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HUMAN RESOURCE
MANAGEMENT
Dr. Kashif Mehmood
Iqra University
©2007-2013 KashifMehmood.com
About Me
 Double Doctorate
 Four post graduate degrees in five years from France:
 PhD Business Administration (ESSEC)
 PhD Computer Science (CNAM-EDITE)
 M.Phil Business Administration (ESSEC)
 MS Computer Science (UPMC-Paris6)
 Seven publications in journals and international conferences.
+ Four articles in review
+ Book in review
 Interview published in D. E. Avison’s book “Information
Systems Project Management”.
 Extensive industry experience
About Me
 Nominated by Governor of Sindh for Presidential Pride of
Performance Award
 Nominated by Ministry of Defense for Sitara-e-Imtiaz
 Received Excellence Award (Shield) for Exemplary
Performance from Ministry of Defense
 Received Certificate of Appreciation from Engineering and
Scientific Commission Ministry of Defense
What I Bring To The Class
 Travel experience on 4 continents
 Numerous countries
 Real world work experience on 3 continents
 North America, Europe, Asia
 Academic and practical concepts, techniques & strategies to
make students better prepared for and more marketable in the
challenging international business environment.
 No cell phone calls or texting
 Bring laptop computers only for taking notes & in-class
research
 No refreshments
 Arrive on time
 No wandering in and out of class
 Let me know what you’d like to be called in class. Use
your name tent in every class.
 No gum
Classroom Etiquette
How to Contact
 Email Address: DrKashifMehmood@yahoo.com
Search Dr. Kashif Mehmood on google
for Facebook, LinkedIn & Twitter
account
Text book
 Human Resource Management
By Gary Dessler
Tenth Edition
 Publisher: Prentice Hall
Article Presentation 6
In-Class Activities & Discussions 3
Surprise Quizzes 12
Project 14
Midterm 25
Final 40
Total 100
Grading
 Multiple choice questions
 Fill-in-the-blank
 Short answers
 Long answers - choices
Exams are based on:
 material presented / discussed in class including cases
 terms and information from the text book
 homework material
 guest speaker material
 topics brought by your classmates
Exams
 Classroom discussions
 Case discussions
 Article Presentations
 Article Discussion
 Role play
 Leadership exercise
 Videos (& subsequent discussions)
In-Class Activities
• Explain what human resource management (HR) is and how
it relates to the management process.
• Give at least eight examples of how managers can use HR
concepts and techniques.
• Illustrate the HR management responsibilities of line and
staff (HR) managers.
• Provide a good example that illustrates HR’s role in
formulating and executing company strategy.
• Write a short essay that addresses the topic: why metrics and
measurement are crucial to today’s HR managers.
• Outline the plan of this book.
After studying this chapter,
you should be able to:
The Manager’s Human Resource
Management Jobs
 Management process
 The five basic functions of planning,
organizing, staffing, leading, and controlling.
 Human resource management (HRM)
 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.
Other Definitions of HRM
 Selection, incorporation, orientation,
development and retention of quality human
resources.
 It is a function performed in organizations
that facilitates the most effective use of
people to achieve organizational and
individual goals.
Personnel Aspects Of A
Manager’s Job
 Conducting job analyses (determining the nature of each employee’s job)
 Planning labor needs and recruiting job candidates
 Selecting job candidates
 Orienting and training new employees
 Managing wages and salaries (compensating employees)
 Providing incentives and benefits
 Appraising performance
 Communicating (interviewing, counseling, disciplining)
 Training and developing managers
 Building employee commitment
Personnel Mistakes
 Hire the wrong person for the job
 Experience high turnover
 Have your people not doing their best
 Waste time with useless interviews
 Have your company in court because of discriminatory actions
 Have your company cited by OSHA for unsafe practices
 Have some employees think their salaries are unfair and inequitable
relative to others in the organization
 Allow a lack of training to undermine your department’s effectiveness
 Commit any unfair labor practices
Employee
Relations and
Retention
Strategies
Organization
Development
Human
Resource
Planning
Training and
Development
Organization
and Job
design
Employee
Assistance
Program
Compensation
and Benefits
Recruitment
and selection
Performance
Management
Core HR Functions
Basic HR Concepts
 Getting results
 The bottom line of managing
 HR creates value by engaging
in activities that produce
the employee behaviors
the company needs to
achieve its strategic
goals.
