CHAPTER 1: THE ROLE OF HUMAN RESOURCES

1. WHAT IS HRM?
- process of employing people, training them, compensating them, developing policies relating to them, and developing strategies
to retain them.

Functions of HRM.
1) Staffing: the hiring process from posting a job to negotiating a salary package.
- There are four main steps:
1- Development of a staffing plan.
2- Development of policies to encourage workforce.
3- Recruitment.
4- Selection.

2) Development of place work policies.

- Examples of workplace policies:
 Discipline process policy.
 Vacation time policy.
 Dress code.
 Ethics policy.
 Internet usage policy.
3) Compensation and benefits demonstration ‫التعويض‬
- Involves setting up pay systems that take into consideration the number of years with the organization, years of experience,
education, and similar aspects.
- Examples of employee compensation:
 Health benefits, retirements, Vacation time, Sick leave, Bonuses., Tuition reimbursement
4) Retention: Compensation is a major factor
- keeping and motivating employees to stay with the organization.
- Reasons for employees leaving the company
 Job Issues they are performing.
 Challenges with manager.
 Poor fit with organizational culture.
 Poor workplace environment

5) Training and development: employee motivation.

- Employees who feel they are developing their skills, results in increased employee retention.
- Examples of training programs:
 Job skills training, using computer program
 Training on communication.
 Team-building activities.
 Policy and legal training, such as sexual harassment training and ethics training

6) Dealing with laws affecting employment:

 Discrimination laws.
 Health-care requirements.
 minimum wage.
 Worker safety laws.
 Labor laws
7) Worker protection (safety):
- Issues:
 Chemical hazards.
 Heating and ventilation requirements.
 Use of “no fragrance” zones.
 Protection of private employee information
8) Awareness of external factors: no direct control. Could positively or negatively impact human resources.
- External factors
 Globalization and offshoring.
 Changes to employment law.
  Health-care costs.
 Employee expectations.
 Diversity of the workforce.
 Changing demographics of the workforce.
 A more highly educated workforce.
 Layoffs and downsizing.
 Technology used, such as HR databases.
 Increased use of social networking to distribute information to employees

2. SKILLS NEEDED FOR HRM?

1) The first skill needed is organization.
2) Being able to multitask:
3) People skills:
4) The ability to communicate:
5) A strategic mind-set:
6) Ethics and a sense of fairness:

3. TODAY’S HRM CHALLENGE?

1) Containing costs: Expenses that involve the people part of any business:
 Health-care benefits.
 Training costs.
 Hiring process costs

A company can cut costs:

1. By not offering benefits or 401(k) recruitment plans.
2. By offering training.
3. The hiring process and the cost of turnover in an organization can be very expensive.
- Turnover: the number of employees who leave a company in a particular period of time.
- Reducing turnover includes employee motivational strategies.
4. Offshoring: the movement of jobs overseas to contain costs
2) Technology:
- The use of technology results an increase in productivity rather than decreased productivity due to miscommunications.
- The large variety of databases available to perform HR tasks is mind boggling. For example, databases are used to track employee data,
compensation, and training. There are also databases available to track the recruiting and hiring processes

3) THE ECONOMY:
- Hard economic times in a country usually results in tough times for business.
- High unemployment and layoffs are clearly HRM and managerial issues.
- Growth economy, the HR manager may experience a different kind of stress.
- Massive hiring to meet demand might occur if the economy is doing well.

4) The changing and diverse workforce:

- The retirement of baby boomers is creating a gap in the workplace, related to not only the number of people available but also
the skills people have.
- Multigenerational companies, or companies with workers of a variety of ages, must find ways to motivate employees, even
though those employees may have different needs.
-

QUESTION
1. One of these tasks an HR manager does, which do you think is the most challenging? Why?
- The most challenging task for an HR manager is often retaining employees.
- Due to the competitive job market, the need to identify individual retention factors, balancing individual and organizational
goals, developing effective strategies, and continuous monitoring and adjustment.

2. What are your perceptions of what an HR manager does on a day-to-day basis? Research this job title and describe
your findings.
 - An HR manager's daily tasks may include recruitment, onboarding/offboarding, employee relations, training and development,
compensation/benefits management, policy implementation, employee engagement/retention, HR administration, legal
compliance, and strategic planning.

