Strategic Humana Resource Management Tola Kanta Neupane Fourth Semester, Human Resource Management
Outline of the Presentation Employee relation strategy Performance management Strategy Process of performance management
Employee Relation Strategy Definition “The intention of the organization about what needs to be changed in the ways in which the organization manages its relationship with employees and their trade unions.” Employee relation strategies will flow from the business strategy but will also aim to support it.
Concern of employee relation strategy To build stable and cooperative relationship with employees that minimize conflict To achieve commitment through employee involvement and communication process. To develop mutuality- a common interest achieving the organization‟s goals through the development of organization cultures based on shared values between management and employees.
Approaches of the employee relation strategy Adversarial strategy Traditional Partnership Power Sharing
Approaches of the employee relation strategy Adversarial strategy the organization decides what it wants to do, and employees are expected to fit in. Employees only exercise power by refusing to cooperate. Traditional Partnership Power Sharing
Approaches of the employee relation strategy Adversarial strategy Traditional a good day-to-day working relationship but management proposes and the workforce reacts through its elected representative Partnership Power Sharing
Approaches of the employee relation strategy Adversarial strategy Traditional Partnership the organization involves employees in the drawing up and execution of the organization policies, but retains the right to manage. Power Sharing
Approaches of the employee relation strategy Adversarial strategy Traditional Partnership Power Sharing employees are involved in both day-to-day and strategic decision making.
The HRM approach to employee relations A drive commitment :An emphasis on mutuality Communication Shift from collective bargaining to individual Contracts Total quality management Flexibility in working arrangements Emphasis on teamwork.
Policy options The new realism- a high emphasis on HRM and industrial relations Traditional collectivism- priority to industrial relations without HRM Individualized HRM- high priority to HRM with no industrial relations The black hole- no industrial relations
Partnership Agreement An agreement in which both parties (management and the trade union) agree to work together to their mutual advantages and to achieve a climate of more cooperative and therefore less adversarial industrial relations. A partnership agreement may include undertakings from both sides; for example management may offer job security linked to productivity and union may agree to new forms of work organization that might require more flexibility on the part of employees.
Key valuesRoscow and Casner Loto (1998): Mutual trust and respect A joint vision for the future and the means to achieve it Continuous exchange of information Recognition of the central role of collective bargaining Develop decision making Their research in United States indicates that, if these maters were addressed successfully by the management and unions, then companies could expect productivity gains, quality improvement, a better motivated and committed workforce and lower absenteeism and turnover rates.
Five paths of Creating employee Relations Shared Goals- „understanding the business we are in‟ Shared Culture- „agreed values binding us together Shared Learning- „continuously improving ourselves‟ Shared efforts- „one business driven by flexibility‟ Shared information- „effective communication throughout the enterprise‟
Employee voice strategy “Employee voice is the term increasingly used to cover a whole variety of process and structures which enable, and sometimes empower employees, directly and indirectly, to contribute to decision making in the firm.” ( Boxall and Purcell (2003)) “The ability of employees to influence the action of the employer.” ( Millward et al, 2000) The concept covers the provision of opportunities for employees to register discontent and modify the power of management.
The Framework for employee voice Shared Agenda Direct Indirect involvement involvement Contested Agenda
High performance Strategy A high performance strategy sets out the intentions of the organization on how it can achieve competitive advantages by improving performance through people. High performance work system (HPWS) are composed of practices that can facilitate employees involvement , skill enhancement and motivation. Thompson and Heron(2005) defines High performance work organization , which invest in the skills and abilities of employees, design work in ways that enable employee collaboration in problem solving, and provide incentives to motivate workers to use their discretionary effort.
High performance work system Research conducted by Armitage and Keeble Allen (2007) indicated that people management basis formed the foundation of high –performance. They identified three themes underpinning the HPWS concept: An open and creative culture that is people-centered and inclusive, where decision taking is communicated and shared through the organization; Investment in people through education and training, loyalty inclusiveness and flexible working; Measurable performance outcomes such as benchmarking and setting targets, as well as innovation through processes and best practice.
