Human resource management (10)

Question 1

SUMMARY

Answer 1

In summary, the following are covered in this topic:
1. Human resource management includes both human resources planning and human
resource activities.
2. To plan human resources needed effectively, planners must understand current employee
needs and predict future employee needs.
3. Understanding current employee needs involves conducting a job analysis to determine the
basic elements of a job, and to create a job description and job specification thereafter.
Predicting future employee needs involves acquiring knowledge about the staffing an
organisation might need and the probable sources for that staffing.
4. The human resources activities include recruitment and selection; compensation;
orientation, training and development; performance appraisal; promotions, transfers,
disciplining and dismissals.
5. Tripartism refers to the collaboration among unions, employers and the government. It
provides guidelines on good employment practices and wages.
6. Tripartism helps to manage conflict of objectives between management and workforce.
7. The tripartite partners are Ministry of Manpower (MOM), the National Trades Union
Congress (NTUC) and the Singapore National Employers Federation (SNEF).
8. The key tripartite issues are job redesign, retirement age, training and upgrading of the
workforce, promotion of fair employment practices and wage systems.
9. Employers and management should abide by labour laws and adopt the Tripartite
Guidelines on Fair Employment Practices.
10. In making human resource decisions, the tripartite issues must be taken into account.
Manpower policies and the influence of trade unions must also be given due consideration.

Question 2

What is Human resource management?

Answer 2

Human resource management is the strategic approach to the effective management of workers so that they help the business gain a competitive advantage.

It aims to recruit capable, flexible and committed people, managing and rewarding their performance and developing
their key skills to the benefit of the organisation.

Question 3

What is included in Human resource management?

Answer 3

Human resource management includes both:
1) Human resources planning
2) Human resource activities

Question 4

What is Human resource planning?

Answer 4

Human resource planning is the development of strategies to meet the future human resource needs of a business.

The starting point is the overall strategic plan of the business. From this, management of human resource can forecast future demand for human resources, determine whether the required human resources would be available, and finally take steps to match supply with demand.

Question 5

How can a systemic and comprehensive strategy for effective human resource planning be developed?

Answer 5

Management must understand:
1) Current employee needs; and
2) Predict future employee needs

Question 6

How can current employee needs be understood?

Answer 6

Management or trained specialists must first:
1) Conduct a Job analysis; and from that
2) establish a Job description and Job specification

Question 7

What is a Job analysis?

Answer 7

The purpose of job analysis is to determine, by observation and analysis, the basic elements of a job.

Specialists who do this interview job occupants about what they do, observe the flow of work, and learn how results are accomplished.

For example, in analysing the job of its couriers, FedEx has specialists who ride with couriers to observe and record the time taken to deliver a load of packages including the problems encountered, such as traffic jams, vicious dogs, recipients not at home etc.

Question 8

What is a Job description and Job specification?

Answer 8

1) A job description summarises the job scope, duties and responsibilities (what the job holder does and how and why he/she does it);
2) A job specification describes the minimum
qualifications a job holder must have to perform the job successfully.

Question 9

What are the advantages of Job analysis, and Job description and specifications?

Answer 9

Job analysis and the resulting job descriptions and specifications can help businesses avoid hiring people who are overqualified (and presumably higher-paid) or under-qualified (and thus
not productive) for a particular job.

Question 10

How can future employee needs be predicted?

Answer 10

To predict future employee needs effectively, management would need to:
1) Have knowledge about future human resources demand; and 2) The possible sources (supply) for these human resources.

Question 11

How can forecasting human resource demand be done?

Answer 11

The overall strategic plan of the business would provide information about future business ventures, new products, and
projected expansions or terminations of specific product lines.

Information on past human resources levels, new technologies, industry human resources practices, and projected economic trends are also useful indicators.

Such information would be used to determine both the number of employees required and their qualifications.

Question 12

What are the possible sources for human resources?

Answer 12

Employees could be recruited from either inside (see 3.1.1 Internal recruitment) or outside (see 3.1.2 External recruitment) the business.

In looking at internal source, management might want
to consider factors like nature of the tasks, suitability of employees that includes which employees are motivated, trainable and promotable, as well as the types of training the
business might have to conduct.

In looking outside, factors to consider include the availability
of talent in the industry and the geographic location’s labour pool, the qualifications and skillsets of those graduating from tertiary schools, as well as the quality of migrant workers moving into the country.

Question 13

What are the activities included in human resource management?

