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Slides - Human Resource Management

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Slides - Human Resource Management

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INTRODUCTION.

Human Resource Mgt has replaced personnel management in


its approach in handling workers.
Is a strategic and coherent approach to management of an
organizations most valued asset Human Resource.
Is a set of interrelated policies with an ideological or
philosophical underpinnings including:
i) A particular castellation of beliefs and assumptions.
ii) A strategic thrust informing decisions on pple Mgt.
iii) The central involvement of line Managers.
iv) Reliance on a set of levers to shape the employment
relationship.
Cont.
The organizations success is dependent on
employee performance.
Employees can hand the org to the board for
industrial & financial reconstruction(BIFR).
Need to attract, retain and motivate the right
caliber of workers.
HRM is hence a set of functions, programs
and activities designed and carried out in
order to maximize employee and
organizational effectiveness.
Purpose of SHRM
Make the most effective use of those involved in project
work.
Plan for Human Resource engaged in Project work.
Create project organizational charts.
Create responsibility assignment matrix
Create a resource histogram.
Issues on project staff acquisition.
Acquit concepts of resource assignments
Cont.
Resource loading and resource leveling.
Team development by training
Team building activities
Reward systems
Tools and techniques adopted in managing
project teams.
Strategic Human Resource Management
systems
i) HR philosophies describing values and guiding
principles adopted in managing people.
ii) HR strategies defining the direction SHRM intends to
go.
iii) HR policies defining how this values, principles and
strategies should be applied and implemented in
specific areas of HRM.
iv) HR processes consisting of formal procedures and
methods used to implement HR strategic plans &
polices.
Cont
HR practices comprising the formal
approaches used in managing people.
vi) HR programs that enable HR strategies,
policies and practices to be implemented
according to the plan.
HRM Cycle:
Selection- Performance Management –
Rewards –Development – Performance
THE HARVARD FRAMEWORK FOR
HRM
i) Stakeholder interests- shareholders, mgt, employees,
Govt, Unions
ii) Situational factors- workforce characteristics, business
strategy and conditions, mgt philosophy, labor mkt,
unions, Task technology, laws and social values.
iii) HRM policy choices- employee influence, HR flow,
reward systems, work systems.
iv) HR outcomes- commitment, congruence, cost,
effectiveness.
v) Long term consequences- Individual well being,
organizational effectiveness, societal well being.
Cont.
Aims of SHRM
i) Provide a range of services that support
achievement of corporate objectives.
ii) Enables the org to obtain and retain, skilled,
committed and well motivated workforce.
iii) Enhance and develop inherent capabilities
of people and their contributions to org
growth.
Cont.
iv) Manage diverse workforce considering
individual and group differences in
employment needs, work style and
aspirations
v) Ensure that equal opportunities are available
to all.
vi) Cater for the occupational health and safety
of employees.
vii) Enhance harmony in the organization.
viii) Recognize and reward performance.
Scope of Strategic Human Resource
Management
Entails all activities of an employee from the
time of his/her entry into an organization to
the time of his or her departure including:
i) Human Resource planning
ii) Job analysis and evaluation.
iii) Recruitment and selection.
iv) Orientation and placement.
v) Training and development.
Cont.
vi) Performance appraisal
vii) Job evaluation.
viii) Executive remuneration
ix) Motivation and communication.
x) Welfare, safety and health.
xi) Industrial relations.
THE HARVARD FRAMEWORK FOR HRM
i) Stakeholder interests- shareholders, mgt,
employees, Govt, Unions
ii) Situational factors- Workforce characteristics,
business strategy and conditions, mgt philosophy,
labor Mkt, unions, Task technology, laws and
social values.
