Shrm perspective


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Shrm perspective

  1. 1. Tanveer Ahmed BS-Textile Engineer ME/MS Textile Engineer MS/M.phil Quality Management 2nd Semester
  2. 2. LOGO Table of Contents  Introduction  Personnel Management and HRM  History and Origins of HRM  Management Theories and Impact on HRM  Stages in the Development of HRM  HRM Concepts and Model  HRM Roles and Functions and Strategies  Ethical Perspective in Contemporary HRM
  3. 3. LOGO Introduction • Organizations Variety of purpose and objectives rely on several kind of resources • Finance (banks, credit unions, stock broking companies) • Technology ( Telecommunication, manufacturing, IT) • People (Key ingredient for Organizational success)
  4. 4. LOGO Introduction • People design, operate and repair technology • People control the financial resources • People manage other people • For achieving organizational objectives • Human resource effectively managed and their work needs are satisfied • Recent development transform the nature of job and work place • Influence of globalization and technological development • Economic and social changes associated with amendment to IR system and process
  5. 5. LOGO Introduction • Globalization has broadened the market • IT and telecommunication system demand new kinds of jobs, new forms of workplace and innovative approach to all HRM Functions. • Economic, political and social development some times resist changes and some time facilitated them. • Demands of information era enable Changes to IR process including • Increased flexibility • Cooperation b/w employers, employees and unions
  6. 6. LOGO Personnel Management & HRM • Personal management refers to a set of Function or activities • Recruiting • Selection • Training • Salary administration • Industrial relations • Often performed effectively but with little relationship between overall organizational objectives. • Recent concepts of HRM assumes that all personnel activities are integrated and strategically linked to organizational goals/ objectives.
  7. 7. LOGO Personnel Management & HRM • Peter Coppleston explains HR function as an investment area rather than a cost to the organization. • Other writers emphasis HR Should viewed as : • Human capital • Human asset • Intellectual capital • And HR Manager utilize them as • Critical investment • And create and environment in which strategy is likely to emerge
  8. 8. LOGOHISTORY AND Origins of HRM • HRM Existed in one form or another since the beginning of time informally . • Personnel Management in the UK and US developed earlier than in Australia due to mass production following industrial revolution, • The concentration of workers focus pubic attention upon condition of employment and enable workers to collectively achieve better conditions. • Early 1900s this led to growth of trade unionism and IR systems. • Govt in UK and US passed a series of laws to regulate the hours of work, to establish minimum wages and to protect workers from unhealthy working conditions. • Theories developed and applied by both HR Specialist and General Management reflect: – Changes attitude to jobs – Work process and – Organizational structures
  9. 9. LOGOHISTORY AND Origins of HRM • The classical school , puts emphasis on the – Job itself – Efficient adaptation of workers to work processes • The Behavioral School focuses on – workers themselves – Satisfaction of their needs – To achieve greater organizational productivity • Subsequent /later management theories attempt to build on earlier ideas to benefit both workers and their organization, particular industries, economic and social situations. • Relevance to HRM is twofold – First Personnel management has historically developed into HRM by incorporating Management theories – Second a sound knowledge of these theories can Assist HR Managers to practice.
  10. 10. LOGO Classical Management Theory (Scientific Management) • This theory of management asserts that: – Jobs can be scientifically analyzed – Employs can be scientifically selected – Training ensures jobs and employee fit – Management and employee relationships should be friendly, cooperative and productive Fredrick W.Taylor (1856 – 1915) employed this theory in his factory By incorporating earlier ideas of Robert Owen (1771 -1858) about The natural cooperation b/w management and employees. Taylor work has been developed by Henry L.Gantt and Frank and Lillian Gibreth. Including the Idea of productivity bonuses and work redesign. TIME and MOTION studies are example
  11. 11. LOGOClassical Organization Theorists • The work of Henry Fayol and Max Weber exemplifies these theories. • Fayol identified the major management functions as those of – Planning – Organizing – Commanding – Coordinating and – Controling • Later theorist reduce these to – Planning, Organizing, Leading and Controlling (POLC) Webber (1864 – 1920 ) Classified organizations by Authority structures as • Chrismatic • Traditional or Rational - legal
  12. 12. LOGOTransitional Theorists • Marry Parker Follet (1868 – 1933), • Chester l.Barnard (1886 – 1961) and • Lyndall F.Urwick ( 1891 – 1983) • Represent traditional Human Relation theorists. • Situated b/w classical management and Behavioral approaches to the Employment relationship. • All these writers emphasis on the – Importance of Social Factors at work, – Including work team, – Leadership Style and – Informal Systems in organizations.
