Human Resource Management is the process of acquiring,
training, appraising, and compensating employees and attending to their labor relations, health and safety, and fairness concerns.
Human Resource Management can be defined as the implementation of the strategies, plans and programs required to attract, motivate, develop, reward and retain the best people to meet the organizational goals and operational objectives of the organization.
2 Human Resources (HR) Management The management function devoted to acquiring, training, appraising, and compensating employees.
Strategic Human Resource Management The linking of the human resource function with the companys strategies to accomplish that strategy. 4 Personnel Management Approach Human Resource Management Approach
HRM is a term for what historically was referred as personnel administration or personnel management. In todays arena, HR managers are sometimes called people managers and employees are refereed as our associates. So, Human Resources are the people in the organization
Human Resource Management is a series of activities and decisions carried out by all line managers that help employees get the job done and achieve their objectives
Human Resource Department consist of specially trained professionals who help managers carry out human resource management responsinsibilities 5 The Management Functions Planning Organizing Staffing Leading Controlling 6 Human Resource Management Functions Staffing HUMAN RESOURCE MANAGEMENT FUNCTIONS Employee & Labor Relations Safety & Health Compensation & Benefits Human Resource Development Staffing Job Analysis Human Resource Planning (HRP) Recruitment Selection Staffing (Continued) Staffing - Process through which an organization ensures that it always has the proper number of employees with the appropriate skills in the right jobs at the right time to achieve the organizations objectives Job Analysis The procedure used to determine the duties of particular jobs and the kinds of people (in terms of skills and experience) who should be hired for them.
Job Specification
The human qualifications in terms of traits, skills, and experiences required to accomplish a job.
Job Description
A document that identifies a particular job, provides a brief job summary, and lists specific responsibilities and duties of the job. Staffing (Continued) Human resource planning - Process of systematically reviewing human resource requirements to ensure that the required numbers of employees, with the required skills, are available when needed. Recruiting Attracting a pool of viable job applicants. Process of attracting qualified individuals and encouraging them to apply for work with the organization Staffing (Continued) Selection - Process through which the organization chooses, from a group of applicants, the individual best suited for the company and the position Human Resource Development Training Development Career Planning Career Development Performance Appraisal Training Training Program The process of providing new employees with information they need to do their jobs satisfactorily. Training Program Steps Needs analysis Instructional design Validation Implementation Evaluation and follow-up Human Resource Development (Continued
Training - Designed to provide the knowledge and skills needed for a particular job. Development - Involves learning that goes beyond today's job. It has a more long-term focus Human Resource Development (Continued) Career planning - An ongoing process whereby an individual sets career goals and identifies the means to achieve them Career development - A formal approach used by the organization to ensure that people with the proper qualifications and experiences are available when needed Performance appraisal - Employees and teams are evaluated to determine how well they are performing their assigned tasks Compensation & Benefits Pay - Money that a person receives for performing a job Benefits - Financial rewards in addition to base pay Nonfinancial Rewards The Job The Environment 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 Human Resource Research Human resource research is not a separate function It pervades all HR functional areas Interrelationships of HRM Functions All HRM functions are interrelated Each function affects other areas Business Strategy
What is a strategy The companys long-term plan for how it will balance its internal strengths and weaknesses with its external opportunity and threats to maintain a competitive advantage
Simply speaking: A plan that is expected to make an organization adaptive and competitive
Simplest speaking: A plan to make money Strategic Human Resource Management Involves the development of a consistent, aligned collection of practices, programs, and policies to facilitate the achievement of the organizations strategic objectives. Requires abandoning the mindset and practices of personnel management and focusing on strategic issues than operational issues. Integration of all HR programs within a larger framework, facilitating the organizations mission and its objectives. Choices of HR strategies
No HR strategy is good or bad in and of itself Depend on situation context Fit between the strategies and organizations Traditional HR versus Strategic HR 2008 by Prentice Hall 1-27 Environment of Human Resource Management EXTERNAL ENVIRONMENT INTERNAL ENVIRONMENT 1 Human Resource Management Other Functional Areas Operations Marketing Finance L e g a l
C o n s i d e r a t i o n s
E c o n o m y
T e c h n o l o g y
Society S h a r e h o l d e r s
Unions Customers Competition Labor Market Safety and Health U n a n t i c i p a t e d
E v e n t s
The Changing Environment of Human Resource Management 28 Globalization Trends Technological Trends Trends in the Nature of Work Workforce Demographic Trends Changes and Trends in Human Resource Management The Changing Environment of Human Resource Management Globalization; tendency of firms to extend their sales and manufacturing to new markets abroad Technological advances; technology has been forcing and enabling firms to become more competitive (skilled employee, empowerment) The nature of work; Human capital(knowledge, education, training, skills and expertise of a firms worker) provides competitive advantage The workforce diversity; increased diversity provide challenges for HR management 29 Environmental Scanning The process of studying the environment of the organization to pinpoint opportunities and threats. Environment Changes Impacting HR Governmental regulations: legislation Economic conditions: Inflation, interest rate.. Geographic and competitive concerns: relocation Workforce composition: women, diversity, part-time
Linkage of Organizational and HR Strategies There are three challenges facing organisations that must be met if they are to gain the competitive advantage we referred to earlier (Mabey and Lawton, 1998):
The challenge of managing intangible assets. This means the ability to access scarce skills and to cope with the implications of new forms of organizations.
The challenge of managing strategic change, including trends towards flexibility in organizations and in job design, the break up of bureaucracies and of traditional structures of employment. These changes create major challenges for working attitudes and relationships and require a sustained and holistic approach to people management.