Answer 13

1) Recruitment and selection
2) Compensation
3) Orientation, training, and development
4) Performance appraisal
5) Promotions, transfers, disciplining and dismissals

Question 14

What is Recruitment?

Answer 14

Recruitment is the process of identifying the need for a new employee, defining the job to be filled and the type of person needed to fill it, and attracting suitable candidates for the job.

Question 15

What are the two types / possible sources of recruitment?

Answer 15

1) Internal recruitment
2) External recruitment

Question 16

What is Internal recruitment?

Answer 16

Internal recruitment would require management to make the job vacancy known to its existing employees and encouraging them to apply for and be willing to accept organisational jobs that
are available.

Most vacant positions in businesses are filled through internal recruitment, mainly through job postings, such as placing information about job vacancies and qualifications on
bulletin boards, in newsletters or in the intranet of the business.

Question 17

What are the advantages of Internal recruitment?

Answer 17

The advantages of internal recruitment are:
1. Employees tend to be inspired to greater effort and loyalty. Morale is enhanced because they realise that working hard and staying put can result in more opportunities.
2. The whole process of advertising, interviewing etc. is less costly.
3. There are fewer risks, since internal candidates are already known and they are also familiar with the business.

Question 18

What are the disadvantages of Internal recruitment?

Answer 18

The disadvantages of internal recruitment are:
1. Internal recruitment restricts the competition for positions and limits the pool of fresh talent and fresh viewpoints.
2. It may encourage employees to assume that longevity and seniority will automatically result in promotion.
3. Whenever a job is filled, it creates a vacancy elsewhere in the business.

Question 19

What is External recruitment?

Answer 19

External recruitment means attracting job applicants from outside the business, when there is no suitable internal candidate for a particular vacant position.

Question 20

How can External recruitment take place?

Answer 20

1) Advertising (e.g. newspapers, journals, social media, etc.)
2) Employment agencies or consultants
3) Schools and Universities (through career fairs, recruitment talks, internship opportunities, etc.)

Question 21

What are the advantages of External recruitment?

Answer 21

The advantages of external recruitment are:
1. Applicants are likely to possess specialised knowledge and experience.
2. Applicants can offer fresh viewpoints.

Question 22

What are the disadvantages of External recruitment?

Answer 22

The disadvantages of external recruitment are:
1. The recruitment process is more expensive and takes a longer time.
2. The risks are higher because there are unknown factors about the people hired.

Question 23

What is Selection?

Answer 23

Selection involves the series of steps by which the candidates are interviewed, tested or screened for choosing the most suitable person for the vacant position.

Question 24

What are the various selection methods to be used to secure information about the candidates?

Answer 24

1) Application blank / Resume
2) Selection test
3) Selection interview
4) Reference check
5) Medical screening

Question 25

What is Compensation?

Answer 25

Compensation is the payment employees receive in return for their labour/effort.

Question 26

What are the three components of Compensation?

Answer 26

1) Wages or salaries 2) Incentives 3) Benefits

Question 27

What are wages or salaries?

Answer 27

The basic wage or salary is the base pay paid to employees in exchange for doing their jobs.

Question 28

What are the various factors determining the basic compensation?

Answer 28

1) Prevailing pay levels in a particular industry or location 2) The amount competitors are paying 3) Whether jobs are unionised 4) If the jobs are hazardous 5) the individual's position in the business and how much experience he or she has

Question 29

What are Incentives?

Answer 29

To induce employees to be more productive, or to attract and retain top performers, many businesses offer incentives such as performance-related pay (bonuses), profit sharing and share ownership.

Question 30

What are Benefits?

Answer 30

Benefits, or fringe benefits, are additional non-monetary forms of compensation designed to enrich the lives of all employees in the business, which are either fully paid or partly paid by the business. Examples include company cars, pension schemes, private health insurance, discounts on company products and low interest rate loans.

Question 31

What is Orientation?

Answer 31

Orientation, also known as induction training, is conducted to help newcomers fit smoothly into the job and the organisation. It has the objectives of introducing them to the people they will be working closely with, explaining the detailed organisational structure, outlining the layout of the premises and making clear essential health and safety issues, such as procedures during a fire emergency. Induction helps in the effective integration of the employee into the organisation.

Question 32

What are the three matters employees should be equipped with following orientation?

Answer 32

1) The job routine 2) The organisation's mission and operations 3) The organisation's work rules and employee benefits

Question 33

What is Training?

