Entrepreneur's Handbook

Entrepreneur's Handbook

HUMAN RESOURCES MANAGEMENT

 

Human resources refer to employees at all levels, who are the most valuable element of the enterprise. In our country, the understanding of personnel management, which shows employees as a cost element and focuses mainly on the duty of keeping records of employees, has remained dominant for many years. Starting from the 1990s, starting from the acceptance that the most important factor that will provide competitive advantage to enterprises is human, the understanding of personnel management has started to leave its place to human resources management (HRM). Studies reveal positive relationships between HRM practices and productivity, innovativeness, operational performance, profitability, growth, (Paauwe, Wright and Guest, 2013) employee motivation, low employee turnover, productivity, and product quality (Jiang, Lepak, Hu, & Baer, 2012). Human resources management has responsibilities such as analyzing the work in the enterprise, finding and hiring suitable employees, training employees, remuneration of employees and evaluation of their performance.

3.1. Business Analysis

A job is a group of tasks or activities that must be performed. Job analysis is the process of collecting, analyzing and organizing information about jobs. Job analysis focuses on what the people who run the business are doing and what they have achieved. In collecting information, interviewing the business executives or conducting surveys for jobs consisting of many tasks and checking the results with the executives' managers or team leaders and observing the executives of the business, especially for routine administrative and blue-collar jobs, are the most common methods. The information obtained as a result of the job analysis has two direct consequences: The first is the job description that shows which activities the executives are responsible for, which manager they directly report to, and the general purpose of the job. Job description, in other words, is the job's identity card. The second is the job specification that defines the knowledge, skills and abilities required to run a business, and the education, qualifications and experiences required to acquire those necessary knowledge, skills and abilities, and indicate the important result areas of the job. The job specification, again in other words, is the identity card of the job. Job postings are prepared based on the job specifications. Job analysis results; recruitment and recruitment, training and development, wage and performance management are also used in other HRM practices. (Armstrong and Taylor, 2014).

3.2. Finding and Recruiting Employees

Finding employees, identifying potential employees and attracting them to the enterprise, that is, recruiting, are the activities and practices carried out by the enterprise with the aim of eliminating candidates for employment (Orlitzky, 2007). Employee finding resources of enterprises are divided into two as internal and external. The recruitment of qualified candidates who are in good standing within the initiative constitutes the resources for finding internal employees. The main methods used to utilize these resources are the use of the enterprise's human resources database and in-house job posting. Sources of finding external employees are those known by the current employees of the enterprise, educational institutions such as technical high schools, vocational high schools, colleges, vocational colleges and universities, competitors, other enterprises, those who have previously worked in the enterprise but subsequently left, the unemployed and those who work on their behalf.  Today, the most used methods of finding external employees, publishing job advertisements on the websites of enterprises, newspapers and magazines, applying to public and private employment organizations, professional organizations and trade unions, recruiting interns,  attending job fairs, working with executive recruitment firms, and using online recruitment platforms (Mondy & Martocchio, 2016).  The most commonly used methods for recruiting are screening through the job application form or resumes, using recruitment tests (intelligence, personality, skill, physical, etc.) and making interviews (Armstrong and Taylor, 2014).

3.3. Remuneration of Employees

Wage is defined as the equivalent of labor and is the price paid for the physical and / or mental labor of the employee (Eriş & Bulut, 2015). The overall purpose of employee remuneration is to contribute to the enterprise's goals by providing employees with the skills required by the enterprise, who are competent, motivated and committed to the enterprise and who are confident.

The wage mix includes basic salary, performance-based variable pay and additional benefits such as private health insurance, or social benefits such as distributing food packages during Ramadan, guaranteed according to the value of the work undertaken by the employee, the knowledge, skills and abilities of the employee, and the remuneration paid for similar jobs in the market.

In initiatives, time-based wage systems that do not take into account the performance and contributions of individual individuals, and / or incentive wage systems that take into account the performance of individuals in current wages (Gerhart, 2009). Wage systems based on time include the traditional wage system where the wage is determined by multiplying the amount of wage determined for the time worked and the wage system according to the measured amount of work in a certain period of time. Within the incentive wage systems, there is a variable daily wage system in which the basic wage is determined for a certain production level and when it is exceeded, a certain percentage of the basic wage is added to the basic wage, the piece rate system, in which the price is determined by multiplying the piece rate amount by the amount of the product produced, and the premium fee, where an achievable qualitative and / or target is set and an additional fee is given to the basic fee if the target is reached (Eriş and Bulut, 2015).

3.4. Evaluation of Employees' Performance

Performance evaluation means measuring the job success of employees. As well as providing direct information to performance evaluation, appointment and wage management, it has functions such as increasing the effectiveness of the enterprise, determining the need for human resources, increasing the commitment of the employees to the initiative, motivating the employees and showing the employees the points they need to improve themselves and training.

Performance evaluation methods, absolute evaluation in which one person is evaluated, consists of comparative evaluation methods in which more than one person is compared with each other. The most preferred absolute assessment methods are the grading, in which employees are evaluated according to criteria such as effort, diligence, determination (e.g. Person A gets 5 points out of 5 points in terms of effort criterion; 4 points in terms of responsibility criterion), and the critical events method, in which employees' behaviors and success and failures are recorded (eg scoring the "level of ability to work under stress" of Person B). The ranking method in which employees are ranked from the best to the worst on the basis of a certain criterion, the binary comparison method based on the pairwise comparison of the employees on a certain criterion (e.g. A vs B, A vs C, A vs D, B vs C, and B vs D), and the score distribution method based on the distribution of a certain score (e.g. 100 points) to the employees according to a certain criterion (eg. 50 points to A, 30 points to B, 15 points to C and 5 points to D) are widely used in comparative assessment methods. The responsibility of performance evaluation usually belongs to the direct reporting manager, the employee himself and the manager or employee of the human resources department. Performance evaluation takes place once or twice a year in many initiatives. (Mondy and Martocchio, 2016).