candidates, chosen employees, and then paid them. Training may consist of:

 Technical training - helps to teach new employees the technological aspects of the job.

 Quality training - refers to familiarising employees with the methods for preventing,
detecting, and eliminating non-quality items, typically in a manufacturing organisation.

 Competency-based or skill-based training - includes the skills required to perform the job.

 Soft skills training - refers to personality traits, social graces, communication, and personal
habits used to define interpersonal relationships.

 Safety training - refers to training on relevant safety and health standards to help ensure
employees can perform their work in a way that is safe for them and their co-workers.

The Training and Development Process

Steps in Preparing a Training and Development Plan

When developing your training plan, several elements should be taken into account. Training is
something that should be planned and developed in advance. The following issues should be
addressed to ensure the success of any training initiative:

 Needs assessment and learning objectives. Once you have determined the training needed,
you can set learning objectives to measure at the end of the training.

 Consideration of learning styles. Making sure to teach to a variety of learning styles.

 Delivery mode. Most training programs will include a variety of delivery methods.
  Budget. How much money do you have to spend on this training?

 Delivery style. Will the training be self-paced or instructor-led? What kinds of discussions
and interactivity can be developed in conjunction with this training?

 Audience. Who will be part of this training? How can you make the training relevant to their
individual jobs?

 Timelines. How long will it take to develop the training? Is there a deadline for training to be
completed?

 Communication. How will employees know the training is available to them?

 Measuring effectiveness of training. How will you know if your training worked? What ways
will you use to measure this?

The Training and Development Process

1. Employee Orientation

The first step in training is employee orientation. New hire introduction/orientation is a procedure
used to welcome them to the company. Employees are meant to learn about company policies and
how their particular job fits into the overall picture during the orientation process. Often, a mentor
will be appointed and will take responsibility for the orientation of new staff.

The overall goals of employee orientation/induction are as follows:

 To reduce start-up costs. If an orientation is done right, it can help get the employee up to
speed on various policies and procedures, so the employee can start working immediately.
For the employee to receive timely payment, it can also help ensure that all hiring paperwork
is correctly completed.

 To reduce anxiety. Starting a new job can be stressful. Reducing the stress and anxiety
people experience when entering an unfamiliar situation is one of an orientation's goals.

 To reduce employee turnover. Employee turnover tends to be higher when employees don't
feel valued or are not given the tools to perform. Employee orientation can show that the
organisation values the employee and provides the tools necessary for a successful entry.

 To set expectations and attitudes. Employees perform better when they know the
company's expectations and attitudes.

The Training and Development Process

Employee Orientation

The following stages are crucial to the employee orientation/induction process:

1. Socialisation
It refers to the process of a new employee learning the standards and principles of work duties inside
the organisation and becoming acquainted with coworkers and their responsibilities.

2. Information Sessions

These should be related to the organisation, its aims and policies and the corporate culture. On top
of the general organisation-wide training, sessions can be tailored for individual departments.

3. Guided Tour

Tours of the facility or facilities are essential for making new employees feel at ease and
understanding the organisation's operations.

4. Training

Person/job-specific skills training and development sessions are essential. It includes outlining what
the day-to-day duties of the job will entail, which should be based on the job description. Topics
might include how to request time off, organisational values, appropriate dress codes, and processes.

5. Occupational Health and Safety Information

It includes information concerning occupational health and safety, such as evacuation and
emergency protocols.

6. Information on Performance Reviews

It relates to specific information on the dates and procedures for performance reviews. And that is
crucial for newly hired positions that have a probationary period.

The Training and Development Process

2. In-House Training

The employing organisation often creates in-house training programmes. It is often the second stage
of training and is frequently continual. Training for a specific job, such as learning how to operate a
particular type of software, might be included in in-house training programmes.
Training options include competency-based, tiered training with a clear development ladder or self-
guided learning.

It's not usually related to a specific profession because many organisations offer internal training on
various HR issues.
The Training and Development Process

3. Mentoring

After the employee has completed orientation and in-house training, companies see the value in
offering mentoring opportunities as the next step in training. In employee training, it is often the
third stage. In-house training may occasionally designate a mentor. A mentor is a trusted,
experienced advisor who has direct investment in the development of an employee.

A mentor could be a boss, but most of the time, a mentor is a

coworker with the skills and disposition to support someone
through a process. A mentoring programme needs to become
ingrained in the corporate culture for it to be successful. In
other words, new mentors need to go through internal
mentoring training.

While mentoring can take place informally, a formal mentorship programme can help guarantee that
a new hire is partnered with an experienced colleague who can help them navigate any difficulties
they may face while working.

The Training and Development Process

4. External Training

Any form of training that is not done internally is

considered external training. It is typically the final
step in training and maybe continual. It can comprise
sending staff to leadership development conferences
or seminars and paying tuition for a programme or
course they desire to take.

Types of Training Delivery Methods

Introduction

Most training programs will include a variety of delivery methods, such as:

 Lectures

 Online or Audio-Visual Media Based Training

 On-the-Job Training

 Coaching and Mentoring

 Outdoor or Off-Site Programmes

  Types of Training Delivery Methods
 1. Lectures
 This kind of training is led by a trainer
or teacher who focuses on a particular
topic, such as how to use new
technology or soft-skills training.
Lectures can be held on-site in
conference rooms, lecture rooms and
classrooms.
It tends to be an appropriate method
to deliver orientations and some skills-
based training.