Answer 33

Training refers to educating and upgrading the skills of technical and operational employees in how to better do their current jobs. For example, electronics technicians, data processors, computer network administrators and X-ray technicians, among others, need to be schooled in new knowledge as the requirements of their fields change due to technological advancements.

Question 34

What is Development?

Answer 34

Development refers to educating professionals and managers in the skills they need to do their jobs in the future. For example, accountants, nurses, lawyers and managers of all levels need to be continually educated in how to better do their jobs for the immediate and long-term future.

Question 35

How can Training be categorised?

Answer 35

1) On-the-job training 2) Off-the-job training

Question 36

What are the benefits of Training and development?

Answer 36

The following are benefits of training and development:  Improved performance of previously unskilled workers and upgrade of employees’ skills in anticipation of their achieving higher positions in the organisation.  Improved skill levels of the whole business as workers will be more flexible, adaptable and better able to meet technological and other challenges. This prevents obsolescence of skills at all levels of personnel in the company especially when technology of performing a job is subjected to rapid changes.  Development of staff to reach their potential, which should lead to a more stable and committed workforce.  Improved efficiency of operation (thus productivity) and the quality of the finished product, leading to improved profitability for the business.

Question 37

What are the costs of Training and development?

Answer 37

The following are costs of training and development:  Financial costs of training courses, some off-the-job training programmes or courses could be expensive.  Costs of employees tied up in undertaking training. Employees undergoing on-the-job training would be less productive during the course of training. Employees undergoing off- the-job training would mean loss of man hours for the business.  The risk of well-trained and qualified employees leaving for better opportunities with other businesses. This may result in the businesses cutting back on training programmes and may cause other employees to miss out on training and development opportunities.

Question 38

What is Performance appraisal?

Answer 38

Performance appraisal is the process of accessing the effectiveness of an employee judged against pre-set objectives.

Question 39

What are the various Appraisal methods?

Answer 39

1) Objective methods 2) Judgemental methods

Question 40

What are Objective appraisal methods?

Answer 40

Objective appraisal methods use some measurable quantity as the basis for assessing performance. Units of output, dollar volume of sales, and number of defective products are some examples of objective, measurable quantities. As objective methods measure results, it will be harder for employees to challenge the appraisal.

Question 41

What are Judgemental appraisal methods?

Answer 41

Judgemental appraisal methods, sometimes known as subjective methods, are used more frequently than objective methods. Managers are required to judge or estimate the employee’s performance level. These methods are often based on employee ranking or rating scales. When ranking is used, the manager ranks subordinates from best to worst. This approach is often based on a manager’s perception of an employee’s traits or behaviours, and lack an absolute standard or benchmark.

Question 42

What are some judgemental errors in performance appraisal?

Answer 42

1) Lack of objectivity 2) Halo effect 3) Leniency or strictness 4) Central tendency 5) Recency bias

Question 43

What is Lack of objectivity?

Answer 43

Performance appraisal largely a matter of one person’s opinion of another and it remains a subjective process which requires human judgment and thus prone to judgment errors.

Question 44

What is Halo effect?

Answer 44

This occurs when a supervisor’s assessment of a subordinate on one dimension influences the rating in other dimensions.

Question 45

What is Central tendency?

Answer 45

There is a tendency to rate all employees on average as a result of supervisor fatigue and inability/unwillingness to commit time to be more discriminatory in appraising performance or wanting to avoid conflicts or criticisms.

Question 46

What is Recency bias?

Answer 46

There is a tendency to recall the most recent events when evaluating performance.

Question 47

What is Leniency or strictness?

Answer 47

The practice of rating all employees may not be consistent. For example, a supervisor may give subordinates the benefit of the doubt and give lenient rating to avoid conflict.

Question 48

What are the characteristics of an effective appraisal system? (Should contain one or more of the following)

Answer 48

1) Job related criteria 2) Performance expectations 3) Standardisation 4) Qualified appraisers?

Question 49

TBC

Question 50

What should managers consider when promoting an employee?

Answer 50

In promoting an employee, managers would to consider the following:  Fairness. It is important for promotion to be fair. The step upward must be deserved. It should not be for reasons of nepotism, cronyism or other forms of favouritism.  Non-discrimination. The promotion cannot discriminate on the basis of race, ethnicity, gender, age or physical ability.  Resentment of other employees. If someone is promoted, someone else might be resentful about being passed over. Managers would need to counsel and assure the people left behind about their performance and their opportunities in the future.

