Download HR MANAGEMENT CHALLENGES Cont

HUMAN RESOURCE
MANAGEMENT
HUMAN RESOURCE
MANAGEMENT
CHAPTER NO. 1
AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO:
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Understand the term HRM and importance of
HRM.
Comprehend four functions of HRM .
Describe evolution of HRM.
Identify key roles played by HR managers.
Explain challenges faced by HR managers.
Differentiate between HRM and international
HRM.
We can Divide this Term into Three Parts
HUMAN
RESOURCE
MANAGEMENT
HUMAN
RESOURCE
FINANCIAL
RESOURCES
Means debt, equity, retain
earnings and selected
matters.
PHYSICAL
RESOURCES
Means building,
machinery, vehicle and
other material.
ORGANIZATIONAL
RESOURCES
HUMAN
RESOURCE
Include the history of
groups in the
organization,
relationship, level of trust
etc.
Includes skills, abilities,
experience and other work
related characteristics of
people associated with the
organization.
MANAGEMENT
Management is the universal process of
getting activities completed with and
through other people to achieve
organizational goals.
HUMAN RESOURCE MANAGEMENT
The design of formal systems in an
organization to ensure effective and efficient
use of talent to accomplish organizational
goals.
Human Resource Management helps in
maximizing productivity & reducing
cost by Putting Right Person At Right
Place.
EVOLUTION OF HRM
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EVOLUTION OF HRM Cont . . .
1. The Craft
System
(1600s-1700s)
2. Scientific
Management
(Early 1900s)
3. Human
Relations
(Late 1920s –
Early 1930s)
 Small level of production
 Industrial Revolution
 One best way to accomplish the task
 Putting the right person on the job with the
correct tools and equipment
 Having a standardized method of doing the job
 Providing an economic incentive to the worker
 Hawthorne studies
 Employee participation program
EVOLUTION OF HRM Cont . . .
4. Behavioral
Sciences
The study of the actions of people at work;
people are the most important asset of an
organization.
5. Personnel
Management
Involve in operational planning and decision
making & do not incorporate all HR
activities.
6. Human
Resource
Management
Involve in operational as well as strategic
planning and decision making & incorporate all
HR activities(training, career development, EEO
etc.)
7. Intellectual
Capital
Management
Organizations need to be dynamic both in the
context of the management of individual
capabilities and the management of
organizational structure.
FUNCTIONS OF HRM
STAFFING
MAINTENANCE
HRM
MOTIVATION
TRAINING
&
DEVELOPMENT
FUNCTIONS OF HRM Cont . . .
STAFFING
•Strategic Human Resource
Planning
•Recruitment
•Selection
Maintenance
HRM
Motivation
Training &
Development
1. STAFFING
The activities in HRM concerned with
seeking and hiring qualified employees are
called Staffing.
1. STAFFING
The basic objective of the staffing function
is to locate & secure competent employee.
COMPONENTS OF
STAFFING
a. Strategic Human
Resource Planning
b. Recruitment
c. Selection
a. STRATEGIC HUMAN RESOURCE
PLANNING
Strategic Human Resource Planning is the
process by which an organization ensures that
it has right number and kind of people capable
of effectively and efficiently completing those
task that are in direct support of company’s
mission and strategic goals.
b. RECRUITMENT
The process by which a job vacancy is identified and
potential employees are notified.
OBJECTIVES
 To obtain an adequate pool of applicants there by
more choice to the organization.
 Providing enough information about the job such
that those who are unqualified will not apply.
c. SELECTION
Selection is the process by which an organization
chooses from list of applicants the person or
persons who meet the selection criteria for the
position available considering current
environmental conditions.
c. SELECTION
• The primary objective of selection activities is to predict
which job applicant will be suitable if hired, during the
selection process, candidate are also informed about the
job and organization
• Proper selection can minimize the cost of replacement
and training resulting in more productive workforce
FUNCTIONS OF HRM Cont . . .
Staffing
Maintenance
HRM
Motivation
TRAINING &
DEVELOPMENT
•Orientation
•Employee Training
•Employee Development
•Organization Development
•Career Development
2. TRAINING & DEVELOPMENT
 Training is the systematic process of altering the behavior of
employees in a direction that will achieve organizational
goals.
 Development can be defined as “Efforts to improve
employees’ ability to handle a variety of assignments are.”
