The quality of an organization is determined by the quality of the people who work for the organization. Every manager is involved with Human Resource (HR) decisions. The HR management process is defined as activities necessary for staffing the organization and sustaining high employee performance. Environmental factors affecting HR management:
Union – A labor union is an organization that represents workers and seeks to protect their interests through collective bargaining. Good labor management relations, the formal interactions between unions and an organization’s management are important.
Federal laws and regulations
Exceptions to federal laws and regulations – can occur only through bona fide occupational qualification e.g. sex, age or nationality used as basis for hiring if it is job related
Affirmative action programs are also being used by many organizations – to enhance organizational status of members of protected groups.
HR planning – ensures right personnel who capable of completing those tasks that help the organization reach its objectives.
Current assessment involves reviewing the organization’s current HR status; job analysis that defines jobs and the behaviors necessary to perform them. Then management can prepare a job description; a written statement of what a job holder does, how it is done and why it is done. Also management can develop a job specification which is a statement of the minimum acceptable qualifications that an incumbent must possess to perform a given successfully.
Future assessment involves a determination of future human resource needs by looking at the organization’s objectives and strategies.
Developing a future program involves matching estimates of shortages of needed personnel with forecasts of future labor supply
Recruitment is a process of locating, identifying and attracting capable applicants. Decruitment options include firing, layoffs, transfers, reduced working days and early retirement.
The selection process is the process of screening job applicants to ensure that the most appropriate candidates are hired. Selection devices are: application form, written tests, performance simulation tests; given job to perform; interviews, background investigations; verification of application data and reference checks; physical examinations.
Orientation is defined as the introduction of a new employee into his or her job and the organization. Major objectives 1. reduce initial anxiety 2. familiarize new employees with the job, the work unit and the organization.
Employee training is a critical component of the HR management program: Skill categories are: 1. Technical, which includes basic skills of reading, writing and mathematic, and job specific competencies 2. Interpersonal which involves ability to interact effectively with co-workers and bosses 3. Problem solving which involves ability to solve problems that arise.
On-The-Job-Training involve job rotation and understudy assignments. It might also involve a mentor or coach relationship. Off-The-Job-Training can involve classroom lectures, films and simulation exercises.
Career development is defined as a sequence of positions occupied by a person during the course of a lifetime. Career stages starts with career exploration; when individuals are exploring possible career options and making critical choices. Career establishment; begins with search for work and getting that first job. Mid-career is when an individual is no longer seen as a ‘learner’. Late career is when an individual can share his or her knowledge with others in the organization. Career decline is when an individual leaves the work force.
An effective reward system is to attract and retain competent and talented individuals who can help organization achieve its mission and goals. A compensation system include base wage and salaries, incentive payments, and benefits and services.
Change is defined as an alteration in people, structure (system) or technology (see later slides). Change is ever present in organizations and cannot be eliminated. We need to look at the key issues related to managing change. External forces that create the need for change are: the marketplace, government law and regulations, technology and labor markets and economic changes. Internal forces; originate mainly from the internal operations of the organization or from the impact of external changes; are: changes in strategy, changes in the workforce, new equipment and changes in employee attitudes. The manager act as change agent i.e. people who act as catalyst and manage the change process.
Two very different illustrations can be used to describe the change process: The ‘calm water’ described by Levin by 3 steps:
Unfreezing the equilibrium is the first step: (1) driving forces; direct behavior away from the status quo can be increased. (2) Restraining forces; hinder movement from the existing equilibrium can be decreased (3) the two approaches can be combined
The ‘white water rapids’ metaphor describes change that takes place in uncertain and dynamic environments. Not every manager faces a world of constant and chaotic change.
Organization can build up inertia that drives them to resist change.
Resistance to change can stem from three reasons: Uncertainty, concern over personal loss and belief that the change is not in the organization’s best interests.
Techniques for reducing resistance. Six tactics have been proposed for use by managers in dealing with resistance to change: Education and communication, participation, facilitation and support, negotiation, manipulation and coercion.
The manager use any or all of the three organization major components for managing change in the organization development including TQM (Total Quality Management) implementation:
Structure ( or system): increase or decrease the degree of complexity, formalization and centralization
Technology: Introducing new equipment tools or operating methods e.g. automation and computerization
People: Changing people and the quality of interpersonal work relationships include sensitivity training thru unstructured group interaction, survey feedback to assess attitudes i.e. identify attitudes discrepancies and resolving the differences, process consultation by external consultant, team building and inter-group development involves changing the attitudes, stereotypes and perceptions that work groups have of each other.
If an organization’s culture becomes inappropriate, it might need to be changed. The reasons for cultural change are: a dramatic crisis occurs, leadership changes hands, the organization is young and small and culture is weak. The best way to change culture are: (1) conduct a cultural analysis (2) make the crisis visible (3) appoint new leadership with a new vision (4) initiate a reorganization (5) introduce new stories and rituals that convey the new vision (6) change the selection and socialization processes. Success of cultural change depends upon unwavering commitment from CEO.
Today’s dynamic ‘white water rapids’ world demands a new kind of change agent who can throw out conventional wisdom and initiate radical change. Turbulent times demand revolutionary not orderly change. Re-engineering; a radical redesign of an organization’s processes; is not a replacement for any other organizational change efforts but it’s the first step in changing.
Change can create stress that can be found in personal factors, job related factors and in one’s personality. Type A behavior is defined as a chronic sense of time urgency and an excessive competitive drive. Type B behavior is defined as relaxed, easygoing and noncompetitive. Reducing stress can be done through various methods:
Employee selection – help to prevent some job related stress
Employee counseling can provide stress relief
Time management programs – help in determining employee priorities
Creativity is the ability to combine ideas in a unique way or to make unusual associations between ideas. Innovation is defined as the process of taking a creative idea and turning it into a useful product, service or method of operation.
Fostering innovation. Three factors found to stimulate innovation:
Structural – Organic, easy availability of organizational resources and frequent inter unit communication helps to reduce barriers to innovation
Cultural – Acceptance of ambiguity, tolerance of the impractical, low external controls, tolerance of risk, tolerance of conflict, focus on ends rather than means and open system focus.
Human resource – actively promote training and development of their employees, high job security and encourage individuals to become ‘champions’ of change.