Question 51

What is a Transfer?

Answer 51

Transfer is the movement of an employee to a different job of similar responsibility. It may or may not mean a change in geographical location

Question 52

What are the reasons for an employee being transferred?

Answer 52

Employees may be transferred for the following reasons:  to solve issues faced by the business by using their skills at another location;  to broaden their experience in being assigned to a different position;  to retain their interest and motivation by being presented with a new challenge;  to solve some employee problems, such as personal differences with their bosses.

Question 53

What is Dismissal?

Answer 53

Dismissal means an employee is sacked or fired from a job due to incompetence or breach of discipline.

Question 54

What are the conditions for a fair dismissal? (at least one of the following is true)

Answer 54

To show that a dismissal is fair, employers need to be able to show that one of the following is true, except in the case of gross misconduct, and that the agreed procedures have been followed:  inability to do the job even after sufficient training has been given;  a continuous negative attitude at work, which has badly affected the employees or their work;  continuous disregard of required health and safety procedures;  deliberate destruction of an employer’s property;  bullying of other employees.

Question 55

What are the situations in which dismissal can be considered unfair?

Answer 55

There are certain situations in which dismissal can be considered unfair or in breach of employment law, and include: 1) Pregnancy; 2) A discriminatory reason; 3) Employee being part of a union; or 4) Non-relevant criminal record.

Question 56

What is a Tripartite relationship (Tripartism) ?

Answer 56

Tripartite relationship (tripartism) refers to the collaboration among unions, employers and the government. Tripartism is a means to effectively manage workforce-management issues, such as conflict of objectives between these two parties. It provides guidelines on good employment practices and wages.

Question 57

What are the examples of Conflict?

Answer 57

 Business change. The management may feel that change, such as relocating or introducing new technology, is necessary to remain competitive and profitable. To the employees, such a change can lead to job losses, or may result in retraining in new skills that causes uncertainty over ability to cope.  Rationalisation. The management views that the business needs to cut overheads, be flexible and adaptable to deal with competition. Hence, they may close down a factory or office department. Employees may feel that such cost-cutting and rationalisation only affect them, and not senior management.  Adverse economic condition. During adverse economic conditions, such as a recession, the management may carry out a retrenchment exercise to save costs. Retrenched workers would lose their source of income, while workers who stayed on may worry about potential job losses.

Question 58

Who are the Tripartite partners?

Answer 58

1) Ministry of Manpower (MOM) 2) The National Trade Union Congress (NTUC) 3) The Singapore National Employers Federation (SNEF)

Question 59

Note: The three partners form the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP), which promotes the adoption of fair, responsible and progressive employment practices among employers, employees and the general public.

Question 60

What are the key Tripartite issues?

Answer 60

The key tripartite issues are:  Job redesign. The main objective of job re-design is to alter job elements so that companies can achieve maximum output. Increasing output would mean an increase in employee engagement, efficiency and productivity, improved quality and higher organisational branding.  Effective retirement age. As part of a set of measures to enable older employees to work longer, the Government enacted re-employment legislation to enable more people to continue working beyond the current statutory minimum retirement age of 62. Businesses must offer reemployment to all eligible employees up to the age of 67.  Workforce training and upgrading. Where opportunities for training arise, employers should inform all eligible employees of the conditions and procedure for application. Employers should assess all interested candidates based on objective selection criteria to ensure that no one is overlooked.  Fair and progressive employment practices. This sets out fair employment practices for adoption by employers. This will not only help prevent discrimination at the workplace, but also encourage employers to adopt progressive HR practices that will benefit both employers and employees.  Flexible wage system. This is to support workers on flexible wage arrangements, which contribute to a supportive and conducive work environment. This include those on flexi- load (e.g. part-time or job-sharing), flexi-time (e.g. staggered hours and compressed work week), and flexi-place (e.g. telecommuting).

Question 61

What are the five principles of Fair Employment Practices?

Answer 61

The five principles of Fair Employment Practices are: a. Recruit and select employees on the basis of merit (such as skills, experience or ability to perform the job), and regardless of age, race, gender, religion, marital status and family responsibilities, or disability. b. Treat employees fairly and with respect and implement progressive human resource management systems. c. Provide employees with equal opportunity to be considered for training and development based on their strengths and needs to help them achieve their full potential. d. Reward employees fairly based on their ability, performance, contribution and experience. e. Abide by labour laws.