How Leading Companies Deliver Value with People Analytics
Evolution of hr[2]
1. LOOKING BACK, MOVING FORWARD:
THEHR JOURNEY TO TRANSFORMING
ORGANISATIONS
By AndrewJemedze
2. HISTORICAL DEVELOPMENTS OFHRM
The employer had to develop new ways of dealing with
these large groups of people.
However the industrial revolution is said to have brought
changes in the employer/ employee relationships – from
servant/master relationship to situations of industries and
mass employment ofpeople
Hamurabi the law giver has been cited as one of the
earliest propounders of HRM.
There is no universal agreement as to when HRM
started.
3. HISTORICAL DEVELOPMENTS OFHRM
MANAGEMENT THEORIES
•Macgregor
•Peters
•RosabethKantor
•MagaretWhitley
•KurtLewin
JAPANESECOMPETITION.
STRATEGIC HRM
The emergence of theflexible
organization and nonstandard
employment
5. DARWINISM THEORIES
(SURVIVAL OF THE FITTEST)
The employer was merely employing
as thefitter
Employees were at his mercy being
the weaker
It was by divine right that they found
themselves at the mercy of the
employer – so employees were made
to believe.
There were however some employers
who felt that the foregoing was
wrong so they employed social
workers who dealt with therelations.
They provided free housing, fairer
rewards, better working relations-
this was not by the agitation of the
workers but by the generosity of
employers.
However bringing together of large
numbers of employees brought about
the creation of TRADE UNIONISM
hence, the voice of the employees to
fight for better workingconditions.
The concern by some employers
about improving productivity also
played a part – hence a number of
studies were done – the important
ones being those done by Frederick
Taylor which period came to be called
ScientificManagement.
There were however some employers who felt that the
foregoing was wrong so they employed social workers who
dealt with the relations
They provided free housing, fairer rewards, better working
relations- this was not by the agitation of the workers but by
the generosity of employers.
However bringing together of large numbers of employees
brought about the creation of TRADE UNIONISM hence, the
voice of the employees to fight for better working conditions.
The concern by some employers about improving productivity
also played a part – hence a number of studies were done –
the important ones being those done by Frederick Taylor which
period came to be called Scientific Management
6. DARWINISM THEORIES (SURVIVAL OF
THE FITTEST) Cont’d
There were however some employers who felt that the
foregoing was wrong so they employed social workers who
dealt with the relations
They provided free housing, fairer rewards, better working
relations- this was not by the agitation of the workers but by
the generosity of employers.
However bringing together of large numbers of employees
brought about the creation of TRADE UNIONISM hence, the
voice of the employees to fight for better working conditions.
The concern by some employers about improving productivity
also played a part – hence a number of studies were done – the
important ones being those done by Frederick Taylor which
period came to be called Scientific Management
7. Believed in one best way of
working by studying people
at work and recording
which culminated in to
“time and motion studies”
A process where work is
broken down into smaller
tasks and finding best ways
of carrying themout.
People were trained to
work that best way aswe
would presently refer to as
“star/high performers”
People were motivated
according to F Taylor solely
by rewards – hence his
assertion that output be
tied to rewards
The social niceties at work
were unknown
There is still a lot of this in
today’s work processes.
SCIENTIFIC MANAGEMENT
Believed in one best way of working by studying people
at work and recording which culminated in to “time and
motion studies”
A process where work is broken down into smaller tasks
and finding best ways of carrying them out.
People were trained to work that best way as we would
presently refer to as “star/high performers”
8. SCIENTIFIC MANAGEMENT (Cont’d)
People were motivated according to F Taylor solely by rewards – hence
his assertion that output be tied to rewards
The social niceties at work were unknown
There is still a lot of this in today’s work processes.
Other researchers started looking at other ways of improving production
and these studies are collectively called Human Relations.
9. HUMAN RELATIONS
They held that rewards are not the sole
motivators
Employees need much more for them to be
motivated
• Hawthorne studies – Elton Mayo
• Maslow
Some of the notable studies were:
10. HUMAN RELATIONS (Cont’d)
Some of these studies were started by engineers who wanted
to investigate the ideal illumination levels to improve output.
The amount of light did not change productivity.
• People are motivated by the desire to belong to a specific group or collegiality and
• Desire to contribute and recognition by the bosses
• The need for achievement
However, they concluded that human beings are gregarious
animals which means:
Therefore, jobs must meet the above needs for employee
motivated.
11. SOCIO TECHNICAL STUDIES – TAVISTOCK
STUDIES
Disbanded the digging of coal
and shovelling it and
introduced a conveyor belt
after experiencing high
levels of absenteeism and
health problems.
12. TOTAL QUALITY MANAGEMENT
One of the features of business is
building quality into productsand
systems rather than inspecting
quality into products.
There is needto recognise the
employee an importantelement
who must be treated as a
customer because it is through
them that you produce quality
products for yourcustomers
One of the features of business is building quality
into products and systems rather than inspecting
quality into products.
