HRM in Context

By Anil Khadka

Concept
Human Resource Management, Personnel Management, Employee Relation.

Unique source of achieving competitive advantages

art and science

Definition
Human Resource Management is a process consisting of acquisition, development, motivation, and maintenance of human resources. (DeCenzo and Robbins) The policies and practices involved in carrying out the people or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising. (Dessler)

Nature of HRM

Human Focus
Management Function

Continuous Commitment
Dynamic

Mutually orientated

Line and Staff Aspects of HRM

Line vs. Staff authority HR Department provides special assistance through: A line function A coordinative function Staff (assist and Advise) function 3. Cooperative Line and Staff HR Management

Functions of HRM

Acquisition (staffing) Function Activities

Employment planning

ensures that staffing will contribute to the organizations mission and strategy

Job analysis

determining the specific skills, knowledge and abilities needed to be successful in a particular job defining the essential functions of the job

Acquisition (staffing) cont..

Recruitment
the process of attracting a pool of qualified applicants that is representative of all groups in the labor market

Selection

the process of assessing who will be successful on the job, and the communication of information to assist job candidates in their decision to accept an offer

Development Function
Activities in HRM concerned with assisting employees to develop up-to-date skills, knowledge, and abilities Orientation and socialization help employees to adapt Four phases of training and development
Employee training Employee development Organization development Career development

The Motivation Function

Activities in HRM concerned with helping employees exert at high energy levels. Implications are:
Individual Managerial Organizational

Function of two factors:

Ability Willingness

Respect

The Motivation Function

Managing motivation includes:
Job design Setting performance standards Establishing effective compensation and benefits programs Understanding motivational theories

The Motivation Function

Classic Motivation Theories
Hierarchy of Needs Maslow Theory X Theory Y McGregor Motivation Hygiene Herzberg Achievement, Affiliation, and Power Motives McClelland Equity Theory Adams Expectancy Theory - Vroom

Maintenance Function
Retain productive employees

Activities in HRM concerned with maintaining employees commitment and loyalty to the organization.
Health Safety Communications Employee assistance programs

Effective communications programs provide for 2-way communication to ensure that employees are well informed and that their voices are heard.

Components of HRM
( American Society of Training and Development)

Training and development

Organization development Organizational/job design Human Resource Planning Selection and Staffing Compensation/Benefits Employee Assistance

Union/Labor Relations

Environment

INPUTS

Processing
Acquisition Development Utilization Maintenance

Output
Organizational Goals achievement Quality of worklife Productivity Readiness for change Employee related Commitment Competence Congurence Cost-effectiveness

Human energy and competencies Organizational Plan HR Inventory Job Analysis Labor Market

Feedback

HRM System

Does HRM Really Matter?

Research has shown that a fully functioning HR department does make a difference. Organizations that spend money to have quality HR programs perform better than those who dont.

Practices that are part of superior HR services include:

rewarding productive work creating a flexible work-friendly environment properly recruiting and retaining quality workers effective communications

Importance of HRM 1. Adherence to government regulations 2. Better understanding of legal issues in managing people 3. Harmonious labor relations 4. Source of competitive advantage 5. Increased Productivity: - Motivated workforce - Increase in innovation 6. Readiness for change 7. Quality of work life - Autonomy - Greater sense of belongingness - Recognition - Employee development and progress

Personnel Management and HRM

*Some experts see no difference *The terms is used interchangeably

However, some experts have come up with differences: * Human Resources Management is spoken about in a much

broader sense than Personnel Management. It has been said that HRM incorporates and develops personnel management skills. It is Human Resources Management that develops a team of employees for an organization.

Difference cont

* Personnel management is regarded to be more administrative

in nature. Personnel management basically deals with the employees, their payroll and employment laws. On the other hand, Human Resources Management deals with the management of the work force, and contributes to an organizations success.

* Personnel management can be considered as reactive, in the

sense that it provides concerns and demands as they are presented. On the contrary, Human resources Management can be stated to be proactive, as it pertains to the continuous development of policies and functions for improving a companys workforce.

