challenge of human resource

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human resource challenge

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  • 1. Belcourt et al. 4th edition Challenge of human resource management by abdulkadir sugal challange HRM, abdulkadir, february 2014 1– 1
  • 2. Belcourt et al. 4th edition 1. 2. how firms gain sustainable competitive advantage through people. Explain how globalization is influencing human resources management. 3. the impact of information technology on managing people. 4. the importance of change management. 5. State HR’s role in developing intellectual capital. 6. 7. Differentiate how TQM and reengineering influence HR systems. Roles and competencies of typical HRM challange HRM, abdulkadir, february 2014 1– 2
  • 3. Belcourt et al. 4th edition  Human Resource Management ◦ A set of inter-related policies, practices, and programs whose goal is to attract, socialize, motivate, maintain, and retain an organization’s employees  Core Competencies ◦ Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers. challange HRM, abdulkadir, february 2014 1– 3
  • 4. Belcourt et al. 4th edition  Sustained competitive advantage through people is achieved if these human resources: ◦ ◦ ◦ ◦ Have value. Are rare and unavailable to competitors. Are difficult to imitate. Are organized for synergy. challange HRM, abdulkadir, february 2014 1– 4
  • 5. Belcourt et al. 4th edition COMPETITIVE COMPETITIVE CHALLENGES CHALLENGES ••Globalization Globalization ••Technology Technology ••Managing change Managing change ••Human capital Human capital ••Responsiveness Responsiveness ••Cost containment Cost containment HUMAN HUMAN RESOURCES RESOURCES ••Planning Planning ••Recruitment Recruitment ••Staffing Staffing ••Job design Job design •Training/development •Training/development ••Appraisal Appraisal ••Communications Communications ••Compensation Compensation ••Benefits Benefits ••Labour relations Labour relations EMPLOYEE EMPLOYEE CONCERNS CONCERNS ••Background diversity Background diversity ••Age distribution Age distribution ••Gender issues Gender issues ••Educational levels Educational levels ••Employee rights Employee rights ••Privacy issues Privacy issues ••Work attitudes Work attitudes ••Family concerns Family concerns Figure 1.1 challange HRM, abdulkadir, february 2014 1– 5
  • 6. Belcourt et al. 4th edition  The most pressing competitive issues facing firms: ◦ ◦ ◦ ◦ ◦ ◦ Going global Embracing technology Managing change Developing human capital Responding to the market Containing costs challange HRM, abdulkadir, february 2014 1– 6
  • 7. Belcourt et al. 4th edition  Globalization ◦ The trend toward opening up foreign markets to international trade and investment.  Impact of Globalization ◦ Partnerships with foreign firms ◦ “Anything, anywhere, anytime” markets ◦ Lower trade and tariff barriers challange HRM, abdulkadir, february 2014 1– 7
  • 8. Belcourt et al. 4th edition  Impact on HRM ◦ Different geographies, cultures, laws, and business practices ◦ Issues:  Identifying capable expatriate managers.  Developing foreign culture and work practice training programs.  Adjusting compensation plans for overseas work. challange HRM, abdulkadir, february 2014 1– 8
  • 9. Belcourt et al. 4th edition  Knowledge Workers ◦ Workers whose responsibilities extend beyond the physical execution of work to include planning, decision making, and problem solving. challange HRM, abdulkadir, february 2014 1– 9
  • 10. Belcourt et al. 4th edition  Human Resources Information System (HRIS) ◦ Computerized system that provides current and accurate data for purposes of control and decision making. ◦ Benefits:  Store and retrieve of large quantities of data.  Combine and reconfigure data to create new information.  Institutionalization of organizational knowledge.  Easier communications.  Lower administrative costs, increase productivity, and response times. challange HRM, abdulkadir, february 2014 1– 10
  • 11. Belcourt et al. 4th edition Operational Operational Impact Impact Relational Relational Impact Impact HRM HRM Transformational Transformational Impact Impact challange HRM, abdulkadir, february 2014 1– 11
  • 12. Belcourt et al. 4th edition     Initial costs and annual maintenance costs Fit of software packages to the employee base Ability to upgrade, increased efficiency and time savings Compatibility with current systems  User-friendliness  Availability of technical support  Needs for customizing  Time required to implement  Training time required for HR and payroll challange HRM, abdulkadir, february 2014 1– 12
  • 13. Belcourt et al. 4th edition  Types of Change ◦ Reactive change  Change that occurs after external forces have already affected performance ◦ Proactive change  Change initiated to take advantage of targeted opportunities  Formal change management programs help to keep employees focused on the success of the business. challange HRM, abdulkadir, february 2014 1– 13
