MH 1

Human Resource Management

Introduction,
Role and Functions
Winning companies understand that people provide the real
advantage. However, skilled employees are a prime resource that is
becoming increasingly scarce, specially in Pakistan. 2

MH
 Agenda
 Introduction to HRM and its
functions
 The Human Capital
 (understanding the
connection between
individual behaviour, job
performance and satisfaction
 Functions of HRM and
Challenges facing Pakistani
organizations
 Strategic HRM / E-HR

MH 3
 What is Management?

People

Processes

Systems

MH 4
 Management Components
Planning Organizing

Staffing

Management

Controlling Leading

“If you can’t maximize the power of the individual, you haven’t done
anything. If you expand the ability of individual members of the
organization, you expand the ability of the organization.”
Bob Buckman, CEO and Chairman of Buckman
MH 5
 What is Human Resource Management?
H R Management
• Organizational function
establishing and dealing with
issues related to people such
as:
 Compensation, hiring,
Performance management,
Organization development,
safety, wellness, benefits,
employee motivation,
communication
administration, Training &
development.
MH 6
 H R Management – Main Components

Staffing

Employee and Training &

Labor Relations Development

HRM

Safety and Compensation

Health and Benefits

Take our 20 best people away, and I will tell you that
Microsoft would become an unimportant company
Bill Gates

MH 7
 Basic HR Concepts

 The bottom line of managing:

Getting results
 HR creates value by engaging in
activities that produce the
employee behaviors that the
company needs to achieve
its strategic goals.

MH 8
 Important terms
Human resource: Knowledge, skill sets, expertise of employees, the adaptability,
commitment and loyalty of employees.
Skills: The individual abilities of human beings to perform a piece of work.
Resource: The stock of assets and skills that belong to a firm at a point of time
Capability: The ability of a bundle of resources to perform an activity; a way of
combining assets, people and processes to transform inputs into outputs.

Core competencies: Activities that the firm performs especially well when
compared to its competitors and through which the firm adds value to its goods and
services over a long period of time. A unique capability in the organization that
creates high value and that differentiates the organization from its competition.
Competitive advantage: It comes from a firm's ability to perform activities more
distinctively and more effectively than rivals. To attain competitive advantage, firms
need to add value to customers and offer a product or service that cannot be easily
imitated or copied by rivals (Uniqueness).
Value: Sum total of benefits received and costs paid by the customer in a given
situation.

MH 9
 HRM - Organizational Objectives
 Primary objective of HRM is to
contribute to organizational
effectiveness The only vital value an
enterprise has is the
 HRM is not an end in itself experience, skills,
 Its role is to help the innovativeness and
organization achieve its insights of its people
primary objectives by Leif Edvinsson, Swedish
focusing on people Intellectual Capital guru
 e.g.,through selection,
training, managing, release
or retention….
MH 10
 Why HRM ?
 Market Changes
 Globalisation& Competition
 Corporate Strategies
 Labour Market Changes
 Technology Development

 The Japanese and Models of Excellence

 The Enterprise Culture

Keep a continuous watch on HR clusters or

competitors will
MH 11
 Why learn about HRM?
HR issues are relevant to
everyone in all organizations
 Provide understanding of systems
and processes needed to develop
and utilize talents of employees
 Staffing is the top issue for
executives, because a recent
survey reveals HR alone adds
over 80% of value to the
organization

MH 12
 What Does HRM Do?
HRM serves 3 primary entities:

• The organization
• Society
• Individual employees and

MH 13
 Core HRM Activities
 Human Resource Planning
 Recruitment
 Selection
 Performance Management &
Appraisal
 Training
 Rewards
 Employee Relations
 Employee Communication
and Participation
 Personnel Records

MH 14
MH 15
 Influences on HRM
Many factors:

• Industry characteristics
• Organization’s product
• Organization’s competitive
strategy
• Employee attitude, skills,
and knowledge etc.
"Look at the means which a man employs,
consider his motives, observe his pleasures.
A man simply cannot conceal himself!"
— Confucius
MH 16
 Overcoming Misconceptions
 HR can – and indeed should – play a key
role in an organization’s strategy