 Soft skills are character qualities, manners, communication skills, and

personal habits used to define interpersonal relationships. For example, soft
skills training may focus on how to answer the phone or how to be friendly
and welcoming to customers.

Types of Training Delivery Methods

1. Lectures

This kind of training is led by a trainer or teacher who focuses on a particular topic, such as how to
use new technology or soft-skills training. Lectures can be held on-site in conference rooms, lecture
rooms and classrooms.
It tends to be an appropriate method to deliver orientations and some skills-based training.
 Soft skills are character qualities, manners, communication skills, and personal habits
used to define interpersonal relationships. For example, soft skills training may focus on
how to answer the phone or how to be friendly and welcoming to customers.

Types of Training Delivery Methods

3. On-the-Job Training

Employees can attempt to build those skills on their own after determining the skills they will need
for the work they do in their current position and the work they will do as they advance up the
ladder. They can also ask their peers or managers for assistance.

On-the-job training is a hands-on way of teaching

employees the skills and knowledge required to
execute a given job in the workplace.
Technical training, for example, addresses
software or other programmes that employees
utilise while working in the organisation. Skills
training is on-the-job training focusing on the
skills required to execute the job.

An administrative assistant, for instance, might

be taught how to take phone calls. However, a salesperson may be taught to evaluate a customer's
needs and deliver facts to influence their purchasing decision.

Types of Training Delivery Methods

4. Coaching and Mentoring

Younger or less experienced employees are usually paired with a coach or mentor. A mentor may be
a supervisor, but often a mentor is a colleague having the experience and personality to help guide
someone through processes.
The mentor offers guidance, encouragement, and insight to help the employee meet the training
objectives.

This kind of training is comparable to the on-the-job

training delivery style, but mentor training focuses more
on continuous employee development and less on skill
development.

Coaching systems tend to be a more

formalised training delivery method. Typically, a
manager will take on the role of a coach and offer
assistance to the employee through feedback, observation, assessment, questioning, etc.
Types of Training

Outdoor or Off-Site Programmes

Team building activities build bonds between groups of employees who

work together. They may be physical challenges, like rope or obstacle
courses, or problem-solving tasks like puzzles or escape rooms.

Lesson Summary

The key points from this module are:

Many factors should be considered when creating your training strategy, including:

 Needs assessment and learning objectives

 Consideration of learning styles

 Delivery mode

 Budget

 Delivery style

 Audience

 Timelines

 Measuring effectiveness of training

Training can be classified into four main categories which include:

1. Employee Orientation - It includes socialisation, information sessions, guided tours and

general training to help new employees learn how their role fits within the organisation as a
whole.

2. In-House Training - It may be self-led learning or tiered, competency-based training with a

clear progression ladder. Many companies provide in-house training on various HR topics as
well.

3. Mentoring - A mentor may be a supervisor, but often a mentor is a colleague having the
experience and personality to help guide someone through processes.

4. External Training - It encompasses training that is not done in-house, such as attending
conferences, seminars, or paying for a course.
Lesson Summary

Most training programs will include a variety of training delivery methods, such as:

Lectures

This kind of training is conducted by a teacher or trainer who focuses on a particular subject, like
learning how to use new technology or developing soft skills. It usually works well for delivering
orientations and some skill-based training.

Online or Audio-Visual Media Based training

This delivery style may be podcasts, prepared presentations, or online learning platforms. It might be
a suitable delivery method for safety, technical, professional and quality training. However, for soft
skills and managerial and team training, another more personalised technique may be better for
delivery

On-the-Job Training

On-the-job training is a hands-on way of teaching employees the skills and knowledge required to
execute a given job in the workplace.

Coaching and Mentoring

This kind of training is comparable to the on-the-job training delivery style, but mentor training
focuses more on continuous employee development and less on skill development. A mentor may be
a supervisor, but often a mentor is a colleague having the experience and personality to help guide
someone through processes.

Outdoor or Off-Site Programmes

Team building activities build bonds between groups of employees who work together. They may be
physical challenges, like rope or obstacle courses, or problem-solving tasks like puzzles or escape
rooms.
Module 6: Managing Employee
Performance

Learning Outcomes

By the end of this module you should be able to:

 Describe the different types of performance appraisals.

 Explain the steps for managing poor employee performance.

 Identify the five categories of performance issues.

 Discuss the essential phases of a successful disciplinary procedure.

 Outline the different ways in which employee separation can occur.

Types of Performance Appraisals

Introduction
Performance appraisal of employees is one of the most efficient methods for employees’
development, motivation and evaluation. Performance appraisal systems are typically used
to measure the effectiveness and efficiency of an organisation's employees. The objective of
performance reviews is to help ensure employee productivity is sufficient to meet the
overall organisational objectives outlined in the Strategic HRM plan.
HR professionals and management usually develop an
appraisal system so employee performance can be evaluated
on a regular basis. This system also normally includes a set of
formal policies to help deal with performance issues in the
workplace. The advantage of having such a policy is that it can
eliminate wrongful termination legal action.
There are various methods of performance assessment. Generally speaking, the most
popular methods include:
 Management by Objectives
 Work Standards Approach
 Behaviorally Anchored Rating Scale (BARS)
 Critical Incident Appraisals
 Graphic Rating Scale
 Checklist scale
  Ranking

Types of Performance Appraisals

Management by Objectives
One of the most widely used approaches to performance appraisal is called
Management by Objectives (MBO).
Management by objectives (MBOs) is a concept developed by Peter Drucker in his
1954 book The Practice of Management.
First, the manager and employee meet together and develop objectives for the time
period. Then when it is time for the performance evaluation, the manager and
employee sit down to review the goals that were set and determine whether they
were met.

