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Human Resources
Instructors: Olga Suhomlinova, Jakie Kan, Inger Boyett, Robin Large
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Summary
This report is about analyzing the major HRM systems of an organization and discussing the extent to which it
reflects on the organization’s performance.
Introduction
The contributions HRM makes to organizational effectiveness include important matters such as:
• Increasing the employee’s job satisfaction, developing and maintaining quality of work life that makes the
employment in the organization desirable.
• Managing change to the mutual advantage of individuals, groups, the organization and the public.
The organization in concern is a large construction contracting entity based in Dubai, UAE.
The HR and Administration of this organization are being managed by one department named the HR and
Administration department.
The systems consists of a set of procedures and some related forms to supplement the implementation of these
procedures, those procedures and forms are posted on the organization’s intranet, and available for all employees.
The HR & Administration Department will facilitate a centralized recruitment planning process in accordance with
the form - Manpower Allocation, which is driven by the annual overall manpower requirements for each project.
Recruitment needs are primarily based upon the company annual manpower requirements. Any immediate
requirement may be raised using the form - New Employee Request. Requirements through this form will be given
priority.
The organization retains the current employees and aims to attract the best and brightest new recruits.
Depending on the timeframe given to fill the immediate requirement, a recruitment campaign will be initiated by
either internal or external searches.
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The HR & Administration department will maintain a specific schedule of the competency levels and a detailed job
description in order to ensure that appropriate candidates are sourced.
For any vacant position, an internal search will be carried out through the HR & Administration department.
If a suitable candidate is found he/she will undergo an informal interview and based on the feedback, will be
transferred internally.
Provided a suitable candidate is not found, an external search will take place.
• Job fairs
• Referrals through word of mouth, employee contacts, management recommendation and other forms of
networking
Application forms and CV’s will be received and reviewed against the job specifications. All incoming CVs will be
centrally stored and electronically categorized by the recruitment team.
An interview will be arranged with the participation of the concerned project/divisional manager/director:
• Reference Check Form is to be completed for senior position candidates, prior arranging an initial
interview.
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• A representative of the HR & Admin Dept will be nominated by the HR & Admin Director to assist in the
interview process
• During an interview, Interview Feedback Form shall be completed comprehensively. It will have the
recommendation from the interviewer stating detailed reasons clarifying why the candidate is deemed
suitable or otherwise.
• In the event of the candidate not being selected, he/she will be informed in writing. However, if the
candidate is deemed suitable for employment, the interview feedback form will be sent to the HR &
Administration Director for an offer approval as per the company salary scale.
Only the Managing Director, Chief Operating Officer, General Managers, Recruitment Managers or the HR&
Administration Director are authorized to negotiate packages in accordance with the salary scale and the benefits &
compensation guidelines but final approval will be issued by the Managing Director if the offer is more than the
salary scale.
Once an offer has been outlined, Personal Action Form will be completed. This form has a breakdown of the salary
and benefits that is to be offered to the candidate. It is to be approved by management as stated above.
Upon obtaining all necessary approvals, the offer will be sent to the candidate.
The employee will report to the HR & Admin Department to complete the required joining formalities which
include an employee induction upon joining.
Sourcing unskilled workforce is done overseas through the associated recruitment agencies. The process is initiated
with a recruitment campaign based on the manpower requirements from the project sites.
The designated agencies will preselect the candidates. A technical panel is then constituted who will travel along
with a representative from the HR & Admin Department to conduct the interviews.
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2.1.3 Performance reports of all new employees will be produced, employees will be
graded on a scale of A to E based on their experience, physical fitness, practical
test, productivity, safety awareness, quality and discipline. The grading scheme
will be as follows:
3.0 Compensation
3.1.2 All new employees will be graded to ensure that their starting point is known
and to indicate the opportunities of promotion.
3.2.0 Scales for daily paid employees
The wages of daily-paid employees and Plant operatives will be specified based
on the running wages of the company unless advised otherwise by top
management.
3.3.0 Increments
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Employee.
The company is committed to the ongoing development of its workforce, ongoing training is essential for the
company to retain a highly skilled and motivated workforce, enabling the company to compete in a challenging
environment. The company will endeavor to support employees to identify and seek further training which will
provide benefit to both individual development and current and future company business and knowledge needs.
All new employed personnel shall undergo an induction training conducted by the HR & Admin Department in
accordance with the form – Employee Induction.
