Cost of Human Resource: Acquisition cost, Training and Development cost and additional cost

Measuring Human Resource costs (HR costs, also called Human Resource costing), is a key component of HR accounting. In this article, we’ll explain what Human Resource costing is, why you should measure costs, how to do it and why just measuring Human Resource costs is not enough.

Reasons

  • Predict future costs
  • Monitor departmental costs
  • Calculate a return of investment (ROI)
  • Measure impact and overall success

Remuneration: Remuneration costs include basic pay, dearness allowance, city compensatory allowance, house rent allowance, conveyance allowance, etc. However, these are paid remuneration costs. Organizations are also required to cater for deferred benefits to employees. Certain statutory payments to employees are also accounted under this head, like, contribution to provident fund, pension fund, medical benefits, payment for holiday, sickness, bonus, etc. To retain and attract talent, organizations may also give various fringe benefits to their employees. Even the latest practice to provide stock options to employees involves certain opportunity cost to the organization. The best practice is to delineate such cost elements and arrange the same in the form of a spread sheet. Element-wise cost trends then can be studied over the years and also can be bench-marked with other comparable organizations to understand the nature of variance and to enforce control, wherever necessary.

Recruitment: Recruitment cost is also another major cost head for HR. Right from developing job specifications to describing job requirements, it includes costs of  recruitment, promotion (through advertising), head hunting, evaluation, interviewing, induction and orientation. A well defined job specification minimizes the search for the right fit and consequent costs. If recruitment plans are to meet short-tern-requirements, it may be better to outsource than go in for direct recruitment. There are many specialized manpower agencies, which make people with required skill sets available on contractual terms. Similarly, internal hiring also needs to be explored vis-a-vis external hiring. Internal hiring involves restructuring and relocation costs, a clear policy on ‘promotion from within’ (wherever recruitment is made for the higher posts), etc. A detailed study on cost of hiring is necessary to explore an alternative recruitment process.

Training Costs: Training costs include, cost for induction period, cost of remuneration for the trainee and trainer, cost of travel for the trainee and the trainer, if any, cost of training materials, imputed cost of machines and equipments, used during the training, cost for development of training modules, cost of training evaluation, cost of material wastage during training, if any, cost of production loss for the trainee and the trainer (if he is within the organization, for in-house training), etc. To accurately ascertain cost of training, it is necessary to develop a checklist or a worksheet, delineating all direct and indirect costs of training. There are various methods of training delivery, which we have discussed in previous posts: Different employee training & development methods. Relative benefits and costs of each such method also need to be weighed to understand the most cost-efficient system. Any training on skill renewal needs to be weighed in terms of expanded skill cycle of the trainees. If the trainees are in the higher age bracket or due to retire within a short span, then offering them voluntary retirement (VR) may be more cost effective than putting them on training for skill renewal and skill change.

Relocation Costs: Many organizations have their policies on periodic relocation of employees as part of their restructuring exercise. This is more appropriate for those who have their units in multiple locations. Such decisions from organizational point of view, involve cost related to disturbance allowance, cost of possible litigation, cost of housing, cost of travel, etc. Many departmental undertakings and public sector units thoughtlessly relocate their employees adding costs to the exchequer. Hence relocation decisions must be cost effective or else this will defeat the purpose, straining organizational viability.

Separation Costs: Relocation also induces separation. There may be other reasons for separation, which may be either for organizational initiative or for individual employees’ reasons. Since separation requires replacement, immediate cost effect is on loss of production. Other costs of separation are redundancy benefits (if separation is organization induced), ex-gratia payments (if any), etc. Since separation follows immediate liquidation of fringe benefits, savings of the organization on this course also need to be considered to compute the actual costs.

Personal Overhead Costs: Personnel overhead costs spread over personnel record keeping, costs for maintaining Human Resources Information Systems (HRIS), cost of personnel decisions and overall costs for maintaining personnel department (salary of the people working in this department). Outsourcing personnel services to a great extent can reduce such cost burden. However, its relative merits and demerits need to be studied.

Support Costs: Some of the employee support services are statutory, while others are offered voluntarily by the organizations. For computing support costs, therefore, it is necessary to distribute these under two different heads and then study their impact. Medical welfare, canteens, safety, security, insurance (medi-claim, etc.), death benefits, parking space costs, etc. are some of the statutory costs for employee support services. While house journal, club membership, music at workplace, long service awards, suggestion schemes, library services, holiday homes, etc., are examples of voluntary support services for employees. Since, employee support services have direct effect on employee motivation, cost curtailment decisions must have reference to this aspect.

Diversity and Recruitment

Diversity hiring is hiring based on merit with special care taken to ensure procedures have reduced biases related to a candidate’s age, race, gender, religion, sexual orientation, and other personal characteristics that are unrelated to their job performance.

A diversity recruitment strategy defines goals, accountabilities, action items and success measures for attracting, engaging, assessing and hiring diverse talent to drive business success. It is often part of a larger diversity and inclusion strategy, developed to ensure a workforce reflects a company’s customer base and the communities where it operates, and to capitalize on the benefits that can come from a diverse range of backgrounds, experiences and perspectives.

Confusion over diversity hiring sometimes lies in the mistaken perception that the goal of diversity recruitment is to increase workplace diversity for the sake of diversity.