The advantage of this is the open communication

between the manager and the employee. The
employee also has 'buy-in' since he/she helped
set the goals and the evaluation can be used as
a method for further skill development.
This method is best applied for roles that are not
routine and require a higher level of thinking to
perform the job.

To be efficient at MBOs, the managers and employees should be able to develop

strong objectives that are SMART (Specific, Measurable, Attainable, Relevant and
Time-bound)

Types of Performance Appraisals

Work Standards Approach
For certain jobs in which productivity is most important, a work standards
approach may be the most effective way of evaluating employees. With
this results-focused approach, a minimum level is set and the employee’s
performance evaluation is based on this level.

For example, if a salesperson does not meet a monthly sales target then
this would be recorded as non-performing. The key disadvantage of this
method is that it does not allow for reasonable deviations (e.g. the
employee normally performs well). Thus, this approach works best in
situations where a reasonable measure of performance can be assessed
over a certain period of time.
 This method is also used in manufacturing
environments where production output is
vital. For example, in an automotive assembly
line, the focus is on how many cars can be
built within a set time so employee
performance is measured this
way too. However, this method doesn't allow for the rating of other
factors, such as the ability to work on a team or communication skills,
which can be an important part of the job, too.

Types of Performance Appraisals

Behaviorally Anchored Rating Scale (BARS)
A BARS method allows performance to be assessed along a scale with
clearly defined scale points which contain examples of specific
behaviours. In this system, there is a specific narrative outlining what
exemplifies “good” and “poor” behavior for each category.

The advantage of this type of system is that it focuses on the desired

behaviors that are important to complete a task or perform a specific
job. This method combines a graphic rating scale with a critical incident
system.

The image below is an example of a Behaviorally Anchored Rating Scale

that could be used for nurses:

Types of Performance Appraisals

Critical Incident Appraisals
 This method of appraisal, while more time-
consuming for the manager, can be effective at
providing specific examples of behaviour.
With a critical incident appraisal, the manager records examples of the
employee’s effective and ineffective behavior during the time period
between evaluations. When it is time for the employee to be reviewed, the
manager will pull out this file and formally record the incidents that
occurred over the time period.
This approach can also work well when specific jobs vary greatly from
week to week, unlike, for example, a factory worker who routinely
performs the same weekly tasks.

Types of Performance Appraisals

Graphic Rating Scale
The graphic rating scale, a behavioural method, is perhaps the most
popular choice for performance evaluations. This type of evaluation lists
traits required for the job and asks the source to rate the individual on
each attribute.
A discrete scale is one that shows a number of different points. The
ratings can include a scale of 1–10; excellent, average, or poor; or meets,
exceeds, or doesn’t meet expectations, for example. A continuous scale
shows a scale and the manager puts a mark on the continuum scale that
best represents the employee’s performance.

Example of a simple Graphic Rating Scale

The disadvantage of this type of scale is the subjectivity that can occur.
This type of scale focuses on behavioural traits and is not specific enough
to some jobs. The development of specific criteria can save an
organisation in legal costs. Many organisations use a graphic rating scale
in conjunction with other appraisal methods to further solidify the tool’s
validity.

Types of Performance Appraisals

Checklist Scale
 A checklist method for performance
evaluations lessens subjectivity,
although subjectivity will still be
present in this type of rating
system. With a checklist scale, a
series of questions are asked and the
manager simply responds yes or no
to the questions, which can fall into
either the behavioural or the trait
method, or both. Another variation to
this scale is a checkmark in the
criteria the employee meets, and a
blank in the areas the employee does
not meet.

Example of Graphic Rating Scale

Types of Performance Appraisals

Ranking
In a ranking method system (also called stack ranking), employees in a
particular department are ranked based on their value to the manager or
supervisor. This system is a comparative method for performance
evaluations.

The manager will have a list of all employees and

will first choose the most valuable employee and
put that name at the top. Then he or she will
choose the least valuable employee and put that
name at the bottom of the list. With the remaining employees, this
process would be repeated.
Obviously, there is room for bias with this method, and it may not work
well in a larger organisation, where managers may not interact with each
employee on a day-to-day basis.
To make this type of evaluation most valuable (and legal), each
supervisor should use the same criteria to rank each individual.
Another consideration is the effect on employee morale should the
rankings be made public. If they are not made public, morale issues may
still exist, as the perception might be that management has “secret”
documents.
Managing Employee Performance
Introduction
One of the most difficult parts of managing others isn’t when they are
doing a great job — it is when they aren’t doing a good job. Sometimes
performance issues can be related to something personal, such as drug or
alcohol abuse, but often it is a combination of factors. The key internal
and external that can lead to performance issues are listed in the table
below.
Internal Factors External Factors
There is conflict with other employees The employee doesn’t have correct
or the manager. equipment or tools to perform the job.
The goals or expectations are not in line
with the employee’s abilities. The job design is incorrect.
The goals or expectations are not in line
with the employee’s abilities. External motivation factors are absent.
The employee views unfairness in the
workplace. There is a lack of management support.
The employee is dissatisfied with the The employee’s skills and job are
job. mismatched.