The challenge of innovation in terms of what organizations produce by way of goods and services, and the way they approach the task. Development, innovation and creativity become core intangible assets, a focus for managing people strategically. In other words, bringing the design tasks of innovation together with a focus on innovatory behavioral strategic approach to HRM involves new ways of operating in organizations and demands new skills. These include the need to understand tacit knowledge, recognisecore competencies and attend to stakeholder views.
A strategic approach to HRM involves new ways of operating in organisations and demands new skills. These include the need to understand tacit knowledge, recognisecore competencies and attend to stakeholder views,
Tacit knowledge is not easily shared. It involves learning and skill, but not in a way that can be written down. Tacit knowledge consists often of habits and culture that we do not recognize in ourselves. It includes: learning from errors peoples reaction, anticipation. Learning from interacting with others; from customers needs and expectations. Learning formwork routines.
Core competencies are those that are likely to be as important tomorrow as it is today.Example: analytical skill and problem solving.
Typology of business strategies and HRM
Miles and Snow (1978; 1984) classify organisations as prospectors (who are doing well and are regularly looking for more products and market opportunities), defenders (who have a limited and stable product domain), analyzers (who have some degree of stability but are on the lookout for possible opportunities) and reactors (who mainly respond to market conditions).
These generic strategies dictate organisations HRM policies and practices. For example, defenders are less concerned about recruiting new employees externally and are more concerned about developing current employees. In contrast, prospectors are growing, so they are concerned about recruiting and using performance appraisal results for evaluation rather than for longer-term development .
Soft side and hard side of HRM Mainly concerned with the way in which people are managed, such as how to motivate workers, how to develop an organizational culture, how to support or train employees etc. Soft side of HRM Soft side and hard side of HRM Concerned about qualifying the number and types of employees that a business need,deciding whether they are available and planning how to get them through predicating the demand and supply of workforce for the future.
Soft side of HRM Hard side of HRM The implications of strategic HRM The implications: Integration into overall corporate strategic planning Developing an organizational culture Motivating, training and support Coordination with other functions Developing a flexible workforce
PhotoDisc Advantages and disadvantages of Strategic HRM Advantages: Help gain a competitive edge Help solve HRM problems Make the efficient use of employees and reduce costs Help anticipate and plan for changes Benefit long term Disadvantages: Difficulty in predicating the people behavior Problems with predicating external events affecting HR planning Needing constantly monitoring Leading to industrial relation problems GUEST MODEL OF HRM The model is prescriptive in the sense that it is based on the assumption that HRM is distinctively different from traditional personnel management.
Reflects view that a core set of integrated HRM practices can achieve superior individual and organizational performance.
Goals of Guest Model of HRM
Strategic integration with planning to ensure coherent HRM Policies
Commitment of the employees to the organisation and to high performance
Flexibility of both organizational structure and functions based on multiple skilled work force
High quality of work force
`` This approach is based on the assumption that there is a set of best HRM practices that are universal in the sense that they are best in any situation, and that adopting them will lead to superior organizational performance. A number of lists of best practices have been produced , the best known was produced by Pfeffer (1998) namely: 1. Employment security 2. Selective hiring 3. Self-managed teams 4. High compensationcontingent on performance 5. Training to provide a skilled and motivated workforce 6. Reduction of status differentials 7. Sharing information The best fit approach:
The best fit approach is in line with contingency theory. It emphasizes that HR strategies should be congruent with the context and circumstances of the organization. Best fit can be perceived in terms of vertical integration or alignment between the organizations business and HR strategies.
Human resource managements effectiveness depends on its fit with the organizations stage of development. As the organization grows and develops, human resource management programmes, practices and procedures must change to meet its needs. Consistent with growth and development models it can be suggested that human resource management develops through a series of stages as the organization becomes more complex
Best fit 'integration is an open template to interpret the environment in which business operates and to evaluate the integrated reaction or responses that are necessary. Best practice differs in that the outcomes are not prescribed. Best practice does not emphasize fit or matching but is solution oriented.
LEVEL OF INTEGRATION REQUIRED TO MEET THE BEST FIT MODEL (BULLER):
A one-way response level where business strategy informs HR strategy. A two-way response level where the relationship between the two is interdependent but not fully integrated. A fully integrated, reciprocal level with top down, bottom-up strategy formulation
Resource-based approach
Our third model of SHRM is a bottom-up view. There are significant problems with the principles of the two previous models: They represent rational and linear approaches to strategy.
The emphasis on the fit of strategy, structure and HR policies does not focus on the distinctive resource capabilities of individuals within the organisation. The lack of evidence indicating that explicit HR strategies have an impact on organisational performance.
A resource based model has a different perspective from other approaches. Whilst conventional HR approaches start with external factors such as threats and opportunities, the resource based view looks. first at the organisation and its potential, and develops ways to exploit or enhance the available resources.
In a resource based model, the SHRM role becomes one of creating systems and procedures that focus not on external relationships but on how staff and their abilities areused.The resource based model recognizes that many aspects of capability can be formally defined in skill terms and developed accordingly. However, the truly distinctive aspects are often hard to define and are formed through informal processes of learning in the workplace
ASPECTS OF THE COMPANYS ASEESTS UNDERPIN THE RESOURCE BASED APPROACH:
Storeys view is that sustained competitive advantage derives from assets that add value, are unique or rare, are difficult to imitate and cannot be substituted. Mueller (1998)develops the resource-based view with five propositions concerning the organisations assets.
Proposition 1 is that they must be developed in slow, incremental and uncertain ways, not in any linear or planned way.
Proposition 2 is that they require broad-based commitment over a lengthy period, not a single initiative.
Proposition 3 stresses the importance of routinising skill formation activities.Formal and informal learning activities must be effectively captured by the organisation.
Proposition 4 concerns the development of cultures that will allow potential to be used and developed. Challenge rather than conformity, is encouraged as a strategic end,while balancing the need to store organizational value