Management is the process of coordinating work activities so that they are completed efficiently and effectively with and through other people. Managers at every level must concern themselves with human resource management Five functions 1 Human Resource Management Safety and Health Human Resource Management Functions Job analyses labor needs Recruit Select candidates Orient and train Wages and salaries Incentives and benefits Performance Communicate train and develop Employee commitment Equal opportunity Health and safety Grievances / labor relations
Management is the process of coordinating work activities so that they are completed efficiently and effectively with and through other people. Managers at every level must concern themselves with human resource management Five functions 1 Human Resource Management Safety and Health Human Resource Management Functions Job analyses labor needs Recruit Select candidates Orient and train Wages and salaries Incentives and benefits Performance Communicate train and develop Employee commitment Equal opportunity Health and safety Grievances / labor relations
Management is the process of coordinating work activities so that they are completed efficiently and effectively with and through other people. Managers at every level must concern themselves with human resource management Five functions 1 Human Resource Management Safety and Health Human Resource Management Functions Job analyses labor needs Recruit Select candidates Orient and train Wages and salaries Incentives and benefits Performance Communicate train and develop Employee commitment Equal opportunity Health and safety Grievances / labor relations
HUMAN RELATIONS MOVEMENT Hawthorne Studies, Mayo, Follett, Lewin
GROWTH OF GOVERNMENTAL REGULATIONS Wages (1930s), Unionization (1940s), Employment (1960s)
PROFESSIONALIZATION OF HR MANAGEMENT Professional HR Societies & HRCI (Certification Institute)
Management the process of coordinating work activities so that they are completed efficiently and effectively with and through other people elements of definition Process - represents ongoing functions or primary activities engaged in by managers Coordinating - distinguishes a managerial position from a non-managerial one
Management Strives For: Low resource waste (high efficiency) High goal attainment (high effectiveness) Resource Usage Efficiency (Means) Goal Attainment Effectiveness (Ends) Low Waste High Attainment Utilization of individuals to achieve organizational objectives All managers at every level must concern themselves with human resource management Five functions
1 Human Resource Management Safety and Health Human Resource Management Functions Job analyses Labor needs Recruit Select candidates Orient and train Wages and salaries Incentives and benefits
Performance Communicate Train and develop Employee commitment Equal opportunity Health and safety Grievances/labor relations
EMPLOYMENT / STAFFING RECRUITMENT SELECTION TRAINING AND DEVELOPMENT APPRAISAL EDUCATION AND DEVELOPMENT COMPENSATION SALARIES, WAGES AND BENEFITS INCENTIVE PLANS EMPLOYEE RELATIONS GRIEVANCE RESOLUTION UNION RELATIONS HR PLANNING AND RESEARCH FORECASTING JOB ANALYSIS ATTITUDE SURVEYS VALIDATION STUDIES 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 Human resource planning - Systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a 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 Selection - Process of choosing from a group of applicants the individual best suited for a particular position and the organization
Training - Designed to provide learners with knowledge and skills needed for their present jobs Development - Involves learning that goes beyond today's job; it has more long-term focus Career development - Formal approach used by organization to ensure that people with proper qualifications and experiences are available when needed Organization development - Planned process of improving organization by developing its structures, systems, and processes to improve effectiveness and achieving desired goals Performance management - Goal-oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization Performance appraisal - Formal system of review and evaluation of individual or team task performance
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. Employees who work in safe environment and enjoy good health are more likely to be productive and yield long-term benefits to organization.
Safety - Involves protecting employees from injuries caused by work-related accidents Health - Refers to employees' freedom from illness and their general physical and mental well being Private-sector union membership has fallen from 39 percent in 1958 to 7.8 percent in 2005. Business is required by law to recognize a union and bargain with it in good faith if the firms employees want the union to represent them Is the function of HR to control workers, or to help them and act as their advocate? Resolving personnel grievances and disagreements fairly in both union and union- free environments Impact on you as employees
Impact on you as managers
Potential future roles as HR professionals
Impact of HRM on organizations HR Department Organizational Chart EMPHASIS ON STRATEGIC PLANNING & SUCCESSION VP of HR is a Strategic Manager, Management Succession Planning
EMPHASIS ON COST-RELATED ISSUES / COST CONTROL Global Competition, Outsourcing and Downsizing
NEW SPECIALTIES EMERGING IN HR HR Planning, International HR, Employee Assistance Programs
GROWTH OF GOVERNMENTAL REGULATIONS Wages (1930s), Unionization (1940s), Employment (1960s)
PROFESSIONALIZATION OF HR MANAGEMENT Professional HR Societies & HRCI (Certification Institute)
THE INTERNET REVOLUTION Electronic Recruiting, Records Management, and HRIS System approach to Human Resource Management (4 inter related factors) Human resource approach people constitute a form of capital and act as one of essential assets Personnel climate personnel environment conducive for development of Human Capital as long term investment capable of yielding rich dividends Human resource program to achieve the twin aims of productivity and satisfaction Human Resource System with relevant inputs , processing and outputs Five separate sub-systems are Employment Development Utilization Compensation Maintenance
