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Human resource amnagement

Human resource amnagement






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    Human resource amnagement Human resource amnagement Presentation Transcript

    • Human Resource Management Chapter 1
    • Management of Human Capital in Organizations • Human Capital – The collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organizational workforce. – Also known as intellectual capital. • Core Competency – A unique capability that creates high value and differentiates an organization from its competition. – HR competencies: a source of competitive advantage.
    • Human Resource Management • Meaning – The policies and practices involved in carrying out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising. – The design of formal systems in an organization to ensure effective and efficient use of human talent to accomplish organizational goals. – The policies, practices, and systems that influence employees’ behavior, attitudes, and performance. 3
    • • Meaning – The policies, practices, and systems that influence employees’ behavior, attitudes, and performance. – HRM is viewed as a means of moving people along to achieve organisational goals through staffing, performance, change management and administrative objectives. • HR creates value by engaging in activities that produce the employee behaviors that the company needs to achieve its strategic goals.
    • Goals of HRM • Attract, retain, and motivate employees • Direct employee efforts toward goals of organization • Assist in the development of the strategic direction of the organization • Provide the organization a source of competitive advantage • Help ensure legal compliance 5
    • HR Activities • • • • • • • Strategic HR Management Equal Employment Opportunity Staffing HR Development Compensation and Benefits Health, Safety, and Security Employee and Labor Relations
    • HR Activities
    • HRM in Large v. Small Firms Large • Designated HR professionals and HR department • Formal HR policies; HR manual; job descriptions Small • HR duties combined with other administrative functions (e.g. accounting) or performed by line managers. • Less formal HR policies, less likely to have HR manual, job descriptions 8
    • HR Functions 9
    • Human Resource Management Functions Human Resource 1 Management Safety and Health 10
    • i. Staffing • Staffing – Process through which an organization ensures it always has the proper number of employees with appropriate skills in right jobs at right time to achieve organizational objectives • Job analysis – Systematic process of determining skills, duties, and knowledge required for performing jobs in an organization • Human resource planning – Systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time . 11
    • Staffing (Cont.) • Recruitment – Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization • Selection – Process of choosing from a group of applicants the individual best suited for a particular position and the organization 12
    • ii. Human Resource Development • Training • Development • Career Planning • Career Development • Organizational Development • Performance Management • Performance Appraisal 13
    • Human Resource Development (Cont.) • Training – Designed to provide learners with knowledge and skills needed for their present jobs • Development – Involves learning that goes beyond today's job; it has more long-term focus • Career planning – Ongoing process whereby individual sets career goals and identifies means to achieve them • Career development – Formal approach used by organization to ensure that people with proper qualifications and experiences are available when needed 14
    • • Organization development – Planned process of improving organization by developing its structures, systems, and processes to improve effectiveness and achieving desired goals • Performance management – Goal-oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization • Performance appraisal – Formal system of review and evaluation of individual or team task performance 15
    • iii. Compensation • Compensation – All rewards that individuals receive as a result of their employment • Direct Financial Compensation – Pay that person receives in form of wages, salaries, bonuses, and commissions. • Indirect Financial Compensation (Benefits) – All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance. • Nonfinancial Compensation – Satisfaction that person receives from job itself or from psychological and/or physical environment in which person works. 16
    • iv. Safety and Health • Employees who work in a safe environment and enjoy good health are more likely to be productive and yield long-term benefits to organization. • Safety – Involves protecting employees from injuries caused by work-related accidents • Health – Refers to employees' freedom from illness and their general physical and mental well being 17
    • v. Employee and Labor Relations • Business is required by law to recognize a union and bargain with it in good faith if the firm’s employees want the union to represent them • Human resource activity is often referred to as industrial relations • Most firms today would rather have a union-free environment 18
    • HR Management Challenges • Globalization of Business – Outsourcing and increased competition • Economic and Technological Changes – Occupational shifts from manufacturing and agriculture to service industries and telecommunications – Pressures of global competition causing firms to adapt by lowering costs and increasing productivity • Technological Shifts and the Internet – Growth of information technology Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 1–19
    • HR Management Challenges • Workforce Availability and Quality Concerns – Inadequate supply of workers with needed skills for “knowledge jobs” – Education of workers in basic skills • Growth in Contingent Workforce – Increases in temporary workers, independent contractors, leased employees, and part-timers caused by: • Need for flexibility in staffing levels • Increased difficulty in firing regular employees. • Reduced legal liability from contract employees
    • HR Management Challenges • Workforce Demographics and Diversity – Increasing Racial/Ethnic Diversity – More Women in the Workforce • Single-parent households • Dual-career couples • Domestic partners • Working mothers and family/childcare – Significantly Aging Workforce • Age discrimination
    • HR Management Challenges • Organizational Cost Pressures and Restructuring – Mergers and Acquisitions – “Right-sizing”—eliminating of layers of management, closing facilities, merging with other organizations, and outplacing workers • Intended results are flatter organizations, increases in productivity, quality, service and lower costs. • Costs are “survivor mentality”, loss of employee loyalty, and turnover of valuable employees. – HR managers must work toward ensuring cultural compatibility in mergers.
    • HR Management Roles • Administrative Role – Clerical and administrative support operations (e.g., payroll and benefits work) • Technology is transforming how HR services are delivered. • Outsourcing HR services to reduce HR staffing costs • Operational and Employee Advocate Role – “Champion” for employee concerns • Employee crisis management • Responding to employee complaints
    • Changing Roles of HR Management Note: Example percentages are based on various surveys. Figure 1–5
    • Strategic Role for HR • Strategic Role – “Contributing at the Table” to organizational results – HR becomes a strategic business partner by: • Focusing on developing HR programs that enhance organizational performance. • Involving HR in strategic planning at the onset. • Participating in decision making on mergers, acquisitions, and downsizing. • Redesigning organizations and work processes • Accounting and documenting the financial results of HR activities.
    • Operational to Strategic Transformation of HR Figure 1–6
    • New Approaches to HR Management • Collaborative HR – The process of HR professionals from several different organizations working jointly to address shared business problems. • Firms benefit from the expertise of other firms, without having the time and expense of developing some of their own HR practices.
    • HR Technology • Human Resource Management System (HRMS) – An integrated system providing information used by HR management in decision making. – Purposes (Benefits) of HRMS • Administrative and operational efficiency in compiling HR data • Availability of data for effective HR strategic planning – Uses of HRMS • Automation of payroll and benefit activities • EEO/affirmative action tracking • HR Workflow: increased access to HR information – Employee self-service reduces HR costs.