HR Planning
Recruitment
Layoffs
Selection Resource Identification
Employee
Orientation
Training
Adapted & competent
employees with
up to date skills
& knowledge
Performance
Management
Compensation
Benefits
Career
Development
Environment
Environment
HRM Process
HR and Authority
 Authority
 The right to make decisions, direct others’ work, and
give orders.
 Implied authority
 The authority exerted by an HR manager by virtue of
others’ knowledge that he or she has access to top
management.
 Line authority
 The authority exerted by an HR manager by directing the
activities of the people in his or her own department and
in service areas.
Line and Staff Aspects of HRM
 Line manager
 A manager who is authorized to direct the work
of subordinates and is responsible for
accomplishing the organization’s tasks.
 Line Authority?
 Staff manager
 A manager who assists and advises line
managers.
 Staff Authority?
Line Managers’ HRM
Responsibilities
1. Placing the right person on the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth working
relationships
6. Interpreting the firm’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining department morale
10. Protecting employees’ health and physical condition
Functions of the HR Manager
 A line function
 The HR manager directs the activities of the people in his or her own
department and in related service areas (like the plant cafeteria).
 A coordinative function
 HR managers also coordinate personnel activities, a duty often
referred to as functional control.
 Right arm of the top executive.
 Staff (assist and advise) functions
 Assisting and advising line managers is the heart of the HR
manager’s job.
 How to treat employees etc.
Employee Advocacy
 HR must take responsibility for:
 Clearly defining how management should be
treating employees.
 Making sure employees have the mechanisms
required to contest unfair practices.
 Represent the interests of employees within the
framework of its primary obligation to senior
management.
Examples of HR Job Duties
 Recruiters
 Search for qualified job applicants.
 Equal employment opportunity (EEO) coordinators
 Investigate and resolve EEO grievances, examine
organizational practices for potential violations, and
compile and submit EEO reports.
 Job analysts
 Collect and examine information about jobs to prepare
job descriptions.
Examples of HR Job Duties
(cont’d)
 Compensation managers
 Develop compensation plans and handle the
employee benefits program.
 Training specialists
 Plan, organize, and direct training activities.
 Labor relations specialists
 Advise management on all aspects of union–
management relations.
HR Department Organizational Chart
(Large Company)
Cooperative Line and Staff HR
Management
1. The line manager’s responsibility is to specify the
qualifications employees need to fill specific positions.
2. HR staff then develops sources of qualified applicants and
conduct initial screening interviews
3. HR administers the appropriate tests and refers the best
applicants to the supervisor (line manager), who
interviews and selects the ones he or she wants.
HR Organizational Chart (Small
Company)
Employment and Recruiting—Who Handles It? (percentage
of all employers)
Note: length of bars represents prevalence of activity among all surveyed
employers.
The Changing Environment Of
HR Management
 HR’s changing role:
“ Personnel departments”
 Took over hiring and firing from supervisors,
payroll, and benefit plans administration.
 In the 1930s added “protecting the firm in its
interaction with unions” responsibilities (labor
relations).
 Assumed organizational responsibilities for
equal employment and affirmative action.
A Changing HR Environment
 Globalization
 Technological Advances
 Exporting Jobs
 The Nature of Work
 Workforce Demographics
Employment Exodus:
Projected Loss of Jobs and Wages
Measuring HR’s Contribution
 Strategy
 The company’s long-term plan for how it will
balance its internal strengths and weaknesses
with its external opportunities and threats to
maintain a competitive advantage.
 HR managers today are more involved in partnering
with their top managers in both designing and
implementing their companies’ strategies.
 Top management wants to see, precisely, how the HR
manager’s plans will make the company more valuable.
HR Metrics
 Absence Rate
[(Number of days absent in month) ÷ (Average number of employees
during mo.) × (number of workdays)] × 100
 Cost per Hire
(Advertising + Agency Fees + Employee Referrals + Travel cost of
applicants and staff + Relocation costs + Recruiter pay and
benefits) ÷ Number of Hires
 Health Care Costs per Employee
Total cost of health care ÷ Total Employees
 HR Expense Factor
HR expense ÷ Total operating expense
HR Metrics (cont’d)
 Human Capital ROI
Revenue − (Operating Expense − [Compensation cost + Benefit cost])
÷ (Compensation cost + Benefit cost)
 Human Capital Value Added
Revenue − (Operating Expense − ([Compensation cost + Benefit
Cost]) ÷ Total Number of FTE
 Revenue Factor
Revenue ÷ Total Number of FTE
 Time to fill
Total days elapsed to fill requisitions ÷ Number hired
HR Metrics (cont’d)
 Training Investment Factor
Total training cost ÷ Headcount
 Turnover Costs
Cost to terminate + Cost per hire + Vacancy Cost + Learning curve
loss
 Turnover Rate
[Number of separations during month ÷ Average number of
employees during month] × 100
 Workers’ Compensation Cost per Employee
Total WC cost for Year ÷ Average number of employees
Measuring HR’s Contribution
 The HR Scorecard
 Shows the quantitative standards, or
“metrics” the firm uses to measure HR
activities.