Managing Poor Employee Performance

The Process for Handling Performance Issues
Besides the written rules, each individual job analysis should have rules
and policies that apply to that specific job.
If an employee breaks the rules or does not meet expectations of the
performance appraisal, the performance issue model, which we will
discuss next, can be used to correct the behavior.
Because of the many varieties of performance issues, we will not discuss
how to handle each type in detail here. Instead, we present a model that
can be used to develop policies around performance, for fairness and
consistency.
1. Performance issues can be classified into the five following
categories:
Mandated Issue
First, the mandated issue is serious and must be addressed immediately.
Usually, the mandated issue addressed immediately. Usually, a mandated
issue is one that goes beyond the company.
Examples of mandated issues might include an employee sharing
information that violates privacy laws, not following safety procedures, or
engaging in sexual harassment.

A written policy detailing how this type of issue would be handled

is crucial.
2. Single Incident
The second performance issue can be called a single incident. Perhaps the
employee misspeaks and insults some colleagues or perhaps he or she
was over budget or late on a project. These types of incidents are usually
best solved with a casual conversation to let the employee know what he
or she did wasn’t appropriate. Consider this type of misstep a
development opportunity for your employee.

Coaching and working with the employee on this issue can be the
best way to nip this problem before it gets worse.
3. Behaviour Pattern
Often when single incidents are not immediately corrected, they can
evolve into a behaviour pattern, which is our third type of performance
issue.
This can occur when the employee doesn’t think the incident is a big deal
because he/she hasn’t been correct before or may not even realise they
are doing something wrong.
In this case, it’s important to talk with the employee and let him
or her know what is expected.
4. Persistent Pattern
If the employee has been corrected for a behaviour pattern but continues
to exhibit the same behaviour, we call this a persistent pattern. Often you
see employees correct the problem after an initial discussion but then fall
back into old habits.
If they do not self-correct, it could be they do not have the training or the
skills to perform the job. If you believe the employee just doesn’t have the
skills or knowledge to perform the job, asking him or her about this could
be helpful to getting to the root of the problem as well.

At this stage, it is important to let the employee know that the

problem is serious and further action will be taken if it continues
5. Disciplinary Intervention
If the employee continues to be nonperforming, you may consider utilising
a progressive discipline process before initiating the employee termination
process.
However, investigation of the performance issue should occur before
implementing any sort of disciplinary action, which normally includes
an investigative interview with the employee.
Another option for handling continued infractions is to consider putting the
employee on an improvement plan, which outlines the expectations and
steps the employee should take to improve performance.

Managing Poor Employee Performance

Investigation of Performance Issues
When an employee is having a performance issue, often it is our
responsibility as HR professionals to investigate the situation. Training
managers on how to document this is the first step in this process. Proper
documentation is vital should the employee need to be terminated later
for the performance issue.
This documentation should include the following information:
 Date of incident
 Time of incident
 Location (if applicable) of incident
 A description of the performance issue
 Notes on the discussion with the employee on the performance
issue
 An improvement plan, if necessary
Next steps, should the employee commit the same infraction:
 Signatures from both the manager and employee
Managing Poor Employee Performance
Investigation of Performance Issues
With this proper documentation, the employee and the manager will
clearly know the next steps that will be taken should the employee
commit the infraction in the future. Once the issue has been documented,
the manager and employee should meet about the infraction.

This type of meeting is called

an investigative interview and is
used to make sure the employee is
fully aware of the discipline issue.
This also allows the employee the
opportunity to explain his or her
side of the story. These types of
meetings should always be
conducted in private, never in the
presence of other employees.

Managing Employee Performance

Defining Discipline
If an employee is not meeting the expectations, discipline might need to
occur. Discipline is defined as the process that corrects undesirable
behavior. The goal of a discipline process shouldn’t necessarily be
to punish, but to help the employee meet performance expectations.
Often supervisors choose not to apply discipline procedures because they
have not documented past employee actions or did not want to take the
time to handle the situation. When this occurs, the company lacks
consistency among managers, possibility resulting in motivational issues
for other employees and loss of productivity.
To have an effective discipline process, rules and policies need to be in
place and communicated so all employees know the expectations. Here
are some guidelines on creation of rules and organisational policies:
1. All rules or procedures should be in a written document.
2. Rules should be related to safety and productivity of the
organisation.
 3. Rules should be written clearly, so no ambiguity occurs between
different managers.
4. Supervisors, managers and HR should outline rules clearly in
orientation, training and via other methods.
5. Rules should be revised periodically, as the organisation’s needs
change.

Managing Employee Performance

Disciplinary Intervention
A crucial aspect of handling performance issues is disciplinary
intervention. Often this is called the progressive discipline process. It
refers to a series of steps taking corrective action on nonperformance
issues. The progressive discipline process is useful if the offense is not
serious and does not demand immediate dismissal, such as employee
theft. The progressive discipline process should be documented and
applied to all employees committing the same offenses.
The steps in progressive discipline normally are the following:
1. First offense: Unofficial verbal warning. Counseling and
restatement of expectations.
2. Second offense: Official written warning, documented in employee
file.
3. Third offense: Second official warning. Improvement plans may be
developed to rectify the disciplinary issue, all of which is
documented in employee file.
4. Fourth offense: Possible suspension or other punishment,
documented in employee file.
5. Fifth offense: Termination and/or alternative dispute resolution.

