Module 1 human resource management
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To successfully manage human resources, individuals need personal credibility, business knowledge, understanding of the business strategy, technology knowledge, and the ability to deliver HR services. Human resource management practices should be evidence- based, that is, based on data showing the relationship between the practice and business outcomes related to key company stakeholders (customers, shareholders, employees, community). In addition to contributing to a company’s business strategy, human resource practices are important for helping companies deal with sustainability, globalization, and technology challenges. Global challenges include entering international markets, immigration, and offshoring. Technology challenges include using new technologies to support flexible and virtual work arrangements, high-performance work systems, and developing effective e-HRM practices and human resource information systems.
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Module 1 human resource management
- 1. HUMAN RESOURCE MANAGEMENT Presented by: Maria Theresa P. Pelones, DM Email: mariatheresa_pelones@yahoo.com Website: www.pinoyalert .com Slideshare: http://www.Slideshare.netpilmathe
- 3. Rationale People Dealing with people is one of the most difficult things because people are very complex creatures Organization A consciously coordinated unit created by groups or society to achieve specific purposes common aims and objectives by means of planned and coordinated activities It is created by people who decides to work together to attain specific objectives People,Organization& Employment Success of individuals and organizations are measured by their adaptability to change. Employment means something that individual does, and combination with shared responsibilities and duties.
- 4. SELF-ASSESSMENT DESCRIPTION YES NO 1. I have leadership and management skills I have developed through prior job experiences, extracurricular activities, community services or other non course activities 2. I have excellent communications, dispute resolution and interpersonal skills 3. I can demonstrate an understanding of the fundamentals of running a business and make a profit 4. I can use spreadsheets and the World Wide Web and I am familiar with information systems technology 5. I can work effectively with people of different cultural backgrounds. 6. I have expertise in more than one area of human resource management
- 5. SELF-ASSESSMENT The greater the number of YES answers, the better prepared you are to work in an HR department. For questions you answered NO, you should seek courses and experiences to change your answer to yes- and better prepare yourself for a career in HR. Source: Based on B.E.Kauffman. What Companies Want from HR Graduates, HR Magazine, September 1994
- 6. OBJECTIVES Define Human Resource Management Discuss the relationship between HRM and Management Understand human resource activities Define strategic human resource Describe strategic approaches to human resource management Strategic challenges facing global HRM
- 7. ENTERTHEWORLDOFBUSINESS Starbucks’ HR practices Ensure Its Brew Is a Winner
- 8. What is human resource management? Managing people within employee-employer relationship it seeks to strategically integrate the interest of an organization and its employees Refers to the policies, practices and systems that influences employees behavior, attitudes and performance WhatisHumanResourceManagement?
- 9. HRM vs MANAGEMENT • HRM is management, but management is more than HRM. Managers love HR because they love people Anyone can do HR HR deals with the soft side of a business and therefore is not accountable HR focuses on costs, which must be controlled HR is full of fads HR is HR’s job Myths that keeps HR from being a profession WhatisHumanResourceManagement?
- 11. HR ACTIVITIES Job Analysis HR Planning or Employment Planning Employment Recruitment Employee Selection Performance Appraisal HR Development Activities Career Planning and Development Employee Motivation Compensation & Benefits Industrial Relations Health & Safety Programs Managing Diversity WhatisHumanResourceManagement?
- 12. Job Analysis- defines job in terms of specific tasks and responsibilities and identifies the abilities, skills and qualifications needed to perform it successfully. The products were job description and job specifications. Considered as significant because of its basic starting point of HR planning and other HR activities. HR planning or Employment Planning- process by which an organization attempts to ensure that it has the right number of qualified people in the right jobs at the right time. Employment Recruitment- process of seeking and attracting a pool of applicants from which qualified candidates for job vacancies within an organization thru job posting, advestising and executive search. Employee Selection- involves choosing from the available candidates the individual predicted to be most likely to perform successfully in the job ( reviewing the application form, psychological testing, employment interview, reference checking and completing medical examination) Performance Appraisal- concerned with determining how well employees are doing their jobs, communicating that information to the employees and establishing a plan for performance improvements leading to rewards, training & development needs and placement decisions WhatisHumanResourceManagement?