2. TRAINING & DEVELOPMENT
The basic objective of Training & Development function is to
take competent workforce, adapt them to the
organization, and help them to obtain up-to-date skills,
knowledge, and abilities for their job responsibilities
COMPONENTS OF
TRAINING & DEVELOPMENT
Orientation
Career
Development
Organization
Development
Employee
Training
Employee
Development
COMPONENTS OF
TRAINING & DEVELOPMENT Cont . . .
a. Orientation
b. Employee
Training
• It covers the activities involve in
the introducing a new employee to
organization and to his or her
work unit.
• Employee training is designed to
assist employee acquiring better
skill for the current job.
c. Employee
Development
•The focus of employee development
is on a future position with in the
organization for the which employee
require additional competencies.
d. Career
Development
•The focus of career development is to
provide the necessary information
and assignment in helping employees
realize their career goals.
e.
Organizational
Development
•Organizational Development is the
part of HRM that deals with
facilitating system wide change in the
organization.
FUNCTIONS OF HRM Cont . . .
Staffing
Maintenance
HRM
Training
&
Development
Motivation


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Motivation and Job Design
Performance management
Reward & Compensation
Employee Benefits
3. MOTIVATION
MOTIVATION
An inner force that impels human beings to
behave in a variety of ways.
3. MOTIVATION
The basic objective of motivation
function is to retain good staff and to
encourage them to give of their best.
COMPONENTS OF MOTIVATION
1.
Job
Design
2.
Performance
Management
A job should be designed in a such a way that it
should facilitate the achievement of the
organizational objective, stimulate performance
and recognize the capacity and needs of those
who are to perform it.
Process which is used to identify, encourage,
measure, evaluate and improve employees through
performance appraisal.
3.
Compensation
Management
4.
Employee
Benefit
Compensation is what employee receives in
exchange for their contribution to the organization.
Compensation management help the organization
to obtain, maintain and retain a productive
Workforce.
Employees benefit are generally membership
based ,non financial reward offered to attract and
keep the employees, regardless their
performance level.
FUNCTIONS OF HRM Cont . . .
Staffing
Maintenance
•Health & safety
•Communication
•Employee relations
HRM
Motivation
Training &
Development
4. MAINTENANCE FUNCTION
MAINTENANCE
Activities in HRM concerned with maintaining
employees commitment and loyalty to the organization.
4. MAINTENANCE FUNCTION
The last phase of HRM process is called maintenance
function. The main objective of this function is to do such
HRM activities that maintain employees commitment and
loyalty with the organization.
COMPONENTS OF MAINTENANCE
Health and
Safety
Employees/
Labor Relation
 Serving as an intermediary between
the organization and its union.
 Designing discipline and grievance
handling systems.
Designing and implementing
programs to ensure employee
health and safety.
Communication
Designing and implementing
employee communication
system.
ROLES OF HR MANAGER
Serve as
“Morale
Officer”
Clerical
Administration
HR
Activities
Administrative
Role
Employee
Advocate
Role
Operational
Role
Strategic
Role
Business
Contributor
ROLES OF HR MANAGER Cont . . .
1.
Administrative
Role
• Clerical and administrative support
operations (e.g., payroll and benefits
work).
2.
Employee
Advocate Role
• “Champion” for employee concerns
• Employee crisis management
• Responding to employee complaints
3.
Operational
Role
• Identification and implementation of
HR programs and policies—hiring,
training, compensating and other
activities that support the organization.
ROLES OF HR MANAGER Cont . . .
4.
Strategic Role
 Focusing on developing HR
activities that enhance organizational
performance.
 Involvement in strategic planning.
 Participating in decision making on
mergers, acquisitions, and downsizing.
 Accounting and documenting the
financial results of HR activities.
HR MANAGEMENT CHALLENGES
Economic and Technological
Changes
Workforce Availability and
Quality
Growth in Contingent Workforce
Demographics and Diversity
Issues
Balancing Work and Family
Organizational Restructuring,
Mergers, and Acquisitions
HR MANAGEMENT CHALLENGES Cont . . .
1. Economic & Technological
Changes
 Shift in jobs for manufacturing and agriculture to
service industries and telecommunications.
 Pressures of global competition causing firms to adapt
by lowering costs and increasing productivity.
 Growth of information technology.
2. Workforce Availability and
Quality
Inadequate supply of workers with needed skills for
“knowledge jobs”
Education of workers in basic skills
HR MANAGEMENT CHALLENGES Cont . . .
