Core Human Resource Management Processes Explained

Understanding Human Resource Management (HRM)

Definition of HRM

Human Resource Management (HRM) is the process of acquiring, training, and compensating employees, as well as attending to their labor relations, health, safety, and fairness concerns.

The Role of HR

• Strategic Role: Create value for the organization.
• Tactical Role: Share responsibilities with managers through activities like recruiting, performance appraisal, and managing the reward system.
• Administrative Role: Often involves outsourcing tasks such as payroll and leave administration.

Influencing Factors

HR practices are influenced by both external and internal factors.

Strategic Workforce Planning (SWP)

Definition of SWP

Strategic Workforce Planning (SWP) is the process of getting the right number of people with the right skills into the right job at the right time so the organization can meet its objectives.

Key Components of SWP

• Requirements Forecasting: Predicting the number and type of employees needed in the future.
• Availability Analysis: Identifying potential surpluses or shortages of employees.

Objectives of SWP

• Transform global strategy into HR strategy.
• Forecast manpower needs.
• Forecast technological changes impacting the workforce.
• Enable effective Performance Management (PM).
• Support Talent Management (TM).
• Facilitate Training and Career Development.

Steps in the SWP Process

1. Environmental Scanning: Analyzing internal and external factors (e.g., SWOT, PESTEL).
2. Workforce Profiling: Forecasting HR demand and supply.
3. Gap Analysis: Identifying discrepancies between demand and supply.
4. Action Plan Development: Creating strategies to address gaps.
5. Applying Interventions: Implementing actions like training, recruitment, or outsourcing.
6. Monitoring and Controlling: Evaluating the effectiveness of the plan.

Talent Management (TM)

Definition of Talent Management

Talent Management (TM) is a strategic approach to attract, develop, and retain people with the abilities needed to meet current and future organizational needs.

Defining Talent and Competency

• Talent is the combination of competence, commitment, and contribution.
• Competency refers to Skills, Knowledge, and Abilities (SKA).

The Talent Management Process (8 Steps)

1. Strategic Workforce Planning
2. Recruiting
3. Onboarding
4. Performance Management
5. Performance Support
6. Succession Planning
7. Rewards
8. Critical Skills Gap Analysis

Recruitment and Onboarding Talent

Job Analysis

Job analysis involves writing job descriptions and specifications, creating performance appraisal forms, assessing training needs, and informing the strategic workforce plan.

• Job Description Elements: Includes job title, location, summary, reporting structure, working conditions, and duties.
• Job Specification Elements: Outlines qualifications, experience, training, skills, responsibilities, emotional characteristics, and sensory demands.

Goal of Recruitment

The primary goal is to create a match between an individual's potential and the requirements of the position.

The Recruitment Process

1. Define the need and candidate profile.
2. Pick the right recruitment source (internal sources are often preferred).
3. Develop and run the right recruitment campaign.
4. Conduct selection (e.g., testing, gathering information, interviews).
5. Make the hiring decision.
6. Onboard the new hire (e.g., welcome event, orientation).

The Manager's Role in Recruitment

Managers play an important role because they create the position file and job profile, participate in the selection process, conduct interviews, onboard new hires, and evaluate performance.

Performance Management (PM)

Definition of Performance Management

Performance Management (PM) is the process of identifying, measuring, and developing the performance of employees and aligning it with the organization's goals. It often involves setting SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals.

Performance Appraisal (PA)

Definition and Purpose of PA

Performance Appraisal (PA) is the process of evaluating an employee's performance, sharing that information with them, and finding ways to improve their performance.

Why conduct Performance Appraisals?

• Provides a basis for pay increases and promotions.
• Is an important component of Performance Management.
• Helps in correcting performance deficiencies or reinforcing good performance.
• Is useful for career planning.

Contributors to PA

Input can come from various sources:

• The employee (self-appraisal)
• Clients/Customers
• Peers
• Supervisors

HR typically trains supervisors to be familiar with different appraisal methods.

Steps in Performance Management

1. Defining the job and performance criteria.
2. Appraising performance.
3. Providing feedback.

Types of Performance Appraisal Methods

• Graphic Rating Scale: Uses a scale (e.g., 0-10) to rate traits or behaviors.
• Ranking Method: Compares employees against each other.
• Forced Distribution Method: Places employees into predefined performance categories.
• Critical Incident Method: Records examples of exceptionally good or poor performance.
• Behaviorally Anchored Rating Scales (BARS): Combines critical incidents and graphic rating scales.
• Management by Objectives (MBO): Focuses on achieving mutually agreed-upon goals.
• 360-Degree Feedback: Gathers input from self, subordinates, peers, and superiors.

Conducting Performance Interviews

Key steps include:

1. Explain the purpose of the interview.
2. Discuss the employee's self-appraisal.
3. Share the supervisor's rating and explain the reasoning.
4. Focus on development plans.
5. Allow the employee to summarize their perspective.
6. Discuss rewards, if appropriate.
7. Set dates for future follow-up meetings.
8. Obtain the employee's signature.
9. The supervisor should recap the discussion.
10. Address any points of negotiation if they arise.