Nguyen Thu Trang – A1 – High Quality Class – BBA – K45 - FTU
QUESTIONS AND ANSWERS
- What is the difference between Personnel Management and Human resource Management? Evaluate the development of Vietnamese companies in this area.
- The difference between Personnel Management and Human Resource Management
Some experts assert that there is no difference between human resources and personnel management. They state that the two terms can be used interchangeably, with no difference in meaning. In fact, the terms are often used interchangeably in help-wanted ads and job descriptions.
For those who recognize a difference between personnel management and human resources, the difference can be described as philosophical. Personnel management is more administrative in nature, dealing with payroll, complying with employment law, and handling related tasks. Human resources, on the other hand, is responsible for managing a workforce as one of the primary resources that contributes to the success of an organization.
When a difference between personnel management and human resources is recognized, human resources is described as much broader in scope than personnel management. Human resources is said to incorporate and develop personnel management tasks, while seeking to create and develop teams of workers for the benefit of the organization. A primary goal of human resources is to enable employees to work to a maximum level of efficiency.
Personnel management can include administrative tasks that are both traditional and routine.
By contrast, human resources involves ongoing strategies to manage and develop an organization's workforce. It is proactive, as it involves the continuous development of functions and policies for the purposes of improving a company's workforce.
Personnel management is often considered an independent function of an organization. Human resource management, on the other hand, tends to be an integral part of overall company function.
Personnel management is typically the sole responsibility of an organization's personnel department. With human resources, all of an organization's managers are often involved in some manner, and a chief goal may be to have managers of various departments develop the skills necessary to handle personnel-related tasks.
As far as motivators are concerned, personnel management typically seeks to motivate employees with such things as compensation, bonuses, rewards, and the simplification of work responsibilities.
From the personnel management point of view, employee satisfaction provides the motivation necessary to improve job performance. The opposite is true of human resources. Human resource management holds that improved performance leads to employee satisfaction. With human resources, work groups, effective strategies for meeting challenges, and job creativity are seen as the primary motivators.
- Evaluate the development of Vietnamese companies
Vietnam, after joining WTO, has faced both opportunities and challenges. We have to put more attention in developing economy. As we all know, “people” is always a key factor in any enterprises. Without talented staffs, a company can’t compete with others in an interesting business environment like Vietnam. Therefore, HRM (Human Resource Management) has developed very fast in our country. In addition, when all the world are facing a economic crisis, the attaining and retaining talented people in your company is much more important. Thus, I can say that HRM is the key developing factor in Vietnam. In next few years, this area will be paid the most important attention.
- Why is the HR department playing a more significant role in organizational strategic planning processes today than it did 20 years ago?
HRM has not been paid enough attention in the past because at that time, enterprises want to focus more on production than human relations. However, today, the world is changing so fast, which leads to the relative change in managers’ view. Working conditions, social patterns, and the division of labor are significantly altered. A new kind of employee – a boss, who wasn’t necessarily the owner, as had usually been the case in the past – become a power broker in the new factory system. With these changes also came a widening gap between workers and owners. It means if ...
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HRM has not been paid enough attention in the past because at that time, enterprises want to focus more on production than human relations. However, today, the world is changing so fast, which leads to the relative change in managers’ view. Working conditions, social patterns, and the division of labor are significantly altered. A new kind of employee – a boss, who wasn’t necessarily the owner, as had usually been the case in the past – become a power broker in the new factory system. With these changes also came a widening gap between workers and owners. It means if you don’t pay attention to this relation, we have to face many problems in productivity, which can be the cause of bad performance. So what can we do to solve this problem? HR department is needed as the best alternative.
Moreover, the drastic changes in technology, the growth of organizations, the rise of unions, and government concern and intervention concerning working people resulted in the development of human resource management. HR department is needed to bridge the gap between management and worker; in other words, they were to speak to workers in their own language and then recommend to management what had to be done to get the best results from employees.