 Increasing evidence that HR activities are

associated with various indicators of
organizational performance (e.g., ROI,
profitability, stock prices)

 Money put toward HR systems and

activities should be viewed as investment
rather than simply cost
MH 17
 Top of hundred Champions of HRM
Dave Ulrich

• Creating an organization that adds value to

employees, customers and investors alike.
• Effectiveness; strategy; added value; and
delivery. These are all central to any dynamic HR
professional's approach
• HR as a business function rather than a
support one

MH 18
 Staffing
(Planning, Recruitment, Selection)
 Developing and implementing a plan to meet
these requirements.
 Recruiting the human resources to fill specific
jobs within the organization.

MH 19
 Staffing
(Planning, Recruitment, Selection)
 Conducting job analyses to establish the
specific requirements of individual jobs within the
organization.
 Forecasting the human resource requirements
the organization needs to achieve its objectives.

MH 20
 Training
 Training:
 learning process that involves the
acquisition of skills, concepts, rules, or
attitudes; designed to enhance
performance
 Orientation
 On-the job training; apprenticeships…

MH 21
 Development ( HR )
 Development - Involves learning that
goes beyond today's job; it has a
more long-term focus

CPD

MH 22
 Career Planning
 Career planning - An ongoing process
whereby individual sets career goals
and identifies means to achieve them

MH 23
 Career Development
 Career development - Formal
approach used by organization to
ensure that people with proper
qualifications and experiences are
available when needed

MH 24
 Performance
People often perform at very high
levels. Here’s why:

• They can. They have the right

abilities.
• They want to. They’re motivated.
• They have what they need.
They’re empowered.
• They overcome challenges and
adversity. They have strong
character.

MH 25
 Job Requirements - KSAV
 Knowledge – what the professional already
knows
 Skills – what the professional can do now
 Abilities – what the professional may be
able to know or do (e.g., learning ability,
creativity)
 Values (including personality and interests)–
The employees’ behavioral tendencies and
internal values that drive these tendencies

MH 26
 Job Satisfaction
 Job satisfaction
 leads to organizational commitment

 Job dissatisfaction
 may lead to turnover, absenteeism,
tardiness, accidents, strikes,
grievances.
 Job satisfaction is NOT the
same as motivation!

MH 27
 Job Satisfaction..
 Workplace support
 (flexible schedules, etc)
 autonomy
 meaningfulness
 opportunities for learning & advancement
 job security are highly related to job
satisfaction
 pay and benefits have little effect on job
satisfaction.

MH 28
 Factors Influencing Employee Satisfaction and
Engagement

1)  An expressed intention to remain with an

organization
2)  The variety of skills and competencies their job
requires
3)  The organization's commitment to satisfying
customers
4)  The amount of cooperation within and across
functions
5)  Consistent communication regarding roles and
expectations
6)  Training to improve their contributions to the
organization
7)  Freedom and discretion in their jobs and access
to resources and information
8)  Competent, expert managers who are open to
ideas of their employees

MH 29
 Top Themes that Concern Employees Satisfaction
Most
An analysis of employee responses to opinion surveys.
In Asia

A job security 1
B enough help and resources 2
C friendly, helpful co-workers 3
D interesting work 4
E good working conditions 5
F enough authority 6
G good wages 7
H opportunities to development 8
I enough information 9
J full appreciation of work done 10
K competent supervision 11
L clearly defined responsibilities 12

MH 30
 Approaches to Employee Engagement
Research-10 effective approaches for improving
employee engagement:
1. Rewards and Recognition
2. Human Capital Infrastructure
3. Learning Management
4. Knowledge Management
5. Performance Appraisal
6. Workplace Design
7. Employee Relations
8. Career Development
9. Human capital strategy
10.Recruiting

MH 31
 Workforce Engagement Metrics
Research
• Workforce engagement
characteristics:
• Satisfaction
• Understanding
• Contribution
• Alignment
• Retention

MH 32
 Performance Appraisal
 Performance appraisal
 Feedback system that involves the direct
evaluation of individual or group performance
by a supervisor, manager, or peers.
 Used for performance feedback, pay
administration, counseling and developing
employees, assessing promotability
succession planning.
 Represents an important link between goal-
setting processes and reward systems.