CHAPTER 2: DEVELOPING AND IMPLEMENTING STRATEGIC HRM PLAN

1. Strategic planning
- HRM should be part of the overall company’s strategic plan, because so many businesses today depend on people to earn profits.
- Plays an important role in how productive the organization is.

Personnel Management Focus HRM Focus

Administering of policies Helping to achieve strategic goals through people

Stand-alone programs, such as training training programs are integrated with company’s mission and values
Personnel department responsible for managing people Line managers share joint responsibility in all areas of people hiring
and management

Creates a cost within an organization Contributes to the profit objectives of the organization

Aspects of strategic plan of the organization:

1) Staffing:
2) Basic workplace policies:
3) Compensation and benefits.
4) Retention:
5) Training and development.
6) Regulatory issues and worker safety.

2. HRM VS. PERSONNEL MANAGEMENT

- “HR strategy “An elaborate and systematic plan of action developed by a human resource department.
- Includes detailed pathways to implement HRM strategic plans and HR plans.
- HRM strategic plan is the major objectives the organization wants to achieve, includes long-term goals
- HR plan as the specific activities carried out to achieve the strategic plan. include short-term objectives

3. HRM Strategic plan components

Aspects when creating HRM strategic plan:

1) Make it applicable.
2) Be a strategic partner.
 Strategic plan should be aligned with the corporate values, mission and objectives of the organization as a whole.
 Ex: if the mission is promoting social responsibility, then HRM strategic plan should address this in the hiring criteria.
3) Involve people.
4) Understand how technology can be used.

4. Steps to create strategic plan: strategic analysis

1) Conduct strategic analysis
- Three aspects of strategic analysis:
1- Understand the mission and values of the company.
  life cycle of the organization refers to the introduction, growth, maturity, and decline, which can vary over time.
2- Understand the mission and values of HR department.
 Brainstorming about HR goals, values, and priorities is a good way to start.
 The mission statement should express how an HR help organization to meet goals.
3- Understanding of the challenges facing HR department.
 HRM managers cannot deal with change quickly if they are not able to predict changes. As a result, the HRM manager
should know what upcoming challenges may be faced to make plans to deal with those challenges better when they come
along.
2) Identify Strategic HR Issues:
- (SWOT analysis). Once analysis is performed. HR can align with the needs of the business by understanding the business
strategy.
3) Prioritize issues and actions.
- Based on the data gathered in the last step, the HRM manager should prioritize the goals and then put action plans together to
deal with these challenges.
- Involvement of the management and executives in the organization.

4) Draw up a HRM plan:

- Once the HRM manager has met with executives and management, and priorities have been agreed upon, the plans are ready to
be developed.
- The six parts of the HRM plan include the following:
 Determine human resource needs.
 Determine recruiting strategy.
 Select employees.
 Develop training.
 Determine compensation.
 Appraise performance.

CHAPTER 3: RECRUITMENT.
1. Recruitment process
- Recruitment is a process provides the organization qualified job candidates from which to choose.
- Before recruiting, they must implement staffing plans and forecasting to determine how many people they will need.
- Forecasting is based on both internal and external factors.
a. Internal factors
 Budget constraints.
 Expected or trend of employee separations.
 Global expansion plans.
 Production levels Sales increases or decreases.

b. External factors:
 Changes in technology.
 Changes in laws.
 Unemployment rates
 Shifts in population.
 Competition.
 Shifts in urban, suburban, and rural areas.
- Recruitment process:
1) Recruitment strategy:
- An understanding of the labor market and the factors.
- Aspects of developing a recruitment strategy:
 Refer to a staffing plan.
 Confirm job analysis.
 Write job description and job specifications.
 Have a bidding system to recruit and review internal candidate qualifications for possible promotions.
 Determine the best recruitment strategies for the position.
 Implement a recruiting strategy.