Employee Separation
Introduction
Employee separation and employee termination are two such phrases and
are used depending on the circumstances and the reason an employee
leaves a job. Employee separation can occur in a number of ways. The
three most common examples of employee separation include:
 The employee resigns from the organisation, which can occur for a
variety of reasons.
 The employee is terminated for performance issues.
 The employee absconds, which can occur when an employee
abandons his or her job without submitting a formal resignation.
In some cases, a severance package may be offered to the employee
upon his/her departure from the organisation.
It is crucial that management should follow all legislative procedures
around termination of employment, or around the voluntary exit from an
organisation.

Employee Separation
Types of Employee Separation
There are six general different types of general employee separation:
1. Retrenchment
Sometimes, for various reasons, an organisation may need to cut the
number of employees in certain areas. Reasons include:
- Downsizing or rightsizing
- A decrease in market shares
- Flattening or restructuring of staff or managerial levels
2. Retirement
At retirement age, or when enough of a pension is saved, an employee
may wish to leave employment altogether
3. Redundancy
For a variety of reasons, a job may no longer be required by an
organisation. In this situation, the employee with that job will often be
made redundant. This usually comes about due to changes in corporate
strategy like:
- Introduction of new technology
- Outsourcing of tasks
- Changes in job design
4. Resignation
Either an employee may leave an organisation of their own accord to seek
employment elsewhere, or the employee may be given the option of a
Voluntary Departure Package (VDP) and asked to leave voluntarily, with
the incentive of a good benefits package.
5. Dismissal/Termination
An employee may be asked to leave an organisation for one of several
reasons. These include:
- Misdemeanour
- Poor work performance
- Legal reasons
6. Death or Disability
In the case of employees who are no longer able to do their jobs, or no
longer do them full time, due to disability, the employee may be entitled
to compensation if the disability was work-related. In the case of an
employee dying their next of kin may be entitled to the same if the cause
of death was work-related.

Employee Separation
Employee Resignation
Resignation means the employee chooses to leave the organisation. First,
if an employee resigns, normally he/she will provide the manager with a
formal resignation e-mail. Then the HR manager usually schedules an exit
interview, which can consist of an informal confidential discussion as to
why the employee is leaving the company.
If the HR professional thinks the issue or reasons for leaving can be fixed,
he or she may discuss with the manager if the resignation will be
accepted.
Assuming the resignation is accepted, the employee will work with the
manager to determine a plan for his or her workload.

Some managers may prefer the

employee to leave right away
and will redistribute the
workload. For some jobs, it may
make sense for the employee to
finish the current project and
then depart. This will vary from
job to job, but two weeks’ notice is normally the standard time for
resignations.
Some companies also offer employees the option of a Voluntary Departure
Package if they opt to resign voluntarily.

Employee Resignation
Exit Interview Guidelines
Although employee separation can occur in a number of ways, an exit
interview is usually carried out, if possible. An exit interview is typically
performed by HR or a manager that seeks information as to what the
employee liked at the organisation and what they see should be improved.
The following are sample exit interview questions that can be used when
an employee chooses to leave his or her employment:
1. What is your primary reason for leaving?
2. What did you like least about your job?
3. What did you like most about your job?
4. Did you have enough training to do your job effectively?
5. Which incentives would you change and why?
6. What incentives did you utilise while at our company?
7. Did you feel there was room for growth in your job?

Employee Separation
Employee Termination due to Poor Performance
If it is determined an employee should be terminated, different steps
would be taken then in a resignation. First, documentation is necessary,
which should have occurred in the progressive discipline process.
 Performance appraisals,
performance improvement plans,
and any other written warnings
the employee received should be
readily available before meeting
with the employee. It is also
important that the reliability and
validity of performance appraisals
should be checked before
dismissing an employee.
Remember that if the discipline process is followed as outlined prior, a
termination for nonperformance should never be a surprise to an
employee. Normally, the manager and HR manager would meet with the
employee to deliver the news. It should be delivered with compassion but
be direct and to the point.
Depending on former contracts, the employee may be entitled to a
severance package.
A severance package can include pay, benefits, or other compensation to
which an employee is entitled when they leave the organisation. The HR
professional typically develops this type of package with input from
management.

Employee Separation
Termination Interview Guidelines
The following considerations should be taken into account when preparing
to conduct a termination interview:
 Develop a careful plan for the interview.
 Make sure everyone is clear on the interview time and place.
 Never inform an employee over the phone.
 A termination interview should last about 10 minutes or more.
 Carry out the interview at a neutral site, never your own office or
the employee's office.
 Have all documents prepared in advance. This includes the human
resources file, employee agreements, and internal and external
release announcements.
  Be available at some time post-interview in case of questions or
problems
The termination process is complex and can be emotionally fraught. There
are many additional factors to consider when terminating an employment
contract. Processes also differ from company to company, sector to
sector, and by geographical location. And of course, always consult the
legal counsel of your organisation about matters of termination.