MH 33
 Performance Appraisal Methods
 Goal setting (MBO)
 360-degree feedback
 Work standards approach
 Critical-incident appraisal
 Graphic rating scales
 Behaviorally Anchored Rating Scale
(BARS)

Evaluate what you want -- because what gets

measured, gets produced
MH 34
 360-degree feedback

MH 35
 Bell Curve

MH 36
 Organizational Reward Systems
 Both intrinsic and extrinsic rewards employees
by the organization.
 Ideally, rewards are linked to performance.
 Rewards “cause” satisfaction
 Rewards based on performance “cause” improved
performance
 Satisfaction does not (necessarily) “cause” better
performance; performance “causes” satisfaction

MH 37
 Rewards & Performance Cycle

Leads to

Feeling Improved
good Performance
about
yourself
Leads to

If all else fails – Refer to Jack Welch

MH 38
 High Developing High Standards
Jack Welch
M Can’t Do/ Can Do/
O
Will Do Will Do
T Value & reward with
Train & Develop training, promotions,
I
cash/share options
V
A Can’t Do/ Can Do/
T Won’t Do Won’t Do
I
O
Consider Motivate or release
separation
N

Low Ability High

MH 39
 Cultural (Values) Challenges
 Attitudes toward work
 Different expectations re: work and leisure
 People want more flexibility, holiday time, etc.

 Attitudes toward business/government

 Negative attitudes toward customers & those in
power – effects employment relationships

MH 40
 Cultural (Values) Challenges
 Ethnic diversity
 Multi lingual/culture of workforce
 Potential for conflicts of values, etc. but
also opportunity to learn, expand

MH 41
 Compensation and Benefits
Compensation –
All rewards that individuals receive
as a result of their employment

Money

MH 42
 Pay
 Skill-based pay plans

 All salaried workforce

 Lump-sum salary increases

 Performance-based pay (indiv, group,

organization)
 Gain Sharing
MH 43
 Benefits
 Legally mandated
 workers’ compensation
 Traditional
 Health insurance/medical; paid vacations
 Recent
 Child care; parent leave; education; retirement
plans
Nonfinancial Rewards
 The Job
 Pleasant working environment
 Based on position
MH 44
 Safety and Health
 Employees who work
in a safe environment
and enjoy good health
are more likely to be
productive and yield
long-term benefits to
the organization.

Isn't it a bit unnerving that doctors call what they do

practice?
George Carlin 
MH 45
 Safety and Health
 Safety - Involves protecting employees
from injuries caused by work-related
accidents

 Health - Refers to the employees' freedom

from illness and their general physical and
mental well being

MH 46
 Employee and Labor Relations

Business by law
 Should recognize
union

 Bargainwith it in
good faith

MH 47
 Employee and Labor Relations
 Administration of discipline and grievance-
handling procedures.

 Organizational discipline: action taken against

an employee who has violated an organizational
rule or whose performance is below satisfactory.

 “Should be” viewed as a learning opportunity

for the employee and a tool to improve
productivity and human relations.

MH 48
 Ethics and HR Management

Discipline dealing
with what is:

good & bad right & wrong

moral duty & obligation

according to Corp. values

MH 49
 “New Trends”
 Fewer and fewer HR departments have retained
or are limited to traditional, standard HR
functions. Movement towards SHRM & E-HRM

 Corporate universities are becoming common

place; HRM supporting the “Learning
Factory”; outsourcing often used for benefit
and training functions; staffing being delegated
to line managers and autonomous teams.