HR Subsystem Procurement Training Compensation Appraisal Rewards Product subsystem Marketing Subsystem Technical subsystem Finance Subsystem 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 More strategic (not strictly focused on day- to-day operational needs) More proactive (less reactive) More of a consultant to line management (less of a bureaucratic specialist) More of an employee champion (less of an organizational cop) Personal credibility
Business mastery
HR mastery
Change mastery (Broadbank and Ulrich, 1994)
Society for Human Resource Management
Human Resource Certification Institute
American Society for Training & Development
American Compensation Association STRATEGIC HUMAN RESOURCE MANAGEMENT Strategic Management The process of identifying and executing the organizations mission by matching its capabilities with the demands of its environment. Strategy A chosen course of action. Strategic Plan How an organization intends to balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage over the long-term. Vision A general statement of an organizations intended direction that evokes emotional feelings in organization members. Mission Spells out who the company is, what it does, and where its headed. Diversificatio n Strategy Geographic Expansion Strategy Vertical Integration Strategy Corporate- Level Strategies Consolidation Strategy Cost Leadership Focus/Niche Business-Level/ Competitive Strategies Differentiation The Fit Point of View (Porter) All of the firms activities must be tailored to or fit the chosen strategy such that the firms functional strategies support its corporate and competitive strategies. Leveraging (Hamel and Prahalad) Stretch in leveraging resources supplementing what you have and doing more with what you havecan be more important than just fitting the strategic plan to current resources. Strategic Human Resource Management The linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility. Involves formulating and executing HR systems HR policies and activitiesthat produce the employee competencies and behaviors that the company needs to achieve its strategic aims. Corporate productivity and performance improvement efforts Increased HR team involvement in design of strategic plans Basic Strategic Challenges Expanded role of employees in the organizations performance efforts Strategy Execution Role Strategic Planning Roles Strategy Formulation Role Human Resource Professionals Employee Behaviors and Competencies Components of a Strategic HRM System Human Resource Policies and Practices Characteristics of HPWS multi-skilled work teams empowered front-line workers extensive training labor-management cooperation commitment to quality customer satisfaction
HR Activities Organizationa l Performance Emergent Employee Behaviors Strategically Relevant Organizationa l Outcomes Achieve Strategic Goals 1 2 3 4 5 Outline value chain activities Define the business strategy Outline a strategy map Identify strategically required outcomes Identify required workforce competencies and behaviors 6 7 8 9 10 Create HR Scorecard Identify required HR policies and activities Choose HR Scorecard measures Summarize Scorecard measures on digital dashboard Monitor, predict, evaluate The 10-Step HR Scorecard Process Human resource management attracts, develops, and maintains a talented workforce. Government legislation protects workers against employment discrimination. Employee rights and other issues complicate the legal environment of work. Labor relations and collective bargaining are closely governed by law. Govt or state machinery regulates the relationship between workers organizations and employers organizations.
It does it through : - Statutes and legislations, - The judiciary- labor courts industrial tribunals - An executive machinery- that lays down rules, procedures and gives awards and monitors them Discrimination When someone is denied a job or position for non job related reasons Equal Employment Opportunity The right to employment and advancement without regard to race, religion, sex, color or national origin Affirmative Action An effort to give preference in employment to women or other minorities Employment criteria justified by capacity to perform a job Comparable Worth Persons performing jobs of similar worth should receive comparable pay Bona-fide Occupational Qualifications Employment criteria justified by capacity to perform a job
Workplace Privacy The right to privacy while at work Independent Contractors Hired on temporary contracts and are not part of the organizations permanent work force Labor Union An organization that deals with employers on the workers collective behalf Labor Contract A formal agreement between a union and employer about the terms of work for union members
U.S. labor union facts: U.S. union membership was 12.5% in 2004, down from 20.1% in 1983. 8% of private sector workers belong to unions, and 36% of government workers. Many of the fastest growing unions represent white-collar workers. 75% of U.S. adults believe unions improve wages and working conditions; 67% believe unions are too involved in politics. India being a welfare state has taken up itself the responsibility of extending various benefits of social security and social assistance to its citizens. Although the constitution of India is yet to recognize social security as a fundamental right, it does require state to promote the welfare of the people by providing social, economic and political justice Constitution requires companies to make effective provisions for making effective provisions for securing right to work, to educate and public assistance in case of unemployment, old age, sickness and disablement. Securing just and humane conditions of work. Raise level of nutrition and standard of living, improvement of public health etc A social security division has been set up under the ministry of labor and employment. In the context of labor , social security aims at reducing risks against loss of earnings or earning capacity due to old age, illness or work- related injuries. Social security to the workers is provided through 5 major Acts:
1. The Employees State Insurance act, 1948 2. Employees provident Fund and Miscellaneous provisions Act 3. The Workers Compensation Act 4. The Maternity Benefit Act 5. The payment of Gratuity Act In addition there are large number of welfare funds also for some specific segments Major thrust of social security relating to labor is on: a) Provisions relating to medical facilities, compensation benefits and insurance coverage incase if accidents, incapacity, illness etc.. b) Provisions relating to provident fund and gratuity