Lesson Summary
Performance appraisal of employees is one of the most efficient methods
for employees’ development, motivation and evaluation. There are various
methods of performance assessment, which are summarised in the table
below.
Management by Objectives
First, the manager and employee meet together
and develop objectives for the time period. Then
when it is time for the performance evaluation,
the manager and employee sit down to review the
goals that were set and determine whether they
were met. To be efficient at MBOs, the managers
and employees should be able to develop strong
objectives that are SMART (Specific, Measurable, Attainable, Relevant and
Time-bound)

Work Standards Approach

For certain jobs in which productivity
is most important, a work standards
approach could be the most effective
way of evaluating employees. With
this results-focused approach, a
minimum level is set and the
employee’s performance evaluation
is based on this level.
For example, manufacturing companies often use this method as
production output is vital.

Behaviorally Anchored Rating Scale (BARS)

 A BARS method allows performance
to be assessed along a scale with
clearly defined scale points which
contain examples of specific
behaviours. In this system, there is
a specific narrative outlining what
exemplifies “good” and “poor” behavior for each category.
Critical Incident Appraisals
The manager records examples of the employee’s
effective and ineffective behavior during the time
period between evaluations. When it is time for the
employee to be reviewed, the manager will pull out
this file and formally record the incidents that occurred
over the time period.

Graphic Rating Scale

This type of evaluation
lists traits required for the
job and asks the source
to rate the individual on
each attribute. The ratings can include a scale of 1–10; excellent, average,
or poor; or meets, exceeds, or doesn’t meet expectations, for example
Checklist scale
With a checklist scale, a series of questions is asked and the
manager simply responds yes or no to the questions, which
can fall into either the behavioural or the trait method, or
both. Another variation to this scale is a check mark in the
criteria the employee meets, and a blank in the areas the
employee does not meet.

Ranking
In a ranking method system (also called stack
ranking), employees in a particular department
are ranked based on their value to the manager or
supervisor.
Obviously, there is room for bias with this method,
and it may not work well in a larger organisation,
where managers may not interact with each
employee on a day-to-day basis. In addition, if the
rankings are public knowledge within the company then this method may
negatively impact on employee morale.
One of the most difficult parts of managing others isn’t when they are
doing a great job — it is when they aren’t doing a good job. Sometimes
performance issues can be related to something personal, such as drug or
alcohol abuse, but often it is a combination of factors. Performance issues
can be classified into the five following categories:
1. Mandated Issue - this type of issue usually needs to be addressed
immediately.
2. Single Incident - usually resolved by informally letting the
employee know what he/she did wasn’t appropriate.
3. Behaviour Pattern - this can occur when the employee doesn’t
think the incident is a big deal because he/she hasn’t been correct
before or may not even realise they are doing something wrong.
4. Persistent Pattern - occurs when the employee has been
corrected for a behaviour pattern but continues to exhibit the same
behaviour.
5. Disciplinary Intervention - if the employee continues to be
nonperforming, you may consider using a progressive discipline
process before initiating the employee termination process.
When an employee is having a performance issue, often it is our
responsibility as HR professionals to investigate the situation and properly
document it. This documentation should include the following information:
 Date of incident
 Time of incident
 Location (if applicable) of incident
 A description of the performance issue
 Notes on the discussion with the employee
 An improvement plan, if necessary

Once the issue has been documented, the manager and employee should
meet about the infraction, which is called
an investigative interview. If an employee is not meeting the
expectations, discipline might need to occur.
Discipline is defined as the process that corrects undesirable
behaviour. To have an effective discipline process, rules and policies
need to be in place. Here are some guidelines on the creation of rules and
organisational policies:
1. All rules or procedures should be in a written document.
2. Rules should be related to the
safety and productivity of the organisation.
3. Rules should be written clearly, so no ambiguity occurs between diff
erent managers.
4. Supervisors, managers and HR should outline rules clearly in orienta
tion, training and via other methods.
5. Rules should be revised periodically, as the organisation’s needs cha
nge.
The steps of a progressive discipline approach normally consist of the
following:
1. First offense: Unofficial verbal warning. Counseling and
restatement of expectations.
2. Second offense: Official written warning, documented in employee
file.
3. Third offense: Second official warning. Improvement plans may be
developed to rectify the disciplinary issue.
4. Fourth offense: Possible suspension or other punishment,
documented in the employee file.
5. Fifth offense: Termination and/or alternative dispute resolution.

Employee separation and employee termination are two such phrases and
are used depending on the circumstances and the reason an employee
leaves a job.
There are six general different types of general employee separation:
1. Retrenchment - sometimes, for various reasons, an organisation
may need to cut the number of employees in certain areas. Reasons
can include organisational downsizing, rightsizing or restructuring of
staff.
2. Retirement - at retirement age, or when enough of a pension is
saved, an employee may wish to leave employment altogether.
3. Redundancy - for a variety of reasons, a job may no longer be
required by an organisation. In this situation, the employee with that
 job will often be made redundant. This can occur due to the
introduction of new technology, outsourcing of tasks or changes in
job design.
4. Resignation - either an employee may leave an organisation of
their own accord to seek employment elsewhere, or the employee
may be given the option of a Voluntary Departure Package (VDP)
and asked to leave voluntarily, with the incentive of a good benefits
package.
5. Dismissal/Termination - an employee may be asked to leave an
organisation for one of several reasons. These reasons can relate to
poor work performance, misdemeanour offences or other legal
reasons.
6. Death or Disability - in the case of employees who are no longer
able to do their jobs, or no longer do them full time, due to
disability, the employee may be entitled to compensation if the
disability was work-related. In the case of an employee dying their
next of kin may be entitled to the same if the cause of death was
work-related.
Module 7: Organisational Culture

Learning Outcomes
 Define organisational culture.
 Discuss how culture is often transmitted.
 Identify the four key types of organisational culture.
 Recognise different types of organisational change.
 Contrast and compare the five key change management strategies.

