Orientation: Human Resource Environment

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  • Many companies refer to HRM as involving “people practices.”
    Turn to the next slide for Figure 1.1
  • Figure 1.1 emphasizes that there are several important HRM practices:
    Analyzing work and designing jobs
    Attracting potential employees (recruiting)
    Choosing employees (selection)
    Teaching employees how to perform their jobs and preparing them for the future (training and development)
    Evaluating their performance (performance management)
    Rewarding employees (compensation)
    Creating a positive work environment (employee relations)
    Supporting the organization’s strategy (HR planning and change management)
    An organization performs best when all of these practices are managed well.
  • For an organization to succeed at what it does, it needs employees with certain qualities, such as particular kinds of training and experience.
    This view means that employees in today’s organizations are not interchangeable, easily replaced by parts of a system, but the source of the company’s success or failure.
    By influencing who works for the organization and how these people work, human resources management therefore contributes to such basic measures of an organization’s success as quality, profitability, and customer satisfaction.
    Figure 1.2 (reproduced in this slide) shows this relationship.
  • In all but the smallest organizations, a human resource department is responsible for the functions of human resource management. On average, an organization has one HR staff person for every 93 employees served by the department.
    Table 1.1 (in the slide above) details the responsibilities of human resource departments. These responsibilities include the practices introduced in Figure 1.1 plus two areas of responsibility that support those practices:
    Establishing and administering personnel policies; and
    Ensuring compliance with labor laws.
  • Supervisors typically have responsibilities related to all HR functions.
    Figure 1.4 (on this slide) shows some HR responsibilities that supervisors are likely to be involved in.
    In all these activities, supervisors can participate in HRM by taking into consideration the ways that decisions and policies will affect their employees.
    Understanding the principles of communication, motivation, and other elements of human behavior can help supervisors inspire the best from the organization’s human resources.
  • HR professionals are increasingly being asked to use their knowledge of the business and of human resources to help the organization develop strategies and align HRM policies and practices with those strategies.
    Above mentioned Figure summarizes the strategic issues facing human resource management.
    These issues will be discussed on the slides that follow.


  • 1. 1 Orientation: Human Resource Environment Presented By: Muhammad Shafiq ur Rehman Reg: Sp11/MBA-006/Atk Comsats Institute of Information Technology
  • 2. Introduction Human Resource Management: The policies, practices, and systems that influence employees’ behavior, attitudes, and performance. Human Resource Development: A set of systematic and planned activities designed by an organization to provide its members with the opportunities to learn necessary skills to meet current and future job demands. Human resource management (HRM) encompasses many functions. Human resource development (HRD) is just one of the functions within HRM.
  • 3. Human Resource Management Practices
  • 4. Impact of Human Resource Management
  • 5. Responsibilities of HR Departments
  • 6. Supervisors’ Involvement in HRM
  • 7. Role of HRM Every organization is comprised of people. Acquiring their services, developing their skills, motivating them to high levels of performance and maintain their commitments. Organizational goals cannot be achieved without human resources. People – not buildings, equipments, or brand names – make a company. The role of human resource managers has changed. HRM jobs today require a new level of sophistication. – Jobs have become more technical and skilled. – Traditional job boundaries have become unclear with the beginning of such things as project teams and telecommuting. – Global competition has increased demands for productivity.
  • 8. High-Performance Work Systems HRM is playing an important role in helping organization’s gain and keep an advantage over competitors by becoming high-performance work systems. Organizations must make full use of their people’s knowledge and skill, to meet customer demands for high quality and customized products. • Organizations that have the best possible fit between their: – social system (people and how they interact); and – technical system (equipment and processes). • Key trends occurring in today’s high-performance work systems: – reliance on knowledge workers – the empowerment of employees to make decisions – the use of teamwork
  • 9. Strategic Business Issues Affecting HRM
  • 10. The Nature of the Employment Relationship is Changing • The employment relationship takes the form of a “psychological contract” that describes what employees and employers expect from the employment relationship. • In the traditional version, organizations expected employees to contribute time, effort, skills, abilities, and loyalty in exchange for job security and opportunities for promotion. • Today, organizations are requiring top performance and longer work hours but cannot provide job security. • Instead, employees are looking for: flexible work schedules, comfortable working conditions, greater autonomy, opportunities for training and development, performance- related financial incentives • This requires planning for flexible staffing levels.
  • 11. 11 HR Development The need of HRD has become even stronger as organizations grapple with the challenge presented by a fast-paced, highly dynamic, and increasingly global economy. To compete and thrive, many organizations including employee education, training, and development as an important and effective part of their organizational strategy. HRD activities begin when an employees join an organization and continue throughout his or her career, regardless of whether that employee is an executive or a worker. Evolution of HRD: Early Apprenticeship Programs, Vocational Education Programs, Factory Schools, Training for unskilled/semiskilled
  • 12. 12 Human Relations Movement Factory system often abused workers “Human Relations” movement promoted better working conditions. It provided a more complex and realistic understanding of workers as people instead of merely ‘cogs’ in a factory machine. Start of business & management education Tied to Maslow’s hierarchy of needs. He proposed that human needs are arranged in terms of lesser to greater potency. The varied needs and desires of workers can become important sources of motivation in the place. Emergence of HRD: During the 1960s and 1970s, Employee needs extend beyond the training classroom. Includes coaching, group work, and problem solving. Need for basic employee & structured career development
  • 13. 13 HRD Functions Training and development (T&D) Organizational development Career development
  • 14. 14 Training and Development Training – improving the knowledge, skills and attitudes of employees for the short-term, particular to a specific job or task – e.g.,  Employee orientation: Basic orientation about job responsibility  Skills & Technical Training: To teach the new employee a particular skill or area of knowledge  Coaching: It involves treating employees as partners in achieving both personal and organizational goals.  Counseling: To help employees deal with personal problems that may interfere with the achievement of these goals
  • 15. 15 Training and Development Development – preparing for future responsibilities, while increasing the capacity to perform at a current job  Management training  Supervisor development
  • 16. 16 Organizational Development The process of improving an organization’s effectiveness and member’s well-being through the application of behavioral science concepts Focuses on both macro- and micro- levels HRD plays the role of a change agent
  • 17. 17 Career Development Ongoing process by which individuals progress through series of changes until they achieve their personal level of maximum achievement.  Career Planning: It involves activities performed by an individual, often with the assistance of counselors to assess his/her skills and abilities in order to establish a realistic career plan.  Career Management: It involves taking the necessary steps to achieve that plan.
  • 18. 18 Challenges for HRD Changing workforce demographics Competing in global economy Eliminating the skills gap Need for lifelong learning Need for organizational learning
  • 19. 19 Competing in the Global Economy New technologies Need for more skilled and educated workers Cultural sensitivity required Team involvement Problem solving Better communications skills