The goal of diversity hiring is to identify and reduce potential biases in sourcing, screening, and shortlisting candidates that may be ignoring, turning off, or accidentally discriminating against qualified, diverse candidates.

Businesses have started to recognize diversity in the workplace as a business strategy that maximizes productivity, creativity and loyalty of employees while meeting the needs of their clients or customers. If a company is only as good as their employees, then it stands to reason that a great deal of energy should be devoted to hiring the most talented individuals. By branching out to a diverse workforce, employers have access to a greater pool of candidates thereby improving the odds of hiring the best person. In a competitive marketplace, an organization that puts people first regardless of their race, religion, gender, age, sexual preference, or physical disability has an advantage over the other players.

There are more job openings than people looking for work, companies are facing the tightest labor market in almost 50 years, and workforce demographics are changing fast. Employers are stepping up their game to compete and win valued talent, but it’s a candidate’s market and their demands are high when it comes to workplace diversity.

Goals might look something like this:

  • Drive and measure the impact diversity and inclusion has on business results.
  • Increase diversity at every level of our organization to better reflect our customer base and the communities we serve.
  • Recognize, maximize and reward behaviors that foster a diverse and inclusive culture.

Reconsider Job Requirements

Job specifications may include equal employment opportunity statements, but people who write them often don’t think about factors that influence the chances of certain candidates applying.

Bias at the Sourcing Stage

Bias can enter the search and sourcing process whether you’re male or female, white or black, Latino or Asian, European or American. Case in point: Campbell said an analysis of data from the estimated 80,000 recruiters worldwide who use his platform found that when recruiters search for candidates on LinkedIn, regardless of role, they’re more likely to look at male profiles.

In every profession and at every level of seniority, Campbell said, recruiters end up looking at twice as many male as female profiles.

Train to Spot Bias in Screening

Screening is arguably where most bias comes into play, Campbell said. Unconscious bias training can help. Research has shown that hiring managers, whether male or female, rate male candidates as more competent and hirable than identical female candidates for STEM positions.

Work to Ensure a More Balanced Slate

Whether the priority is more diversity based on race, gender, ethnicity or some other dimension, it pays to have a diverse interview slate. A company looking to hire more women may not want to bring in the top four candidates if they’re all men, but swap the top two out for women.

There are several steps that organizations can and should take to promote a diverse work environment:

Create a diversity policy and publicize it.

Your policy should set formal goals and strategies pertaining to creating an equal opportunity environment. Once your policy is in place it should be made public both internally and externally.

Write job descriptions as to not exclude anyone.

Your job description should clearly be written for all types of applicants and should in no way discriminate.

Publicize job openings in different venues to attract a diverse workforce.

Look beyond obvious recruitment methods and venues for good people. There are many sites online that help facilitate equal opportunity employment and include: Yahoo!, En Espanol, Diversity Inc, America’s Job Bank, The Society of Hispanic Professional Engineers, the Society of Women Engineers, the National Society of Black Engineers, and the Black Executive Exchange program.

Be aware of current legislation.

Staying current on the latest discrimination legislation will help you avoid potential litigation.

Once the appropriate steps are taken, learning how to manage the diverse workforce will take some time. It requires education, sensitivity and awareness of how individuals from different cultures handle communication, business etiquette, and relate to management. Promoting workforce diversity requires HR recruitment of competent and qualified employees and the accommodation of individual needs within the context of the work team and the organization.

Get more diversity into your hiring funnel

When hiring managers are pressuring your recruiters to hire critical positions as quickly as possible, it can be easy to forget about adding diversity in your funnel. A data-driven recruiter continuously monitors the funnel to see whether diversity increases or decreases as candidates move through the pipeline.

Keep track of your post-hire data

How your diverse hires fare long-term at your organization reveals important insights about your hiring practices. How long these employees stay at the company, how they perform, and how soon they receive promotions can tell you about the quality of your diverse hires.

Deductive and inductive approach in theory formulation

Induction is a reasoning method by which a law or a general principle would be inferred via observing specific cases. The inductive approach emphasizes on observation and deriving conclusions through observation. It generally moves from specific to general, since the researcher generalizes his limited observations of specific circumstances to general conditions. In accounting, the inductive approach begins by observing the financial information of the companies and progresses towards constructing accounting generalizations and principles out of those observations and reoccurring relations.

In deductive approach, in order to achieve a consensus, the structure of logical reasoning needs to be quite formal. However, in inductive approach, the accounting practice can turn into accounting principles. Accounting standard setters, extracted the conceptual framework via the best practices which in turn have been identified based on the assumed objectives of financial reporting. At the same time, attention was paid to the conceptual integrity, because the framework has been developed descriptively, although the objective was to make an imperative framework for providing guidelines to set and interpret accounting standards.

Deductive Approach

This approach involves developing a theory from elementary proposals, premises and assumptions which results in accounting principles that are reasonable conclusions about the subject. The theory is verified by determining whether its results are acceptable in practice. Edwards and Bell are deductive theorists and historical cost accounting was also derived from a deductive approach.

The deductive approach constitutes developing of an assumption based on the existing theories and forming a research plan to test the assumption (Wilson, 2010). The deductive approach can be explained using the assumption driven from theory. In other words, the deductive approach includes deducing the results from the premises. When a deductive method is applied for a research project, the author formulates a set of hypotheses that need to be tested and next, using a relevant methodology, tests the hypothesis. Deductive reasoning has specific characteristics that needs be understood. If the premises of deductive reasoning are accepted, then, the conclusion must necessarily be accepted. In a deductive reasoning, the contents of the result are implicitly stated in the premises, making such argument a non-ampliative one. If new premises are added to the argument, then the conclusion must still follow. A deductive argument is either valid or invalid and there is no degree of validity. There is no choice or decision in applying such argument and no judgment is necessary for getting the result and conclusion.

