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Olivia Edge Hr Notes

Lecturer: Olivia Edge

HR management notes

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Olivia Edge Hr Notes

  1. 1. Human Resource Management Lecturer: Olivia Edge
  2. 2. Lecture Outline <ul><li>Defining HRM </li></ul><ul><li>Environmental Factors affecting HRM </li></ul><ul><li>Activity Areas in HRM </li></ul>
  3. 3. Defining HRM
  4. 4. <ul><li>“ HRM is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an array of cultural, structural and personnel techniques ”(Storey, 2007) </li></ul>
  5. 5. Key Objectives of HRM <ul><li>Staff Objective </li></ul><ul><ul><li>Ensure business is appropriately staffed </li></ul></ul><ul><li>Performance Objective </li></ul><ul><ul><li>Ensure appropriate standards of performance are achieved through training, development </li></ul></ul><ul><ul><li>Management control systems </li></ul></ul><ul><li>Change Management </li></ul><ul><ul><li>Effective management of change </li></ul></ul><ul><ul><li>Structural, cultural adjustments </li></ul></ul>
  6. 6. <ul><li>So, how does HRM contribute toward the attainment of competitive advantage? </li></ul><ul><li>Take note of the 3 main issues discussed in class </li></ul><ul><ul><li>? </li></ul></ul><ul><ul><li>? </li></ul></ul><ul><ul><li>? </li></ul></ul>
  7. 7. HRM Activities <ul><li>HR Alignment </li></ul><ul><li>Human Resource Planning </li></ul><ul><li>Recruitment </li></ul><ul><li>Selections </li></ul><ul><li>Pay and Benefits </li></ul><ul><li>Performance Management </li></ul><ul><li>Training and Development </li></ul>
  8. 8. HR Alignment Overcoming Challenges
  9. 9. Key HR Challenges for Managers
  10. 10. Key HR Challenges: Environmental <ul><li>Rapid Change </li></ul><ul><li>The Internet Revolution </li></ul><ul><li>Workforce Diversity </li></ul><ul><li>Globalization </li></ul><ul><li>Legislation </li></ul><ul><li>Evolving Work and Family Roles </li></ul><ul><li>Skill Shortages </li></ul><ul><li>Rise of the Service Sector </li></ul><ul><li>Natural Disasters </li></ul>
  11. 11. Key HR Challenges: Organizational <ul><li>Competitive Position </li></ul><ul><li>Decentralization </li></ul><ul><li>Downsizing </li></ul><ul><li>Organizational Restructuring </li></ul><ul><li>Self-Managed Work Teams </li></ul><ul><li>Organizational Culture </li></ul><ul><li>Technology </li></ul><ul><li>Internal and Data Security </li></ul><ul><li>Outsourcing </li></ul>
  12. 12. <ul><li>Matching People and Organizations </li></ul><ul><li>Ethics and Social Responsibility </li></ul><ul><li>Productivity </li></ul><ul><li>Empowerment </li></ul><ul><li>Brain Drain </li></ul><ul><li>Job Insecurity </li></ul>Key HR Challenges: Individual
  13. 13. HR Planning
  14. 14. Human Resource Planning <ul><li>HR Planning is an effort to anticipate the future demands of the organisation and match those demands with suitable personnel </li></ul><ul><li>Stages of HR Planning </li></ul><ul><ul><li>Demand Analysis </li></ul></ul><ul><ul><ul><li>Through an understanding of the Org Strategy, the HR function must forecast the demand for personnel by </li></ul></ul></ul><ul><ul><ul><ul><li>Assessing future HR needs </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Assessing the quality and quantity of employee needed </li></ul></ul></ul></ul><ul><ul><li>Supply Analysis </li></ul></ul><ul><ul><ul><li>An analysis of the supply both internally and externally of the labour currently available to determine if they can meet the org needs </li></ul></ul></ul>
  15. 15. Human Resource Planning contd . <ul><li>Estimating Deficits/Surplus </li></ul><ul><ul><li>This is the process of comparing the demands with the supply to establish if the supply meets the demands </li></ul></ul><ul><ul><li>A deficit in supply could result in the org recruiting from overseas, automate activities, outsource activities </li></ul></ul><ul><li>Action Plan </li></ul><ul><ul><li>The action plan should detail how the HR function will align the demands of the org with the supply available to the org </li></ul></ul><ul><ul><li>It should detail selection, recruitment, training etc. to ensure that the orgs requirements are met with competent staff </li></ul></ul>
  16. 16. Strategic HR Policies: Benefits 1- <ul><li>Encouraging Proactive Behavior </li></ul><ul><li>Communicating Company Goals </li></ul><ul><li>Stimulating Critical Thinking and Ongoing Examination of Assumptions </li></ul><ul><li>Identifying Gaps Between Current Situation and Future Vision </li></ul><ul><li>Encouraging Line Managers’ Participation </li></ul><ul><li>Identifying HR Constraints and Opportunities </li></ul><ul><li>Creating Common Bonds </li></ul>
