Professional Documents
Culture Documents
Model, Philosophy & Objectives Distinguishing HRM from Personnel Management Understanding the Strategic Focus
HR should not be defined by what it does but by what it delivers results that enrich the organizations value to customers, investors, and employees David Ulrich
HRM Definitions
The concept of fit with the strategic thrusts of the organisation HR strategies exist to ensure that the culture, values, structure and processes of the organisation, and the quality, flexibility, motivation and commitment of its members to contribute fully to the achievement of its objectives should match the business strategy Cooke 1990
MGMT 3017 - Dion Greenidge, Lecturer 10
HRM Definitions
The attainment of business objectives through the contribution it makes to the creation of an environment in which people commit themselves to and effectively accomplish the tasks assigned to them.
(Nurse)
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HRM Definitions
Strategic HRM is largely about integration; to ensure that HRM is fully integrated into strategic planning; that HRM policies cohere across policy areas and across hierarchies and that HRM practices are accepted and used by line managers as part of their everyday work.
(David Guest)
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HRM OBJECTIVES
Employee job satisfaction, self-actualisation and motivation Employee effectiveness and efficiency Improved quality (innovation & Creativity) Cost-effectiveness and competitiveness Labour flexibility
(Ivancevich)
MGMT 3017 - Dion Greenidge, Lecturer 15
HRM OBJECTIVES
Employee commitment Increased competence (training & development) Participation and autonomy Creating readiness for change
(Ivancevich)
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HRM OBJECTIVES
Rewards and incentives linked to performance More organic structures Recognition of human resource or people issues at the strategic level
(Ivancevich)
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Acquisition
HR Planning Internal and External Staffing Employee Orientation and Socialisation
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Development
Training of Employees Management Development Career Development Knowledge Management
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Motivation
Job Design Performance Management Rewards and Compensation Job Evaluation Discipline
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Maintenance/Retention
Commitment Employee safety and Health Employee Relations Industrial Relations
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Staffing
Job Analysis Human Resource Planning Recruitment Selection
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Staffing (Cont.)
Staffing - Process through which organization ensures it always has proper number of employees with appropriate skills in right jobs at right time to achieve organizational objectives Job analysis - Systematic process of determining skills, duties, and knowledge required for performing jobs in organization
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Staffing (Cont.)
Human resource planning - Systematic process of matching internal and external supply of people with job openings anticipated in the organization over specified period of time Recruitment - Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization
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Staffing (Cont.)
Selection - Process of choosing from a group of applicants the individual best suited for a particular position and the organization
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Compensation
Compensation - All rewards that individuals receive as a result of their employment
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Compensation
Direct Financial Compensation - Pay that person receives in form of wages, salaries, bonuses, and commissions Indirect Financial Compensation (Benefits) - All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance Nonfinancial Compensation - Satisfaction that person receives from job itself or from psychological and/or physical environment in which person works
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All HRM functions are interrelated Each function affects other areas
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Environment of Human Resource Management Technology Unions Legal Considerations EXTERNAL ENVIRONMENT INTERNAL ENVIRONMENT Society
Marketing
Economy
Shareholders
Customers
Labor Market1-45
Labor Market
Potential employees located within geographic area from which employees are recruited Always changing
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Legal Considerations
Federal, state and local legislation Court decisions Presidential executive orders
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Society
No longer content to accept, without question, the actions of business Ethics - Discipline dealing with what is good and bad, or right and wrong, or with moral duty and obligation Corporate social responsibility - Implied, enforced or felt obligation of managers to serve or protect interests of groups other than themselves
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Unions
Group of employees who have joined together for purpose of dealing collectively with their employer Becomes a third party when dealing with the company
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Shareholders
Owners of corporation Because they have invested money in firm, they may at times challenge programs considered by management to be beneficial to organization
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Competition
Firms may face intense competition in both their product or service and labor markets Must maintain a supply of competent employees Bidding war often results
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Customers
People who actually use firms goods and services Management has task of ensuring its employment practices do not antagonize members of market it serves Workforce should be capable of providing top-quality goods and services
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Technology
The world has never before seen technological changes occur as rapidly as they are today. Created new roles for HR professionals Additional pressures on them to keep abreast of technology In 2008 survey of CEOs worldwide, 83% ranked change as most important issue confronting their organization
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Cyberwork
Possibility of never-ending workday BlackBerrys, cell phones, text messaging, and e-mail create endless possibilities for communication Some workers believe their employer wants them available 24/7
MGMT 3017 - Dion Greenidge, Lecturer 54
Economy
In general, when economy is booming, it is often more difficult to recruit qualified workers. When a downturn is experienced, more applicants are typically available.
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Unanticipated Events
Occurrences in external environment that could not be foreseen Every disaster, whether manmade or by nature, requires a tremendous amount of adjustment with regard to human resource management
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Gen Y
May be the most high maintenance workforce in the history of the world Their capacity for using information technology will also make them the most high-performing
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Corporate Strategy
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HRM MODELS/MAPS
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Economic Forces
Cultural Forces
Economic Forces
Economic Forces
Devanna et al.
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HRM Policy
Employee influence HR flow Reward systems Work systems
Situational Factors
Workforce Characteristics Business strategy Management philosophy Labour market Unions Task environment Laws/social values
Beer et al.
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High Quality
Flexibility
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Selection
Performance
Appraisal
Training
Fomburn, Tichy, & Devanna (1984)
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HRM Philosophy
People as a critical resource to be developed for future benefit to the organisation A resource to be invested in, not controlled.
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PM philosophy
People as an expense to be controlled to ensure profitability of organisation. Is operational in focus and scope.
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Seven Interdependent Environmental Forces that have Driven and Directed Change in HRM The HR Responses
Competitive Restructuring Decentralisation Interrnationalisation Acquisitions and Mergers Quality Focus and Processes Technological Change New Concepts of Service management
Skill supply Training and retraining Organisational restructuring Review of work systems Cultural management Selection and Retention Employee relations Rewards Management
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Business Strategy
Defines the direction in which the business is going to achieve sustainable competitive advantage and focuses on activities that will lead to the achievement of [Vision], Mission, meet expectations of owners, manage changes imposed by the external and internal environments, add value through effective use of resources and capitalise on distinctive competences of the organisation. (Cooke 1990)
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Draper (1991)
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Hendry/Pettigrew
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Linking Forward
Next lecture we will link this section to the HR Acquisition Phase, and look at the topic of HR planning in organisations. This will be covered over a period of two weeks.
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