iii) HRM policy choices- employee influence, HR flow,
reward systems, work systems.
iv) HR outcomes- commitment, congruence, cost,
effectiveness.
v) Long term consequences- Individual well being,
organizational effectiveness, societal well being.
The models merits
i) Incorporates recognition of a range of stakeholder interests.
ii) Recognizes the importance of ‘trade offs’ between interests of
owners and those of employees as well as group interests.
iii) Widens the context of HRM to include ‘employee influence’
the organization of work and associated question of
supervisory style.
iv) Acknowledges a broad range of contextual influence on the
managements choice of strategy.
v) Emphasizes strategic choice – It is not driven by situational or
environmental determinism.
Human Resource Management Policy
Goals
Managing people as assets that are key to org
competitive advantage.
Aligning HRM policies with business policies and
corporate strategy.
Developing a close fit of HR policies, procedures and
systems with one another.
Creating a flatter and more flexible organization
capable of quickly responding to change.
Encouraging team working and co-operation across
internal organizational boundaries.
Cont.
Creating a strong customer-first philosophy through out the
organization.
Empowering employees to manage their own self development
and learning.
Developing reward strategies designed to support a
performance driven culture (HPWS)- Recognition and reward,
promotions e.t.c
Improving employee involvement through better internal
communication.
Building greater employee commitment to the organization.
(Organizational Citizenship Behavior & Proactive work
behavior)
Cont.
Increasing the line management responsibility for HR.
(They are a key link on org issues)
Developing the facilitating role of managers as enablers.
Concept of human capital
Human capital represents the human factor in
the organization which is a combination of:
i) Intelligence, (As opposed to machines)
ii) Skills and expertise.
iii) Human elements capable of learning,
changing, innovating and providing the
creative thrust for the organization.
iv) People possess innate abilities, behaviors,
and personal energy and this elements make
up the human capital they bring to work.
Cont.
It is hence they, who own this capital and decide
when, how and where they will contribute it (Pilots,
doctors, etc).
The choices they make include much discretionary
behavior they are prepared to exercise in conducting
their duties(Are not a push over at all).
Intellectual capital.
Entails the stocks and flows of knowledge available to the
organization. – (Kind of expertise available)- Price Water
coopers
Can be regarded as intangible resources associated with people
who together with tangible resources (Money and assets)
comprise the market or total value of a business (Infosys- BAT-
Price water coopers)
The concept of human capital is viewed as a bridging concept-
That is it defines the link between HR practices and business
performance in terms of assets rather than business processes.
Resource based view.
The resource-based view of the firm is
concerned with the relationships between
internal resources.
It focuses on the promotion of sustained
competitive advantage through the
development of human capital rather than
merely aligning human resources to current
strategic goals.
Cont.
HRs can provide competitive advantage for
the business, as long as they are unique.
 Business excellence is not just about “best
practice” or “leapfrogging the competition”,
but about the intellectual capital and business
intelligence to anticipate the future, & today.
Cont.
To sustain competitive advantage:
i) The resource must be valuable.
ii) The resource must be rare.
An assumption is made that the most
important competence for employees is
cognitive ability due to future needs for
adoptability and flexibility.
Cont.
iii) Resources need to be inimitable.
Applies to Human resource as competitors
that will find it difficult to identify the exact
source of competitive advantage from within
the firm’s human resource pool.
iv) Resources need to be non-substitutable.
Although in the short term it may be possible
to substitute human resources with others,