  17. 17. Strategic HR Policies: Challenges 1- <ul><li>Maintaining a Competitive Advantage </li></ul><ul><li>Reinforcing Overall Business Strategy </li></ul><ul><li>Avoiding Excessive Concentration on Day-to-Day Problems </li></ul><ul><li>Develop HR Strategies Suited to Unique Organizational Features </li></ul><ul><li>Coping with the Environment </li></ul><ul><li>Securing Management Commitment </li></ul><ul><li>Translating the Strategic Plan into Action </li></ul><ul><li>Combining Intended and Emergent Strategies </li></ul><ul><li>Accommodating Change </li></ul>
  18. 18. Strategic HR: Choices <ul><li>Work Flows </li></ul><ul><li>Staffing </li></ul><ul><li>Employee Separations </li></ul><ul><li>Performance Appraisal </li></ul><ul><li>Training and Career Development </li></ul><ul><li>Compensation </li></ul><ul><li>Employee Rights </li></ul><ul><li>Employee and Labor Relations </li></ul><ul><li>International Management </li></ul>1-
  19. 19. Selecting HR Strategies <ul><li>To increase firm performance </li></ul><ul><li>HR strategies should fit with other aspects of the organization </li></ul>1-
  20. 20. HR Strategies: Fit with Organizational Strategies <ul><li>Corporate Strategies </li></ul><ul><li>Evolutionary </li></ul><ul><li>Steady State </li></ul>1- <ul><li>Porter’s Business Unit Strategies </li></ul><ul><li>Cost leadership </li></ul><ul><li>Differentiation </li></ul><ul><li>Focus </li></ul><ul><li>Miles and Snow’s Business Strategies </li></ul><ul><li>Defender </li></ul><ul><li>Prospector </li></ul>
  21. 21. HR Strategies: Fit with Environment <ul><li>Degree of Uncertainty </li></ul><ul><li>Magnitude of Change </li></ul><ul><li>Complexity </li></ul><ul><li>Volatility </li></ul>1-
  22. 22. HR Strategies: Fit with Organizational Characteristics <ul><li>Production Process </li></ul><ul><li>Firm’s Market Posture </li></ul><ul><li>Firm’s Overall Managerial Philosophy </li></ul><ul><li>Firm’s Organizational Structure </li></ul><ul><li>Firm’s Organizational Culture </li></ul>1-
  23. 23. HR Strategies: Fit with Org. Capabilities <ul><li>Distinctive Competencies </li></ul><ul><ul><li>Give firm competitive edge </li></ul></ul>1- <ul><li>HR Strategies should </li></ul><ul><ul><li>Help firm exploit its competencies </li></ul></ul><ul><ul><li>Assist the firm to help use its HR skills </li></ul></ul>
  24. 24. Recrutiment
  25. 25. Recruitment <ul><li>This refers to attracting candidates to the organisation with the view to taking up employment </li></ul><ul><li>Recruitment can occur Internally or Externally </li></ul><ul><li>There are 2 key stages in the recruitment process </li></ul><ul><ul><li>Background Stage </li></ul></ul><ul><ul><ul><li>This refers to analysis of the job description with the person specification in order to achieve a fit between the job and the candidate. </li></ul></ul></ul><ul><ul><ul><ul><li>job description (statement of the tasks &responsibilities of the role) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>with the person specification (details skills, competencies, qualifications, experience required from the candidate) </li></ul></ul></ul></ul>
  26. 26. Job analysis: an overview MATCHING JOB DESCRIPTION Job title Place of work Reporting to whom? Subordinates? Purpose of position Key duties Objectives/targets PERSONAL SPECIFICATION Physical attributes Education/training General intelligence Special aptitudes Personal Interests Personality Background
  27. 27. Recruitment contd. <ul><li>2. Recruitment Stage </li></ul><ul><ul><ul><li>This refers to the process of attracting candidates by </li></ul></ul></ul><ul><ul><ul><ul><li>Internal Recruitment –transfers, promotions </li></ul></ul></ul></ul><ul><ul><ul><ul><li>External Recruitment – media advertisements, agencies , colleges, FAS, Professional bodies </li></ul></ul></ul></ul><ul><li>Various methods can be used to attract candidates </li></ul><ul><ul><ul><li>Internal Job Posting – posted within the company </li></ul></ul></ul><ul><ul><ul><li>External Job Posting – posted to external sources e.g. Newspapers, Internet Job Pages, Colleges postings </li></ul></ul></ul><ul><ul><ul><li>Employment Agencies – the use of specialist agencies to shortlist from a large pool of candidates. This can be expensive. </li></ul></ul></ul><ul><ul><ul><li>Employee Referrals – this is when an employee refers a friend for a position </li></ul></ul></ul>