There is need to recognise the employee as an
important element who must be treated as a
customer because it is through them that you
produce quality products for your customers
Another key element of TQM is employee
empowerment with responsibility to take decisions
related to their work as they are the ones who deal
directly with customers. (moments of truth)
13. MANAGEMENT THEORISTS
• There is a recognition that people are eager to achieve set goals and people will be eager
to achieve them
McGregor, Peters In search of excellence
• Believes in breaking the glass ceiling as she writes about her achievement and success
both in business and academia. (study of the response of share price to a change in CEO)
Rosabeth Moss Kantor
• Believed in presence of order in the apparent chaos that we see and therefore, man’s
ability to live in the chaos and achieve results.
Margaret Whitley –
• Well known for teams, change and strategy.
Kurt Lewin
14. THE JAPANESECOMPETITION
They have outperformed the western in many ways
This has generated lots of interest to find out how the Japanese do it.
•In Japan people are employed into an organization than into a job – does the person fit
into the culture of the company?
•Psychological contract of employment is very strong in Japan to the extent that there was
once no employment turnover
•There was very high use of work teams
•There was high level of investment in employee training and development
•There was extensive job rotation
They found the following:
15. HRM
Is like other elements of management and is
an ever developing discipline which borrows
its principles and theories from a number
behavioural science disciplines inparticular:
• Psychology
• Medicine
• Sociology
• Economics
• Social anthropology
16. IS HRMTHE SAME AS PERSONNEL MGT?
HRM vs. PersonnelMngt
Personnel
management
activities tend to
be disconnected
and conductedas
independent
processeswhereas
stresses thateach
activity should
form part of the
whole process of
people
management.
Within HRM there
is greater stresson
the role of line
managers in
managingtheir
personnel
management is
viewed as a
specialistfunction.
Traditional
interest tothe
most senior
managers.
Traditional
Personnel mgtis
operational,
personnel focusedon
managers tend to technical skillsand
have littlepower or functionswhereas
own people – prestige whereas HRM approaches
HRM in perspective whereas traditional HRM is of strategic relatesall
employee matters
to business
strategy in a
comprehensive
and organizedway.
HMRis aimed at
achieving
competitive
advantage of an
organization
HRM is proactive throughthe
and TPM is reactive development ofa
highly committed
skilled workforce
while TPM focuses
on status
maintenance.
17. WHAT IS STRATEGIC HUMAN RESOURCES
MANAGEMENT (SHRM)?
In doing so you accordingly transform the HR department into a consultant department.
Modern HR believesin devolving HRM competences to the line managers
Line managers can make or break the HR strategies as they are always with the people –
they should therefore have the skills/competencesin HR management
Specific terms when talking about strategic HRM are:
Integration – to what extent are our HR practices
and competences considered in the strategic
direction of the organization.
Devolvement – to what extent are HR practices
competently carried out by line
managers.
18. Beliefs & Assumption ofHRM
It’s the HR which gives organizations their
sustainable competitive advantage.
TheAIM of HRM is not mere compliance with
rules but building employeecommitment
Employees are carefully selected
and developed
19. Strategic Qualities of HRM
Because of the above
beliefs and
assumptions HR
decisions are of
strategic importance
Top management
involvement in HRM
is necessary.
HR policies should be
integrated into the
business strategy
(external integration)
There is need to
achieve internal
integration which is
the extent to which
there is
complementarity
among the HR
functional areas
20. FLEXIBLE LABOUR AND NON STANDARD
EMPLOYMENT
Towards a more poorly compensated
insecure workforce
Strategic positioning
standardThe emergence of non
employment arrangements.
The emergency of non standard reward
systems and Employee ValueProposition
21. FLEXIBLE LABOUR & NONSTANDARD
EMPLOYMENT
FL– often thought as:
•Part time
•Temporary and selfemployment
Also includes:
•Freelancing
•Sub contracting
•Outsourcing
•Home working
•Franchising
•Zero hourscontracts
•Fixed Termcontracts
•Seasonal working
•Flexi time
22. FLEXIBLE LABOUR & NONSTANDARD
EMPLOYMENT
The common
feature hereis
uncertainty is
HIGH
FL– give the
employer scopeto
make rapid short
term adjustments
to the supply of
labour inresponse
to changes in
demand.
Over the yearssaw
the proliferationof
the flexible
organization –
core and
peripheral staff
(the resourcing
strategy is
changing)
The common
feature here is
uncertainty is
HIGH
Can be referred to
as Precarious
employment
FL – give the
employer scope to
make rapid short
term adjustments
to the supply of
labour in response
to changes in
demand.
Over the years saw
the proliferation of
the flexible
organization – core
and peripheral
staff (the
resourcing strategy
is changing)
23. FLEXIBLE LABOUR & NONSTANDARD
EMPLOYMENT
FL– is mainly
used by
management as
part of forward
looking plan
which relates
labour use
patterns to
business
objectives
Characteristics:
- certain social
groups areover
represented –
women with
dependent
children, young
workers, those
nearing
retirement,
ethnic
minorities
Quality and
choice ;-others
argue both
workers and
employers
enjoy benefits
of FL
The trend is
non standard
employment is
on theincrease
3 dayworking
week
Increase use of
artificial
intelligenceand
ICT relatedjobs
24. LABOUR MARKET REGULATION
Differences between
countries concerns their
labour market regulation
both legal andvoluntary
Managers must influence
both the legal and
voluntary conditions
25. MANAGERIAL STRATEGIES AND ISSUES OF
CONTROL
NSE have undermined
and eroded formal and
rule bound modes of
recruiting, mobilizing
and disciplininglabour.