for example technological ones, HR in the
long run could be different.
Human Resource Planning
Is the process of ensuring that the orgs
Human Resource Requirements are identified
and plans made to satisfy them.
Is based on the belief that people are an orgs
most important strategic resource.
Looks at ways in which people are employed
and developed in order to improve
organizational effectiveness.
Cont.
HRP plays a key role in Strategic Human
Resource Management.
Strategic HRM planning process should
define projected changes in the scale and
type of activities carried out by the
organization.
Should identify core competencies the
organization needs to achieve its goals and
skills required.
Cont.
HRP is a decision making process that
combines three important activities including:
i) Identifying and acquiring the right number
of people with proper skills.
ii) Motivating them to achieve high
performance.
iii) Creating interactive links between business
objectives and people planning activities.
Hard and Soft HRM.
Hard human resource planning is based on
quantitative analysis that the right number of the
right caliber of people are available when needed.
Soft human resource planning entails ensuring the
availability of people with the right kind of
attitude and motivation.
People committed to the organization and
engaged in their work, while behaving
accordingly.
Cont.
It is based on the assessment of the
requirement for this qualities, and
measurements of the extent to which they exist.
Limitations of HRP
i) Forecasting future people needs( Demand
forecasting) can prove to be complex.
ii) Forecasting the future availability of people
(Supply forecasting) May be difficult in some
cases.
iii) Drawing up plans to match supply demand.
Reasons for org planning.
Planning for substantive reasons: That is to
have a practical effect by optimizing the use of
HR and making them more flexible.
Planning because of the process benefits:
which involves understanding the present in
order to confront the future.
Planning for org reasons: which involves
communicating plans so as to obtain
support/adherence to them.
Linking HR plans to business plans so as to
influence them.
Aims of HRP
i) To attract and retain the number of people
required with the appropriate skills, expertise
and competencies.
ii) Anticipate the problem of potential surpluses
or deficits of people.
iii) Develop a well trained and flexible
workforce, thus contribute to the
organizations ability to adapt to an uncertain
and changing environment.
Cont.
iv) Reduces dependence on external
recruitment when key skills are in short of
supply by formulating retention, as well as
employee development strategies.
v) Improve the utilization of people by
introducing more flexible systems of work.
Training.
Is an activity intended to impart knowledge, information
and skill to the trainees.
The intention is to improve the recipients performance
and skill.
Entails perfecting an identified skill to the expected
standards.
Training and Development
Internal or on-the-job training.
a) Demonstration.
- The trainer describes and demonstrates
how to do a certain work or job.
- He performs the activity himself, going
through step by step explanation of the why,
how and what he is doing.
b) Apprenticeship training.
- Major part of training time is spent on the
job productive work.
Cont.
Each apprentice is given a program of
assignments according to a predetermined
schedule.
- This method is appropriate for the training
of craftsmen, tradesmen and technical areas.
c) Vestibule training.
- It involves classroom training imparted with
the help of equipment and machines identical
to those in use at the place of work.
Cont.
Theoretical training is given in the classroom,
while practical work is conducted in the
production line.
- It is often used to train clerks, bank tellers,
inspectors, machine operators, typists, etc.
d) Simulation
- It is an extension of vestibule training.
- The trainee works in a closely duplicated
real job conditions.
Cont.
Other methods include:
- An assistance position
- Committee or board membership
- Delegation
- Refresher training
- Orientation or induction
External training or off-the-job training.