  28. 28. Selection
  29. 29. Selection <ul><li>The selection process effectively begins when application forms/CVs have been received </li></ul><ul><li>This involves selecting the right candidate from the pool of candidates that have been shortlisted </li></ul><ul><ul><li>Interviews </li></ul></ul><ul><ul><li>Reference Checks </li></ul></ul><ul><ul><li>Selection Tests </li></ul></ul>
  30. 30. Interviews <ul><li>Most commonly used selection technique e.g.1:1,group or panel </li></ul><ul><li>The objective of the interview is to </li></ul><ul><ul><li>Gain info about the candidate to determine suitability </li></ul></ul><ul><ul><li>Sell the role and the org to the candidate </li></ul></ul><ul><li>There are two main types of interviews </li></ul><ul><ul><li>Structured – set questions are asked of all candidates to compare performance </li></ul></ul><ul><ul><li>Unstructured – the interviewer has a general set of questions but its at the interviewers discretion as to what is asked </li></ul></ul><ul><li>Common Interviewing Errors </li></ul><ul><ul><li>Inadequate preparation </li></ul></ul><ul><ul><li>Premature Judgement </li></ul></ul><ul><ul><li>Lack of Rapport </li></ul></ul><ul><ul><li>Interviewer Dominance </li></ul></ul><ul><ul><li>Structural Rigidity </li></ul></ul>
  31. 31. Selection contd. <ul><li>Reference Checks </li></ul><ul><ul><li>Once interviewing has been completed candidates are placed on shortlist and references are checked </li></ul></ul><ul><ul><li>Reference checks seek to validate the information supplied by the candidate </li></ul></ul><ul><ul><li>They also gather additional details on how the employee reacted with other staff, management, customers etc. </li></ul></ul><ul><li>Selection Tests </li></ul><ul><ul><li>These can be used with interviews to reduce bias and increase correct selection </li></ul></ul><ul><ul><ul><li>Intelligence Tests – tests their mental capacity </li></ul></ul></ul><ul><ul><ul><li>Aptitude Tests – test special aptitudes that may be necessary to performing the job </li></ul></ul></ul><ul><ul><ul><li>Proficiency Tests – these test specific skills e.g. Typing, presentation skills, language skills </li></ul></ul></ul>
  32. 32. Pay and Benefits
  33. 33. Pay & Benefits <ul><li>An organisation’s reward system is a powerful indicator of its philosophy and approach to workforce management </li></ul><ul><li>The primary function of pay and benefits are employee retention and motivation </li></ul><ul><li>Rewards can be financial / non-financial </li></ul><ul><ul><li>Intrinsic rewards - spring from the job itself and include autonomy, responsibility an challenge </li></ul></ul><ul><ul><li>Extrinsic rewards - more tangible in nature and include pay, job security and working conditions </li></ul></ul><ul><li>There are 3 parts to a compensation system </li></ul><ul><ul><li>Payments </li></ul></ul><ul><ul><li>Benefits </li></ul></ul><ul><ul><li>Rewards & Motivation </li></ul></ul>
  34. 34. Pay & Benefits contd. <ul><li>Payment </li></ul><ul><li>Flat rate only or Flat rate+ </li></ul><ul><ul><li>fixed hourly, weekly, monthly rate +/or bonus by results </li></ul></ul><ul><li>Merit Rating </li></ul><ul><ul><li>Receive bonus based on their performance </li></ul></ul><ul><li>Commission – </li></ul><ul><ul><li>individual earns a % of each sale they make </li></ul></ul><ul><li>Profit Gain Sharing – </li></ul><ul><ul><li>employees get a bonus related to improved company performance </li></ul></ul><ul><li>Piecework – </li></ul><ul><ul><li>employees are paid for each item they produce </li></ul></ul>
  35. 35. Pay & Benefits contd. <ul><li>2. Benefits </li></ul><ul><li>There are 2 main types of benefits employees receive in addition to salary </li></ul><ul><ul><li>Benefits-in-kind – these are benefits that can’t be turned into cash but have a value e.g. Company car, preferential loans, health ins </li></ul></ul><ul><ul><li>Other Benefits – vouchers, holidays, bus tickets, childcare subsidies, canteen subsidies, mobile phones, education </li></ul></ul><ul><li>Rewards & Motivation </li></ul><ul><li>Employees are also motivated by non financial rewards </li></ul><ul><ul><li>Reward and Recognition Awards </li></ul></ul><ul><ul><li>Grooming for Promotion e.g. Coaching, specialist training </li></ul></ul><ul><ul><li>Greater responsibility </li></ul></ul><ul><ul><li>More enriching work </li></ul></ul>