 Measures the employee behaviors
resulting from these activities.
 Measures the strategically relevant
organizational outcomes of those
employee behaviors.
Benefits of a High Performance
Work System (HPWS)
 Generate more job applicants
 Screen candidates more effectively
 Provide more and better training
 Link pay more explicitly to performance
 Provide a safer work environment
 Produce more qualified applicants per position
 More employees are hired based on validated selection
tests
 Provide more hours of training for new employees
 Higher percentages of employees receiving regular
performance appraisals.
The New HR Manager
 New Proficiencies
 HR proficiencies
 Business proficiencies
 Leadership proficiencies
 Learning proficiencies
The New HR Manager (cont’d)
 The Need to “Know Your Employment Law”
 Equal employment laws
 Occupational safety and health laws
 Labor laws
Effects CFOs Believe Human Capital
Has on Business Outcomes
HR Professional Certification
 HR is becoming more professionalized.
 Society for Human Resource
Management (SHRM)
 SHRM’s Human Resource Certification
Institute (HRCI)
 SPHR (senior professional in HR)
 PHR (professional in HR)
certificate
HR and Technology
 Benefits of technological applications for HR
 Intranet-based employee portals through which
employees can self-service HR transactions.
 The availability of centralized call centers staffed with
HR specialists.
 Increased efficiency of HR operations.
 The development of data warehouses of HR-related
information.
 The ability to outsource HR activities to specialist service
providers.
The Plan of This Book: Basic
Themes
 HR management is the responsibility of every manager—
not just those in the HR department.
 HR managers must always stand ready to defend their
plans and contributions in measurable terms.
 An HR department’s performance is measured relative to
achieving the company’s strategic aims.
 HR managers increasingly rely on IT to help support the
company’s strategic aims.
 Virtually every HR-related decision managers make has
legal implications.
 Globalization and diversity are important HR issues today.
Strategy and the Basic HR
Process
Thank you

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HR Management Essentials

  • 1. HUMAN RESOURCE MANAGEMENT Dr. Kashif Mehmood Iqra University ©2007-2013 KashifMehmood.com
  • 2. About Me  Double Doctorate  Four post graduate degrees in five years from France:  PhD Business Administration (ESSEC)  PhD Computer Science (CNAM-EDITE)  M.Phil Business Administration (ESSEC)  MS Computer Science (UPMC-Paris6)  Seven publications in journals and international conferences. + Four articles in review + Book in review  Interview published in D. E. Avison’s book “Information Systems Project Management”.  Extensive industry experience
  • 3. About Me  Nominated by Governor of Sindh for Presidential Pride of Performance Award  Nominated by Ministry of Defense for Sitara-e-Imtiaz  Received Excellence Award (Shield) for Exemplary Performance from Ministry of Defense  Received Certificate of Appreciation from Engineering and Scientific Commission Ministry of Defense
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  • 12. What I Bring To The Class  Travel experience on 4 continents  Numerous countries  Real world work experience on 3 continents  North America, Europe, Asia  Academic and practical concepts, techniques & strategies to make students better prepared for and more marketable in the challenging international business environment.
  • 13.  No cell phone calls or texting  Bring laptop computers only for taking notes & in-class research  No refreshments  Arrive on time  No wandering in and out of class  Let me know what you’d like to be called in class. Use your name tent in every class.  No gum Classroom Etiquette
  • 14. How to Contact  Email Address: DrKashifMehmood@yahoo.com Search Dr. Kashif Mehmood on google for Facebook, LinkedIn & Twitter account
  • 15. Text book  Human Resource Management By Gary Dessler Tenth Edition  Publisher: Prentice Hall
  • 16. Article Presentation 6 In-Class Activities & Discussions 3 Surprise Quizzes 12 Project 14 Midterm 25 Final 40 Total 100 Grading
  • 17.  Multiple choice questions  Fill-in-the-blank  Short answers  Long answers - choices Exams are based on:  material presented / discussed in class including cases  terms and information from the text book  homework material  guest speaker material  topics brought by your classmates Exams
  • 18.  Classroom discussions  Case discussions  Article Presentations  Article Discussion  Role play  Leadership exercise  Videos (& subsequent discussions) In-Class Activities
  • 19. • Explain what human resource management (HR) is and how it relates to the management process. • Give at least eight examples of how managers can use HR concepts and techniques. • Illustrate the HR management responsibilities of line and staff (HR) managers. • Provide a good example that illustrates HR’s role in formulating and executing company strategy. • Write a short essay that addresses the topic: why metrics and measurement are crucial to today’s HR managers. • Outline the plan of this book. After studying this chapter, you should be able to:
  • 20. The Manager’s Human Resource Management Jobs  Management process  The five basic functions of planning, organizing, staffing, leading, and controlling.  Human resource management (HRM)  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.
