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HUMAN RESOURCE MANAGEMENT BY TIRIMBA IBRAHIM
This document provides an introduction to human resource management. It begins with opening quotes about fulfilling employee wishes, hiring employees who smile, and spending on training. It then asks questions about what human resource management is and the difference between HRM and personnel management. The document outlines the aims of understanding the role of HR, factors influencing HRM, and differentiating between HRM and personnel management. It discusses various aspects of HRM like definitions, models, functions, and challenges. It also covers topics like human resource planning, organizational structure and how it relates to HRM, and the role of the human resources department.
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HUMAN RESOURCE MANAGEMENT BY TIRIMBA IBRAHIM
- 1. INTRODUCTION TO HUMAN RESOURCE MANAGEMENT IBRAHIMTIRIMBA EMAIL: tirimba5@gmail.com MBA @ HARGEISA CAMPUS
- 2. OPENING QUOTE • “Ifyou fulfill the wishes of your employees, the employees will fulfill your visions.” ― Amit Kalantri • “You can’t teach employees to smile. They have to smile before you hire them.”– Arte Nathan, Wynn Las Vegas • “Recently, I was asked if I was going to fire an employee who made a mistake that cost the company $600,000. No, I replied, I just spent $600,000 training him. Why would I want somebody to hire his experience?”– Thomas John Watson Sr., IBM
- 3. WHAT DO YOUTHINK IS HUMAN RESOURCE MANAGEMENT? WHAT IS THE DIFFERENCE BETWEEN HRM AND PERSONNEL MANAGEMENT? • HOW IMPORTANT DO YOU THINK IT IS TO THE ORGANIZATION?
- 4. Aims By the endof the session students will be able to: 1) Demonstrate an understanding role of HR. 2) Understand the factors influencing the HRM. 3) Differentiate between HRM and Personnel Management
- 5.
- 6. Human Resource Specialties Recruiter HRcoordinator Labor relations specialist Training specialist Job analyst Compensation manager Human Resource Specialties
- 7. 1–7 FIGURE 1–4 TrendsShaping Human Resource Management
- 8. Personnel Management VResource Management • Personnel Management is ‘workforce’ centred • HR is resource centred • Does not identify with Management interests • Directed at management needs for deployment • People have the right to proper ‘treatment’ • Focus is on individuals and needs and potential • Intervene between manager - subordinate relationships • Planning, monitoring and control rather than mediation
- 9. Introduction to HR •The 1980’s and 90’s saw ‘Human Resource Management’(HRM) replace ‘Personnel Management’ – fashionable term – re-organisation of work of personnel department – distinctively different with new management approach • Long term rather than short term perspective • Psychological contract of commitment • Self-control rather than external controls • Management integration • Maximum utilisation of resource
- 10. Human Resource Management •“HRM is the function performed in organizations that facilitates the most effective use of people to achieve organizational and individual goals.” – Ivancevich and Glueck
- 11. Why is itImportant? • Staff are the largest revenue cost of any organisation. • Staff are a volatile resource, they can leave you any time. • Staff are a store of corporate knowledge and the means of service delivery. • Retaining and developing good staff allows you to use skills and develop as a business. • Individuals should contribute more than they cost. • In the industry customer care critical and delivered by staff as representatives.
- 12. Introduction to HR •The 1980’s and 90’s saw ‘Human Resource Management’(HRM) replace ‘Personnel Management’ – fashionable term – re-organisation of work of personnel department – distinctively different with new management approach • Long term rather than short term perspective • Psychological contract of commitment • Self-control rather than external controls • Management integration • Maximum utilisation of resource
- 13. Hard and SoftHRM • 'Storey (1989) has distinguished between hard and soft forms of HRM, typified by the Michigan and Harvard models respectively. 'Hard' HRM focuses on the resource side of human resources. It emphasizes costs in the form of 'headcounts' and places control firmly in the hands of management. Their role is to manage numbers effectively, keeping the workforce closely matched with requirements in terms of both bodies and behaviour. 'Soft' HRM, on the other hand, stresses the 'human' aspects of HRM. Its concerns are with communication and motivation. People are led rather than managed. They are involved in determining and realizing strategic objectives.'
- 14. Hard and SoftHRM • Hard HRM: A different view of HRM is associated with the Michigan Business School (Fombrun, Tichy and Devanna, 1984). There are many similarities with the Harvard 'map' but the Michigan model has a harder, less humanistic edge, holding that employees are resources in the same way as any other business resource. People have to be managed in a similar manner to equipment and raw materials. Thay must be obtained as cheaply as possible, used sparingly, and developed and exploited as much as possible.