2) Job analysis and job description

1. Job analysis:
- It is a formal system developed to determine what tasks people actually perform in their jobs.
- The purpose is to ensure creation of the right fit between the job, employee and to determine how employee performance will
be assessed.
- It Must be performed first, then we can write the job description and job specifications.
- Two types of job analysis can be performed:
1. A task-based analysis.
o focuses on the duties of the job, as opposed to a competency-based analysis, which focuses on the specific knowledge
and abilities an employee must have to perform the job.
2. A competency- or skills-based analysis.
- Process for writing the job analysis:
1. Select jobs to study.
2. Determine information needed.
3. Identify source of data.
4. Determine methods of data collection
5. Evaluate and verify data
6. Use data to begin the process of writing the analysis then the job description.

2. A job description is a list of tasks, duties, and responsibilities of a job.

3. Job specifications, discuss the skills and abilities the person must have to perform the job.

2. Recruitment strategy:
1) Recruiters:
- 3 types of recruiters:
1. Executive search firm:
2. Temporary recruitment / staffing firm
3. Corporate recruiters:
2) Campus recruiting:
- Colleges and universities can be excellent sources of new candidates, usually at entry-level positions.
- Many organizations use it to develop new talent, who will eventually develop into managers.
- It requires the establishment of relationships with campus communities, such as campus career services departments.
- It can require time to attend campus events, such as job fairs. IBM.
3) Professional association: ‫النقابة المهنية‬:
- are usually nonprofit organizations. The goal is to further a particular profession
- Usually, there is a fee involved, and membership may be required to post jobs.
- Identify organizations are relate to your business and to develop relationships with members in these organizations.
- This type of networking can help introduce you to people in your industry who may be looking for a job.
4) Websites and social media
- There are many options to place an ad, most of which are inexpensive.
- The downside is the immense number of résumés you may receive from these websites, all of which may or may not be
qualified.
- Facebook, Twitter, LinkedIn, YouTube, and MySpace are excellent places to attract a variety of workers.
- The goal of using social media as a recruiting tool is to create a buzz.
5) EVENT
- Microsoft, hold events annually to allow people to network and learn about new technologies.
 6) Referrals: (By reference)
- “Who do you know?”
- be wary of using referrals- can lead to lack of diversity in a workplace.
- Nepotism means a preference for hiring relatives of current employees.

7) Costs of recruitment
- budgeting the cost of finding applicants.
- being a temporary hire. You have determined your advertising costs will be $400.
- Temporary agency costs will be approximately $700 for the month.
- You expect at least one of the two positions will be recruited as a referral, so you will pay a referral bonus of $500.

- Cost of recruitment for the month:

- cost per hire = (advertising costs + recruiter costs + referral costs + social media costs + event costs.)/ number of hires
- Calculate it by adding the actual recruiting expenses from last year and divide by the number of hires you made.

- Yield ratio. ( interview / applied and resume)

- is the percentage of applicants from one source who make it to the next stage in the selection process. (Make an interview)

- For example, if you received two hundred résumés from a professional organization ad you placed, and fifty-two of those
make it to the interview state, this means a 26 percent yield (52/200).

- Campus recruiting may yield a better ratio than corporate recruiter, but may have higher cost per hires.

CHAPTER 4: SELECTION
1. The Selection process
- People who have the right qualifications to fill a current or future job opening.
- The selection process consists of five distinct aspects:
1) Criteria development and reviewing resumes.
 What qualifications they are looking for, it is easier to determine who should move forward in the selection process.
 Once we have developed our criteria. we can begin the review process.
1. Validity: Refers to how useful the tool is to measure a person’s attributes for a specific job opening. May include:
 o Résumé-scanning software. Reference checks. Cognitive ability tests.
o Work samples. Credit reports Biographical information blanks.
o Weighted application forms. Personality tests. Interview questions.

2. Fit issues
- Fit includes not only the right technical expertise, education, and experience but also fit in company culture and team culture.

2) Interviewing: can be time-consuming,

- Types of interviews:
 Traditional interview. interviewer and candidate, and a series of questions are sked and answered.
 Telephone interview. Used to narrow the list of people receiving a traditional interview.
 Panel interview. when several people are interviewing one candidate at the same time.
 Information interview. when there is no specific job opening, but the candidate is exploring possibilities in a given career
field.
 Group interview. two or more candidates interview at the same time.
 Video interviews.
 Meal interviews.

