Human resource management


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Human resource management

  1. 1. People/Personnel Aspects of Management Job <ul><li>HRM is the process of ACQUIRING, TRAINING, APPRAISING, COMPENSATING EMPLOYEES; ATTENDING to their LABOR RELATIONS, HEALTH and SAFETY and FAIRNESS CONCERNS </li></ul>
  2. 2. EIGHT HRM ACTIVITIES <ul><li>1. HR PLANNING </li></ul><ul><li>2. RECRUITMENT </li></ul><ul><li>3. SELECTION </li></ul><ul><li>4. ORIENTATION </li></ul><ul><li>5. TRAINING </li></ul><ul><li>Identification and Selection of Competent Employees </li></ul><ul><li>Providing Employees with Up to date Knowledge & Skills </li></ul>
  3. 3. EIGHT HRM ACTIVITIES <ul><li>6. PERFORMANCE MANAGEMENT </li></ul><ul><li>7. COMPENSATION & BENEFITS </li></ul><ul><li>8. CAREER DEVELOPMENT </li></ul><ul><li>Making sure that the organization Retains Competent and High-Performing </li></ul><ul><li>employees who are Capable of Sustaining High Performance </li></ul>
  4. 4. <ul><li>Planning: </li></ul><ul><li>Organizing: Specifying Tasks, Establishing Depts., Est. Channels of Authorities, Delegation of Authorities, Coordination of Subordinates Activities </li></ul><ul><li>Staffing: </li></ul><ul><li>Leading: Getting others to get the Job done, Motivating Subordinates </li></ul><ul><li>Controlling: Setting Standards- Actual performance is compared with them, Taking Corrective Actions </li></ul>
  5. 5. Why is HR Management Important to All Managers? <ul><li>Hiring Wrong person for the job </li></ul><ul><li>Experience High Turnover </li></ul><ul><li>Employees not doing their best </li></ul><ul><li>Wastage of time in useless interviews </li></ul><ul><li>Company taken to court- due to Discriminatory Action </li></ul><ul><li>Govt. Action against company on Unsafe practices </li></ul><ul><li>Uncomfortable employees- due to Unfair and inequitable Salaries </li></ul><ul><li>Potential Losses due to Lack of Training </li></ul><ul><li>Unfair Labor Practices </li></ul>
  6. 6. Line and Staff Aspects of HRM <ul><li>AUTHORITY </li></ul><ul><li>LINE MANAGERS </li></ul><ul><li>STAFF MANAGERS </li></ul>
  7. 7. HR Manager’s Main Functions <ul><li>LINE FUNCTION Directs the Activities of his/her people </li></ul><ul><li>COORDINATIVE FUNCTION -to Ensure that Line Managers are Implementing HR Policies and Procedures Functional Control- Right Arm of </li></ul><ul><li>STAFF FUNCTION Assisting and Advising Line Managers </li></ul>
  8. 8. HR Manager’s Main Functions <ul><li>STAFF FUNCTION Assisting and Advising Line Managers </li></ul><ul><li>CEO: Assists in Strategy Design and Execution. Better understand the Personnel Aspect of strategic options. </li></ul><ul><li>Line Managers: Assists in Hiring, Training, Evaluating, Rewarding, Counseling, Firing employees. </li></ul>
  9. 9. HR Manager’s Main Functions <ul><li>-Benefits programs- Health, Insurance, Retirement -Comply with the Equal Employment Laws, Occupational Safety Laws, -Handling Grievances in Labor Relations -Employee Advocacy Role: --How Mangers should be Treating Employees --Represents Employees Interests </li></ul>
  10. 10. HR JOB DUTIES <ul><li>RECRUITERS </li></ul><ul><li>EEO COORDINATORS </li></ul><ul><li>JOB ANALYSTS </li></ul><ul><li>COMPENSATION MANAGERS </li></ul><ul><li>TRAINING SPECIALISTS </li></ul><ul><li>LABOR RELATIONS SPECIALISTS </li></ul>
  11. 11. STRATEGIC HRM <ul><li>The central challenge- to provide a set of services that make sense in terms of the company’s strategic plan. </li></ul><ul><li>STRATEGIC PLAN/ STRATEGY: How a company will match its Internal Strengths and Weaknesses with External Opportunities and Threats in order to Maintain a Competitive Advantage. </li></ul>