- 15. Factors Affecting HR •Legislation • The Economic environment • The global economy • The structure of the labour market • The Political environment • Changes in technology • Need to constantly retrain staff
- 16. 1–16 Personnel Mistakes • Hirethe wrong person for the job • Experience high turnover • Have your people not doing their best • Waste time with useless interviews • Have your firm in court because of discriminatory actions • Have your firm 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
- 17. Legislation • In theEU employment law is highly complex • In the UK changes made twice a year • The contract of employment is key to the employer/employee relationship
- 18. The Policy Decisions •The formalities to bargain with Government legislation, trade unions and workers council consultations • The decision to minimise external power and influence • Encompass management and employee group interaction
- 19. Challenges of HRM •Individuals differ from one another • Customization of stimulation and motivation • Demanding personnel
- 20. Functions of HRM- 1 Managerial Planning Organizing Staffing Directing Controlling
- 21. Functions of HRM- 2 Operational Employment HR Development Compensation Mgt Employee Relations HR Planning Recruitment Selection Placement Induction Performance Appraisal Training Management Development Career Planning and Development Job Evaluation Wage and Salary Admn Incentives Bonus Fringe Benefits
- 22. Emerging role orHRM • Value of Human Resource • Competitive advantage • Human Resource Accounting – It is measurement of the cost and value of people for an organization
- 23. Models of HRM •The Michigan School Model: – Congruency with organizational strategy (matching model) • The Harvard School Model (Harvard framework) – Integrated parts towards a strategic vision and with a central philosophy
- 24. The Michigan SchoolModel The human resource cycle
- 25. Elements of humanresource cycle 1.Selection: matching available human resources to jobs 2.Appraisal: performance management 3.Rewards: focus on organizational performance (most under-utilized and mishandled tool) – short-term and long-term 1.Development – developing high quality employees
- 26.
- 27. Characteristics of HRMin Harvard framework • 1) line managers accept more responsibility for ensuring the alignment of competitive strategy and personnel policy • 2) personnel has the mission of setting policies that govern how personnel activities are developed and implemented in ways that make them more mutually reinforcing
- 28. Aims of HRM 1.Organizational effectiveness (HRM makes a significant impact on firm performance) 2. Human capital management (HC is the prime asset – the aim is to develop the inherent capacities of people) 3. Knowledge management (support the development of firm-specific knowledge) 4. Reward management (enhance motivation, job engagement) 5. Employee relations (harmonious relationship between partners) 6. Meeting diverse needs (stakeholders, workforce) 7. Bridging the gap between rhetoric and reality (HRM is to bridge the gap – and to ensure that aspirations are translated to effective action
- 29. HRM concepts People Management Thepolicies and practice which govern how people are managed and developed in organizations Human Capital Management An approach to obtaining, analyzing and reporting on data which informs the direction of value adding people management strategic investment and operational decisions at corporate level and at the level of front line management Human Resources Management The strategic and coherent approach to the management the most of organization’s most valued assets – the people working there who individually and collectively contribute to the achievements of its objectives Personnel Management Personnel mmanagement is concerned with obtaining, organizing and motivating human resources required by enterprise
- 30. HRM and PersonnelManagement differences HRM: • places more emphasis on strategic fit and integration, • is based on a management and business oriented philosophy, • places more emphasis on mutuality, • is more holistic, • specialists are more like business partners than administrators, • treats people as assets and not only costs.
- 31. Hard and SoftHRM Hard (instrumental) HRM approach: • employees are viewed as a passive factor of production, an expense • employees can be easily replaced and seen as disposable. • Strategic, quantitative aspects of managing HRM as an economic factor Soft (humanistic) HRM approach: • stresses active employee participation • gains employee commitment, adaptability and contribution of their competences to achievement of organizational goals • employees are valued as assets • emphasizing communication, motivation and leadership
- 32. Challenges to HRProfessionals • Worker productivity • Quality improvement • The changing attitudes of workforce • The impact of the government • Quality of work-life • Technology and Training
- 33.
- 34. Why structure ??? Whatstructure signifies? No directions Leads to confusion Chaos Why???????????
- 35. Mechanistic Vs organic organization Rigidstructure Employees are tied by rules & regulations High degree of centralization Suitable for operating in static environment Decision-making is done by superiors Ex:Public sector in the pre-reforms era Flexible structure Employees are not tied by rules & regulations Decentralized style of management Suitable for operating in dynamic environment Decision-making is done by junior level employees also Ex: Marico`s Saffola
- 36.