  13. 13. LOGO Behavioral School (Industrial Psychology) • This approach attempts to apply psychological research to the – Employers vs employee relationship • Hugo Munsterberg ( 1863-1916) applied – Personality research to employee selection, – Work design and – Training program Walter Dill Scott and James Mckeen Cattell Developed Personality Tests for the recruitment of sales and managerial Staff Elton Mayo (1880-1949) initiated human relations (Hawthorn Study – Hawthorn works US Electric Company) Study of the relationship b/w satisfaction of employee needs and productivity, Concluded that  employees reacted positively to management concern (effective communication and employee participation in mgt policies and procedure) Drive from his work ( QWL, Abraham Maslow, Fredrick Herzberg)
  14. 14. LOGO Management Science: (Quantitative School) • This approach measuring the – Outcomes of Jobs and – Work system • Application include – Production Schedule – Productivity strategies – Consequent management Planning – Control Mechanisms Integrated Theory: (Systems Theory) • The System approach sees organization as • Unified system with specific inputs and outputs. • Important Features include • Interaction b/w Jobs • Technology • Environment • Control mechanism • HR Aspects include communication between the • Various subsystem • Coordination with Input /output • Effective interaction b/w employee and technological systems
  15. 15. LOGOContingency Theory • This theory developed by the writers such as – Tom burns – Henry Mintzberg – Heshey and – Blanchard • Contends that every organization and every environment is different and therefore requires a different approach – Scientific management – Organization theory – Behavioral science or management science may or may NOT Apply according to business circumstances. Excellence Theory • Popular in 1980s is based upon • Research studies of Tom Peters and Bob Waterman. • These researchers argue that productivity and profitability are the • Direct result of excellent employment management • Which is largely based on Employee centered approach • Due to decline of identified excellent companies • Research has been discredited
  16. 16. LOGOTotal Quality Management (TQM) • Proposed by Dr.W.Edward Deming, Total quality management, effectively applied in – Japanese and US industry after the 2nd world war • Deming advocate the following Principles of Management – Constancy/loyalty of Purpose toward product/service improvement – Maintain ongoing improvement / cost reduction – Adopt new philosophy – Adopt Meaningful measure of quality – Adopt modern training method – Setup education and training programs – Statistically validate quality • drive out fear • Remove barriers • Breakdown organizational barriers through team work • Eliminate arbitrary numerical goals / visible figures • Eliminate work standard and numerical quotas TQM has been applied in some organizations to their competitive strategies. However criticized due to procedures driven
  17. 17. LOGO • Wayne Cascio divides the development in HRM in the US into three Distinct Phases – File Maintenance Phase Until 1960s – The Govt accountability phase during 1960s to 70s – The gaining and sustaining competitive advantage phase 1980s to 1990 • Slightly different perspective Stella Nkomo describes – Defensive stage – Administrative / Anti Union – Manpower Planning as derived demand (beginning of labour needs forecasting, early recruitment and training program) – SHRM
  18. 18. LOGOIn Australia HRM Development Stages Welfare and administrative (1900 to 1940s) Welfare, admin, staffing and training personnel management and Industrial Relation (1940s to Mid 1970s) HRM (Mid 1970s to 1990s) HRM in the new Millennium(2000)
  19. 19. LOGO Stage One– Welfare , Administrative (1900 to 1940) • Personnel functions were performed by – Supervisors – Line managers – Early specialist (e.g. Recruitment officer, trainers, welfare officers) long before the establishment of HRM. • The early management theories contributed ideas later incorporated into – Personnel management theory & practice • Scientific management helped to refine personnel management through – Job design – Structured reward system – Scientific selection techniques • Behavioral science added – Psychological testing and motivational systems • Management science contributed to – Performance management program