Inductive Approach

For this approach we start with observed phenomena and move towards generalized conclusions. The approach requires experimental testing, i.e. the theory must be supported by sufficient illustrations/observations that support the derived conclusions. Fairly often the logical and inductive approaches are mixed as researchers use their knowledge of accounting practices. As Riahi-Belkaoui states: General propositions are formulated through an inductive process, but the principles and techniques are derived by a deductive approach. He also observes that when an inductive theorist, collaborates with a deductive theorist, a hybrid results showing compromise between the two approaches.

Inductive approach begins with specific observations and the conclusions are generalized. In inductive approach, after selecting a number of observations correctly, one can generalize the conclusion to all or groups of similar conditions and situations. These generalizations need to be tested, some of which might be verified and some rejected. Accordingly, all of the principles which are derived based on inductive reasoning are theoretically falsifiable. In the induction process, the researcher as an observer, should honestly, without any prejudgments and biases, and with an impartial mind, register what they observe. Then these observations form a basis on which theories and laws are constructed which make up the scientific knowledge. Inductive researchers also believe that one can logically generalize the observations into general and inclusive rules and the scientific assumptions get verified and ratified.

According to the inductive approach, at the end of research and as a result of observations, theories are constructed. The inductive approach includes looking for a pattern based on the observations and developing a theory for those patterns through hypotheses. In inductive research, no theory is applied at the beginning of the research and the researcher enjoys complete freedom in terms of determining the course of research. Particularly, there is no assumption at the early stages of research and the researcher is not sure about the kind and the nature of findings as research is not finished yet. In inductive reasoning the researcher uses the observations in order to construct an abstract or to describe the circumstances being.

The main advantage of the inductive method is that there is no necessity for any pre-fabricated framework or model. Obviously, while principles are generalized they should be verified through a logical method (deductive approach). The inductive approach towards science has been criticized concerning some aspects. The main issue of the inductive method can be the researchers’ being influenced by their limited knowledge of the relations and the data of the research. Some claim that induction as a principle is falsifiable because it is based on human observations.

Internal Control structure and Management philosophy

An effective internal control structure includes a company’s plan of organization and all the procedures and actions it takes to:

  • Ensure compliance with company policies and federal law.
  • Protect its assets against theft and waste.
  • Ensure accurate and reliable operating data and accounting reports.
  • Evaluate the performance of all personnel to promote efficient operations.

Companies protect their assets by:

Segregation of employee duties Segregation of duties requires that someone other than the employee responsible for safeguarding an asset must maintain the accounting records for that asset. Also, employees share responsibility for related transactions so that one employee’s work serves as a check on the work of other employees.

Assignment of specific duties to each employee When the responsibility for a particular work function is assigned to one employee, that employee is accountable for specific tasks. Should a problem occur, the company can quickly identify the responsible employee.

Rotation of employee job assignments Some companies rotate job assignments to discourage employees from engaging in long-term schemes to steal from them. Employees realize that if they steal from the company, the next employees assigned to their positions may discover the theft.

Use of mechanical devices Companies use several mechanical devices to help protect their assets. Check protectors (machines that perforate the check amount into the check), cash registers, and time clocks make it difficult for employees to alter certain company documents and records.

Record Keeping. Companies should maintain complete and accurate accounting records. One or more business documents support most accounting transactions. These source documents are an integral part of the internal control structure. For optimal control, source documents should be serially numbered.

Employees. Internal control policies are effective only when employees follow them. To ensure that they carry out its internal control policies, a company must hire competent and trustworthy employees. Thus, the execution of effective internal control begins with the time and effort a company expends in hiring employees. Once the company hires the employees, it must train those employees and clearly communicate to them company policies, such as obtaining proper authorization before making a cash disbursement. Frequently, written job descriptions establish the responsibilities and duties of employees. The initial training of employees should include a clear explanation of their duties and how to perform them.

Legal requirements. In publicly held corporations, the company’s internal control structure must satisfy the requirements of govt. law.

The components of internal control are:

Risk assessment. After the entity sets objectives, the risks (such as theft and waste of assets) from external and internal sources must be assessed. Examining the risks associated with each objective allows management to develop the means to control these risks.

Control environment. The control environment is the basis for all other elements of the internal control structure. The control environment includes many factors such as ethical values, management’s philosophy, the integrity of the employees of the corporation, and the guidance provided by management or the board of directors.

Control activities. To address the risks associated with each objective, management establishes control activities. These activities include procedures that employees must follow. Examples include procedures to protect the assets through segregation of employee duties and the other means we discussed earlier.

Monitoring. After the internal control structure is in place, the firm should monitor its effectiveness so that it can make changes before serious problems arise. In testing components of the internal control structure, companies base their thoroughness on the risk assigned to those components.

Information and communication. Information relevant to decision making must be collected and reported in a timely manner. The events that yield these data may come from internal or external sources. Communication throughout the entity is important to achieve management’s goals. Employees must understand what is expected of them and how their responsibilities relate to the work of others. Communication with external parties such as suppliers and shareholders are also important.