  12. 12. STRATEGIC HRM <ul><li>The Basic Strategic Process starts; </li></ul><ul><li>Where are we NOW as a Business? </li></ul><ul><li>Where do we want to BE? </li></ul><ul><li>The managers then Formulate Strategies to take the company from where it is now to where it wants to be. </li></ul><ul><li>Strategies are the Courses of Action. </li></ul>
  13. 13. STRATEGIC HRM <ul><li>Companies various strategies e.g., …. Must confirm to and support its Strategic Plan </li></ul><ul><li>Strategic Plan may calls for the Improvement of the Products of the company </li></ul><ul><li>Then, One of the HR strategy may be to provide Specialized Training and Specific Screening of Employees </li></ul>
  14. 14. The Changing Environment of HR Management <ul><li>HR’s Changing Role: </li></ul><ul><li>First took over HIRING and FIRING from Supervisors Payroll dept., Benefit Plans </li></ul><ul><li>Expanded Role in Employee Selection Training and Promotion </li></ul><ul><li>Emergence of Union Legislation in 1930s </li></ul><ul><li>Equal Employment Legislation </li></ul>
  15. 15. The Changing Environment of HR Management <ul><li>Following Trends are creating Changes in How Companies Organize, Manage, and Use their HR Departments: </li></ul><ul><li>CHANGING ENVIROMMENT </li></ul><ul><li>GLOBALIZATION </li></ul><ul><li>TECHNOLOGICAL ADVANCES </li></ul><ul><li>EXPORTING JOBS </li></ul><ul><li>NATURE OF WORK </li></ul><ul><li>WORKFORCE DEMOGRAPHICS </li></ul>
  16. 16. MEASURING HR’s CONTRIBUTIONS: STRATEGY <ul><li>HR’s Central task is to provide services that make SENSE in terms of the Company’s Strategy. </li></ul><ul><li>STRATEGY: A company’s plan for how it will balance its Internal Strengths and weaknesses with Extern anal Opportunities and Threats in order to Maintain a Competitive Advantage. </li></ul><ul><li>Globalization and Increased Competition have placed HR in front in most firm’s strategic planning efforts. Thus HR Managers are more involved in Partnering with their top managers in both Designing and Implementing their company's Strategies. </li></ul>
  17. 17. MEASURING HR’s CONTRIBUTIONS: STRATEGY <ul><li>That is why Today’s Business world Emphasizes on Gaining Competitive Advantage through People. </li></ul><ul><li>Competitiveness and Operational Improvement involve Expertise of all managers that they must be able to Express Departmental Plans and Accomplishments in Measurable Terms </li></ul>
  18. 18. MEASURING HR’s CONTRIBUTIONS: METRICS <ul><li>METRICS: Set of Quantitative Performance Measures, HR Managers Use to ASSESS their Operations. Cost per Hire: Advertising Agency Fees+ Employee Referrals + Travel Costs of Applicants and Staff+ Relocation Costs / Number of Hires </li></ul>
  19. 19. MEASURING HR’s CONTRIBUTIONS: HR SCORECARD <ul><li>HR SCORECARD: It is a Concise Measurement System, It shows the Quantitative Standards, or Metrics the firm uses. </li></ul><ul><li>It measures the HR Functions Effectiveness and Efficiency in producing Required Employee Behaviors Needed to Achieve the Company’s Strategic Goals. </li></ul>
  20. 20. HR Manager’s Proficiencies <ul><li>Today’s Challenging Business Scenario requires following Proficiencies in a HR Manager </li></ul><ul><li>HR PROFICIENCIES Traditional knowledge and skills in areas such as employee Recruitment, Selection, Training, Compensation etc. </li></ul>
  21. 21. HR Manager’s Proficiencies <ul><li>BUSINESS PROFICIENCIES Creating profitable enterprises that serve customers Effectively . Thus HR Managers need to be familiar with how company Operates , e.g., Strategic Planning, Production, Finance, Marketing, and so on. </li></ul>