Organisational Culture
Introduction

Organisational culture relates to how a business is perceived. This means how it

is perceived from the outside, and how those within the organisation perceive it. Culture is
one of a few perspectives that can help us understand more about a business.
It is important for HR professionals to have a good grasp of how organisational culture can
offer insights into understanding difference and explaining performance.

Organisational Culture
Understanding Organisational Culture
There is no definitive answer to where the culture of a
business evolves from and how it develops, as culture is
a concept that is multifaceted in nature and develops
slowly over time.

Culture is often transmitted by the following:

 The philosophy of the institution; themes like
equity and diversity; participation; striving for
excellence; research and development;
reputation etc.
  The approach to change which is adopted and the way in which leaders act.
 The criteria for evaluating and rewarding performance; job progression and the
organisation's mission statement.
 Culture is also transmitted in the informal history of the organisation that is shared in
stories and legends about key people and events that have affected the organisation.

Organisational Culture
Types of Organisational Culture
There are four key types of organisational culture which are outlined below:
1) Collegiate
A collegiate organisational culture is similar to the classic structure of old universities,
particularly those with a strong research focus. It is defined by the following characteristics:

(i) There is a dual structure of administrative and academic management which results in
parallel committee structures which can act as a black hole for decision making.
(ii) There are often unclear reporting lines and poor coordination; strong local cultures,
agendas and identifiers.
(iii) Academic status is perceived as higher than support or administrative functions.
(iv) There are strong subject-specific allegiances, with academics often feeling a stronger
alliance to their subject area and external networks than to the institutional mission.
(v) Decision-making occurs through committees, which can be slow and lack cohesion;
activities tend to be driven from the ground and primarily linked to local interests.
2) Bureaucratic
A bureaucratic organisational culture is defined by the following:

(i) Characterized by strong central management and top-down decision-making.

(ii) The hierarchy of control and decision-making is clearly established in the administrative
and management structures of the institutions.
(iii) Management roles are clearly defined as career progressions; (academic) heads of
departments, deans etc. are appointed through an interview process to tenured positions.
(iv) Central management has strong control over the direction of the strategic priorities for
the institution.
3) Innovative

An innovative organisational culture is defined by the following characteristics:

(i) Institutions with flexible structures; geared to respond and adapt quickly to external
factors and influences.
(ii) Strong culture of change and innovation, with frequent changes in directions of activities
and focus of interest.
(iii) Often characterised by a matrix structure of responsibilities by both subject area and
functional activity (where the latter will often be structured around the identified strategic
priorities).
(iv) Typically activities focused on particular projects and associated project teams.
(v) Characteristic of some new universities and colleges; also present in older universities
within the sub-structures of enterprise and research centres which are externally funded.
4) Enterprise

An enterprise organisational culture is defined by the following characteristics:

(i) More closely aligned to traditional business and industry approaches.

(ii) Acutely aware of financial mechanisms and processes; alert to external opportunities.
(iii) Traditional management roles and structures with clear demarcations of responsibilities;
hierarchical decision-making processes.
(iv) Clear business objectives and plans based on detailed market analysis and needs.
(v) More common in the United States, particularly in newer educational institutions focused
on distance education.

Managing Change
Introduction
An organisation's business and operating climate can change frequently, which can also
affect the role of HR. Change management is the process of dealing with the impact of
change in an organisation. In many cases, the HR department serves as a link between
company management and employees, playing a fundamental role in facilitating the process
of change.
There are two key types of change that can occur within an organisation, which are planned
and emergent.
Planned
Sometimes change is deliberate - a product of conscious reasoning and actions, i.e. planned
change.

Emergent
In contrast, change sometimes unfolds in an apparently spontaneous and unplanned way.
This type of change is known as emergent change. Change is emergent rather than planned
if it is based on two factors:

1. Managers make a number of decisions apparently unrelated to the change that emerges.
The change is therefore not planned.

2. External factors, such as the economy, competitors’ behavior and political climate and
internal features, such as the relative power of different interest groups, distribution of
knowledge and uncertainty, influence change in directions outside the control of managers.
Even the most carefully planned and executed change program will have
some emergent impacts.

Managing Change
Managing Change in the Workplace
Change management entails supporting individual employees impacted by the desired
change, to manage their own transition process.
The success of any change initiative depends on the ability of the people involved to accept
and embrace the desired change. It is important to understand change as a social process -
that is, to know and understand the effects it has on people.
Types of organisational change include:
 Process changes
 Organisational re-structuring/re-organisation
 Culture change
 Facilities/location change
 Staffing levels/positions
 IT/Systems implementation

Managing Change
Change Management and Organisational Culture
An important aspect of implementing organisational change is understanding the political
and cultural environment you are in. This will help you to identify potential obstacles and
areas of resistance.
There are two main aspects to the issue of change and culture:
 The importance of working within the existing culture when seeking to implement
change.
  Knowing how to influence or change the organisational culture,
where necessary.
When dealing with change it’s important to recognise that different
institutions have different cultures and that within institutions there are often sub-cultures
in different work departments or subject areas.