  20. 20. LOGO Stage Two– Welfare , Administration, staffing and Training (1940 to Mid1970) • The beginning of a specialist and more professional approach to – Personnel management in Australia • The 2nd world war had significant impact – Business ,Economy, Labor market – Increase in problems & performance of existing employees – Financial, Social and family pressure hinder the productivity and output of such employees who replace their brothers/husbands in military • When the war ended (Industrial welfare division) – Returning soldiers flooded labor market with few skills – Employers encouraged to promote the welfare functions/ services – Offering emergency training as well as Psychological testing and leadership • Many organizations began to employee specialist to conduct – Recruitment – Training and – Welfare activities – Taking away these functions from Line Managers
  21. 21. LOGO Stage Two– Welfare , Administration, staffing and Training (1940 to Mid1970) • This 2nd stage can be characterized by – Expansion of necessary personal functions • Welfare, recruitment, selection, training • A gradual move from specialist to more general approaches – Adoption of overseas theories – Including scientific, behavioral and human relations – Emergence of professional association and courses • The resurgence / reappearance of Unionism can not be overlooked during this decade. Unions in a buoyant /floating economy – Focused on pay and work conditions issues – Forcing personnel activities to include industrial relations considerations (IR) • Earlier established Complex IR structure developed during this period • Functions performed by personnel specialist expanded during this period • personnel specialist were Isolated from one another – without any consideration of their impact on overall organizational effectiveness
  22. 22. LOGO Stage Three– HRM (Mid1970 TO 1990s) • Personnel Management was becoming – HRM – Representing a change towards the integration of personnel function – Strategically focused on overall organizational fucntions • Concepts of HRM correspondence with – US models and British Development • Unlike previous periods, this stage represents the – Integration of personnel management and – Industrial relation into a coordinated and strategic approach to the management of the organizations employee • SHRM Can be perceived as MACRO Perspective (strategic and policies) • HRM represent MICRO Approach (e.g. activities, functions and processes) • SHRM and HRM both are intertwined
  23. 23. LOGO Stage Four– HRM in the new Millennium (2000…) • It is difficult to predict nature of HRM in future • HRM Theory and Practice will be transformed as a consequence of – Globalization – New technology – Associated Fundamental changes in the nature of work and Job • At this stage it is suggested that earlier concepts of HRM and Role of HR Professionals – Will need to change significantly in order to remain relevant in the information era. • HR Thought leaders Such as Ulrich, Huselid etc imply that the new HRM will either specialize in HRM – Value management – Strategic partnering – And establish HR architecture for organizational Success – Or will combine with MACRO Connections with the development – Or outsourcing of traditional HR Functions respectively to line managers and external HR consultants
  24. 24. LOGOHRM Concepts • HRM differs from earlier personnel management models in relation to its focus, its principles and its applications. Thus, the focus of HRM today is – Effective overall management of an org workforce – In order to contribute to the achievement of desired objectives and goals • All HR Functions ( i.e Recruitment, HR development, performance appraisal, remuneration ) are seen – To be integrated component of overall HRM Strategies • As David Guest points out – ‘ HRM was born out of the failure of PM to manage people effectively in the pursuit /search of the strategic (organizational ) imperative /necessary …
  25. 25. LOGOUnitarist HRM • A Unitarist approach, often reflected in American Models of HRM assumes – common interests between employers and employees • Attempts to encourage commitment by both inclusive – i.e communication – Consultation – Rewards system • Exclusive – Discouragement of union membership – Greenfield sites • Pluralism, recognizes that employers and their employees will • Inevitably experience conflicts of interest, • Which HRM will need to negotiate and resolve in order to meet • Organizational goals
  26. 26. LOGOHard HRM • Hard HRM has a strategic and managerial focus, • Emphasizing the effective utilization of – Human resources towards the broad org goals and objective. • Soft HRM infers the involvement of employees through such means as • Consultation • Empowerment • Commitment • communication
  27. 27. LOGO Harvard Model of HRM Shows HRM as broad policy ‘Choices’ in response to the demand of Organizational characteristics Within the context of external labor market and social economic and political conditions Choices of HRM Policies encompasses the nature of all traditional HR functions, and hopefully lead to desirable HR Outcomes and Long consequences for the organization.