- 13. Human Resource Development activities- focus on the acquisition of attitudes, skills and knowledge (KSA) required for employees to learn how to perform their jobs. Improve their performance prepares them for senior positions and achieve their career goals.(training, productivity enhancement) Career Planning and development- identification of employees career goals, future job opportunities and personal improvement requirements and ensuring that qualified employees are available when needed. Employee Motivation- Concerned with why people do things and why one employee works harder that another Compensation- refers to the cash rewards, like base salary, bonus, incentive payments and allowances, which employees receive for working in an organization. Benefits – referred to as indirect or non cash compensations. They include superannuation, life insurance, disability insurance, medical and hospital incentives, long term sickness and accident disability insurance, annual leave, sick leave, maternity and paternity leaves and etc. By improving the quality of work life, benefits reinforce the attractiveness of an organization in a place of work Industrial relations- concerned with relationship between an organization and its employees. It includes industrial tribunals, employer association, trade unions, industrial lawas, awards terms and conditions of work, grievance procedures, disputes settlement, advocacy and collective bargaining WhatisHumanResourceManagement?
- 14. Health and Safety Programs- help guarantee the physical and mental well being of employees. Organization are required to provide a safe work environment free from physical hazards and unhealthy conditions. Ex.Personnel Records Managing Diversity- integrate successfully multicultural population into the work force to maximize the contribution of all employees represents the challenge to HR managers. Strategic Planning – International human resources, forecasting, planning, mergers and acquisitions. WhatisHumanResourceManagement?
- 15. Role of HR Managers Strategic Partner • HR managers being of the management team running the organization and contributing to the achievement of the organization’s objectives by translating business • strategy into action Administrative Expert Efficiency of HR managers and the effective management of HR activities so that they can create value Employee Champion Requires the HR manager to be the employees voice or management decisions Change Agent • A person who acts as a catalysts of change ROLE OF HR MANAGERS WhatisHumanResourceManagement?
- 16. Six Competencies for HR Profession Credible Activist • Deliver results with integrity • Share information • Build trusting relationships • Influencing others, providing candid observation, taking appropriate task Cultural Steward • Facilitates change • Developing and valuing culture • Helping employees navigate the culture ( find meaning in their work, manage work/life balance and encourage innovation Talent Manager/ Organizational Architect • Develop talent • Design reward system • Shape the organization Strategic Architect • Recognize business trend and impact on the business • Evidence based HR • Develop people strategies that contribute to business strategy Business ally • Understanding how the business makes money Operational Executor • Implementing workplace policies • Advancing HR technology • Administer day-to-day work of managing people WhatisHumanResourceManagement?
- 17. Presented by: Maria Theresa P. Pelones, DM Strategic Approach to Human Resource Management
- 18. HR as a Business with 3 Product Lines Administrative Services and Transactions Business Partner Services Strategic Partner Human Resources 1-19 WhatisHumanResourceManagement?
- 19. Strategic Role of the HRM Function 1-20 Time spent on administrative tasks is decreasing. HR roles as a strategic business partner, change agent and employee advocate are increasing. WhatisHumanResourceManagement? HR is challenged to shift focus from current operations to future strategies and prepare non-HR managers to develop and implement HR practices. This shift presents two challenges: (a) Self-service (b) Outsourcing
- 20. 1-21 Shared Service Model is a way to organize the HR function that includes centers of expertise or excellence, service centers and business partners to help control costs and improve business- relevance and timeliness of HR practices. Shared Service Model WhatisHumanResourceManagement?
- 21. HR Playing a Strategic Role in the Business? 1. What is HR doing to provide value-added services to internal clients? 1-22 WhatisHumanResourceManagement? 2. What can HR add to the bottom line? 3. How are you measuring HR effectiveness? 4. How can we reinvest in employees?
- 22. Questions, cont. 5. What HR strategy will get the business from point A to point B? 6. What makes an employee want to stay? 1-23 WhatisHumanResourceManagement? 7. How will we invest in HR for a better HR department than competitors have? 8. What should we be doing to improve our marketplace position? 9. What’s the best change to prepare for the future?
- 23. How is the HRM Function Changing? As part of its strategic role, HR can engage in evidence-based HR. Evidence-based HR – demonstrating that HR practices have a positive influence on the company’s bottom line or key stakeholders. 1-24 WhatisHumanResourceManagement?
- 24. The HRM Profession • HR salaries vary according to position, experience, education, training, location and firm size. 1-25 WhatisHumanResourceManagement? The primary professional organization for HRM is the Society for Human Resource Management (SHRM) (www.shrm.org)
- 25. 3 Competitive Challenges Influencing HRM Sustainability Technology 1-26 WhatisHumanResourceManagement?
- 26. The Sustainability Challenge Sustainability is the ability of a company to survive and succeed in a dynamic competitive environment. Stakeholders include shareholders, the community, customers and all other parties that have an interest in seeing that the company succeeds. 1-27 WhatisHumanResourceManagement?