The HR managers are expected to be key contributors to their areas by becoming knowledgeable about the business issues faced by their business functional units. Today, HR managers participate in developing business strategies and ensure that human resource dimensions are considered. For instance, the HR manager for manufacturing has HR responsibilities for 600 employees. In that role she contributes to workflow, production, scheduling, and other manufacturing decisions. It also means that she is more accessible to and has more credibility with manufacturing workers, most of whom are hourly workers.
It is very important that human relations and workflow in a company need to be smooth, therefore, the role of human resource department is increasingly important. Workers can be happier, more satisfied and willing to work for this company. The crisis of the worldwide economy is also resulted in the importance of human resource department.
- Why is it correct to conclude that all managers are involved in the human resource management function and implementing HRM activities and programs?
Managers and supervisors throughout organizations are responsible for the effective use of all the resources available to them. Therefore, effective management of the human resources is integral to any manager’s job, whether as a hospital head nurse, assistant manager in a retail store, director of engineering, or president of a nonprofit agency.
Moreover, cooperation among people who specialize in HR and other managers is critical to organizational success, especially when global operations are involved. This cooperation requires contact, or interface, between the HR unit and managers within the organization. These points of contact represent the “boundaries” that determine who does what in the various HR activities. In organizations, decisions must be made to manage “people-related” activities; they cannot be left to chance.
These are not attempts to indicate “the one way” all organizations should perform HR activities but are simply illustrations of how these activities can be divided. For example, in one medium-sized bank, all new non-management employees are hired by the HR department. In another equally successful company, applicants are screened by the HR department, but the new employees actually are selected by the supervisors for whom they will work.
In smaller organizations without separate HR departments, cooperation among managers at different levels and in different departments also is essential if HR activities are to be performed well. For instance, in a small distribution firm hiring a new sales representative, the sales manager coordinates with the office supervisor, who may place a recruiting ad in a local newspaper, respond to telephone inquiries about the job from interested applicants, and conduct a telephone screening interview.
Therefore, it is correct to conclude that all managers are involved in the human resource management function and implementing HRM activities and programs.
There are some differences between the responsibility of HR Unit and Managers as the following:
- Historically, HRM activities and tools were developed and implemented by a department or functional unit. Today, however, operating managers are in the forefront in applying and modifying HRM tools and activities. Why has the shift in application occurred?
Some people think that in a company, any responsibility is divided very clearly; therefore each unit only has to care about its assigned task. It means that in a company, there is only human resource department has to care about people and perform HRM tools and activities. It is also the long-time trend of view in Vietnam.
However, delegation of HRM duties has changed over time. In most organizations two groups perform HRM activities: HR manager-specialists and operating managers. Operating managers (supervisors, department heads, vice presidents) are involved in HRM activities because they are responsible for effective utilization of all the resources at their disposal. The human resource is a very special kind of resource. If it is improperly managed, effectiveness declines more quickly than with other resources. And in all but the most capital-intensive organizations, the investment in people has more effect on organizational effectiveness than resources such as money, materials, and equipment.
It is the reason why operating managers today spend more and more time on managing people.
Another cause of this fact is the scale of business. In big company, if there is only human resource managers who care about the employees, an insufficient attention will be inevitable. With such kind of organization, we have to divide effectively the responsibility among its structure. Some operating managers will care about this part, while others will care about others. It helps improve the performance of the whole company.
In contrast, in a smaller company, there is rarely HR unit. At that time, the operating mangers have many HRM responsibilities to take care of, such as scheduling work, recruitment and selection, and compensating people. As the organization increases in size, the operating manager’s work is divided up, and some of it becomes specialized. HRM is one such specialized function.
With all of those reasons, we can say that operating managers are in the forefront in applying and modifying HRM tools and activities. The role of operating managers is changing. Research shows that people don’t leave companies; they leave managers. It will cause the managers to change, alter to make better image of a company.
- Job analysis is often referred to as the “cornerstone” of HRM. Please describe HRM functions or activities that use job analysis in some way? What core information should be included in most job descriptions and job specifications?
- Use of job analysis
In addition to helping organizations satisfy their legal requirements, job analysis is closely to HRM programs and activities.