MH 50
 Strategic HRM
 “The process of linking HR practices to
business strategy”

 “the process by which organizations seek to link

the human, social, and intellectual capital of
their members to the strategic needs of the firm”

 Affirms the importance of the effective

management of people as a source of
competitive advantage.

MH 51
 Outcomes of Strategic HRM
 “When you align HR with organizational
strategy, you’ll see growth in commitment,
improved financial results, and find
yourself better able to attract and retain
the right people.”
 (Paine, 1999)

The intentional use of HR systems to help an

organization gain competitive advantage

MH 52
 Global HRM
 GHRM

 Utilization of global
human resources
 to achieve
organizational
objectives
 without regard to
geographic
boundaries.

MH 53
 Global HRM
 “Going Global” - Major impact on all HR
functions
 Planning, recruitment, and selection to
compensation and benefits
 Human resource development, to safety
and health issues, to employee and labor
relations
 Additional challenges include:
 Politicaland legal factors
 Cultural/language issues
 Maintaining corporate identity/culture,
economic factors
MH 54
 E-HR
 E.HR: the application of conventional, web, voice and
m-technologies to improve HR administration,
transactions and process performance. “Speed” and
“agility” have become key words for HRM.

 E-HR survey 76% of 91 global organizations have

redesigned or introduced new HR technologies/
systems in the past year and 90% of the remaining
expect to do so within the coming year.

 While very cutting edge, total e-HR is expensive and

time consuming. Many companies focus on
recruitment, web training and web approaches video
interviews to reporting and appraisal.
MH 55
 Competition

Competent Employees

Growth Prosperity

Success

MH 56
 Economic Challenges
 Two related challenges:
 Global trade – international trade and
competition with other markets
 Need for productivity Improvement
 More output with equal (or less) input
 HR Implications
 Need to contribute to international competence
of workers (via training, etc.)
 Potential workforce reductions – can result in
job insecurity and negative effects on workers

MH 57
 Technological Challenges
 Technology affects how work
gets done
 Computerization – increased
flexibility
 Automation – some hazardous/
repetitive jobs being automated
 HR Implications
 Workers need to possess
competencies related to
technology
 Job losses (layoffs, etc.) due to
technology
 Changes in how HR activities get
done
 e.g., internet recruiting

MH 58
 Summary -The HRM
Professional
 Major competencies:
 Business mastery
 Strategy, financial realities, customer
orientation
 Mastery of HRM tools
 Staffing, training, compensation, etc.
 Change mastery
 Personal credibility

MH 59
 Summary of Managing HR/Business
New way of viewing, treating and managing employees.
Framework of change components
soft components:
1. customer satisfaction (internal and external);
2. leadership style;
3. communication;
4. people management and satisfaction;
5. training and coaching; and
6. empowerment.
hard skills:
• process improvement;
• measurement and steering;
• safety and environment

MH 60
Slow shift in HR Practices in Pakistan
Traditional HR Emerging HR

 Administrative role  Strategic role

 Reactive  Proactive

 Separate, isolated from  Key part of organizational

company vision/mission Vision/mission

 Production focus  Service focus

 Functional organization  Process-based

 Individuals encouraged, organization

singled out for praise,  Cross-functional teams,

teamwork most important
rewards
 People as key
 People as expenses
investments/assets
MH 61
 Some of Top 100 HRM Gurus

01 DAVE ULRICH "The two greatest

corporate leaders of this
08. HENRY MINTZBERG century are Alfred Sloan
03. CHARLES HANDY of General Motors and
Jack Welch of GE. And
17. STEPHEN COVEY Welch would be the
18. CHRIS ARGYRIS greater of the two
because he set a new,
19. JOHN KOTTER contemporary paradigm
22. TOM PETERS for the corporation that is
the model of the 21st
23. DANIEL GOLEMAN Century."

MH 62
 Competitive edge will largely depend on
‘knowledge workers’ ability to perform

“Learning is not compulsory –

neither is survival!”
W Edward Deming

MH 63