Difference cont

* Whereas personnel management is independent from an

organization, the Human Resources Management is an integral part of a company or an organization. While Personnel management tends to motivate the employees with compensations, rewards and bonuses, Human Resources Management tends to provide motivation through human resources, effective strategies for facing challenges, work groups, and job creativity. the contrary, the prime focus of Human Resources Development is to build a dynamic culture.

* One can also come across differences in motivational aspects.

* Personnel management focuses on administrating people. On

Changing World of Work (HRM)

1.Globalization HRM functions are more complex when employees are located around the world. Consideration must be given to such things as foreign language training, relocation and orientation processes, etc. HRM also involves considering the needs of employees families when they are sent overseas.

Cutting global HR Communication costs is a challenge Consideration must be given to formulating selection, training
and compensation policies for expatriate employees

Has altered the way people work. Has changed the way information is created, stored, used, and shared. The move from agriculture to industrialization created a new group of workers the blue-collar industrial worker. Since WWII, the trend has been a reduction in manufacturing work and an increase in service jobs. Why the emphasis on technology:
makes organizations more productive helps them create and maintain a competitive advantage provides better, more useful information

2.Technological Advances Cont..

*How Technology Affects HRM Practices

*Recruiting *Employee Selection *Training and Development *Ethics and Employee Rights *Motivating Knowledge Workers *Paying Employees Market Value *Communication *Decentralized Work Sites *Skill Levels *Legal Concerns

3. Exporting jobs

* The jobs are being exported due to competitiveness and

search for efficiency.

* It is a challenge for HRM to manage the exporting of jobs -How to export jobs
- What mechanism to use to facilitate the exporting of jobs

4. Nature of the work

* Demand for more educated and skilled worker * Non traditional workers * The center of gravity in employment is moving fast from
manual and clerical workers to knowledge workers.
the acquisition and application of information.

* Knowledge Worker - individuals whose jobs are designed around

* HRM should be able to address the changing nature of work with
proper HR policies.

5.Workforce Demographics
The challenge is to make organizations more accommodating to diverse groups of people.

5.Workforce demographics cont

*minorities and women have become the fastest

growing segments

*the numbers of immigrant workers and older workers

are increasing *Need to attract and maintain a diversified work force that is reflective of the diversity in the general population. *Need to foster increased sensitivity to group differences. *Must deal with the different * Values * Needs * Interests * Expectations of employees

Changing Roles of HR Professionals

The changing nature of work demands 1. Proficiencies * HR proficiencies * Business proficiencies * Leadership proficiencies * Learning proficiencies 2. Understanding of employment law
3. Ethical Practices 4. More professionalized (HR Certification) 4. Technological competence The role of HR professionals in the changing world of work should be strategic role, not merely staff, line or integrative role.

Meaning of strategic Plan

Strategic plan is a companys plan for how it will match its internal strength and weakness with external opportunities and threats in order to maintain a competitive advantage.
Major HRs Strategic Challenges

-Need to support corporate productivity and performance effort.

-Employees play an expanded role in employers performance improvement effort. - Must be involved in designing strategies- not just executing

The strategic Management Process The process of identifying and executing the organizations mission by matching its capabilities with the demands of its environment. 1. Define the Business and its Mission 2. Perform internal and external audit 3. Translate the Mission into strategies 4. Formulate a strategy to achieve the Strategic Goals 5. Implement the strategy 6. Evaluate the strategy

Strategic HRM
HR Strategies refers to the specific human resource management courses of action the company pursues to achieve its goal. Strategic HRM is the process of formulating and executing HR Systems-HR policies and activities-that produce the employee competencies and behaviors the company needs to achieve its strategic aims.

HRs Strategic Role 1. HRs Strategy Execution Role

Execute functional (HR) strategy in line with corporate and competitive strategies. Support strategy implementation, e.g. HR guides the execution of downsizing, restructuring HR has a seat at the Strategy Planning table HR can supply crucial information about competitors human resource strength. HR supplies internal human strength and weakness

2. HRs Strategy Formulation Role

* * *

Creating a Strategy-Oriented HR System

HR System HR Function
HR Professionals with strategic management competencies

High Performance work system (HPWS) consisting of strategically aligned HR Policies, practices, and activities

Employee Behavior
Employee competencies, values, motivation, and behaviors required by the companys strategic plan

Translating Strategy into HR Policy and Practices

Formulating Business Strategy
What are the strategic goals of business?

