It is very important for Human Resource Management (HRM) to effectively recruit and select workers for a business organization.
Effective recruitment and selection of workers helps the business to employ the right person for doing a particular job. If the wrong person is recruited and employed, it can cause so many problems for the business.
Matching individual workers and business organizations
The important question is how to match employees with businesses.
Are individuals and business organizations equally concerned about achieving both matches? What can individuals and organizations actually do to produce these matches? How can an organization differentiate itself, enhance its competitiveness, and how it manages these matches and human resource management issues overall?
To answer these questions, two key matches are necessary to have high-performing, committed employees:
- Technical Fit. Individual abilities and skill requirements of job.
- Cultural Fit. Individual personality and organizational culture.
Employee hiring guidelines
While recruiting the best employees on the market may give a business the competitive advantage over rivals, hiring the wrong person will surely cause all sorts of problems.
The hiring without firing approach mainly generally relates to the following aspects:
- Hiring for both technical fit and cultural fit.
- Ensuring to hire ‘competencies’ that are not trainable.
- Recruiting for attraction and retention.
- Hiring based on employee behavior and not just talk.
- Making hiring a high-involvement process.
There will also be a settling in period until the new employee learns how to do the job properly. The person appointed will most likely find the job either too boring or too difficult leading to poor productivity and lack of motivation. And, if this person leaves the business, the firm will have to face extra costs of advertising, interviewing and training to take a new employee.
Employee training guidelines
Employee training guidelines are a set of principles and procedures that organizations use to develop and deliver effective training programs.
- Train for both technical fit and cultural fit.
- Use both formal and informal training methods.
- Train the whole person holistically.
- Just-In-Time (JIT) Training works well.
- Cascade the training within the entire organization.
These guidelines help to ensure that training programs are well-designed, meet the needs of employees and the organization, and are delivered in a way that maximizes learning and retention.
Characteristics of an effective performance measurement system
A performance measurement system is a set of procedures and tools that organizations use to assess employee performance. Here are important things to consider when thinking about performance evaluation systems:
- Completeness. The extent to which a measure adequately measures the phenomenon rather than only some aspect of the phenomenon.
- Timeliness. The extent to which a measurement can be taken soon after the need to measure, rather than being held to an arbitrary date such as a particular calendar date, or performed as an autopsy such as during an exit interview or when a product is returned.
- Visibility. The extent to which a measure can be openly tracked by those being measured
- Controllability. The extent to which the measure can be directly influenced by those being measured.
- Cost. Whether the measure is inexpensive, making use of data easily obtained or already being collected for some other purpose.
- Interpretability. The degree to which a measure is easy to understand, and produces data that is readily comparable to other organizations and/or time periods.
- Importance. Whether the measure is connected to important business objectives, rather than being measured merely because it is easy to measure.
- Time Balance. Whether the measurement system reflects the desired balance between long-term and short-term objectives.
- Motivational Balance. Whether the measurement system reflects the desired balance between competitive challenge and collaborative teamwork.
Employee performance measurement systems are designed to help organizations identify high-performing employees, provide feedback on employee performance, and make decisions about employee compensation, promotion, and other employment matters.
Characteristics of an effective reward system
An effective reward system in a business is one that motivates employees to achieve their goals and contributes to the overall success of the company. It should be designed to be fair, transparent, and aligned with the company’s values and culture.
Here are some key elements of an effective reward system:
- Availability. The extent to which a particular reward is available for distribution within the organization.
- Eligibility. Whether classes of employees are eligible to receive a particular reward.
- Visibility. The degree to which a reward is visible to the recipient of a reward.
- Performance contingency. The extent to which the receipt of a reward, and the size of the reward, are based upon the recipient’s performance.
- Timeliness. Whether a reward can be distributed soon after a decision is made to distribute it, as opposed to being delayed by calendar dates, employee anniversary dates, or a series of approvals.
- Flexibility. The extent to which a reward can be tailored to the needs of individual employees.
- Reversibility. Whether the reward, once given, can be reclaimed, or whether the decision to give the reward can be reversed, so that the reward need not be given again.
Important considerations about pay
Employers should carefully consider factors when setting employee pay. Four major decisions about workers’ compensation include the following:
- How much to pay employees?
- How much emphasis to place on financial compensation as a part of the total reward system?
- How much emphasis to place on attempting to hold down the rate of pay?
- Whether to implement a system of individual incentives to reward differences in performance and productivity. And if so, how much emphasis to place in these incentives?
By setting fair and competitive pay, employers can attract and retain top talent, improve employee satisfaction, and boost productivity.
Dangerous myths about pay
Much of the conventional wisdom and public discussion about pay, today is misleading, incorrect, or sometimes both at the same time. One of them is that people work primarily for money.
Let’s take a look at eight major reasons that organizational rewards fail:
- Excessive dependence on monetary rewards.
- Lack of recognition value.
- Entitlements.
- The wrong things are rewarded.
- Delay.
- Generic rewards.
- Short-term impact.
- The presence of demotivators.
In conclusion, employing suitable employees will allow a business organization to get the most out of its human resources and make Human Resource Management (HRM) much more effective in the long-term.