  28. 28. LOGO • The Harvard Model was postulated by Beer et al (1984) at Harvard University. • The Harvard model acknowledges the existence of multiple stakeholders within the organization. • These multiple stakeholders include shareholders various groups of employees, government and the community at large. • The recognition of the legitimacy of these multiple stakeholders renders this model a neo - pluralist model. • This model emphasizes more on the human/soft side of HRM. • Basically this is because this model emphasizes more on the fact that employees like any other shareholder are equally important in influencing organizational outcomes. • In fact the interest of the various groups must be fused and factored in the creation of HRM strategies and ultimately the creation of business strategies. •
  29. 29. LOGO • A critical analysis of the model shows that it is deeply rooted in the human relations tradition. • Employee influence is recognized through people motivation and the development of an organization culture based on mutual trust and team work. • The factors above must be factored into the HR strategy which is premised on employee influences, HR flows, reward system etc. • The outcomes from such a set up are soft in nature as they include high congruence, commitment, competencies etc. • The achievement of the crucial HR outcomes has got an impact on long term consequences, increased productivity, organizational effectiveness which will in turn influence shareholder interests and situational factors hence making it a cycle. • It is thus important to note that the Harvard model is premised on the belief that it is the organization’s human resources that give competitive advantage through treating them as assets and not costs. •
  30. 30. LOGO• The principle responsebility of HRM is to ensure that organization have • Right numbers • Types • skills mixes of employees • At an appropriate time & cost • To meet present / future requirements • Practitioner need to operate at three levels • Strategic (cooperate and HR planning) • Operational (develop action plans to meet present labour needs) • Functional ( activities that ensure employees are in the right place at right time and for the right cost) • The Roles, Functions and strategies of HRM are many and varied, and , depend heavily on – The nature of organization – The vision – Skills of practitioners – Change in the external environments of organization • But such features have a significant impact on the ways in which practitioners carry out their roles – Size – History – Ownership – Government legislation – Political factors
  31. 31. LOGO• As Dunphy suggest HRM is about • Planning optimum kind of workforce • Hiring the best people • Skilling them appropriately • Shifting the mix of talent w.r.t market demand • It is also about Building • the satisfied • Productive • And flexible workforce • Wayne cascio divide HR functions into six principal activities: – The attraction – Selection – Retention – Development – Assessment – Adjustment of employees • Robbin ,Low and Moursell suggest roles – Acquisition /procurement – Development – Motivation – maintenance
  32. 32. LOGO• In order to carry out their role, many HR professionals will need to acquire new competencies • Business capabilities ( HR Professional need to know business of organization thoroughly requires understanding of its economic/financial capabilities) • State of the art HRM Practice (HR Professional behavioral science experts in areas such as staffing/development/appraisal/reward, organizational design & communication) • Management of change process (HR Professional be able to manage change processes so that HR activities are effectively merged with the business of the organization i.e. diagnosis, influence, contracting, intervention, problem solving) • HRM in near future will play a vital role in – Creating and sustaining competitive advantage • This role will requires SHRM to be – Responsive to highly competitive workplace & global business structure – Closely linked to business strategic plan – Focused on Quality, Customer, productivity, employee involvement, teamwork and work force flexibility
  33. 33. LOGO• The devolution/ transfer of HR Functions or services such as • Recruitment, • Selection and • Performance review to line managers • Combine with the more recent outsourcing of such activities as • Employee information system • Training and • Occupational health and safety services • May enable HR Specialists to focus more on strategy formulation and policy development. • The separation of strategy and planning allows HR Specialists to develop • High level business planning competencies • Encourage line mangers to refine their PM Skills • Assist the effectiveness through specialist • HR Call centers • HR Shared service centers • HR response centers using web tech • Variety of roles and competencies depending on the nature of – Industries and organizations. • Ulrich and Saul Suggest combination of roles – Strategic partner – Employee champion – Administrative expert and – Agent of transformation • Lepak and Snell point out that – Strategy formulation – Policy development – Cost containment and – HR Service roles are some time contradictory and required quite different competencies.
