Download Environment of Human Resource Management

HRM and Operations Management
in Today’s Business World
Facilitator: Saadia Malik
Contents
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Human Resources Management – An Overview
Importance of HR function
Role and activities of HR department
Recruitment & Selection/ Staffing Sub Function
Employee Compensation, Performance Management &
Organizational Development
• Environmental factors impacting HR Function in an
organization
HUMAN RESOURCES MANAGEMENT
AN OVERVIEW
Learning Outcomes
• Understanding the importance of HRM function in an
organization and its related activities,
• Become better managers in organizations/work place
• Awareness of theories and philosophies forming the
basics of deign of HRM function and activities.
• Awareness of the latest issues and happenings in this
field
• How HRM links up with Operations Management in
today’s dynamic business world
Management
• The process of trying to accomplish goals
through other people
Human Resource Management
• A Management Function which focuses on
the utilization of individuals to achieve
organizational objectives
• All managers at every level must concern
themselves with human resources
management.
Importance of HR Function
• Linked to the strategic management of an
organisation.
• Seeks commitment to organisational goals
• Focuses on the individual needs rather than the
collective workforce.
• Enables organisations to dissolve power and
become more flexible
• Emphasises people are an asset to be positively
utilised by the organisation.
Strategic Importance
• 'Human capability and commitment’ is what
differentiates organisations.
• HRM needs to be implemented into the organisational
strategy and needs to be considered at the highest
management level.
Long term importance of HRM:
• It needs to be integrated into the management
functions and is seen to have important consequences
on the ability of the organisation to achieve its goals.
• The key functions of HRM which are seen to encourage
commitment rather than compliance.
ROLE & ACTIVITIES OF HR
DEPARTMENT
Traditional HR Functions
Human Resource Management Functions
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Recruitment & Selection
Training & Development
Compensation & Benefits
Safety & Health
Employee & Labor Relations
Research vs. Practice
• Effective HR management requires proper
understanding and utilization of knowledge
gained through research
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Recruitment
Realistic job previews
Interviews
Performance appraisals
RECRUITMENT & SELECTION
The Recruitment & Selection Process
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Stage
Stage
Stage
Stage
Stage
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5
Agree on Vacancy
Job Analysis
Attracting Candidates
Sorting Candidates
Selection Interviews
The Recruitment & Selection Process
Advertisements
Recruitment Agencies
Recruitment
Resume Scanning
Word of mouth
Walk ins
Short listed candidates
Company’s website
Telephonic Interviews
Selection
One-on-one Interviews
Panel Interviews
New Hires
Interviewing
How job assessments help
you reach the ultimate
goal
Steps involved in the interviewing process are..
Understand the purpose of the interview
Rethink your interviewing strategy
Develop a list of desired skills
Create a list of interview questions.
Check your list twice
Tell the applicant about the interview format
Prepare for questions.
Take notes
Exercise
• Choose a position for which it is difficult to find
a good performer.
• What competencies are important?
• Develop three questions to explore a
candidate’s past or present behavior that
demonstrates the competencies.
The Dynamic Human Resources
Management Environment
Environment of Human Resource Management
Marketing
Society
Operations
Human
Resource
Managemen
1
t
Finance
Customers
Safety and
Health
Competition
Other
Functiona
l Areas
Labor Force
Shareholders
The Economy
EXTERNAL ENVIRONMENT
INTERNAL ENVIRONMENT
Technology
Legal Considerations
Unions
Society
• Social responsibility – Implied, enforced or felt
obligation of managers to serve or protect
interests of groups other than themselves
• Ethics – Discipline dealing with what is good
and bad, or right and wrong, or with moral duty
and obligation
HR’s Changing Role:
Who Performs Human
Resources Management Tasks?
• Human Resource Managers
• Outsourcing Firms
• Line Managers
• Project Managers
Human Resources Function In
Organizations Of Various Sizes
Human Resources Function in a Small
Business
Manager/Owner
Sales
Operations
Finance
The Human Resource Function in a Medium-Sized Business
President
Sales
Manager
Operations
Manager
Finance
Manager
Human
Resources
Manager
The Human Resource Function in a Large Firm
President
and CEO
VP/Dir
Marketing
Manager,
Training and
Development
VP/Dir
Operations
Manager,
Compensation
and Benefits
VP/Dir Finance
Manager
Staffing
VP/Dir Human
Resources
Manager
Safety and
Health
Manager
Labor
Relations
An Evolving Human Resource Organization Example
President
and CEO
VP Operations
Executive
Development
Outsourced
VP Human
Resources
Manager
Training
VP Other
Major
Functions
Manager
Other HRM
Functions
Director of
Safety and
Health
Employee
Benefits
Shared
Service
Center
The Harvard Model of Human Resources
Management
Changing Nature of Human Resources
Management
• Scientific management
– Breaking down jobs into
elemental activities and
simplifying job design
• Jobs
– Comprise a set of tasks,
elements, and job motions
(basic physical movements)
• In a piece-rate wage system,
pay is based on output
• Assembly-line
– Production meshed with
principles of scientific
management
• Advantages of task
specialization
– High output, low costs, and
minimal training
• Disadvantages of task
specialization
– Boredom, lack of
motivation, and physical and
mental fatigue
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Employee Motivation
•Motivation
– willingness to work hard because
that effort satisfies an employee
need
•Improving Motivation
– positive reinforcement and
feedback
– effective organization and
discipline
– fair treatment of people
– satisfaction of employee needs
– setting of work-related goals
•Improving Motivation (cont.)