Characteristics of high-performance culture• A clear line of sight exists between the strategic aims of the organization and those of its departments and its staff of all level;• People know what is expected of them – they understand their goals and accountabilities;• People feel that their job is worth doing , and there is a strong fit between the job and their capabilities;• People are empowered to examine their contribution;• Management defines what it requires in the shape of performance improvements, sets goals for success and monitors performance to ensure that the goals are achieved;• There is strong leadership from the top, which engenders a shared belief in the importance of continuing improvement;
Contd.• There is a focus on promoting positive attitudes that result in an engaged, committed and motivated workforce;• Performance management processes are aligned to business goals to ensure that people are engaged in achieving agreed objectives and standards;• Capabilities of people are developed through learning at all levels to support performance improvement and people are provided with opportunities to make full use of their skills and abilities;• A pool of talent ensures a continuous Supply of high performer s in key roles;• People are valued and rewarded according to their contribution;• People are involved in developing high performance practices;• There is a climate of trust and teamwork, aimed at delivering a distinctive service to the customer.
Developing HPWS• Analyze the business Strategy; – Where is the business going? – What are the strength and weaknesses of the business? – What threats and opportunities face the business? – What is affect of SWOT on the type of people required by the business, now and in future? – To what extent does(can) the business obtain competitive advantage through people?
2. Define the desired performance culture of the business and the objectives of the exercise.3. Analyze the existing arrangements: What is happening now in the form of practices , attitudes and behaviors (what do we want people to do differently?) What should be happening? What do people feel about it( the more investment in this analysis from all the stakeholders the better)?4. Identify the gaps between what is and what should be:(Identify room for improvement)5. Draw up a list of practices that need to be introduced or improved .6. Establish Complementarities;
7. Assess practicability; It is worth doing? What‟s the business case in terms of added value? What contribution will it make to supporting the achievement of the organization‟s strategic goals? Can it be done? Who does it? Have we the resource to do it? How do we manage the change?8. Prioritize The added value the practice will create; The availability of the resource required; Anticipated problems in introducing the practice, including resistance to the Change by stakeholders; The extent to which practices can form bundles of mutually supporting practices.
9. Define project Objective; According to step 210. Get by-in; By Top level executives Should fully communicated and transparent11. Plan the implementation; Who takes the lead : must from top level; Who manages the project and who else is involved; The time table for development and introduction; The resource( people and money) How the change program will be managed, including communication and further consultation; The success criteria for the project.12. Implement
Performance ManagementWhat is Performance Management?• Systematically managing all the people in an organization, for innovation, goal focus, productivity and satisfaction--it is a goal- congruent win - win plan
What is Performance Management?Armstrong and Baron define performance management as a“strategic and integrated approach to delivering sustained success to organizations by improving performance of people who work in them and by developing the capabilities of teams and individual contributors”
What is Performance Management?• It is integrated, because it effects four types of integration: – Vertical – Functional – Human Resource – Goals
What is Performance Management?Performance Managed Organizations are likely to have the following characteristics: – Measurable performance targets – Manage-learning linked with organizational goals on the one hand and with career development on the other – Pre-eminence of intrinsic needs of managers without neglecting their extrinsic needs – Ownership of performance management by line management rather than the personnel function
The Manager’s Concern and Interests• The rationale for establishing a performance management system does, and must emerge from the managers’ concerns and interests• To be effective, this process must start with identification and analysis of the managers’ performance problems and related management skills, in the context of the specific organization – remedying poor performers and performance – bridging gaps in performance expectations – securing equitable rewards and punishment decisions from the management – softening performance pressures through appropriate planning, scheduling and delegation
Key to Performance Management• Building organizational capability and successful implementation of high-commitment management practices is a key managerial responsibility• High-performance management practices require consistent leadership attention, while time and attention are the scarcest of resources in most organizationsThree basic principles, which effective leaders use to transform their organizations into high-commitment models of management are: – build trust – encourage change – use appropriate measures
Performance Management and People Management Performance management is that part of an organization’s people- related function, which is performed by those directly managing the people.Within any organization, there are at least two levels of effort, that ; – concern the performance of its people – and optimize individual and collective output effort at the organizational level, which determines the organization’s internal environment effort at the managerial level, which constitutes core of the leader- manager role--- what each manager does to supervise subordinates.
Performance Management System A set of sequential dynamic subsystems Like any system, it has relatively autonomous, but interdependent and inter-related parts, which ensure effective and smooth functioning of the total system Three broad sub-systems: performance planning and development monitoring performance and mentoring development annual stocktaking
Performance Management: A four step processStep 1: Performance Planning and CommunicationStep 2: Coaching/FeedbackStep 3: Performance ReviewStep 4: Staff Development