Job analysis is the process of defining the work, activities, tasks, products, services, or processes performed by or produced by an employee or employees.
Some HR functions or activities that use job analysis:
Recruitment and hire
This process of job analysis identifies not only the critical tasks but also those tasks which require high skill levels. It helps recruiters seek and find right persons for the organization.
Training and development
Job analysis clearly establishes the skills needed for a job. It also establishes the different skills required for each of the jobs in the organization. For example if a company has a series of jobs such as Building Maintenance Worker I, II, and III, this process of job analysis will not only establish the skills required for each of the jobs; but it will also establish the different skill levels, "marginal skill levels", between each of these jobs. It is then possible to develop training programs based on the specific tasks unique to the job as well as those similar tasks required by other jobs.
Compensation
Another benefit from this approach to job analysis is that it can signal when compensation for a job should be reviewed. Jobs are dynamic and always changing. The question of when these changes are significant enough to result in a change in compensation is important. Tasks of a job may change but that does not necessarily mean that the minimum skills have changed. Relative frequency and relative difficulty may change but that does not necessarily mean that minimum skills have changed. When the change in the job results in a change in critical tasks which result in changes to minimum skill levels, then the job should be reviewed to determine if compensation for the job should be adjusted. This process provides documentation to support adjustments to compensation based on changes in minimum skill levels.
Work force planning and utilization
This approach to job analysis will identify which tasks in a job require the highest skills. Management will be able to use that information to structure jobs. If there are only a few tasks requiring high skill levels, it may be more efficient for the organization to shift those tasks to another job which already requires those skills. This allows the organization to develop specialized jobs and hire employees with an emphasis on those skills.
The organization can also use the job analysis information for projecting work force needs. By observing how jobs change over time, an organization will be in a better position to predict how jobs are likely to change in the future. Employers should be in a better position to project lead time needed to bring an employee to the level of full productivity. As organizations decide their future human resource needs, the information obtained through this job analysis model should aid the organization in developing a plan to meet those needs.
- Core information should be included in job descriptions and job specifications
- Clear job description
- The frequency and importance of task behaviors
- Accurate assessment of the knowledge, skills, abilities, and other characteristics (KSAOs) required by the job
- The relationship between job duties and these KSAOs.
- Which KSAOs are needed for each job duty
- What are the relative strengths and weakness of promotion from within as a recruitment technique?
- Strengths
There are some advantages to internal recruitment. First, internal recruitment may lead to increased morale for employees; the organization is perceived to reward good performance or loyalty. Often, one promotion leads to another vacant position and this chain effect contributes further to increased morale.
Another advantage to the firm is that Human Resource data is immediately available for any employee recruited internally. Further, the employee's work habits are known and previous performance appraisals are on record.
Similarly, an internal recruit will be familiar with the firm. This employee will be familiar with the firm's products, clients, organizational policies, and corporate culture. Therefore, the firm might be able to save money insofar as orientation sessions for such an employee may not be necessary.
- Weakness
Whereas the firm saves money by eliminating orientation sessions for employees recruited internally, other training costs may go up. If company policies mandate internal recruitment, then employees promoted from within may not have all the requisite skills required for the job. In such cases, employees will have to be trained for their new jobs. This can be a costly process. It becomes even more costly if the chain-effect of successive internal promotions requires a series of training sessions to be implemented.
A succession of internal recruitments may, in fact, result in the Peter Principle ("In a hierarchy every employee tends to rise to his level of incompetence." -- The Peter Principle by Laurence Peter and Raymond Hull, 1969). This can be avoided by initially promoting internal recruits on a temporary basis. Demotions for incompetence can have a demoralizing effect on the organization. To avoid such disappointments, the temporary appointment ("acting manager") serves to give the internal employee an opportunity to show their worth. However, it also provides the employer with an opportunity to replace that employee with a more qualified individual if necessary.
Another unintended negative consequence of internal recruitment might be organizational politics. This may occur when more than one employee aspires to the job vacancy. Those not getting the promotion will be disappointed and may be unwilling to grant the new job-holder the authority required to do the job. Further, the unsuccessful applicants' coworkers may also resent the successful candidate and demonstrate that resentment through less than satisfactory work output.