Managing Change
Change Strategies
There are five main approaches to implementing and managing a change initiative.
Directive
A directive approach to change highlights the manager’s right to manage change and the use
of authority to impose change, with little or no involvement of other people.

The advantage of the directive approach is that change can be undertaken quickly. However,
a disadvantage of this approach is that it does not take into consideration the views, or
feelings of those involved in or affected by the change.

This approach may lead to valuable information and ideas being missed. Also, there is
usually strong resentment from staff when changes are imposed rather than discussed and
agreed upon.

Expert
This approach sees the management of change as a problem-solving process that needs to
be resolved by an ‘expert’ or specialist in the area related to the change.

It is mainly applied to more technical problems, such as the introduction of a new learner
management system, and will normally be led by a specialist project team or by a senior
manager. There is likely to be little involvement with those affected by the change.

The advantage of using this strategy is that experts play a major role in a solution and the
solution can be implemented quickly. However, there are issues regarding this approach;
those affected may have different views than those of the expert and may not appreciate
the solution being imposed upon them.

Negotiation
This approach highlights the willingness on the part of senior managers to negotiate and
bargain with others, in order to effect change.
Senior managers accept that adjustments and concessions may need to be made in order to
implement change. This approach acknowledges that those affected by the change have a
say in which changes are made, how they are implemented and the expected outcomes.

Disadvantages of this approach include: it may take more time to effect the change; the
outcome may not be surely predicted; the changes made may not fully fulfill the
expectations of management. The advantages of this approach are: individuals feel involved
in the change and may be more supportive of it.

Education
This strategy involves trying to change people’s values and beliefs, so they will more easily
support change.

A mixture of activities can be used: information; persuasion; selection and training.

Consultants, specialists and in-house experts can be utilized.

A disadvantage of this approach is that it takes longer to implement. An advantage is that

individuals in the organization are more likely to have a positive commitment to the changes
being made.
Participation
This strategy stresses the full involvement of those affected by the change. Although driven
by senior managers, the process will be less management-dominated and driven more by
groups or individuals within the organisation.
The views of all are taken into account before changes are made. Outside consultants and
experts can be used to facilitate the process, but they will not make any final decisions
regarding outcomes.
The main disadvantages of this process are: the length of time it takes; more costly due to
the number of meetings and the payment of consultant experts; final outcomes cannot
always be predicted.
Benefits of this approach are: changes are more likely to be supported, due to the
involvement of those affected; the commitment of people in the organisation may increase
if they feel they have ownership of the changes being made; organisations and staff may
learn from the experience, understanding more how things function, thereby increasing
their knowledge, skills and effectiveness.

Managing Change
Summary of Change Management Strategies
The following is a summary of the key advantages and disadvantages of the five approaches
to change.
Approach Advantages Disadvantages
Relatively fast to
Directive implement Ignores those affected
Uses relevant expertise;
small groups required;
relatively fast to
Expert implement Ignores those affected
Recipients have a say; Recipients have a say;
resistance likely to be resistance likely to be
reduced; areas of reduced; areas of
Negotiated disagreement highlighted disagreement highlighted
People may commit to People may not commit to
Education change change
More likely to be Relatively slow to
accepted; more implement; complex to
commitment and manage; requires more
Participation opportunity resources

Lesson Summary
Organisational culture relates to how a business is perceived. This means how it is perceived
from the outside, and how those within the organisation perceive it. Culture is one of a few
perspectives that can help us understand more about a business. Culture is often
transmitted by the following:
 The philosophy of the institution; themes like equity and diversity; participation;
striving for excellence; research and development; reputation etc.
 The approach to change which is adopted and the way in which leaders act.
 The criteria for evaluating and rewarding performance; job progression and the
organisation's mission statement.
 Culture is also transmitted in the informal history of the organisation that is shared in
stories and legends about key people and events that have affected the organisation.
There are four key types of organisational cultures which are summarised as follows:
1. Collegiate culture - similar to the classic structure of old universities, particularly
those with a strong research focus.
2. Bureaucratic culture - traditionally defined by strong central management and top-
down decision-making.
3. Innovative culture - defined by frequent changes in directions of activities and focus
of interest.
 4. Enterprise culture - closely aligned with traditional business and industry approaches
and defined by an acute awareness of financial mechanisms and processes.

An organisation's business and operating climate can change frequently, which can affect the
role of HR. Change can either be planned or emergent. Change management is the process
of dealing with the impact of change in an organisation. Examples of organisational change
include process changes, organisational re-structuring and culture changes.
An important aspect of implementing organisational change is understanding the political
and cultural environment the organisation is operating within. There are two main aspects
to the issue of change and culture:
 The importance of working within the existing culture when seeking to implement
change.
 Knowing how to influence or change the organisational culture, where necessary.
There are five main approaches to implementing and managing a change initiative:
 Directive - highlights the manager’s right to manage change and the use of authority
to impose change, with little or no involvement of other people.
 Expert - involves the use of a consultant or expert with little involvement with those
affected by the change.
 Negotiation - highlights the willingness on the part of senior managers to negotiate
and bargain with others, in order to effect change.
 Education - involves trying to change people’s values and beliefs, so they will more
easily support change.
 Participation - emphasises the full involvement of those affected by the change.