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Chapter 2 hr challenges


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Chapter 2 hr challenges

  1. 1. Human Resource Management Introduction to HRM (2 nd Part) Chapter 2 Published by
  2. 2. Topics to be covered <ul><li>We will cover the following: </li></ul><ul><ul><li>HRM Cycle & Model </li></ul></ul><ul><ul><li>HR Challenges </li></ul></ul><ul><ul><li>Strategic HRM </li></ul></ul><ul><ul><li>HRIS </li></ul></ul><ul><ul><li>Employee Handbook </li></ul></ul>
  3. 3. Organizational Development Focus: assuring healthy intra and inter unit relationships and helping groups initiate and manage change Training and Development focus: identifying, assessing and through planned learning- helping develop the key competencies which enable individuals to perform current or future jobs Union & Labor Relations Focus: Assuring healthy union or organizational relationships Employee assistance Focus: providing personal problem solving, counseling to individual employee Compensation/ Benefits Focus: assuring compensation / benefits fairness and consistency Personnel Research and Information System Focus: assuring a personnel information bases Selection and Staffing Focus: matching people and their career needs and capabilities with jobs and career paths Human Resource Planning Focus: determining the organization’s major human resources needs, strategies and philosophies Organization/ Job Design Focus: defining how tasks, authority and systems will be organized and integrated across organization units and in individual jobs Human Resource Areas Outputs: Quality of Work Life Productivity Readiness for Change HR Model Developed by ASTD
  4. 4. Model Explanation <ul><li>Quality of Work life : Quality Of Work Life is a multifaceted concept.The premise of quality of work life is having a work environment where an employees activities become more important. This means implementing policies and procedures that make the work less routine and more rewarding for the employee. This policy or procedure includes autonomy, recognition, belonging, progress and development and external rewards </li></ul>
  5. 5. Model Explanation <ul><li>Productivity : Productivity is the quantity or volume of the major product or service that an organization provides. In other words it is the amount of work that is being produced in the organization in terms of how much and how well. High productivity is what makes an organization thrive. </li></ul><ul><li>Readiness for change : Change is a fact of life in both our private and work life. At the work sight we must be aware that change will occur. The change might be subtle, such as getting a new boss. Or it might be a major endeavor such as installing a computerized system, for the first time. To reduce the fair associated with change, Training is very important </li></ul>
  6. 6. HR Challenges <ul><li>Acquisition: Create a readily deployable talent pool. </li></ul><ul><li>Managing Change : As the organizations are going Global, managing change is a major problem faced by the Managers and how to make people acquainted with the changes </li></ul><ul><li>Managing low attrition rate: More competition also adds to high attrition. Now here is the opportunity for the HR manager to play safe and introduce good retention strategies. </li></ul><ul><li>Balancing work and personal life: B y flexi work hours, maternity leaves and vacations are some of the options in hand. </li></ul><ul><li>Consultative approach: Developing continuous dialogue, open communication, participative decision making is very important for implementing consultative approach. </li></ul>
  7. 7. HR Challenges <ul><li>Work Culture: Due to acquisition and mergers taking place it becomes important for the HR Manager to develop the work culture </li></ul><ul><li>Stress and Conflict: Long working hours, target pressures, high competition etc adds stress and conflicts in the Organization. It is the duty of an HR Manager to have proper responses to the stress and conflict before it causes damage to someone’s' personality. It’s a challenge. </li></ul><ul><li>Restructuring Organization: As the trend is changing, Manager’s needs to develop a new organizational structure that enables a more efficient and flexible operation and serves better its businesslike activities in the future. </li></ul><ul><li>Globalization: Companies are going global due to which the workforce diversity is increasing. Managing these people with different religious, cultural, moral background is a challenging task for the HR Managers in 21st Century. </li></ul>
  8. 8. Profitability Through Cost and Growth Revenue growth is a key component of the profitability equation. The main paths to growth include through leveraging customers, leveraging core competencies and mergers, acquisitions or joint ventures. Each of these has HR implications and requires co-operation between management and HR professionals to design and deliver new organizational practices. Managers and HR professionals should constantly seek the capabilities necessary for success. Whilst general management must identify and foster what capabilities they need to increase organizational competitiveness, HR professionals must frame what they do in terms of these capabilities at an organizational level. Capability Focus
  9. 9. Transforming the Organization <ul><li>Over the past decade, organizations have gone through one change initiative after another including downsizing, consolidations and restructurings. Unlike many of these turnaround efforts, transformation goes to the heart of the organization changing the fundamental image of the business, as seen by customers and employers. HR has to play a leading role in organizational transformation. </li></ul>Managers and HR professionals need to be able to redefine work to maximize the value of technology in the organization. This means making technology a viable and productive part of the work setting, and requires that HR professionals keep ahead on the information curve. Technology
  10. 10. Mergers, acquisitions and restructuring <ul><li>These will continue as long as companies strive for increased economies of scale, greater productivity and market share.  The changes we have been reviewing are largely driven by one or more of these activities.  The potential employee problems associated with combining differing work cultures, restructuring hurdles can offset the intended benefits of the changes.  If well managed however, the results can be very rewarding.  Is your game plan in place? </li></ul>