- Interview questions:
- A situational interview: the candidate is given a sample situation and is asked how he might deal with the situation.
- A behavior description interview: the candidate is asked questions about what he actually did in a variety of given
situations.

- Interview process:
- Recruit new candidates.
- which candidates will be rated.
- Develop interview questions.
- Set a time line.
- Connect schedules.
- set up testing procedures.
- Meet with the hiring team to discuss each candidate and make a decision based on the established criteria.
- Put together an offer for the candidate.

3) Testing and selecting:

1. Testing:
- The major categories of tests
 Cognitive ability tests: measures intelligence
 Personality tests.
 Physical ability tests.
 Job knowledge tests.: measures the candidate’s level of understanding
 Work sample test.: ask candidates to show examples of work they have already done.

2. Selecting:
- involves who will be making the decision to hire a candidate.
- Statistical method: is developed that assigns scores and gives more weight to specific factors, if necessary.

4) Making offers:
- If the offer is not handled properly, you can lose the candidate.
- Based on the range of salary you can offer, consider the following questions when making the offer to a candidate:
 What is the scarcity of the particular skills set?
 What are the “going” wages in your geographic area?
 What are the current economic conditions?
 What is the current pay for similar positions in your organization?
 What is your organizational compensation strategy?
 What is the fair market value of the job?
 What is the level of the job within the organization?
 What are your budget constraints?
 How soon will the employee be productive in the organization?
  Are there other candidates equally qualified that might have lower salary expectations?
 What are the national and regional unemployment rates?
 If you cannot pay more, can you offer other perks such as a signing bonus or flexible work schedule?

- Once the pay and benefits package has been successfully negotiated and the offer letter (or e-mail) sent, you should clarify
acceptance details in writing and receive confirmation of the start date.

CHAPTER 5: RETENTION AND MOTIVATION

1- The cost of turnover: The cost of losing an employee or hire new one
- Turnover = Replacement of employees who are fired or quit. “ as a percentage”
- ratio of the number of workers who had to be replaced in a given period to the average number of workers at the organization.
Turnover = (replaced or separations / employees in the organization.) x100

Types of turnovers
 Involuntary turnover is where the employee has no choice in their termination.
 Voluntary turnover: initiated by the employee for many different reasons. (Employees leave organizations)
o Reasons such us:
1. A poor match between the job and the skills of the employee.
2. Lack of growth.
3. Internal pay equity.
4. Management.
5. Workload.

Types of turnover costs: avoid these costs, development of retention

 Direct turnover cost: the cost of leaving, replacement costs, and transition costs
 Indirect turnover costs: the loss of production and reduced performance.
Retention plans: used to reduce turnover and address employee motivation. (Keeping the employee)
- understanding of why employees leave and employee satisfaction theories
- Effective high-performance work systems (HPWS) are set of systematic HR practices that create an environment where the
employee has greater involvement and responsibility for the success of the organization.
- HR Components of HPWS.
1) Jon dissatisfaction: describe what makes a satisfied employee versus an unsatisfied employee.
1. Progression of job withdraw:
 In the physical withdrawal phase, the employee does one of the following:
o Leaves the job.
o Takes an internal transfer.
o Starts to become absent or tardy.
2) Job satisfaction:
 Maslow’s Hierarchy of Needs.
 Herzberg Two-Factor Theory.
 Carrot and Stick

3) Source of employee satisfaction data:

Research can be performed in two ways.
1. exit interviews:
 2. satisfaction surveys.
2- Implementing retention strategies:
1) Salaries and benefits: A way to retain employees include the following:
1. Instituting a standard process:
2. A pay communication strategy:
3. Paid time off:
2) Training and development:
3) Performance appraisals: is a formalized process to assess how well an employee does his or her job.
4) Succession planning: process of identify and develop internal people who have the potential for filling positions. (talent bench)
- The goals of most succession plans:
 Identify high-potential employees.
 Ensure the development of these individuals to help them be “ready” to earn a promotion into a new position.
 Ensure diversity in the talent bench by creating a formal succession planning process.
 Succession planning must be just that: planned.
 This allows clear communication.
5) Flextime, telecommunication and sabbaticals.
6) Management training:
7) Conflict management and fairness:
- Cause retention problems. Some of the procedures questioned could include the following:
 How time off is requested.
 How assignments of the “best” projects are given.
 Division of work.
 Promotion processes.
 Pay processes.
8) Job design, enlargement, empowerment:
- Job enrichment: to enhance a job by adding more meaningful tasks to make the employee’s work more rewarding.
- Job enlargement, the adding of new challenges or responsibilities to a current job, can create job satisfaction. Assigning
employees to a special project or task is an example of job enlargement.
9) Pay for performance strategies:
- organization needs to ensure:
 Standards are specific and measurable.
 The system is applied fairly to all employees. And communicated clearly to employees.
 The best work from everyone in the organizations encouraged.
 Rewards are given to performers versus nonperformers.
 The system is updated as the business climate changes.
 There are substantial rewards for high performers.
10) Other retention strategies:
- On-site daycare or daycare assistance. On-site life coache
- Gym memberships and On-site life coaches Allowance for fertility treatment benefits.
- Concierge service to assist in party planning or dog grooming, for example On-site dry-cleaning drop-off and pickup.
- Car care, such as oil changes, on-site once a week.
- “Summer Fridays,” when all employees work half days on Fridays during the summer.
CHAPTER 6: TRAINING AND DEVELOPMENT
- Lack of training can result in lost productivity, lost customers, and poor relationships between employees and managers. It can
also result in dissatisfaction, which means retention problems and high turnover. All these ends up being direct costs to the
organization.

1- Steps to train employee:

1) Employee Orientation: process used for welcoming a new employee into the organization.
- goals of an orientation:
1. To reduce start-up costs.
2. To reduce anxiety.
3. To reduce employee turnover.
4. To save time for the supervisor and coworkers.
5. To set expectations and attitudes..

2) IN-HOUSE TRAINING: learning opportunities.

- Some examples:
  Ethics training Sexual harassment training Multicultural training
 Communication training Management training Customer service training
 Operation of special equipment. Training to do the job itself Basic skills training

3) MENTORING
- A mentor is a trusted, experienced advisor who has direct investment in the development of an employee.
- A mentor may be a supervisor, but often a mentor is a colleague who has the experience and personality to help guide
someone through processes.
4) EXTERNAL TRAINING
- includes any type of training that is not performed in-house.

2- Designing training program:

1) Training program framework development.
- The considerations for developing a training program are as follows:
1. Needs assessment and learning objectives.
 There are three levels of training needs assessment:
organizational assessment.
occupational (task) assessment
Individual assessment:

2. Consideration of learning styles.

Visual learner. has a clear “picture” of an experience.
Auditory learner. by sound.
Kinesthetic learner. developing feelings toward an experience.
3. Delivery mode.
4. Budget.
5. Delivery style.
6. Audience.
7. Content.
8. Timelines.
9. Communication.
10. Measuring effectiveness of training.
 One model to measure effectiveness of training is the Kirkpatrick model, Donald Kirkpatrick, Evaluating Training
Programs, 3rd ed. (San Francisco: Berrett-Koehler, 2006)
 His model has four levels:
1. Reaction: How did the participants react to the training program?
2. Learning: To what extent did participants improve knowledge and skills?
3. Behavior: Did behavior change as a result of the training?
4. Results: What benefits to the organization resulted from the training

2) Career development programs and succession planning

- a process to help people manage their career, learn new things, and take steps to improve personally and professionally.
- are called professional development plans.

- Here is an example of a process that can be used to put a career development program in place:
1. Meet individually with employees to identify their long-term career interests (this may be done by human resources or the
direct manager).
2. Identify resources within the organization that can help employees achieve their goals.
3. Create new opportunities for training if you see a gap in needs versus what is currently offered.
4. Prepare a plan for each employee, or ask them to prepare the plan.
5. Meet with the employee to discuss the plan.
6. During performance evaluations, revisit the plan and make changes as necessary.

- Identifying and developing a planning process not only helps the employee but also can assist the managers in supporting
employees in gaining new skills, adding value, and motivating employees.