3. Growth in Contingent
Workforce
 Increases in temporary workers, independent contractors,
leased employees, and part-timers caused by:
 Need for flexibility in staffing decisions
 Increased difficulty in firing regular employees.
4. Organizational Restructuring,
Mergers, and Acquisitions
“Right-sizing”—eliminating of layers of management, closing
facilities, merging with other organizations, and out placing
workers.
 Intended results are flatter organizations, increases in
productivity, quality, service and lower costs.
 HR managers must work toward ensuring cultural
compatibility in mergers.
HR MANAGEMENT CHALLENGES Cont . . .
5. Balancing Work & Family
 Dual-career couples
 Single-parent households
 Decline in the “traditional family”
 Working mothers and family/childcare
 Single employee “backlash” against family-oriented
programs.
6. Demographics and
Diversity Issues
 More diversity of race, gender, age etc.
INTERNATIONAL
HRM (IHRM)
International HRM (IHRM) is the process of procuring,
allocating , and effectively utilizing human resources in a
multinational corporation.
HRM vs. IHRM
 Encompasses more functions.
 Has more heterogeneous functions.
 Involves constantly changing perspectives.
 Requires more involvement in employees’ personal lives.
 Influenced by more external sources.
 Involves greater level of risk than typical domestic HRM.
THE CONCEPT OF
TRANSNATIONALITY
Each of these definitions, depending upon how the
organization perceives itself , has implications for the role
of international HRM.
Multinational
Companies
Refers to companies that have developed a strategic
posture and organizational capability that allow them
to be very sensitive and responsive to differences in
national environments around the world.
Global
Companies
Refers to companies that have developed international
operations that are much more driven by the need for
global efficiency and centralized in strategic and
operational decisions.
International
Companies
Based on Transferring and adapting the parent
company’s knowledge or expertise to foreign markets.
FUNCTION OF
INTERNATIONAL HRM
Highlighting the broad functions of HRM,
Morgan (1986) has presented a model that
consist of three dimensions which are:
1.
The Three broad Human Resource activities:
Procurement
2.
Utilization
The Three major Country categories involved in International
HRM activities:
Host country
3.
Allocation
Home Country
Other Country
The Three type of Employee of an International Firm:
Host country
Nationals
(HCNs)
Parent Country
Nationals
(PCNs)
Third Country
National
(TCNs)
APPROACHES TO IHRM
APPROACHES
DEFINITIONS
ETHNOCENTRIC
MNC simply exports HR practices and policies used
in the home country to the foreign subsidiaries. It
Emphasizes consistency and integration across all
subsidiaries.
POLYCENTRIC
HR policies are adapted to meet the circumstances
in each foreign location.
REGIOCENTRIC
Represents a regional grouping of subsidiaries. HR
policies are coordinated and integrated within the
region.
GEOCENTRIC
HR policies are developed to meet the goals of the
global network of home country locations and
foreign subsidiaries.
Evolution of
HRM
Craft System
Goals of
HRM
Scientific
Management
Human
Relations
Enhancing
Productivity &
Quality
Behavioral
Sciences
Promoting
Individual Growth
& Development
Personnel
Management
Complying with
Legal & Social
Obligations
Scientific
STAFFING
Management
• Strategic Human
Resource planning
• Recruitment
• Selection
Roles of HR
Manager
HR Management
Challenges
International
HRM (IHRM)
TRAINING
Scientific
&
Management
DEVELOPMENT
Scientific
MOTIVATION
Management
• Orientation
• Employee Training
• Employee Development
• Organizational
Development
• Career Development
• Motivation & Job Design
• Performance
Management
• Reward & Compensation
• Benefits
Employee
Advocate
Administrative
Economic &
Technological
Changes
Workforce
Availability &
Quality
HRM Vs. IHRM
Facilitating
Organizational
Effectiveness
Scientific
MAINTAINCE
Management
• Health & Safety
• Communication
• Employee Relations
Operational
Growth in
Contingent
Workforce
The Concept Of
Transnationality
Intellectual Capital
Management
CHAPTER : 1
Functions of
HRM
Human Resource
Management
HRM
Demographics
& Diversity
Issues
Function Of
International HRM
Strategic
Balancing
Work &
Family
Approaches to
IHRM
Mergers &
Acquisition
THOUGHT OF THE DAY
People are definitely a company’s realest asset. It doesn't make
any difference whether the product is cars or cosmetics. A
company is only as good as the people it keeps.
“Mary Kay Ash”