  • 21. Other Definitions of HRM  Selection, incorporation, orientation, development and retention of quality human resources.  It is a function performed in organizations that facilitates the most effective use of people to achieve organizational and individual goals.
  • 22. Personnel Aspects Of A Manager’s Job  Conducting job analyses (determining the nature of each employee’s job)  Planning labor needs and recruiting job candidates  Selecting job candidates  Orienting and training new employees  Managing wages and salaries (compensating employees)  Providing incentives and benefits  Appraising performance  Communicating (interviewing, counseling, disciplining)  Training and developing managers  Building employee commitment
  • 23. Personnel Mistakes  Hire the wrong person for the job  Experience high turnover  Have your people not doing their best  Waste time with useless interviews  Have your company in court because of discriminatory actions  Have your company cited by OSHA for unsafe practices  Have some employees think their salaries are unfair and inequitable relative to others in the organization  Allow a lack of training to undermine your department’s effectiveness  Commit any unfair labor practices
  • 24. Employee Relations and Retention Strategies Organization Development Human Resource Planning Training and Development Organization and Job design Employee Assistance Program Compensation and Benefits Recruitment and selection Performance Management Core HR Functions
  • 25. Basic HR Concepts  Getting results  The bottom line of managing  HR creates value by engaging in activities that produce the employee behaviors the company needs to achieve its strategic goals.
  • 26. HR Planning Recruitment Layoffs Selection Resource Identification Employee Orientation Training Adapted & competent employees with up to date skills & knowledge Performance Management Compensation Benefits Career Development Environment Environment HRM Process
  • 27. HR and Authority  Authority  The right to make decisions, direct others’ work, and give orders.  Implied authority  The authority exerted by an HR manager by virtue of others’ knowledge that he or she has access to top management.  Line authority  The authority exerted by an HR manager by directing the activities of the people in his or her own department and in service areas.
  • 28. Line and Staff Aspects of HRM  Line manager  A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks.  Line Authority?  Staff manager  A manager who assists and advises line managers.  Staff Authority?
  • 29. Line Managers’ HRM Responsibilities 1. Placing the right person on the right job 2. Starting new employees in the organization (orientation) 3. Training employees for jobs new to them 4. Improving the job performance of each person 5. Gaining creative cooperation and developing smooth working relationships 6. Interpreting the firm’s policies and procedures 7. Controlling labor costs 8. Developing the abilities of each person 9. Creating and maintaining department morale 10. Protecting employees’ health and physical condition
  • 30. Functions of the HR Manager  A line function  The HR manager directs the activities of the people in his or her own department and in related service areas (like the plant cafeteria).  A coordinative function  HR managers also coordinate personnel activities, a duty often referred to as functional control.  Right arm of the top executive.  Staff (assist and advise) functions  Assisting and advising line managers is the heart of the HR manager’s job.  How to treat employees etc.
  • 31. Employee Advocacy  HR must take responsibility for:  Clearly defining how management should be treating employees.  Making sure employees have the mechanisms required to contest unfair practices.  Represent the interests of employees within the framework of its primary obligation to senior management.
  • 32. Examples of HR Job Duties  Recruiters  Search for qualified job applicants.  Equal employment opportunity (EEO) coordinators  Investigate and resolve EEO grievances, examine organizational practices for potential violations, and compile and submit EEO reports.  Job analysts  Collect and examine information about jobs to prepare job descriptions.
  • 33. Examples of HR Job Duties (cont’d)  Compensation managers  Develop compensation plans and handle the employee benefits program.  Training specialists  Plan, organize, and direct training activities.  Labor relations specialists  Advise management on all aspects of union– management relations.