The internal control environment includes five factors.

Competence of the entity’s people: Competence is the knowledge and skills necessary for particular functions. So does an organization set up the tone of hiring only competent employees? First, management determines the knowledge and skills required for each position, then establishes the job descriptions for these positions. Furthermore, there is a well-designed hiring process and performance review process to ensure that new hires and employees are competent to perform their assigned tasks and assist the organization in achieving their objectives.

Integrity and ethical value: Many organizations seek a high level of integrity and ethical value. But how do organizations obtain them? Usually, those organizations have a clear Code of Conduct and/or Conflict of Interests policies. They periodically communicate these polices to employees to promote honesty and integrity. In addition, some organizations adopt business best practices and emphasize internal controls, which is also clear evidence that the organizations are striving to integrate the integrity and ethical value into the daily business operations.

Management’s Philosophy and Operating style: Management may not achieve its business objectives if it does not introduce and maintain a philosophy and operating style that supports the business objectives and strategies. Management’s philosophy and operating style include management’s attitudes towards the organization objectives, the approaches to minimize the business risks and attitude toward internal controls over financial reporting. For example, if management sets up an unrealistic financial goal and aggressively persuades employees to achieve the goal, what will happen? The chance of misstatement in financial statements becomes higher.

Direction provided by the board of directors: An effective Board of Directors and Audit Committee provide an important oversight function and, because of management’s ability to override controls, they play an important role in the control environment, helping to set a positive tone at the top. For private companies, often there is no Audit Committee. However, to have the Board of Directors is very important for private companies as well. It oversees the organization’s plans and performance, provides management directions with experiences, and oversees the organization’s internal control function.

Authority and Responsibility: The control environment is greatly influenced by the extent to which individuals recognize that they will be held accountable. Accountability plays a critical role in carrying out internal controls in an organization. Sections 302 and 404 of the Sarbanes-Oxley Act (SOX) hold management in an organization accountable for financial reporting to ensure financial reporting is accurate and timely. In the organization, management holds employees accountable for all activities and business practices to ensure the organization is in compliance with SOX. To have an accurate, effective and timely financial reporting system, management must ensure that adequate reporting relationships and authorization hierarchies are in place.

Transactional Analysis

Transactional analysis (TA) is a psychoanalytic theory and method of therapy wherein social transactions are analyzed to determine the ego state of the communicator (whether parent-like, childlike, or adult-like) as a basis for understanding behavior. In transactional analysis, the communicator is taught to alter the ego state as a way to solve emotional problems. The method deviates from Freudian psychoanalysis which focuses on increasing awareness of the contents of subconsciously held ideas. Eric Berne developed the concept and paradigm of transactional analysis in the late 1950s.

TA is not only post-Freudian, but, according to its founder’s wishes, consciously extra-Freudian. That is to say that, while it has its roots in psychoanalysis, since Berne was a psychoanalytically-trained psychiatrist, it was designed as a dissenting branch of psychoanalysis in that it put its emphasis on transactional rather than “psycho” analysis.

With its focus on transactions, TA shifted the attention from internal psychological dynamics to the dynamics contained in people’s interactions. Rather than believing that increasing awareness of the contents of unconsciously held ideas was the therapeutic path, TA concentrated on the content of people’s interactions with each other. Changing these interactions was TA’s path to solving emotional problems.

TA also differs from Freudian analysis in explaining that an individual’s final emotional state is the result of inner dialogue between different parts of the psyche, as opposed to the Freudian hypothesis that imagery is the overriding determinant of inner emotional state. (For example, depression may be due to ongoing critical verbal messages from the inner Parent to the inner Child.) Berne believed that it is relatively easy to identify these inner dialogues and that the ability to do so is parentally suppressed in early childhood.

In addition, Berne believed in making a commitment to “curing” his clients, rather than just understanding them. To that end he introduced one of the most important aspects of TA: the contract an agreement entered into by both client and therapist to pursue specific changes that the client desires.

Revising Freud’s concept of the human psyche as composed of the id, ego, and super-ego, Berne postulated in addition three “ego states” the Parent, Adult, and Child states which were largely shaped through childhood experiences. These three are all part of Freud’s ego; none represent the id or the superego.

Unhealthy childhood experiences can lead to these being pathologically fixated in the Child and Parent ego states, bringing discomfort to an individual and/or others in a variety of forms, including many types of mental illness.

Berne considered how individuals interact with one another, and how the ego states affect each set of transactions. Unproductive or counterproductive transactions were considered to be signs of ego state problems. Analyzing these transactions according to the person’s individual developmental history would enable the person to “get better”. Berne thought that virtually everyone has something problematic about their ego states and that negative behaviour would not be addressed by “treating” only the problematic individual.

Transactional Analysis (TA), thus, facilitates communication. TA studies transactions amongst people and understands their interpersonal behaviour. It was developed by Eric Berne, a psychotherapist. He observed there are several ‘people’ inside each person who interact with other people in different ways.

Many of the core TA models and concepts can be categorized into

  • Transactional analysis proper: Analysis of interpersonal transactions based on structural analysis of the individuals involved in the transaction.
  • Structural analysis: Analysis of the individual psyche.
  • Script analysis: A life plan that may involve long-term involvement in particular games in order to reach the life pay-off of the individual.
  • Game analysis: Repeating sequences of transactions that lead to a result subconsciously agreed to by the parties involved in the game.