  11. 11. Sexual harassment <ul><li>This is a very popular subject at the water coolers these days.   Any form of harassment in the work-place is disruptive and potentially damaging to those involved, including the company.   The increasing challenge is the every-evolving definition of harassment, as interpreted by the courts, legislation and society as a whole.   Are your employees informed and are you, as an employer, equipped? </li></ul>
  12. 12. Ongoing legal compliance <ul><li>&quot;Ongoing&quot; is the key word here.   You cannot afford to be complacent and assume that because you were in compliance last year, you are still in compliance today.   Unfortunately, or fortunately, depending upon your perspective, laws and other government regulatory requirements tend to be very dynamic, subject to constant change.   Are you in touch with the latest court interpretations of the laws affecting you? </li></ul>
  13. 13. Creative compensation schemes <ul><li>Not unlike benefit plans, there is a growing need to find more creative ways to motivate and reward employees, at all levels.   The demographics of your particular work force are critical factors to be considered when attempting to redesign incentives, pay structures, etc.   How do you properly motivate the right group of people without losing the rest? </li></ul>If you are still grappling with what this really means, you are likely approaching -- if not already in -- trouble.   Being in touch with the needs of the organization and understanding how you can assist with the fulfillment of its strategic directives is paramount.   Are you a real player? Partnering with the business
  14. 14. To outsource or not <ul><li>That is the question on many minds in many organizations.  Is it a form of ultimate death or critical to survival?  The focus of all departments within an organization should be the optimization of resources toward the core business objectives.  Companies do not exist, for example, to support the HR department.  They exist to produce, sell and/or market products and services.  Is your time being utilized to its greatest potential? </li></ul>
  15. 15. Increasing services while lowering costs <ul><li>How to do this becomes the stepping stone for discussing potential outsourcing opportunities.   As with the frontline employees dealing directly with external customers, levels of internal service from the HR department should be continually evaluated as well.   Is it the best it can be?   Is it truly adding value? </li></ul>
  16. 16. What is Strategic HRM? <ul><li>Integration of HRM systems to the overall mission, strategy, and success of the firm, while meeting the needs of employees and other stakeholders </li></ul><ul><li>Two step definition: </li></ul><ul><li>The HR System is the set of policies and practices that mediate the relationship between employer and employee. </li></ul><ul><li>Strategic HRM is directed at the development and implementation of an HR System contributing to the creation of a sustainable competitive advantage. </li></ul>Steps in Strategic HR
  17. 17. Steps in Strategic HRM <ul><li>Environmental Analysis </li></ul><ul><li>Organizational Mission and Goals Analysis </li></ul><ul><li>Analysis of Organizational Strengths and Culture </li></ul><ul><li>Analysis of Organizational Strategies </li></ul><ul><li>Choice and Implementation of HR Strategies </li></ul><ul><li>Review and Evaluation of HR Strategies </li></ul>How can be strategic
  18. 18. How Can HRM Be Strategic? <ul><li>Participate in the Discussion of the New Strategy </li></ul><ul><li>Evaluate Organizational Capacity </li></ul><ul><li>Design HR Practices Which Can Execute New Strategy (Link) </li></ul><ul><li>Establish Metrics to Evaluate Practices </li></ul>
  19. 19. What are the competencies of a Strategic HRM Executive? <ul><li>Be a Strategist - Know the Business </li></ul><ul><li>Be an Administrator - Deliver the Basics </li></ul><ul><li>Be a People Champion </li></ul><ul><li>Be a Change Agent </li></ul>Strategic-Home
  20. 20. Factors Traditional HR Strategic HR Responsibility for HR Staff specialist Line managers Focus Employee Relations Partnerships with internal/ external customers Role of HR Transactional, Change follower and respondent Transformational, change leader and initiator Initiatives Slow, Reactive, fragmented Fast, Proactive, Integrated Time horizon Short term Long term Control Bureaucratic-policy, roles Organic, flexible Job Design Division Of labor, specialization Team, flexible Key investment Capital, Products People, knowledge Accountability Cost centre Investment centre
  21. 21. Human Resource Information Systems <ul><li>Human resource information systems (HRIS) </li></ul><ul><ul><li>An integrated system of hardware, software, and databases designed to provide information used in HR decision making. </li></ul></ul><ul><ul><li>Benefits of HRIS </li></ul></ul><ul><ul><ul><li>Administrative and operational efficiency in compiling HR data </li></ul></ul></ul><ul><ul><ul><li>Availability of data for effective HR strategic planning </li></ul></ul></ul><ul><ul><li>Uses of HRIS </li></ul></ul><ul><ul><ul><li>Automation of payroll and benefit activities </li></ul></ul></ul><ul><ul><ul><li>EEO/affirmative action tracking </li></ul></ul></ul>
  22. 22. Uses of an HR Information System (HRIS)
  23. 23. Designing and Implementing an HRIS <ul><li>HRIS Design Issues </li></ul><ul><ul><li>What information available and what is information needed? </li></ul></ul><ul><ul><li>To what uses will the information be put? </li></ul></ul><ul><ul><li>What output format compatibility with other systems is required? </li></ul></ul><ul><ul><li>Who will be allowed to access to the information? </li></ul></ul><ul><ul><li>When and how often will the information be needed? </li></ul></ul>
  24. 24. Accessing the HRIS <ul><li>Intranet </li></ul><ul><ul><li>An organizational (internal) network that operates over the Internet. </li></ul></ul><ul><li>Extranet </li></ul><ul><ul><li>An Internet-linked network that allows employees access to information provided by external entities. </li></ul></ul><ul><li>Web-based HRIS Uses </li></ul><ul><ul><li>Bulletin boards </li></ul></ul><ul><ul><li>Data access </li></ul></ul><ul><ul><li>Employee self-service </li></ul></ul><ul><ul><li>Extended linkage </li></ul></ul>