HUMAN RESOURCE MANAGEMENT

Dr. Desai

Nurturing turns potential into performance

Fundamentals of Human Resource Management

Management Essentials
Management involves setting goals and allocating scarce resources to achieve them.
Management is the process of efficiently achieving the objectives of the organization with and through people.

Management Essentials

Primary Functions of Management Planning establishing goals

Organizing determining what activities need to be done

Leading assuring the right people are on the job and motivated Controlling monitoring activities to be sure goals are met

Human Resource Management

HRM is the part of the organization concerned with the people dimension. The integration of all processes, programs, and systems in an organization that ensure staff are acquired and used in an effective way

Human Resource Management

HR planning Recruitment Selection Organizational and work design Training and development Performance review Compensation Labor relations

Strategic Human Resource Management

Strategic Human Resource Management

The Strategic Nature HRM must be a strategic business partner and represent employees. forward-thinking, support the business strategy, and assist the organization in maintaining competitive advantage. concerned with the total cost of its function and for determining value added to the organization.

Importance of Strategic HRM

Can establish an organizations sustainable competitive advantage

The difference between efficient and inefficient workers is the same as the difference between a profitable and non-profitable company

Requires fundamental change in how managers think about employees

Partners and Investments

Need to consider outsourcing certain HR transactions

But then what does the HR dept. do?

The Importance of HRM

The Importance of Human Resource Management (HRM)

As a necessary part of the organizing function of management Selecting, training, and evaluating the work force As an important strategic tool

HRM helps establish an organizations sustainable competitive advantage.

Adds value to the firm

High performance work practices lead to both high individual and high organizational performance.

Why is HRM Important to an Organization?

The role of human resource managers has changed. HRM jobs today require a new level of sophistication.
Employment legislation has placed new requirements on employers. Jobs have become more technical and skilled. Traditional job boundaries have become blurred with the advent of such things as project teams and telecommuting. Global competition has increased demands for productivity.

Why is HRM Important to an Organization?

Four basic functions:

Staffing
Training and Development Motivation Maintenance

How External Influences Affect HRM

Strategic Environment Governmental Legislation Labor Unions Management Thought

How External Influences Affect HRM

HRM Strategic Environment includes:

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

Ethics

How External Influences Affect HRM

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

How External Influences Affect HRM

Management Thought Management principles influence the practice of HRM. More recently, continuous improvement programs have had a significant influence on HRM activities.

HR Functions

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Staffing Function

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

Staffing Function

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

Training and 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

The process of arousing and sustaining goal-directed behavior

Implications are:
Individual Managerial Organizational

Function of two factors:

Ability Willingness

Promotes Mutual Respect between Organization and Employees

The Motivation Function

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

Intrinsic and Extrinsic Motivation

Intrinsic motivation causes people to participate in an activity for their own enjoyment. Extrinsic motivation causes people to do something for a reward or to avoid a penalty. For example, some children take piano lessons for intrinsic motivation (they enjoy it) while others take them for extrinsic motivation (to get a reward or avoid punishment).

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

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.

Some other factors to be considered in HRM

HRM in a Global Organization

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.

HR and Corporate Ethics

HRM must: Make sure employees know about corporate ethics policies Train employees and supervisors on how to act ethically

Current Issues in HRM

Managing Downsizing The planned elimination of jobs in an organization Provide open and honest communication. Provide assistance to employees being downsized. Reassure and counseling to surviving employees.

Managing Work Force Diversity

Widen the recruitment net for diversity Ensure selection without discrimination

Provide orientation and training that is effective

Current Issues in HRM (contd)

Work-Life Balance Employees have personal lives that they dont leave behind when they come to work. Organizations have become more attuned to their employees by offering family-friendly benefits: On-site child care Summer day camps Flextime Job sharing Leave for personal matters Flexible job hours

Current Issues in HRM (contd)

Controlling HR Costs Employee health-care Encouraging healthy lifestyles Financial incentives Wellness programs

Charging employees with poor health habits more for benefits

Employee pension plans Reducing pension benefits No longer providing pension plans