  • 34. HR Department Organizational Chart (Large Company)
  • 35. Cooperative Line and Staff HR Management 1. The line manager’s responsibility is to specify the qualifications employees need to fill specific positions. 2. HR staff then develops sources of qualified applicants and conduct initial screening interviews 3. HR administers the appropriate tests and refers the best applicants to the supervisor (line manager), who interviews and selects the ones he or she wants.
  • 36. HR Organizational Chart (Small Company)
  • 37. Employment and Recruiting—Who Handles It? (percentage of all employers) Note: length of bars represents prevalence of activity among all surveyed employers.
  • 38. The Changing Environment Of HR Management  HR’s changing role: “ Personnel departments”  Took over hiring and firing from supervisors, payroll, and benefit plans administration.  In the 1930s added “protecting the firm in its interaction with unions” responsibilities (labor relations).  Assumed organizational responsibilities for equal employment and affirmative action.
  • 39. A Changing HR Environment  Globalization  Technological Advances  Exporting Jobs  The Nature of Work  Workforce Demographics
  • 41. Measuring HR’s Contribution  Strategy  The company’s long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.  HR managers today are more involved in partnering with their top managers in both designing and implementing their companies’ strategies.  Top management wants to see, precisely, how the HR manager’s plans will make the company more valuable.
  • 42. HR Metrics  Absence Rate [(Number of days absent in month) ÷ (Average number of employees during mo.) × (number of workdays)] × 100  Cost per Hire (Advertising + Agency Fees + Employee Referrals + Travel cost of applicants and staff + Relocation costs + Recruiter pay and benefits) ÷ Number of Hires  Health Care Costs per Employee Total cost of health care ÷ Total Employees  HR Expense Factor HR expense ÷ Total operating expense
  • 43. HR Metrics (cont’d)  Human Capital ROI Revenue − (Operating Expense − [Compensation cost + Benefit cost]) ÷ (Compensation cost + Benefit cost)  Human Capital Value Added Revenue − (Operating Expense − ([Compensation cost + Benefit Cost]) ÷ Total Number of FTE  Revenue Factor Revenue ÷ Total Number of FTE  Time to fill Total days elapsed to fill requisitions ÷ Number hired
  • 44. HR Metrics (cont’d)  Training Investment Factor Total training cost ÷ Headcount  Turnover Costs Cost to terminate + Cost per hire + Vacancy Cost + Learning curve loss  Turnover Rate [Number of separations during month ÷ Average number of employees during month] × 100  Workers’ Compensation Cost per Employee Total WC cost for Year ÷ Average number of employees
  • 45. Measuring HR’s Contribution  The HR Scorecard  Shows the quantitative standards, or “metrics” the firm uses to measure HR activities.  Measures the employee behaviors resulting from these activities.  Measures the strategically relevant organizational outcomes of those employee behaviors.
  • 46. Benefits of a High Performance Work System (HPWS)  Generate more job applicants  Screen candidates more effectively  Provide more and better training  Link pay more explicitly to performance  Provide a safer work environment  Produce more qualified applicants per position  More employees are hired based on validated selection tests  Provide more hours of training for new employees  Higher percentages of employees receiving regular performance appraisals.
  • 47. The New HR Manager  New Proficiencies  HR proficiencies  Business proficiencies  Leadership proficiencies  Learning proficiencies
  • 48. The New HR Manager (cont’d)  The Need to “Know Your Employment Law”  Equal employment laws  Occupational safety and health laws  Labor laws
  • 49. Effects CFOs Believe Human Capital Has on Business Outcomes
  • 50. HR Professional Certification  HR is becoming more professionalized.  Society for Human Resource Management (SHRM)  SHRM’s Human Resource Certification Institute (HRCI)  SPHR (senior professional in HR)  PHR (professional in HR) certificate
  • 51. HR and Technology  Benefits of technological applications for HR  Intranet-based employee portals through which employees can self-service HR transactions.  The availability of centralized call centers staffed with HR specialists.  Increased efficiency of HR operations.  The development of data warehouses of HR-related information.  The ability to outsource HR activities to specialist service providers.
  • 52. The Plan of This Book: Basic Themes  HR management is the responsibility of every manager— not just those in the HR department.  HR managers must always stand ready to defend their plans and contributions in measurable terms.  An HR department’s performance is measured relative to achieving the company’s strategic aims.  HR managers increasingly rely on IT to help support the company’s strategic aims.  Virtually every HR-related decision managers make has legal implications.  Globalization and diversity are important HR issues today.
  • 53. Strategy and the Basic HR Process