  36. 36. Assessment & Appraisal
  37. 37. Performance Appraisal <ul><li>Assessing the work of employees is a key function of human resource management </li></ul><ul><li>It can be seen as a periodic assessment of the performance of the individual </li></ul><ul><li>Its concerned with </li></ul><ul><ul><li>Establishing performance objectives and standards </li></ul></ul><ul><ul><li>Measuring performance against standards </li></ul></ul><ul><ul><li>Providing timely feedback to the employee </li></ul></ul><ul><li>There are a number of different objectives in performance appraisal </li></ul>
  38. 38. Performance Appraisal contd. <ul><li>There are 2 main appraisal systems </li></ul><ul><ul><li>Graphic Rating Scales </li></ul></ul><ul><ul><li>This is where various aspects of the employees performance are measured against a scale </li></ul></ul><ul><ul><li>Scales are common to all employees thus making comparisons easy </li></ul></ul><ul><ul><li>360◦ Feedback </li></ul></ul><ul><ul><li>This involves collecting feedback from a variety of people you work with in the org </li></ul></ul><ul><ul><li>The strength of this review is that its viewed from many different perspectives </li></ul></ul><ul><ul><li>This type of review encourages the employee to pay attention to all work relationships </li></ul></ul>
  39. 39. Performance Appraisal contd. <ul><li>There are 2 main appraisal systems </li></ul><ul><ul><li>Graphic Rating Scales </li></ul></ul><ul><ul><li>This is where various aspects of the employees performance are measured against a scale </li></ul></ul><ul><ul><li>Scales are common to all employees thus making comparisons easy </li></ul></ul><ul><ul><li>360◦ Feedback </li></ul></ul><ul><ul><li>This involves collecting feedback from a variety of people you work with in the org </li></ul></ul><ul><ul><li>The strength of this review is that its viewed from many different perspectives </li></ul></ul><ul><ul><li>This type of review encourages the employee to pay attention to all work relationships </li></ul></ul>
  40. 40. Performance Appraisal contd. <ul><li>Effective Performance Appraisals </li></ul><ul><ul><li>Reviews the goals and standards of the employees responsibilities </li></ul></ul><ul><ul><li>Summarises the employees overall performance with positive and negative feedback </li></ul></ul><ul><ul><li>Discuss the causes of weak performance and provide the employee the opportunity to discuss this and adapt this through e.g. Training </li></ul></ul><ul><ul><li>Agree a set of activities that the employee must focus on and agree a time to review progress </li></ul></ul><ul><ul><li>End on a good note! </li></ul></ul><ul><li>Ineffective feedback </li></ul><ul><ul><li>When performance measures are not clear and then the employee is punished during review </li></ul></ul><ul><ul><li>When is it not timely thus preventing the employee the opportunity to address it before it became problematic </li></ul></ul><ul><ul><li>If it is not constructive and is used negatively against the employee </li></ul></ul>
  41. 41. Training and Development
  42. 42. Training & Development <ul><li>A major aspect of HR is developing career path opportunities for employees through org development activities </li></ul><ul><li>There is a clear distinction between the concepts of training and development </li></ul><ul><li>Training refers to a planned effort to modify or develop knowledge, skills and attitudes through learning experiences </li></ul><ul><li>Development is a broader concept referring to general growth of an individuals skilled and abilities through conscious and unconscious learning </li></ul>
  43. 43. Training & Development Methods <ul><li>On the job training </li></ul><ul><ul><li>Job rotation, coaching, mentoring, buddying </li></ul></ul><ul><ul><li>Attending internal briefings and presentations </li></ul></ul><ul><li>Customer and supplier visits </li></ul><ul><li>External formal, professional training courses </li></ul><ul><ul><li>Part time, sabbatical, fixed periods </li></ul></ul><ul><li>Secondment to another department, business unit </li></ul>
  44. 44. Summary and Conclusions <ul><li>There are many challenges in HRM </li></ul><ul><li>Plan and Implement HR Strategic </li></ul><ul><ul><li>Policies and procedures should be congruent </li></ul></ul><ul><li>Select strategies that increase performance </li></ul><ul><li>HR department and management are an important partnership </li></ul>1-