  • 14. Belcourt et al. 4th edition  Why Change Efforts Fail: 1. 2. 3. 4. 5. 6. Not establishing a sense of urgency. Not creating a powerful coalition to guide the effort. Lacking leaders who have a vision. Lacking leaders who communicate the vision. Not removing obstacles to the new vision. Not systematically planning for and creating short-term “wins.” 7. Declaring victory too soon. 8. Not anchoring changes in the corporate culture. challange HRM, abdulkadir, february 2014 1– 14
  • 15. Belcourt et al. 4th edition Intellectual capital    is the amount by which the market value of a firm exceeds its tangible (physical and financial) assets less liabilities.   Understanding the intellectual capital in an enterprise allows leveraging its intellectual assets. For a corporation the result will optimize its stock price.     challange HRM, abdulkadir, february 2014 1– 15
  • 16. Belcourt et al. 4th edition  Intellectual capital is normally classified as follows: Human capital  Structural capital  Relational capital  challange HRM, abdulkadir, february 2014 1– 16
  • 17. Belcourt et al. 4th edition Human capital:  . an organization’s  •  •  combined human capability for solving business problems and exploiting its Intellectual Property Structural capital: the supportive non-physical infrastructure, processes and databases of the organization that enable human capital to function Relational capital: consisting of such as customer relationships, supplier relationships, trademarks challange HRM, abdulkadir, february 2014 1– 17
  • 18. Belcourt et al. 4th edition  Human Capital ◦ The knowledge, skills, and capabilities of individuals that have economic value to an organization. challange HRM, abdulkadir, february 2014 1– 18
  • 19. Belcourt et al. 4th edition    Creation of knowledge Utilization of knowledge Application of knowledge challange HRM, abdulkadir, february 2014 1– 19
  • 20. Belcourt et al. 4th edition    Total Quality Management (TQM) The continuous process of reducing or eliminating errors in manufacturing, streamlining supply chain management, improving the customer experience and ensuring that employees are up-to-speed with their training. Six Sigma ◦ A process used to translate customer needs into a set of optimal tasks that are performed in concert with one another. challange HRM, abdulkadir, february 2014 1– 20
  • 21. Belcourt et al. 4th edition TQM has been coined to describe a philosophy that makes quality the driving force behind leadership, design, planning, and improvement initiatives. For this, TQM requires the help of those eight key elements. These elements can be divided into four groups according to their function. The groups are: I. Foundation – It includes: Ethics, Integrity and Trust. II. Building Bricks – It includes: Training, Teamwork and Leadership. III. Binding Mortar – It includes: Communication. IV. Roof – It includes: Recognition. challange HRM, abdulkadir, february 2014 1– 21
  • 22. Belcourt et al. 4th edition  Reengineering ◦ Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.  Requires that managers create an environment for change.  Depends on effective leadership and communication processes.  Requires that administrative systems be reviewed and modified. challange HRM, abdulkadir, february 2014 1– 22
  • 23. Belcourt et al. 4th edition Overall Responsibilities  Human resource managers have strategic and functional responsibilities for all of the HR disciplines.  A human resource manager has the expertise of an HR generalist combined with general business and management skills  challange HRM, abdulkadir, february 2014 1– 23
  • 24. Belcourt et al. 4th edition Compensation and Benefits  Human resource managers provide guidance and direction to compensation and benefits specialists. Within this discipline, human resources managers develop strategic compensation plans, align performance management systems with compensation structure and monitor negotiations for group health care benefits.  challange HRM, abdulkadir, february 2014 1– 24
  • 25. Belcourt et al. 4th edition Training and Development  Employee training and development includes new hire orientation, leadership training and professional development seminars and workshops.  Human resource managers oversee needs assessments to determine when training is necessary and the type of training necessary to improve performance and productivity  challange HRM, abdulkadir, february 2014 1– 25
  • 26. Belcourt et al. 4th edition  Employee Relations Although the employee relations specialist is responsible for investigating and resolving workplace issues, the human resource manager has ultimate responsibility for preserving the employer-employee relationship through designing an effective employee relations strategy.  An effective employee relations strategy contains specific steps for ensuring the overall well-being of employees  challange HRM, abdulkadir, february 2014 1– 26
  • 27. Belcourt et al. 4th edition challange HRM, abdulkadir, february 2014 1– 27