Identify Workforce Requirement

What employee competencies and behaviors must HR deliver to enable the business to reach its goals?

Formulate HR Strategic Policies and Activities

Which HR strategies and practices will enable HR to produce these employee competencies and behaviors?

Develop Detailed HR Score Card Measures

How can HR measures whether it is executing well for the business, in terms of producing the required workforce competencies and behaviors?

*Strategic Environment *Governmental Legislation *Labor Unions *Management Thought

*HRM Strategic Environment includes:

*Globalization *Technology *Work force diversity *Changing skill requirements *Continuous improvement *Work process engineering *Decentralized work sites *Teams *Employee involvement *Ethics

* Governmental Legislation
* Laws supporting employer and employee actions

* Labor Unions
* Act on behalf of their members by negotiating
contracts with management

* Exist to assist workers * Constrain managers * Affect non unionized workforce

* Management Thought
* Management principles, such as those from
scientific management or based on the Hawthorne studies influence the practice of HRM.

* More recently, continuous improvement programs

have had a significant influence on HRM activities.

International Perspective of Human Resource Management

The early days: welfare officers

-Beginning of 19th century for industrial betterment -The first welfare workers were women, and were only concerned with the protection of women and girls,

The growth in personnel management: 1914-39

-The First World War accelerated change in the development of personnel management - During the war, industrial relations entered the equation

- During the 1920s, jobs with the titles of 'labour manager' or 'employment manager' came into being

- Some specialist personnel departments were created - Main concern was recruitment , absenteeism
The Second World War: personnel grows further in importance personnel work on a full-time basis relations grew in importance too. consultation or negotiation

- Industrial relations grew in importance too. Industrial

- productivity improvements came to be linked with joint

1945 - 1979: collective bargaining and industrial relations have primacy

- Increase in collective bargaining - growth of shop stewards and local bargaining - large number of official and unofficial strikes - Ad hoc responses by personnel managers - In mid 60s employment of personnel specialist in some
organizations

- In mid 60s new legislation was introduced on contracts of

employment, training, and redundancy payments, followed in the seventies by laws on equal pay and opportunities, employment protection and attempts to regulate trade union activity. social sciences about motivation and organizational behavior;

- personnel techniques developed using theories from the

1979 - present: the rise of HRM - HRM was mainly connected with minimizing trade union

influence and the titles of some personnel departments were changed to symbolize this

- Employees treated as resources - Played advisory role to managers - perceived role in reducing union influence - Supporting business strategy

*Three views of ethics:

*Utilitarian View decisions are made on the basis of

their outcomes or consequences *Rights View decisions are made with concern for respecting and protecting individual liberties and privileges *Theory of Justice View decisions are make by enforcing rules fairly and impartially

*Code of ethics - a formal document that states

an organizations primary values and the ethical rules it expects organizational members to follow.

Ethical Issues in Human Resource Management Ethics

The principal of conduct governing an individual or group; specifically the standards you use to decide what your conduct should be. Ethics vs. Laws Some HR issues may be legal but not ethical.
HRM must:

*Make sure employees know about corporate ethics

policies

*Train employees and supervisors on how to act

ethically

Factors affecting Ethical Behavior

* Individual Factors * Organizational factors * The Bosss influence * Ethical Policies and Codes * Organizational Culture * Societal Force

HR Ethics Activities

* Staffing and selection

* Fostering the perception of fairness in the processes of
recruitment and hiring of people.

* Formal procedures * Interpersonal treatment * Providing explanation

*Training
*How to recognize ethical dilemmas. *How to use ethical frameworks (such as codes of
conduct) to resolve problems.

*How to use HR functions (such as interviews and

disciplinary practices) in ethical ways.

HR Ethics Activities (Contd)

* Performance appraisal
* Appraisals that make it clear the company adheres to high
ethical standards by measuring and rewarding employees who follow those standards.

* Reward and disciplinary systems

* The organization swiftly and harshly punishes unethical conduct.

* Workplace aggression and violence

* Taking care that HR actions do not foster perceptions of
inequities that translate into dysfunctional behaviors by employees.