There has been an
increase in outsourcing,
s u b c o n t r a c t i n g ,
networking
Such developments
weaken Standard forms
of employment
How them management
maintain control in the
face of this new
dispensation
26. SOCIETAL CONTEXTS – THE NEW HR
PHILOSOPHY
Social processes within
labour and work places
are shaped and influenced
by relationships between
economic institutions and
the wider socialsystems.
These provide frameworks
for entitlements and
obligations which explains
why certain NSE flourish in
one country than the
other.
This is changing the faceof
EVP
Social processes
within labour and
work places are
shaped and
influenced by
relationships
between economic
institutions and the
wider social
systems.
The major
movements are
influences from
welfare systems,
family structures
and gender
relations.
These provide
frameworks for
entitlements and
obligations which
explains why certain
NSE flourish in one
country than the
other.
This is changing the
face of EVP
27. RESTRUCTURING EMPLOYMENT RELATIONS
The standard economies of
time- working week, day etc
are now being challenged and
employment relations are
changing
Wages are paid for the
duration of employment
rather than for the duration of
theperformance
Thewage is usually paidfor
non workingperiods eg. Sick p
e ri o ds , h o l i d a y s ,
interruptionsetc
It follows therefore three
Generally employees are paid
for both working time and
non workingtime
One is paid for bothto work
and not towork
The standard economies of
time- working week, day
etc are now being
challenged and
employment relations are
changing
Most wages are time
based
What in ‘normal’ about
normal working time?
Wages are paid for the
duration of employment
rather than for the
duration of the
performance
The wage is usually paid
for non working periods
eg. Sick periods, holidays,
interruptions etc
All these suggest a normal
working arrangement
Therefore it is exchange of
employment time as
opposed to actual working
time.
It follows therefore three
scenarios are possible in
managing labour:
• Normal working time
• Abnormal working time
• Non working time
Generally employees are
paid for both working time
and non working time
One is paid for both to
work and not to work
28. VIRTUAL WORK PLACE
People who perform
paid work at a distance
relying on technology
The indian ICT case and
the C h i n e s e
manufacturing case
The externalization of
professional work
29. TOWARD A MORE POORLY COMPENSATED
WORKFORCE
Family friendly workplaces
There is an increase in dual earner
couples, female headed households
bringing to the fore work/family
conflicts.
Employers are responding with
friendly working arrangements
The factory clock is in the process of
becoming aligned with the cycles of
workers personal lives
FL – provide a JIT arrangement of
resources and in other economies it is
the employers pushing forit
As we have JIT inventory
management, product so is the
concept of JITpersonnel management
30. TOWARD A MORE POORLY COMPENSATED
WORKFORCE (CONT’D)
Longtermemploymentareeroding andthe
“disposable employee’ is becomingmore
common
Long term employment are eroding
and the “disposable employee’ is
becoming more common
Workers are feeling more insecure
in their jobs
Quite a lot of workers are happier
with the NSE despite paying lower
but it gives them the independence
they need in their lives
Employers are extending labour
control through increasing
insecurity
31. ORGANIZED FLEXIBLE PRODUCTION (THE
ASIAN MIRACLE)
Issues like demand and
supply oflabour,
Research in the
winning formula for
their success
In addition to other
reasons for the success
was the organization of
production in these
economies
Research in these
economies has focused
on issues outside the
organization like
economic growth etc
and has neglected the
prime issues of their
competitive advantage
Issues like demand and
supply of labour,
32. NEW MANAGERIALSTRATEGIES
Seeking more flexibleemployment
• Divide labour into threegroups
• GroupA – regular employees with long term employment based on the long term accumulation of job ability. Have
job security and promoted to supervisory and managerial positions.
• Group B :Professional specialties valued for immediate use but without expectation of long term employment.
• Group C:employees with more flexible patterns of employment
Moving towards performance relatedpay
• Aligning labour costs to companyperformance
• Eliminating the risk of labour costs going out of sink with company performance
• Wage system based on performance and effort
• Performance contractingarrangements
Seeking to diminish Group Aemployees
• Transfer policy
• Labour optimization initiatives
• Job design andredesign
• Mechanization
• Multi skilling andup-skilling
• Group cooperation's employment – shared labour
33. NEW MANAGERIALSTRATEGIES
Moving towards performance relatedpay
• Aligning labour costs to company performance
• Eliminating the risk of labour costs going out of sink with company
performance
• Wage system based on performance and effort
• Performance contractingarrangements
Seeking to diminish GroupA employee
• Transfer policy
• Labour optimization initiatives
• Job design andredesign
• Mechanization
• Multi skilling andup-skilling
• Group cooperation's employment – shared labour