Training needs shall be identified through a number of formal and informal means.
• Training needs shall be identified by the employee’s manager through the annual performance appraisal.
• A structured Training Needs Assessment Survey shall be carried out at the end of every year in order to
identify the training requirements among the employees.
• Employees shall participate in the annual Training Needs Assessment survey. Data collected shall be
analyzed by the HR & Administration Department.
• By referring to the Learning Resources Guide and company intranet, a training request shall be submitted
by the employee or employee’s manager at any point of time to meet the evolving job requirements. They
shall complete Training Request Form, obtain the approval of the location head and forward it to the HR &
Admin Department for further processing
• Ongoing liaison between project sites and the HR & Admin Department.
• From direct supervisors as part of ongoing assessment of job requirements, skill level and
monitoring the work performance.
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• From audit and surveillance of management systems.
HR & Administration department extracts the training needs identified from the above processes, prepares and
distributes a summary to all the relevant project / departmental managers, and comes to an agreement with them on
training to be undertaken in the upcoming period. Following the agreement, an annual master training plan shall be
prepared at the beginning of every year for both the staff and daily paid tradesmen. The Plan shall identify the
subject matter, source (internal / external), cost and approximate timing of the training.
Training plan shall be reviewed by the HR & Admin Director and submitted to the steering committee for budgetary
approval.
Schedules of the internal/external training events shall be published on company intranet and the
department/locations shall announce the upcoming training programmes through circulars and notice boards.
The progress of training plan shall be reviewed by the steering committee in December every year.
Training plan shall be implemented using internal resources or by selected external sources and subject to the master
plan.
Internal Training shall be carried out using In-house Subject Matter Experts, Location Managers, Experienced
Supervisors or the trained trainers in various job disciplines and company training centre.
On-the-job training and development shall be carried by the responsible managers by referring to the Learning
Resources Guide and the process shall be coordinated by HR & Admin Dept.
Once an internal / external training has been completed the attending employee shall complete an evaluation of the
training by completing Training Feedback Form.
Feedback shall be evaluated by the responsible training managers to assess the success of courses and the quality of
training providers.
Within six months of the completion of the training another post training feedback shall be collected from the
employee’s manager using Post Training Feedback Form to observe the effectiveness of the training provided.
Consideration of Performance.
• The HRM systems gives priority to internal hire, that is cost effective as CPH for internal hire is less than
CPH for external hire.
• The indexes being used to measure the recruiter effectiveness through the organization’s HRM integrated
systems are: response time, time to fill the job, cost per hire, employee acceptance rate, and quality of hire.
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• The three general measures of training are cost: per unit of training delivered, change: gain in skill or
knowledge or positive change in attitude by the trainee, and impact: results or outcomes from the trainee’s
use of new skills knowledge, or attitude that are measurable in monetary terms in the organization’s
productivity, quality, or service results; those measures are being applied considering the changing
circumstances.
• Rates of absenteeism and turnover are highly reduced, which maximizes cost savings and decreases stress
on coworkers.
Evaluation of the extent to which the HRM systems in use are consonant to the organization’s
performance
The current HRM systems of the organization are overall supportive to the organization’s performance as it adds
values in terms of reduced operating expense, less overtime, higher productivity, reduced processes cost, lower
product/service cost, fewer or none lost customers, retention savings.
These added values helped the organization retain its position as one of the leading construction companies in its
market even during the current recession.
Conclusions
High quality HRM systems is a key to the success of any organization, it reinforces the organization’s
stability and contributes to the steady growth of the organization.
• Performance management is a chance for the organization to learn about what employees are really doing,
and to understand what will motivate them in the future.
• Compensation’s mission is to assist in attracting, retaining, and motivating employees; to achieve its
mission, it must maintain a good structure, meet the needs of the organization fairly and equitably for all
employees.
• If we change the mental image of the employee’s benefits from a cost to a return on investment we
probably will find new ways to make benefits worthwhile for organizations as well as employees.
• Benefit packages that are flexible and go beyond health and life insurance can give an edge in recruiting
scarce resources.
• The style of holistic reward implied by total reward strategies has been shown to have a positive impact.
• An ongoing training policy is necessary to keep the employees up to date and to keep them believing that
the organization is committed to them.
References
- Human Resource Management A Concise Analysis, Eugene Mckenna, Nick Beech, Second Edition
- How to Measure Human Resource Management, Third Edition, Jac Fitz-enz and Barbara Davison
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