- 37. Tall Vs Flatstructure CMD ED ED ED GM GM GM CM CM Manager Manager Officer Officer Executive Executive TALL STRUCTURE COO PM PM PM PM Team Lead Team Lead Team Lead Team Member Team Member Team Member Team Member FLAT STRUCTURE
- 38. RESPONSIBILITY, AUTHORITY & ACCOUNTABILITY Responsibility: It is the obligation of a manager to carry out the duties assigned to him. Authority: It refers to the right to give orders and the power to exact obedience from others in the process of discharging responsibility. Accountability: The employee's answerability on using the authority in discharging the responsibility is termed accountability.
- 39. LINE AND STAFF FUNCTIONS Departmentsor employees of a firm that perform core activities Contributes directly to the business of the firm Ex: Manufacturing and Marketing departments Departments or employees of a firm that perform a support function Contributes indirectly to the business of the firm Ex: HR and Finance departments
- 40. Line & StaffRelationship TradiTional concepTTradiTional concepT Service orienTed firmService orienTed firm Which are line and STaff funcTionSWhich are line and STaff funcTionS BoTh needS To SupporT each oTherBoTh needS To SupporT each oTher
- 41. Line staff conflict DifferentperceptionDifferent perception HR professional to bring changeHR professional to bring change Understand market & organization Be empathetic Build trust and transparency Win – win approach
- 42. The Role ofHuman Resources Department As a specialistAs a specialist As a facilitatorAs a facilitator As a change agentAs a change agent As a controllerAs a controller
- 43. HUMAN RESOURCE MANAGEMENT ANDOTHER ORGANIZATIONAL FUNCTIONS Product & HRProduct & HR Production & HRProduction & HR Marketing & HRMarketing & HR Management Techniques & HRManagement Techniques & HR Organization structure & HROrganization structure & HR
- 44. summary Organizational Structure andHuman Resource Management Formal and Informal Organizations Tall and Flat Organizational Structures Responsibility, Authority and Accountability Line and Staff Functions Human Resource Management and other Organizational Functions
- 45. Think before othersthink
- 46.
- 47. Human Resource planning Right numberRightnumber Right SkillsRight Skills Right TimeRight Time Right CostRight Cost
- 48. HRP defined •Process ofanticipating and making provision for the movement of people into, within, and out of an organization
- 49. Objectives of HRP •To maintain • To forecast • To optimize • To utilizeRight CostRight Cost Right SkillsRight Skills Right numberRight number Right TimeRight Time
- 50. HRP at different planninglevels Corporate – level planning Intermediate – level planning Operations planning Planning short-term activities
- 51. Organizational plans and objectives Organizationalplans and objectives Identify future human resource requirements Identify future human resource requirements Compare with the current HR inventory Compare with the current HR inventory Determine the redundant numbers Determine the redundant numbers Determine the numbers, levels & criticality of vacancies Determine the numbers, levels & criticality of vacancies Analyze the cost & time involved in managing the demand Analyze the cost & time involved in managing the demand Analyze the cost & time required for managing surplus Analyze the cost & time required for managing surplus RetrenchRetrench Choose the resources & methods of recruitment Choose the resources & methods of recruitment RedeployRedeploy HUMAN RESOURCE PLANNING MODEL HUMAN RESOURCE PLANNING MODEL
- 52. Assessing current human resourcesand making inventory • Job analysis • HR inventory – HRIS • Generate a fairly accurate picture existing situation
- 53. Forecasting • Compare futureneeds with current availabity • Analyze companies change plan • Forecasting methods used are Time Series Analysis, Regression Analysis and Productivity Ratios
- 54. Matching the inventorywith future requirements • If the current inventory exceeds the future requirements • Natural attrition cannot bring down resource to match • What to consider then????
- 55. MANAGING THE FORECASTED DEMAND/ SURPLUS Managing future demandManaging future demand Managing Future SurplusManaging Future Surplus
- 56. Dealing With Surplus Manpower RetrenchmentRetrenchment outplacementoutplacement layoffslayoffs Leaveof absence without payLeave of absence without pay LoaningLoaning
- 57. Work SharingWork Sharing Reducedwork hoursReduced work hours attritionattrition Early/voluntary retirementEarly/voluntary retirement
- 58.
- 59.
Editor's Notes
- #7 •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. •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.
- #8 Trends shaping HRM are summarized in Figure 1-4.
- #17 Why are the concepts and techniques of HRM important to all managers? Perhaps it’s easier to answer this by listing some of the personnel mistakes you don’t want to make while managing. Carefully studying this book will help you avoid mistakes like these.