Emotional blackmail

Emotional blackmail is a term coined by psychotherapist Susan Forward, about controlling people in relationships and the theory that fear, obligation, and guilt (FOG) are the transactional dynamics at play between the controller and the person being controlled. Understanding these dynamics are useful to anyone trying to extricate from the controlling behavior of another person, and deal with their own compulsions to do things that are uncomfortable, undesirable, burdensome, or self-sacrificing for others.

When people interact with each other, the social transaction gets created which shows how people are responding and behaving with each other, the study of such transactions between people is called as the transactional analysis.

Johari Window

The Johari Window is the psychological model developed by Joseph Luft and Harrington Ingham, that talks about the relationship and mutual understanding between the group members. In other words, a psychological tool that helps an individual to understand his relationship with himself and with other group members is called as a Johari Window.

The objective behind the creation of a Johari window is to enable an individual to develop trust with others by disclosing information about himself and also to know what others feels about himself through feedback.

Life Script

The Life Script refers to the meaning that one attributes to the events that happened to him at the early stage of life. Psychologists believe that an individual’s life script gets created in his childhood when he learns things unconsciously from the transactions between father, mother and the child.

Whenever an individual face any situation, he acts with reference to the script created as a result of the past experiences and the way he views his life positions, i.e. I am O.K you are O.K, I am not O.K. you are O.K., I am O.K. you are not O.K., I’m not O.K. you are not O.K.

Ego States

The Ego States are an important aspect of transactional analysis that talks about how a person feels, behave or think at any point of time.

According to Dr Eric Berne, people usually interact with each other in terms of three psychological and behavioral patterns classified as parent ego, adult ego and child ego, often called as a PAC Model. This classification is not made on the basis of the age group of an individual rather these are related to the ways in which an individual behaves. Thus, it is observed that a person of any age group may possess varying degrees of these ego states.

Transactions Analysis

The interactions between people give rise to the Social Transactions, i.e. how people respond and interact with each other depends on their ego states. The transactions routed through ego states of persons can be classified as complementary, crossed and ulterior.

Complementary Transactions: A transaction is said to be complementary when the person sending the message gets the predicted response from the other person. Thus, the stimulus and response patterns from one ego state to another are parallel.

Life Positions

The Life Positions refers to the specific behavior towards others that an individual learns on the basis of certain assumptions made very early in the life.

Difference between HRM and IHRM

Management is the efficient operation of a business or organization towards the achievement of its goals and objectives. It involves the management of its financial, capital, and human resources which comprises its financial value.

It has several branches such as: financial, marketing, strategic, production, operations, service, information technology, human resource management, and in the case of organizations that hire expatriates, international human resource management.

Human Resource Management (HRM) is defined as a management function that deals with the recruitment, management, and development of employees in order to maximize their potential and roles in the company or organization.

Not only is it utilized in personnel management but also in manpower, organizational, and industrial management.

International Human Resource Management (IHRM), on the other hand, is defined as a management function which deals with the management of personnel who are stationed in other countries or who are citizens of other countries that are hired to work in the organization.

Like HRM, its functions also include recruitment, planning, training, performance appraisal, and compensation. Unlike it, however, IHRM functions involve cross-cultural training such as orienting employees with different cultural, ethical, and religious values.

It also involves global skills management. While HRM is affected only by internal factors, IHRM is affected by both internal and external factors because it involves the management of employees that come from several countries.

Human Resource Management (HRM) is defined as a management function that deals with the recruitment, management, and development of employees in order to maximize their potential and roles in the company or organization.

Not only is it utilized in personnel management but also in manpower, organizational, and industrial management. It is previously referred to as personnel management. Its functions include:

  • Job analysis and planning, determining the specific personnel needs of a certain job.
  • Personnel and workforce planning, choosing whether to hire contractors or independent employees.
  • Recruitment and selection, hiring the best candidate for the job.
  • Induction and orientation, making sure that the employees are aware of the organization’s goals and policies.
  • Wage and salary regulation, making sure that employees are properly compensated.
  • Training, development, and performance appraisal in order to enhance employees’ potential and utilize his expertise in the achievement of the organization’s goals.
  • Benefits administration, to make sure that employees get what are due to them.
  • Resolving labor disputes, making sure of good relations between the management and employees.
  • HRM strategies always pursue the achievement of the organization’s goals and objectives. It cooperates with senior management in developing corporate strategies and in the proper management of its personnel.

Human Resources Manager Duties and Responsibilities

Duties

Hire Resources

This is where the recruitment strategies are put into action. In the current age, there’s a ton of competition vying for the attention of the best talent in the market. The HR manager needs to run all possible engines to go out there in the market and find that one suitable gem.

This part of the role includes things like finding relevant locations to look in, reach out to maximum potential candidates using mass communication mediums, aggregate all responses, filter out irrelevant applications, judge suitable incumbents and coordinate internally to get them interviewed. Once the finalists are decided, the HR manager turns into a ‘negotiator’ of sorts, working as a mediator between the company and the candidate to find that win-win ground.

Attract Talent

Attracting talent starts with first planning the requirement of manpower in the organization. Gauging needs of the organization’s human resource requirements, and accordingly putting a plan of action to fulfill those needs with the placement of “talented professionals”. That’s followed by creating an “employer brand” which will be representative of the organization’s good image and portray an attractive impression in the minds of potential candidates.

