Why human resource management is so important to organization


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Why human resource management is so important to organization

  1. 1. Human Resource Management
  2. 2. Managementis so important to anOrganization?
  3. 3. Human Resource Management The Heart of All Organizations15 % success is due to technical skillsand 85 % due to the skills in humanengineering
  4. 4. Human ResourceManagement consists of all the actions that an organization takes toattract, develop, and retain quality employees.
  5. 5. Example ofOrganization Starbucks is one of the best known and fastest growing companies in the world.  Starbucks Coffee Company has one of the most experienced and well skilled HR departments.  This company have been recognized by the Fortune Magazine and named 100 best companies to work for.
  6. 6.  “We’re not in the coffee business, serving people, we’re in the people business serving coffee” – Howard Schultz CEO
  7. 7. Importance 1 :  It helps in selection and recruitment of individuals that are right for a given position in the company. Starbucks recruitment motto was "To have the right people hiring the right people."
  8. 8. Recruitment  Today, talented employees are hot items on the global labour market, thus, employers are forced to work more hard to be able to retain, motivate and develop good employees.  The recruits must have mandatory of at least twenty-four hours within the first two to four weeks.  As for the managers, they have to train from eight to twelve weeks.  Management training includes classes and assignments.
  9. 9. Importance 2 :  Assists employees and managers in adapting to organization change.  Provide a great working environment and treat each other with respect and dignity. Starbucks is sending clear message that they value their employees also known as partners.
  10. 10. Importance 3 :HRM can make contribution to the organization’s  effectiveness,  efficiency  productivity improvements
  11. 11. Importance 3 : (cont’d)  The goal of HRM is to maximize the productivity of an organization by optimizing the effectiveness of its employees while simultaneously improving the work life of employees and treating employees as valuable resources.  Consequently, HRM encompasses efforts to promote personal development, employee satisfaction, and compliance with employment- related laws.
  12. 12. Sandra Porter, HR director at Starbucks, advises job candidates never to criticise their current employers.  What three skills must an HR director possess?Have a thorough understanding of the business, demonstrate ownershipof an effective people strategy and be a role model of the values of the organisation.
  13. 13.  What is the worst thing about HR?I asked my team what they thought about this and we pretty much all agreed. Being in HR we often get to see the best and also the worst of people, and sometimes this can be tough.
  14. 14.  What is the Best thing about HR? There are many things to choose from but for me it is the opportunity to create and implement strategies that will change the direction of individual careers and organisational growth.
  15. 15.  What is the main challenge facing HR over the next five years? There will be a growing need for HR to understand and educate organisations about how they will need to adapt and change tomatch the expectations of the workforce. Employees now want to be far more involved in the shaping of the business, rather than just delivering it.
  16. 16. McDonald’s
  17. 17. Introduction● McDonald’s brand is the leading global foodservice retailer with more than 30,000 local restaurants serving almost 50 million people in 120 countries each day.
  18. 18. What is Human ResourcesManagement?● The function performed in organizations that facilitate the most effective use of people (employees) to achieve organizational and individual goals.
  19. 19. Why is Human ResourceManagement Important to anOrganization?● It helps in recruiting and selecting appropriate staff, using a variety of techniques. Mission Statement: “Some people wait for the future. Some push it along. We don’t have waiters.”● Helps the managers in measuring and monitoring staff performance.
  20. 20. ● Assists managers in training, developing and appraising staff. Performance Appraisal Process: Performance Review is a formal process in McDonald’s twice a year where each employee is evaluate in order to determine how he or she is performing.
  21. 21. ● The appraisal process in McDonald’s included PA forms for every particular job which involves: ◦ International McDonald’s standards ◦ Assessing the employees’ actual performance relative to these standards ◦ Providing feedback to the employees
  22. 22. The Human Resources (HR) department looks after :RecruitmentJob vacancies- Write a job description, person specification and advertise thevacancy.-Will choose the best candidates and produces a shortlist of peopleto interview.- Decide who to make an offer for the job-Use selection techniques- personality tests, backgroundinvestigations, and medical examinations.Training and developmenta. New employees- Will be given an induction training by the HR team- Produce skills that education could not (or did not) provide toemployees.b. Training- given to existing employees to improve their efficiency, usage ofnew technologies and to improve or develop their existing skills.
  23. 23. WelfareResponsible for ensuring that the organization complies withlaws on health and safety, working conditions and equalopportunities. For example making sure people are working theright hours each week and well trained.Other HR functions:• Interpret the company’s policies and procedures•Gain creative cooperation and developing smooth workingrelationships• Communicating- interviewing, counseling, disciplining•Conducting job analyses -determining the nature of eachemployee’s job• Building employee commitment
  24. 24. James – New and Interactive Media How long have you been working at Cadbury? I’ve been at Cadbury for about seven months, so I am relatively new. Previously, I worked in the telecommunications, e-commerce and knowledge management industries. To get to where I am today, after finishing my GCSEs I went on to study A level maths, chemistry, graphics and music. Next, I went on to study Internet Engineering. What is your job title and what does your job involve? My job title is New and Interactive Media Coordinator. My role involves managing the corporate websites and identifying opportunities for development across all Cadbury’s websites. What do you enjoy about your job? I enjoy working with different parts of the business. A typical day can see me working with Investor Relations, Human Resources and Design. I enjoy the fact that I can get on with things – my managers trust me to be able to perform my tasks with little input and allow me to make decisions on my own. How does Cadbury develop you? Cadbury offers plenty of training opportunities. There is a good review system that identifies what my training needs are and where I can improve. Since joining the company, I have been very impressed by the level of training available and the opportunities to develop and grow.
  25. 25. The most common way of assessing an employee’sAppraisalperformance is through an appraisal:-identifying an employee’s strengths andweaknesses and setting work targets for the future.- one-to-one discussion between the employeeand their manager.- opportunity to look back at things achieved andgoals reached.- identify areas for improvement and any trainingneeds.Cadbury uses an appraisal system whereby theemployee is assigned a mentor when they startwith the company.The mentor may be the employee’s manager oranother senior person in the company chosen bythe employee. It could also be a member of the HRteam.
  26. 26. The 360 System A 360 appraisal system helps HR: a) The employee and their mentor get an all-round view of the employees’ performance. b) Data is gathered from people who work with them c) Who work for them d) People from a more senior level in the company hierarchy.For example, a 360 for Chris, a Regional Sales Manager at Cadburywould involve getting information and opinions about his performance from: Chris himself – self-assessment Field Sales Manager, Chris’s manager – feedback National Account Controller, who could give information on Chris’s working relationships with customers and clients – feedback Chris’s colleagues within the department – feedback Once all the information has been collected, Chris would then have a one-to- one feedback session with his mentor.
  27. 27. ConclusionHR help to strategize necessary ways by showing the options that are available for the organization to achieve the set target. Build and strengthen the business’s for long-term competitive position in the market by providing a quality product and excellent customer service.HR is one of the key toa successful organization.