- Why should a selection method be both valid and reliable? What could happen if a company uses a selection method that lacks these characteristics? Discuss and compare the validity and reliability of at least three selection methods?
- As we all know, the main goal of selection is to make accurate predictions about people. The organization wants to male its best guess about who will be a successful employee. In this way, the organization can avoid hiding the wrong person for a job. In other words, the main purpose of selection is to make decisions about people. If these decisions are going to be correct, the techniques used for making them must yield reliable information.
Actually, it is not only theoretical. We can see easily the bad result of unreliability in selection method. An inappropriate employee is not only a useless person in a company but also a costly investment. We have to pay them a salary, give them benefit, while all the things they can bring to our company is their appearance. How can a company can suffer from it for a long time and make profit?
As for “validity” criteria, we can really recognize it. For a selection tool to be useful, it is not sufficient for it to be repeatable or stable. Both legally and organizationally, the measures that it yields must also be valid. If a company uses a selection method that lacks this characteristic, it will face the same problem like lacking reliability. This can be a real disaster.
- Three selection methods I can say now is Preliminary Screening, Employment Interview, Employment Test.
In preliminary screening, reliability is not good. Employee can tell lies about their background, forge the signature or comment of previous managers. If a company only hire employees based on their application form, it is very easy for it to make wrong decisions. As for validity, it is in a better situation. We can have the updated information about the applicants; however, if the employee tells lies, all of this will be invalid.
In employment interview, reliability is good because the recruiters can have a chance to face directly with the applicants. Therefore, it is easier for them to estimate and evaluate. Validity is also good. Nevertheless, we have to say that in an interview, there are also some errors occurred. For example, unrelated questions, hasty decisions, emotional estimation etc.
In Employment test, a company can know the skills and knowledge they need from the employees. Therefore, reliability and validity is good. However, sometimes, a person who has higher score doesn’t need to be a better employee. We have to concentrate and pay attention to other factors as well.
- Why should a needs assessment a requirement for determining what training provided? Unfortunately, too many organizations bypass the needs assessment. Why? How does your organization conduct training needs assessment?
- Training is designed to help the organization accomplish its objectives. Determining organizational training needs is the diagnostic phase of setting training objectives. Just as a patient must be examined before a physician can prescribe medication to deal with an ailment, an organization or an individual employee must be studied before a course of action can be planned to make the “patient” function better.
It's great to be committed to the training of employees, but the reality is that a huge percentage of workplace training is a waste of resources, either because it doesn't address or solve a business problem, or the employee isn't in a position to use what is learned (if anything is actually learned). Clearly the key is to determine training needs properly for the organization, and for individual employees. That's the way to increased productivity through human resource development.
A needs assessment can give a company the information of the current situation in its business environment. What does an employee need? Which skills and knowledge need to be provided? It involves analyzing the organization’s needs; the knowledge, skill, and ability needed to perform the job; and the person or jobholder’s needs. Determining if a person can do the job is an important step in improving the firm’s ability to match the person with the best job for him or her.
Therefore, a needs assessment will bring a manager the clear overview of a company’s need. After that, he can determine what training will be needed to employees based on the lack of the company’s current human resource.
- However, too many organizations bypass the needs assessment. The reason for that fact may be the wrong opinion of human resource managers in such organizations. They only think in their own view, not caring about others’ needs. They will give the training program which they consider necessary. In addition, it can be the trend of the market or other businesses. Sometimes, it is not really fit in this organization.
- The organization can follow the specific steps to conduct a training needs assessment:
- What is performance evaluation? How is it different from performance management? Who usually evaluates employees in organizations? Who should do so? Under what circumstances? What criteria should be used to evaluate employees? Which ones are used? How often should formal performance evaluations take place? Informal ones? How often do they take place?
- Performance evaluation is the activity used to determine the extent to which an employee performs work effectively. Other terms for performance evaluation include performance review, personnel rating, merit rating, performance appraisal, employee appraisal and employee evaluation. It is the process of evaluating how well employees perform their jobs when compared to a set of standards, and then communicating that information.