Training

Not all is done once you’ve recruited a suitable candidate for the job. Many organizations perform tasks a tad differently. Training employees is important to help the new hires get acquainted with the organization’s work pattern. It is imperative for the HR department to incorporate a training program for every new employee based on the skill set required for their job. It will further also contribute to employee motivation and retention.

For the training to be effective, every new employee can be subjected to an on-the-job training for the initial days to get him in sync with the work guidelines of the organization. This training will not only be of assistance to the employee but also give the HR team an insight into the employee’s workmanship. On completion of the training, HR plays a significant role in assessing the results of the training program and grading employees on the same.

Appraisals

Since HRM is a body meant for the employees, carrying out timely performance appraisals is a given. Performance appraisals help in employee motivation by encouraging them to work to their fullest potential. It also enables to give them feedback on their work and suggest necessary measures for the same. This helps employees to have a clear view of what is expected of them and what they are delivering. They can thus, work better towards improving their performance and achieving targets.

Resolving Conflicts

Where different people have different views, conflicts are almost inevitable. Whether the dispute is amongst two or more employees or between the employee and the management, an HR manager has the right to intervene and help map out a solution.

The HR should be available at the disposal of the conflicting parties and hear out their issues without being judgmental. Prior investigations are a must before passing any judgment. The HR head is not expected to discriminate or play favorites in this matter and always deliver an unbiased and practical decision. A reimbursement in case of any loss caused and strict actions against the defaulter should be practiced for effective conflict resolution by the HRM.

Rewards and Incentives

Rewarding the employees for a work well done imparts motivation and at the same time induces a desire to excel at tasks in hope of obtaining rewards. It serves as bait for inculcating a healthy competitive environment amongst employees to achieve targets and meet deadlines. A reward need not be materialistic always. It could just be a word of appreciation in front of all coworkers for a menial task done with complete honesty.

However, with globalization and evolving trends, compensations like holiday packages, pay incentives, bonuses, and promotions are taking a backseat. If as an HR manager you are wanting to reward your employees efficiently, it’s time you adopt new ways of awarding benefits such as flexible work times, paternity leave, extended holidays, telecommuting, etc. These non-traditional rewards will prove fruitful not only in engaging the existing workforce but also as an added benefit to attract new talent to your organization.

Employee Relations

Human Resources is called so because its major responsibility is dealing with the human part of the organization and this involves having great interpersonal skills. An HR manager who sits in the office all day will not turn out to be good at building connections with the employees and thus fail to serve the purpose of being an HR head. As an HR person, employees should feel comfortable coming up to you with their problems and for that, it is important that the HR team builds a good public image within the organization.

Responsibilities

  • Managing company staff, including coordinating and supporting the recruitment process
  • Onboarding newcomers to the company
  • Determining suitable salaries and remuneration
  • Providing the necessary support systems for payroll requirements
  • Developing adequate induction and training
  • Supporting employee opportunities for professional development
  • Managing succession planning of staff
  • Assisting with the performance management and review process

T-group, Job expectation Technique

A T-group or training group (sometimes also referred to as sensitivity-training group, human relations training group or encounter group) is a form of group training where participants (typically between eight and fifteen people) learn about themselves (and about small group processes in general) through their interaction with each other. They use feedback, problem solving, and role play to gain insights into themselves, others, and groups.

Experimental studies have been undertaken with the aim of determining what effects, if any, participating in a T-group has on the participants. For example, a 1975 article by Nancy E. Adler and Daniel Goleman concluded that “Students who had participated in a T-group showed significantly more change toward their selected goal than those who had not.” Carl Rogers described sensitivity groups as “…the most significant social invention of the century”.

The concept of encounter as “a meeting of two, eye to eye, face to face,” was articulated by J.L. Moreno in Vienna in 1914–15, in his “Einladung zu einer Begegnung” (“Invitation to an Encounter”), maturing into his psychodrama therapy. It was pioneered in the mid-1940s by Moreno’s protege Kurt Lewin and his colleagues as a method of learning about human behavior in what became the National Training Laboratories (also known as the NTL Institute) that was created by the Office of Naval Research and the National Education Association in Bethel, Maine, in 1947. First conceived as a research technique with a goal to change the standards, attitudes and behavior of individuals, the T-group evolved into educational and treatment schemes for non-psychiatric patient people.

A T-group meeting does not have an explicit agenda, structure, or expressed goal. Under the guidance of a facilitator, the participants are encouraged to share emotional reactions (for example, anger, fear, warmth, or envy) that arise in response to their fellow participants’ actions and statements. The emphasis is on sharing emotions, as opposed to judgments or conclusions. In this way, T-group participants can learn how their words and actions trigger emotional responses in the people they communicate with.

There are a number of group types.

Task groups focus on the here and now, involving learning through doing, activity and processing; and involves daily living skills and work skills.

Evaluative groups focus on evaluating the skills, behaviors, needs, and functions of a group and is the first step in a group process.

Topical discussion groups focus on a common topic that can be shared by all the members to encourage involvement.

Developmental groups encourage the members to develop sequentially organized social interaction skills with the other members.