  34. 34. LOGO• The functional Areas that constitute an HR Program – HR Policy – HR Planning – HR information system – Work and job analysis, design and evaluation – Recruitment and selection – Diversity management – Carrier management – Training & development for employees and management – Counseling, discipline and separation – Performance and Quality mgt – Remuneration (pay) and benefits – IR management – Financial Management of employee schemes – Overall accountability and evaluation – Occupational Health and Safety • Pro-active HR practitioner sees the functions • As pert of a whole • Or strategic approach to their role • Each function should be clearly linked with • All other functions in cost effective ways • Reflect organizational goal • Functional activities will differ • From org to org • From industry to industry • According to pressures • HR Manager needs to be generalists with • Clear business skills • Concerned with corporate strategy, structure, org culture • Direct links to org power bases
  35. 35. LOGO• The HRM managers of the 21st Century need to go – Beyond the traditional functional & task roles – To become involved in more strategic responsibilities • The idea of HRM as the link in the – Future integration of Internal and External societal values – Therefore consistent with development of many societies and economies • The HRM Role needs to monitor and maintain – Behavioral norms within an org • The Role of HR in the negotiation of Values and Behavior is of – Paramount Importance • The Behavioral lapses of employee and managers create immense hidden cost to enterprise through such issues • Delayering • Mergers • Sexual Harassment • Inadequate diversity management • Unfair dismissals • Poor recruitment • Loss of productivity • Good behavioral Norms for individuals and groups arise from • Clear value system, • Guiding policies and practices understood by all • Value driven organizations generate • Sound and ethical HRM • The ethics of an enterprise can be best communicated through • Value held and • Behavior exhibited by the employees of an org
  36. 36. LOGO• The Ethics of an Org revealed through the – Behavioral of its people • An effective HR manager aims to deal with employees – Openly and – Transparent std of behavior • Ethics in HRM can be define as – The contribution to the design of right values and behavior – And maintenance of such values in the social and operational context ETHICAL STANDARD FOR HRM PROFESSIONAL • In a study of HR professionals by Wiley (2000), the ethical code of five US HR related organizations were • Examined against six key stakeholder obligation/duty/responsibilities 1. Employers 2. Clients 3. Colleagues 4. Society 5. The profession 6. Professional societies • Five Organizations were 1. American compensation association (ACA) 2. American Society of Training & development (ASTD) 3. International Association of Human Resource Information Management (IAHRIM) 4. International Personnel Management Association (IPMA) 5. Society for Human Resource Management (SHRM)
  37. 37. LOGO• Ulrich (1997) suggested that future HR professionals need to go – Beyond the roles of Policy – Or acting as regulatory watchdogs – To become Partners, players and pioneers in delivering value • In order for such transformation of HRM into Strategic “Soul” of organization to occur – Incorporation of ETHICS as a core anchor to its practice is urgent necessity. • HRM Practices also link the individual , group and the enterprise to contribution and responsibilities – To maintain a civil society THE SUBSTANTIAL Challenges facing HR Professionals  Favoritism in employment  Divergence in Promotion and opportunities  Global consistency in occupational / work related health and safety  Gender and Race Issues  HR manager face the problem of dual loyalty  The role of HRM in workplace ethics needs to go  Beyond the monitoring of legal compliance towards establishing the “ARCHITECUTE” of ethical culture  A HR approach to business partnership based on integrity combine concerns for competitive use of Human capital with managerial responsibility  For the ethical dimensions of an enterprise strategic operations.  Without integrity oriented approach to business partnership, HR Professional may continue  In the administrative – service role under the guise of being a strategic player.
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