  22. 22. HR Manager’s Proficiencies <ul><li>LEADERSHIP PROFICIENCIES They need the Ability to work with and Lead Management Groups and to Drive the Changes required. </li></ul><ul><li>LERARNING PROFICIENCIES </li></ul><ul><li>As the new Technologies are being Introduced continually the HR Managers must keep themselves Abreast of and Apply new Technology affecting the HR field. </li></ul>
  23. 23. HR and TECHNOLOGY <ul><li>Technology improves HR Functioning in Four Main Ways: 1. Self-Service 2. Centralized Call Centers -Answering questions of employees from remote areas -no need to establish HR Dept. at each location </li></ul>
  24. 24. HR and TECHNOLOGY <ul><li>Improving HR Productivity Internet, Computer Systems -HR Information Systems -New Software's for Managing HR Activities- Payroll Administration </li></ul><ul><li>Outsourcing Pension Plans, Employee Counseling, Background Checks, Temporary Staffing, </li></ul>
  25. 25. STRATEGIC HRM <ul><li>STRATEGIC MANAGEMENT: </li></ul><ul><li>A process of Identifying and Executing the organization’s Mission, by Matching the company’s Compatibilities with the Demands of its Environment </li></ul>
  26. 26. STRATEGIC MANAGEMENT PROCESS <ul><li>DEFINE THE BUSINESS AND ITS MISSION: VISION; Broader and more Future-oriented than the Mission </li></ul><ul><li>MISSION; more Specific and Short-term based than the Vision -Who we are? What we do? Where we are headed? </li></ul>
  27. 27. STRATEGIC MANAGEMENT PROCESS <ul><li>2. PERFORM EXTERNAL AND INTERNAL AUDIT -SWOT Analysis; Compile and Organize the process of Identifying Company Strengths, Weaknesses and Opportunities and Threats </li></ul>
  28. 28. STRATEGIC MANAGEMENT PROCESS <ul><li>3. TRANSLATE THE MISSION INTO STRATEGIC GOALS </li></ul><ul><li>-The Specific Goals are devised which cover the overall Mission of the organization </li></ul>
  29. 29. STRATEGIC MANAGEMENT PROCESS <ul><li>4. FORMULATE A STRATEGY TO ACHIEVE THE STRATEGIC GOALS - Strategy is a Course of Action. It shows how a company will move from the business to the business it wants to be in - as stated in the Vision, Mission, and Strategic Goals. - It describes “How de we get from here to there”. </li></ul>
  30. 30. STRATEGIC MANAGEMENT PROCESS <ul><li>5.IMPLEMENT THE STRATEGY </li></ul><ul><li>Translating the Strategies into ACTIONS and RESULTS </li></ul><ul><li>Applying all the Management Functions </li></ul>
  31. 31. STRATEGIC MANAGEMENT PROCESS <ul><li>6. EVALUATE THE STRTATEGY Strategic Control: -It keeps the company’s Strategy Up to date. -The Assessment of the progress toward the Strategic Goals and the Corrective Action is taken. </li></ul>
  32. 32. TYPES OF STRATEGIC PLANNING <ul><li>CORPORATE STRATEGY - Identifies the Portfolios of Businesses and the Ways in which these Relate to each other. -Following are few of the Corporate Strategy Possibilities: a. Diversification Corporate Strategy; The Firm will Expand by Adding new Product Lines. B. Vertical Integration Strategy; The Firm Expands by Producing its own Raw Materials, or Selling its Products Direct. </li></ul>
  33. 33. TYPES OF STRATEGIC PLANNING <ul><li>C. Consolidation; Reducing the company’s Size d. Geographic Expansion; Taking the company Abroad </li></ul>
  34. 34. TYPES OF STRATEGIC PLANNING <ul><li>BUSINESS LEVEL/COMPETITIVE STRATEGY: -How to Build and Strengthen the business’s Long-term competitive position in the Marketplace. -How Telenor will compete with Ufone -Companies try to Achieve Competitive Advantage for each Business they are in. </li></ul>
  35. 35. TYPES OF STRATEGIC PLANNING <ul><li>-Competitive Advantage; </li></ul><ul><li>Companies use several Competitive Strategies to Achieve Competitive Advantage. </li></ul><ul><li>-Cost Leadership; The company wants to Become Low-Cost leader in the industry. For Example; Wal-mart </li></ul>