  • Parallel groups are made up of clients doing individual tasks side by side.
  • Project groups emphasize task accomplishment. Some interaction may be built in, such as shared materials and tools and sharing the work.
  • Egocentric cooperative groups require the members to select and implement the task. Tasks are longer term and socialization is required.
  • Cooperative groups require the therapist only as an advisor. Members are encouraged to identify and gratify each other’s social and emotional needs in conjunction with task accomplishment. The task in a cooperative group may be secondary to social aspects.
  • Mature groups involve the therapist as a co-equal member. The group members take on all leadership roles in order to balance task accomplishment with need satisfaction of the members.

Self-help groups are supportive and educational, and focus on personal growth around a single major life disrupting problem (for example, Alcoholics Anonymous).

Support groups focus on helping others in a crisis and continue to do so until the crisis is gone and is usually before the self-help group.

Advocacy groups focus on changing others or changing the system, rather than changing one’s self: “getting one from point A to point B”.

Psychotherapy groups focus on helping individuals in the present that have past conflicts which affect their behavior.

Controversial

This type of training is controversial as the behaviors it encourages are often self-disclosure and openness, which many people believe some organizations ultimately punish. The feedback used in this type of training can be highly personal, hence it must be given by highly trained observers (trainers).[citation needed]. In the NTL-tradition, the T-group is always embedded in a Human Interaction Laboratory, with reflection time and theory sessions. In these sessions, the participants have the opportunity to make sense of what’s happening in the T-group.

Job expectation Technique

Behaviors in the workplace:

  • Display a positive and respectful attitude.
  • Work with honesty and integrity.
  • Represent the organization in a responsible manner.
  • Perform their jobs to a reasonable, acceptable standard.
  • Maintain good attendance.
  • Conduct themselves in a professional manner, even when off duty.
  • Follow set policies and procedures when dealing with problems or issues.

Team member should be accountable for:

  • Respect each other, and be courteous and sensitive to everyone’s needs and concerns.
  • Be accountable for your work.
  • Be flexible about job and task assignments.
  • Be willing to help each other instead of displaying an “it’s not my job” attitude.
  • Ask for help when needed.
  • Work safely together.
  • Be open to constructive feedback without being defensive or negative.
  • Be self-motivated and reliable.
  • Share ideas for improvement.
  • Be cheerful, positive and encouraging to other team members.

Since an employee’s position affects their performance expectations, Wee created this table to illustrate the performance expectations for different job levels:

Position level of employee Performance expectations
Senior-level manager or executive Focus on departmental performances
Manager or supervisory position Focus on unit and functional results of the work team
Professional or technical position Focus on project-related performances
Individual contributor Focus on assigned tasks and contributions to the work team
Major project member or departmental initiator Focus on the major projects/departmental initiatives specifically

To improve the chances of employees meeting or exceeding your expectations, follow these steps when you plan and set them.

  1. Determine what your expectations are.

Before you can have a conversation with your staff members, you need to have a conversation with yourself and write down what your realistic expectations are. For example, you may expect staff members to do the following:

  • Complete projects within the given timeframe.
  • Have a positive attitude.
  • Take initiative on starting new projects and coming up with new ideas that can benefit the company.
  • Come to work on time.
  • Follow the dress code.
  • Remain professional at all times when communicating with clients and other staff members.
  • Follow up with clients within two business days.
  • Respect each other.
  1. Minimize confusion by making expectations clear.

Clear communication from leaders is imperative for success. If staff members don’t fully understand what you expect from them, it’ll be difficult for them to meet your expectations. You can do these things to make them clear:

  • Lay out exactly what your expectations are in paperwork for new hires.
  • Provide existing employees with a digital or print guide as an amendment to your employee handbook or their job responsibilities.
  • Don’t just hand staff members your expectations guide meet with them to discuss what they are.
  • Address any questions employees have about your expectations.
  • Ensure they understand what your expectations are.
  1. Let staff members know why your expectations are important.

When employees understand why expectations are important, it can help them see the bigger picture and feel like their role in the company matters.

  • Don’t just tell staff members what your expectations are – communicate why they are important.
  • Help staff members see how the company as a whole can benefit when they meet or exceed your expectations.
  • Beyond communicating the importance of your expectations, break down the “why” in as much detail as possible to minimize confusion.
  1. Provide examples of why expectations are important.

Offer concrete examples as to why you’ve set certain expectations, and explain to your team how these expectations connect to the big-picture goals of the company.

  • Being on time for work ensures operations run smoothly.
  • Adhering to the dress code casts the company in a professional light among customers.
  • Displaying a positive attitude at work helps employees deal with stress and keeps morale up.
  1. Get an agreement and commitment.

Formalize the expectations by requiring employees to sign off on them. When employees sign off on your expectations, it makes them feel more serious. In the event they don’t meet your expectations, you will have the documentation to hold them accountable and make a case as to how they have fallen short of the agreement.

Individual change: Concept, Need, Importance

Individual change management is an understanding of how one person makes a change successfully. Whether at home, in the community or at work, individuals move through the change process in a predictable and expected path. Individual change management provides a framework for enabling one person to make a transition.

The role of the individual in the overall change process is one such factor that is gaining increasing consideration. As after all, while a new tool can be implemented on schedule and on budget it does not automatically begin generating value for an organisation until it becomes adopted and individuals begin to use it with the required level of proficiency.

With the growing recognition for enterprise change management the need to understand the change management capabilities of the organisation as whole are evident but without a solid understanding of how individuals perceive and succeed in changing there are a number of associated risks.