Off the job training methods include:


a) Lectures.
- Are formally organized talks by an
instructor on specific topics.
- This method is useful when philosophy,
concepts, theories and problem solving have
to be discussed to a large group of people.
b) Case studies.
Cont.
b) Case studies
- An account of a real or fiction situation is
given, and trainees are expected to suggest
answers to a number of practical and
theoretical issues raised by the case.
- Is useful for giving participants an
opportunity to experience problem solving in
a relevant context.
Cont
c) Role playing
- The aim is to create a realistic situation
where trainees assume the parts (or role of the
specific persons in that situation.
- The aim is to develop trainees’ skills in areas
such as leadership and delegation.
d) Management games
- Using computerized management games,
trainees are divided into five or six person
groups, where each competes with the others
in a simulated marketplace.
Cont.
Others include:
- Brainstorming
- Sensitivity training
- Assertiveness training.
- Transactional analysis.
Question:
Elaborate on the above training methods.
What are the advantages of external training?
Explain the meaning of transactional analysis and
briefly describe how it improves interpersonal
relations on the job.
Management Development.

 Is futuristic and more concerned with


educative activities that help an employee to
improve his/her reasoning and ability to
understand and interpret knowledge.
It focuses on the employees’ personal growth.
It is an attempt to improve managerial
performance by imparting knowledge,
changing attitudes, or increasing skills.
The ultimate aim is to enhance the future
performance of the company itself.
Cont.
The general management development
process consists of
1) Assessing the company strategic needs.
2) Appraising the managers current
performance.
3) Developing the managers(Could be tailor
made) development program aimed at filling
specific positions, such as the CEO.
4) This usually involves the succession
planning.
Cont.
Succession planning refers to the process
through which a company searches for and fills
senior level vacancies.
The typical succession planning process
involves several steps:
i) Anticipate management needs based on
strategic factor such as planned expansion
ii) Review your firms’ management skills
inventory
iii) Create replacement charts
iv) Management development can then begin
HR INFORMATION SYSTEMS.
HRIS- Is a computer based information system for
managing the administration of HR processes and
procedures.
Is a system that helps an organization acquire, store,
manipulate, analyze, retrieve and distribute
information about an organizations human resources
Tannenbaum,(1990)
According to Kettley and Reilly (2003) it is a fully
integrated, organization- wide network or HR related
data, information, service, tools and transactions.
THE IMPORTANCE OF HRIS.
i. Improves the quality of information available.
ii. Reduces administrative burden on the human resource
department.
iii. Improves the speed at which information is made
available.
iv. Improves the flexibility of information to support
business planning.
Cont.
Improves service delivery to the employer.
vi) Produces human resource metrics- auditing(Age,
retirement, gender, professionals)
vii) Aids human capital reporting.
viii) Improves productivity in the entire organization.
ix) Reduces operational costs.
x) Manages peoples working time more effectively.
Functions of SHRIS
Helps in absence recording and management.
Aids training and development programs.
Used in total reward statement preparations.
Aids in managing diversity.
Aids in recruitment and selection.
Used in preparation of payrolls.
Used in appraisal and performance management.
Used in Human Resource planning.
Cont.
Aids in knowledge management.
Aids in metrics(HR Auditing) and human
capital. Numbers in terms of gender,
profession, age etc.
Diversity Management.
Business preference for teamwork to individual work is a call to
diversity.
The changing workforce demographics have made workforce
diversity management necessary for firms (Taylor, 2001).
 The effects of diversity on organizational behavior are complex
and powerful (Aghazadeh, 2004).
Diversity is inevitable due to the globalized business world
(Artze and Hansen, 2003).
Diversity management is thus a necessary response by
companies to changes in the labor and sales markets.
(Oberg, 1997).
Definitions
Diversity management is the strategic process to manage
diverse workforce –
including the fight against stereotypes, prejudice and all
kinds of discrimination due to the individual’s perceptions
and assumptions. Cox (2001).
Diversity is generally defined as acknowledging,
understanding, accepting, valuing and celebrating
differences among people with respect to age, class,
ethnicity, gender, physical and mental ability, race, sexual
orientation, spiritual practice and public assistance status.
Johnson (2003)
THE SCOPE AND PURPOSE OF DIVERSITY
MANAGEMENT.
It is worth noting that, Heterogeneous management teams
tend to create greater innovative power than homogeneous
groups.
Corporate flexibility is increasing, because homogeneous
decision-making structures, are under greater pressure to
conform and tend to react less flexibly to external
changes.
Companies with effective diversity management make
better use of their markets and are thus more productive
and profitable.
Cont.
Diversity is an integral and essential feature of
individual differences and recognition of individual
differences that people are not homogenous and
 Focuses on multiplicity of differences among people
or variety of people as heterogeneous groupings
hence, individual differences are the basis of divers
 Diversity is aimed at harnessing these differences to
create a productive environment in which everybody
feels valued and where talents are fully utilized, and
hence organizational goals being met.
Cont.
ii) Diversity as part of an organization’s strategic plan-
diversity strategies and plans that are developed and
aligned with the organization’s strategic plan.
iii) Diversity linked to performance-the understanding
that a more diverse and inclusive work environment
can yield greater productivity and help improve
individual and organizational performance.
iv) Measurement- a set of quantitative and qualitative
measures of the impact of various aspects of an
overall diversity program.
Cont.
v)Accountability- the means to ensure that leaders are
responsible for diversity by linking their performance
assessment and compensation to the progress of
diversity initiatives.
vi) Succession planning- an ongoing, strategic process
for identifying and developing a diverse pool of
talents for an organization’s potential future leaders.
vii) Recruitment—the process of attracting a supply of
qualified, diverse applicants for employment.
Best practice for managing organizational diversity.

Best practices are defined as “practices which are


most appropriate under the circumstances, especially
as considered acceptable or regulated in business;
viii)Diversity training—organizational efforts to inform
and educate management and staff about diversity’s
benefits to the organization .

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