– design of jobs to fit employee
– work responsibility
– empowerment
– restructuring of jobs when
necessary
– rewards based on company as well
as individual performance
– achievement of company goals
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Evolution of Theories of Employee
Motivation
Abraham Maslow’s
Pyramid of Human
Needs
Douglas McGregor’s
Theory X and Theory Y
•Theory X Employee
Selfactualization
Esteem
Social
Safety/Security
Physiological (financial)
• Dislikes work
• Must be coerced
• Shirks responsibility
• Little ambition
• Security top motivator
•Theory Y Employee
• Work is natural
• Self-directed
• Controlled
• Accepts responsibility
• Makes good decisions
Frederick Herzberg’s
Hygiene/Motivation
Theories
•Hygiene Factors
• Company policies
• Supervision
• Working conditions
• Interpersonal relations
• Salary, status, security
•Motivation Factors
• Achievement
• Recognition
• Job interest
• Responsibility
• Growth
• Advancement
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Contemporary Trends in Human
Resources Management
• Job Training
– extensive and varied
– Enhances on the job skills and
work knowledge
• Cross Function Training
– an employee learns more
than one job
• Job Rotation
• Empowerment
– giving employees authority to
make decisions
• Teams
– group of employees work on
problems in their immediate
work area
– horizontal movement
between two or more jobs
according to a plan
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Contemporary Trends in Human Resources
Management (cont.)
• Job enrichment
– vertical enlargement
• allows employees control over
their work
– horizontal enlargement
• an employee is assigned a
complete unit of work with
defined start and end
• Flexible time
– part of a daily work schedule
in which employees can
choose time of arrival and
departure
• Alternative/Virtual
workplace
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nontraditional work location
• Telecommuting
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employees work electronically
from a location they choose
• Temporary and part-time
employees
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mostly in fast-food and
restaurant chains, retail
companies, package delivery
services, and financial firms
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Employee Compensation
• Types of pay
– hourly wage
• the longer someone works, the more s/he is paid
– individual incentive or piece rate
• employees are paid for the number of units they produce during
the workday
– straight salary
• common form of payment for management
– commissions
• usually applied to sales and salespeople
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Employee Compensation (cont.)
• Gain sharing
– an incentive plan joins employees in a
common effort to achieve company goals
in which they share in the gains
• Profit sharing
– sets aside a portion of profits for
employees at year’s end
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Employee Performance Management
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Setting Quantifiable Objectives
Agree over expectations to perform
Set time for discussion sessions
Listen to the Employee
Feedback process for evaluating employee
performance
• Commonly used feedback programs are 90
degree, 180 and 360 degree
Organizational Development
• Training & Development of Employees
• Change Management Methods
• Inter Organizational Communication
Job Design
• Task analysis
– how tasks fit together to form a job
• Worker analysis
– determining worker capabilities and responsibilities for a job
• Environment analysis
– physical characteristics and location of a job
• Ergonomics
– fitting task to person in a work environment
• Technology and automation
– broadened scope of job design
Job Analysis
• Method Analysis (work methods)
– Study methods used in the work included in the job
to see how it should be done
– Primary tools are a variety of charts that illustrate in
different ways how a job or work process is done
Copyright 2009 John Wiley & Sons, Inc.
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Process Flowchart Symbols
Operation:
An activity directly contributing to product or service
Transportation:
Moving the product or service from one location to another
Inspection:
Examining the product or service for completeness,
irregularities, or quality
Delay:
Process having to wait
Storage:
Store of the product or service
Copyright 2009 John Wiley & Sons, Inc.
8-40
Managing Diversity in Workplace
• Employers must strive to manage diversity in
the workplace
• Programs include
- Education
- Awareness
- Communication
- Fairness
- Commitment
Types of Work Related Behaviors
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Joining the organization
Remaining with the organization
Maintaining work attendance
Performing required job responsibilities
Exhibiting organizational citizenship
Environmental factors impacting HR
Function in an organization
The Changing Job Market
What’s Happening in the External World?
“When the rate of change outside exceeds
the rate of change inside, the end is near”
Jack Welch
Chairman, General Electric
The Changing Job Market
What’s Happening in The External World? (Big Picture)
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Redefinition of Loyalty/Security
Increase in Part-Time, Contract Employment
Mergers and Acquisitions
Doing more with Less
The Changing Job Market
What’s Happening In The External World?
(The 21st Century Worker)
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Employability
External vendor-mindedness (Me Inc.)
Resiliency
Flexibility and adaptability
Security comes from within
Job Security is an illusion.
Security comes from being
employable not employed
The Changing Job Market
(Personal Readiness)
• Need for continuous learning
• Need for understanding of accomplishments
• Need for continuous networking
Roundtable Discussion
What are the factors
impacting organizations and
their ability to attract, recruit
and retain?
Action Planning Guide
• What are your learning actions from today’s
session?
• How do you plan to implement them at your
work place in future?
Thanks for your time and attention!!