One of the biggest risks is the idea that the implementation process of enterprise change management is ‘recipe-driven’: a list of actions or requirements that can be simply checked off. As it is important that each and every individual achieves a successful change in behaviour and/or attitudes, focus must be given to the progress of every employee in their transition and this requires continuous measurement. 

Increased communication, although one particular indicator of enterprise change management capabilities, does not ensure an organisation can expect to send X-X-number of emails about a change and not face any resistance; these emails must also contain considerations of the individual and indeed emails may not be an individual’s preferred method of receiving messages. Increasing communications activities in an unplanned, unstructured and intangible way is evidence of an organisation ‘doing’ change management without including a focus of what they were trying to achieve or why.

The next biggest consequence of not giving consideration to individual change management is the increasing difficulty in determining when success has been achieved. Time scales and budget are success factors of project implementation; but determining how successful the people side of the change has been, requires consideration of what is expected from each individual in order to generate the true value of a project; ensuring real acceptance, adoption of new ways of working with measurable proficiency.

Desire to Participate in and Support the Change

  • What are the personal motivators and organizational drivers that would cause me to support the change?

Knowledge on How to Change

  • What knowledge, skills and behaviors are required during and after the change is implemented?

Ability to Implement Required Skills and Behaviors

  • How do I demonstrate the ability to do my job the new way?
  • What barriers may inhibit me making the change?

Reinforcement to Sustain the Change

  • What will make the change stick?
  • What are the rewards, recognition, incentives and consequences?

ADKAR is an individual model, so it describes the change process from the perspective of one impacted employee whose job is being changed as a result of a project or initiative. Whether it is a new process, a new technology, a new job role or a new behavior, a person makes the change successfully when they have awareness, desire, knowledge, ability and reinforcement. If the change impacts 1,000 people, then the change will only happen when all 1,000 people have awareness, desire, knowledge, ability and reinforcement. An individual change management model is crucial for effective change management because of the reality that change must happen one individual at a time. Each impacted employee must move from their own current state to their own future state.

ADKAR is used in a number of ways:

  • Making sense of change
  • Guiding change management plans
  • Measuring progress
  • Diagnosing gaps
  • Developing corrective actions
  • Enabling managers and supervisors

Importance

Ensures a Match Between Requirements and Results

Through change management, you are aware of how to effectively equip and support people who will drive the change and bring it to life. You also have a process to have the right people in place to ensure success.

Increases Probability of Project Success

Research is clear that the better an organization is on change management the more likely project objectives are met. Harvard Business school research shows that initiatives with excellent change management are six times more likely to meet objectives than those with poor change management.

Improves Revenues

Solves problems reduces operation cost, helps seize emerging opportunities, or aligning work with strategy.

Helps in Remaining Profitable and Relevant

By remaining competitive through innovation companies can drive sales for their products. We no longer leave in a world changes occurs after 3 years. Businesses are facing complex and fast changes than ever before. An organization must, therefore, apply change management to enable it to build competencies that grow the organization’s ability to change as soon as they need arises. Only through changes can you remain relevant today. For example, social media has really changed how businesses operate so you have to change and incorporate it into your day to day operations.

Integration and Future of Talent Management

  • Typically, labor accounts for about 65 % of every business in any industry. The percentage is more for labor intensive businesses for example those in manufacturing.
  • The performance difference between talented and lesser talented employees is huge.
  • Employees and how they are managed is the most important source of most organizational competencies and strengths.

Talent management is not only important for hiring people as per the need, it is also important for determining when to hire. In the traditional model of hiring supply meant developing people internally for future. There was an upfront investment in candidates recovered through an enhanced performance over time. This was a good perspective; there were equal chances of making and losing money by investing in your people.

Hiring from outside or temporary employment on the other hand was seen as something that cannot fetch your substantial returns and or act as potential source of knowledge and competitive advantage.

Benefits of Integrated Talent Management

Companies especially growing ones are constantly changing. Change management strategy dovetails nicely with integrated talent management to ensure that talent can respond to change and adapt to it.

Technology in Integrated Talent Management

Technology that enables easy sharing of data across departments and processes is yet another essential component of integrated talent management. In some cases it might be possible to sustain communication without a technology solution, but a technology solution is necessary for scalability as companies grow larger and larger.

Consistency of Terms and Language

Communication is only effective if all parties understand what is being communicated. One essential part of integrated talent management is using a common language or consistent terms to talk about the talent management process. This helps all parties evaluate the process and share data that can lead to improvements.

Benefits of Talent Management Review

Organization Appraiser Appraisee
  • Recognize and manage talent performance.
  • Planning and decision making.
  • Improved staff retention.
  • Framework for sharing feedback.
  • Promote career planning and benefits.
  • Feedback on management style and leadership.
  • Reflection on areas of weakness and strength.
  • Opportunity to raise issues.
  • Focus on developing individual performance.
  • Better understanding of goals and requirement.
  • Identify action plan for future development.

Talent management teams observe the following competencies while undertaking managerial talent and reward score when the requirements are met.

  • Communication: The review team analyzes communication skills among the performers. It also reviews the channels of communication in the organization.
  • Leadership: The team identifies leadership qualities and takes a note of effective and emerging leaders in the organization.
  • Resource Management: The team evaluates the resource management styles of the employees.
  • Teamwork: The team underscores team performance of individual employees.
error: Content is protected !!