  36. 36. TYPES OF STRATEGIC PLANNING <ul><li>-Differentiation (Competitive Strategy); </li></ul><ul><li>A firm seeks to be Unique in its industry </li></ul><ul><li>For example; Volvo stresses the Safety of its cars Target for Upscale Brands than Wal-Mart </li></ul><ul><li>-Focusers; They find out/ develop a Market Niche and compete by providing a product or service customers can get in no other way. </li></ul>
  37. 37. TYPES OF STRATEGIC PLANNING <ul><li>FUNCTIONAL STRATEGIES </li></ul><ul><li>Individual Business is composed of Departments. </li></ul><ul><li>-Functional Strategies Identify the basic Courses of Actions that each department will pursue in order to help the business Attain its Competitive Goals. </li></ul><ul><li>-It should make sense in terms of business’s competitive strategy. </li></ul><ul><li>- DELL’s HR Strategy of putting its Activities on the Web to support parent firm’s LOW-Cost Competitive Strategy. </li></ul>
  38. 38. CH.3- Strategic HRM: Achieving Strategic Fit <ul><li>Should a firm simply Fit Capabilities to the Opportunities and Threats that they see, or Should they Stretch well beyond their Capabilities to take Advantage of an Opportunity </li></ul>
  39. 39. CH.3- Strategic HRM: Achieving Strategic Fit <ul><li>1. Micheal Porter; Fit point of view. All of the firm’s Activities must be tailored to or Fit its over all Corporate Strategy. </li></ul><ul><li>2. Gary Hamel and C.K. Prahald Argue that being preoccupied with Fit can Limit Growth. They say that by Leveraging- Supplementing what you have done and doing more with what you have- can be more important then just Fitting the Strategic Plans to current resources </li></ul>
  40. 40. CH.3- Strategic HRM: HR and Competitive Advantage <ul><li>Every successful company has one or more Competitive Advantage around which it builds its Competitive Strategy. </li></ul><ul><li>Technology and other differentiating elements rarely differentiate any firm from others. </li></ul><ul><li>It is the Human Resource and the Management Systems that make the difference. </li></ul>
  41. 41. CH.3- Strategic HRM: <ul><li>The specific HRM courses of action the company pursues to achieve its aims. </li></ul><ul><li>SHRM is Formulating and Executing HR Systems- HR Policies and Activities- that produce the employee Competencies and Behaviors the company needs to Achieve its Strategic Aim. </li></ul>
  42. 42. CH.3- Strategic HRM: HR’s Strategic Role <ul><li>HR Managers should be part of the firm’s strategic planning executive team. They Identify the Human Issues that are vital to business strategy and help establish and execute strategy. </li></ul><ul><li>HR Managers need to have in-depth understanding of the Value creating Proposition of the firm. </li></ul>
  43. 43. CH.3- Strategic HRM: <ul><li>HR’s Strategy Execution Role: -Top Management Formulates the company’s Corporate and Competitive Strategies…. </li></ul><ul><li>HR’s Strategy Formulating Role: </li></ul>
  44. 44. CH.3- Strategic HRM: Creating a Strategy-oriented HR System <ul><li>HR Process; Three Components- 1. HR Professionals 2. HR Policies and Activities 3. Employee Behavior and Competencies </li></ul><ul><li>Translating Strategy into HR Policy and Practice </li></ul>
  45. 45. CH.3- Strategic HRM: Creating a Strategy-oriented HR System <ul><li>Translating Strategy into HR Policy and Practice -Management Formulates a Strategic Plan. -Any Strategic Plan implies certain workforce Requirements in terms of Employee Skills, Attributes and Behavior. -HR dept. must deliver those Employee Skills, Attributes and Behavior in order to Enable the firm to Achieve its Strategic Goals. </li></ul>