- 27. The Sustainability Challenge Sustainability includes the ability to: deliver a return to shareholders provide high-quality products, services and work experiences for employees increase value placed on intangible assets, human capital and social responsibility 1-28 WhatisHumanResourceManagement? adapt to changing characteristics and expectations of the labor force address legal and ethical issues effectively use new work arrangements
- 28. The Global Challenge To survive companies must deal with the global economy, compete in and develop global markets and prepare employees for global assignments. Offshoring – exporting jobs from developed countries to less developed countries Onshoring – exporting jobs to rural parts of the United States 1-29 WhatisHumanResourceManagement?
- 29. Technology Challenge The overall impact of the Internet The Internet has created a new business model – e- commerce – for conducting business transactions and relationships electronically. Social networking WhatisHumanResourceManagement?
- 30. The Technology Challenge Advances in technology have: changed how and where we work resulted in high- performance work systems increased the use of teams to improve customer service and product quality changed skill requirements increased working partnerships led to changes in company structure and reporting relationships 1-31 WhatisHumanResourceManagement?
- 31. The Technology Challenge Advances in technology have increased: use and availability of Human Resource Information Systems (HRIS) use and availability of e- HRM competitiveness in high- performance work systems HR Dashboard Metrics 1-32 WhatisHumanResourceManagement?
- 32. Summary HR has three product lines: administrative services, business partner services, and strategic services. To successfully manage HR, individuals need personal credibility, business and technology knowledge, understanding of business strategy, and ability to deliver HR services. HR management practices should be evidence-based. HR practices are important for helping companies deal with sustainability, globalization, and technology challenges. HR managers must address global and technology challenges. 1-33 WhatisHumanResourceManagement?
Editor's Notes
- People and organization & EmploymentHow do you deal with people? Dealing with people is considered as the most difficult thins in life for they are very complex creature. They are diverse with different ethnic, culture, religious , political, moral, beliefs and values. This complexity.As managers how do you deal with complexity of your employees? How do you respond with these complexities?How do you define “ORGANIZATION”? What are your possible contributions in your organization?What common forces affects that your organization? Do these forces contributes to the total development of your organization?How does the concept of People, Organization and Employment contributes to the successful implementation of human resource management practices.Review Questions:Have you ever been a member of an organization? What makes you think it fits you into the organization?Which individual characteristics will give you competitive edge in the new business environment?How do your think your future employment will be effected by the changing nature of work?If you are looking for work, what do you expect from your employer? What do you think will your employer expects from you in return?
- When you heard the word Human Resource Management, what comes into your mind? There is not one definition that can define what HRM exactly is. There is no best way to manage people and no manager has formulated how people can be nest manage.Based on the article entitled “ Human Resource Management” what conclusion can you formulate?Review Questions:What are the current challenges in managing people and how can HRM help managers overcome these problems?Where do you see the contribution of HRM in achieving organizational goals?What evidence is there to suggest that HRM makes any impact on the organization on the short term?
- Any management idea used to help managers understand complexities of people at work is always based on what is already known and what has been a success or failure due to certain causes and conditions in an organizational context.Anything that could be thought of as a strength or weakness of a given firm including tangible and intangible assets ( Wemerfelt, 1984)Policies, practices and systems that influence employee’s behavior, attitudes and performance ( Noe, Hollenback, Gerhart & Wright, 2009)
- 1. Managers love HR because they love people -HR department are not designed to provide corporate therapy or as social or health-happiness retreats. HR professional must create the practices that make employees more competitive, not more comfortable.2.Anyone can do HR - HR Activities are based on theory and research. HR professionals must master both theory and practices.3. HR deals with the soft side of a business and therefore is not accountable -The impact of HR practices on business results can and must be measured. HR professionals must learn how to translate their work into financial performance.4. HR focuses on costs, which must be controlled -HR practices must create value by increasing intellectual capital within the firm, HR professionals must learn how to translate their work into financial performance.5. HR is full of fads -HR practices have evolved over time. HR professionals must see their current work as part of an evolutionary chain and explain their work with less jargon and more authority.6. HR is staffed by nice people-At times, HR practices should force vigorous debates. HR professionals should be confrontative and challenging as well as supportive.7. HR is HR’s job- HR work is an important to line managers as are finance, strategy and other business domains. HR professionals should join with managers in championing HR issues.
- Figure 1.1 emphasizes that there are several important HRM practices. The strategy underlying these practices needs to be considered to maximize their influence on company performance. As the figure shows, HRM practices include analyzing and designing work, determining human resource needs (HR planning), attracting potential employees (recruiting), choosing employees (selection), teaching employees how to perform their jobs and preparing them for the future (training and development), rewarding employees (compensation), evaluating their performance (performance management), and creating a positive work environment (employee relations).