Performance management is the process by which executives, managers, and supervisors work to align employee performance with the firm’s goals. An effective performance management process has a precise definition of excellent performance, uses measurements of performance, and provides feedback to employees about their performance. Thus, it defines, measured, monitors, and gives feedback.
Performance evaluation is a crucial part of a firm’s performance management process.
- Performance evaluation can be done by anyone familiar with the performance of individual employees. Possibilities include the following:
- Supervisors who rate their employees
- Employees who rate their superiors
- Team members who rate each other
- Outside sources
- Employee self-appraisal
- Multisource (360°) appraisal
The first method is the most common. The immediate superior has the sole responsibility for appraisal in most organizations, although it is common practice to have the appraisal reviewed and approved by the supervisor’s boss. Any system should include a face-to-face discussion between rater and ratee. Because of the growing use of teams and a concern with customer input, two fast-growing sources of appraisal information are team members and sources outside the organization. Also, multisource appraisal (or 360° appraisal) is a combination of all the methods and has grown in usage recently.
- Criteria should be used to evaluate employees:
They can be quality of work, quantity of work, and cost of work. It also require supervisors to make person evaluations rather than performance evaluations. Therefore, the evaluation criterion in some systems is the personality of the incumbents rather than their levels of performance.
- Informal performance evaluations are different from formal evaluations because they are conducted without any clear structure. Managers often think about how well employees are doing.
In contrast, a formal performance evaluation is a system set up by the organization to regularly and systematically evaluate employees’ performance.
- How does Pay Influence Individual Employees? What do you think about the effectiveness of organizations’ programs for recognize employee contributions?
- Increasing payroll costs and competition in the global marketplace have caused managers to search for ways to increase productivity by linking compensation to employees’ performance. High performance requires much more than motivation.
Well-paid employees are the key to better job performances and ultimately a better performing company. According to researchers at Rice University’s Jesse H. Jones Graduate School of Management, managers are mistaken if they believe tinkering with one aspect of compensation — such as health-care benefits — is going to have a meaningful impact on workers’ overall pay satisfaction and enhance the company’s performance. It’s the salary that counts.
When it comes to job choice, the most important incentive is salary. Similarly, the happier workers are with their overall pay, the more satisfied they are with their jobs and the better their company performs. According to university researchers, no single component of an employee’s compensation, including health-care benefits or pay raises, drives an organization’s performance. Employees’ overall satisfaction with their pay is key when it comes to the connection between pay and organizational performance.
“Although employees make some distinctions among different aspects of pay, such as raises and benefits, their overall satisfaction or dissatisfaction with pay is what most influences their job performance and ultimately the company’s performance,” said Steven Currall, the William and Stephanie Sick Chair in Entrepreneurship at the Jones School and associate professor of management, psychology and statistics. “If a company is going to use pay satisfaction to produce better outcomes, it needs to consider all dimensions of employee compensation simultaneously.”
- A company have to pay attention to the contribution of employees. If it can, they will feel respected and try more and more to get higher pay. Actually, if someone think that they are regarded properly, they will work better. People may compare themselves to others:
- Doing the same job within the same organization
- Working in the same organization, but performing different jobs
- Doing the same job in other organizations
For example, an assistant manager at a Wal-Mart department store might compare her pay to other assistant managers at Wal-Mart, to Wal-Mart employees in other positions (either above or below her in the organizational hierarchy), or to assistant managers at Kmart department stores.
If they work harder than others but only receive the same salary, all the situation will be worse. Employees have no motivation to work because even if they work very hard, the salary is equal to those of lazy workers.
Therefore, the recognizing of employee contribution is very effective and important.
REFERENCE
- Strategic Public Personnel Administration By Ali Farazmand
- Human resource management – 12th edition – Robert L.Mathis, John H.Jackson
- Human resource management - 10th edition – John M. Ivancevich
- busylearners.com
- allbusiness.com
- Wikipedia.org
- Humanresource.about.com
- Scbrid.com
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