- Job Analysis- defines job in terms of specific tasks and responsibilities and identifies the abilities, skills and qualifications needed to perform it successfully. The products were job description and job specifications. Considered as significant because of its basic starting point of HR planning and other HR activities.HR planning or Employment Planning- process by which an organization attempts to ensure that it has the right number of qualified people in the right jobs at the right time. Employment Recruitment- process of seeking and attracting a pool of applicants from which qualified candidates for job vacancies within an organization thru job posting, advestising and executive search.Employee Selection- involves choosing from the available candidates the individual predicted to be most likely to perform successfully in the job ( reviewing the application form, psychological testing, employment interview, reference checking and completing medical examination)Performance Appraisal- concerned with determining how well employees are doing their jobs, communicating that information to the employees and establishing a plan for performance improvements leading to rewards, training & development needs and placement decisionsHuman Resource Development activities- focus on the acquisition of attitudes, skills and knowledge (KSA) required for employees to learn how to perform their jobs. Improve their performance prepares them for senior positions and achieve their career goals.(training, productivity enhancement)Career Planning and development- identification of employees career goals, future job opportunities and personal improvement requirements and ensuring that qualified employees are available when needed.Employee Motivation- Concerned with why people do things and why one employee works harder that anotherCompensation- refers to the cash rewards, like base salary, bonus, incentive payments and allowances, which employees receive for working in an organization.Benefits – referred to as indirect or non cash compensations. They include superannuation, life insurance, disability insurance, medical and hospital incentives, long term sickness and accident disability insurance, annual leave, sick leave, maternity and paternity leaves and etc. By improving the quality of work life, benefits reinforce the attractiveness of an organization in a place of workIndustrial relations- concerned with relationship between an organization and its employees. It includes industrial tribunals, employer association, trade unions, industrial lawas, awards terms and conditions of work, grievance procedures, disputes settlement, advocacy and collective bargainingHealth and Safety Programs- help guarantee the physical and mental well being of employees. Organization are required to provide a safe work environment free from physical hazards and unhealthy conditions.Personnel RecordsManaging Diversity- integrate successfully multicultural population into the work force to maximize the contribution of all employees represents the challenge to HR managers.Strategic Planning – International human resources, forecasting, planning, mergers and acquisitions.
- Strategic PartnerHR managers being of the management team running the organization and contributing to the achievement of the organization’s objectives by translating business strategy into actionHR manager must develop business acumen, a customer orientation and awareness of the competition to be able link business strategy to HR policies and practices. Do the nuts and bolts of HRGet rid of HR efforts that don’t add valueUnderstand the businessDevelop relationship throughout the organizationHelps the managers to become more confidence in their HR roleDevelop and ability to articulate your points of view using “ line language”Become more flexibleBecome generalists who understand the big pictureFocus on the same goalsThe three Cs: Collaboration, Cooperate and CommunicateAdministrative Expert -Efficiency of HR managers and the effective management of HR activities so that they can create value HR must be able to re-engineer HR activities using technology, rethinking and redesigning work processes and the continous improvement of all processes. Employee Champion- Requires the HR manager to be the employees voice or management decisions. HR managers must be able to relate and meet the needs of the employees. They need to become employees voice in management discussions by being fair and principled, by assuring employees voice in management discussion , by helping employees find resources that enable them to successfully perform their jobsChange Agent - A person who acts as a catalysts of change. He should lead change in the HR function and by developing problem-solving communication and influence skills. Change must transformed to dealt creatively and pragmatically with emerging challenges.
- Six competencies are needed for the HR profession.1. Credible activist: delivers results with integrity, shares information, builds trusting relationships, and influences others, providing candid observation, taking appropriate risks.2. Cultural steward: facilitates change, develops and values the culture, and helps employees navigate the culture. 3. Talent manager/organizational designer: develops talent, designs reward systems, and shapes the organization.4. Strategic architect: recognizes business trends and their impact on the business, practice evidence-based HR, and develops people strategies that contribute to the business strategy.5. Business Ally: understands how the business makes money and the language of the business.6. Operational executor: implements workplace policies, advances HR technology, and administers day-to-day work of maintaining people.
- Shared service model is a way to organize the HR function that includes centers of expertise or excellence, service centers and business partners to help control costs and improve business-relevance and timeliness of HR practices. Centers of expertise or excellence include HR specialists such as staffing or training. Service centers are a central place for administration and transactional tasks such as enrolling in training programs or benefits that employees and managers can access online. Business partners are HR staff members who work with managers on strategic issues such as creating new compensation plans or development programs for preparing high–level managers.
- Managers see HRM as the most important lever for companies to gain a competitive advantage over both domestic and foreign competitors. HRM practices are directly related to companies’ success in meeting competitive challenges.