Strategic Performance Management

1. Strategic Performance Management

2. Human Resource Management Human Resource Management is the organizational function that deals with issues related to people such as: • compensation • hiring • performance management • organization development • safety • benefits • employee motivation • communication • administration • training.

3. Human Resource Management System Responsibilities Of HRM Human Resource Planning Recruitment & Selection Orientation, Training & Development Performance Appraisal And Management Compensation & Benefits Management

4. Increasing Importance of HRM HR Challenges • Knowledge Economy • Environmental Challenges • Rapid Changes • Internet / Technological Changes • Workforce Diversity • Globalization • Skill Shortages • Organizational Challenges • Cost, Quality, SCA • Decentralization • Downsizing • Flatter Organizations • Organizational Culture • Technology

5. HR Challenges • Individual Challenges • Matching People & Organization • CSR Initiatives • Productivity • Empowerment • Brain Drain • Job Insecurity

6. Abstract From A Survey Based on APFHRM Members Responses

7. But Remember, the biggest challenges in the near future will be: • Organizational Effectiveness • Succession Planning • Recruitment: Staffing & Retention

8. A Snapshot of HR Scenario In Pakistan • Decline in the sudden Surge of HRM function in recent years. • The overall salary and benefits package decline • Cut in training & development budgets • Retrenchment initiatives • Motivational & Retention Challenges • Supportive Role of HR department • Motivational & Retention Challenges

9. Strategic Human Resource Management • Alignment of HR strategies and programs with environmental opportunities, business strategies, organization’s unique characteristics, and distinctive competence.

10. Benefits of Strategic Human Resource Management • Encouragement of Proactive Behavior • Strategic Objectives Focus • Critical Thinking of Assumptions • Identifying the Gap • Encouragement of Line Manager’s Participation • Identification of HR Constraints/opportunities

11. Human Resource Management System Responsibilities Of HRM Human Resource Planning Recruitment & Selection Orientation, Training & Development Performance Appraisal And Management Compensation & Benefits Management

12. Strategy & Human Behavior COMPANY MISSION • An Investment Perspective of • Human Resource Management 2. Environmental Scanning: Human Resource Environment 3. Environmental Scanning: Human Resource Legal Environment 4. Strategy Formulation 5. Human Resource Planning 6. Strategy Implementation: Workforce Utilization & Employment Practices 7. Strategy Implementation: Reward & Development System • Performance Impact of • Human Resource Practices 9. Human Resource Evaluation

13. An Investment Perspective of Human Resources • Human resources should be viewed from investment perspective. • In some cases employees are taken as variable costs of production while physical assets are taken as investments. • Shift in skills from manual to cerebral • HR has to contribute to the bottom-line • The future employability: - Training - OJT - Management Development - Skills Obsolescence Prevention - Reduction in Career Plateauing

14. An Investment Perspective of Human Resources HR Investment Considerations • Management Values - Values & Philosophies of Management while implementing strategies - Values should reflect the investment perspective of employees • Risk & Return on Investment - Major risk in employees’ investment is ownership - Return has to be greater to overcome the risks - Layoffs risks?

15. An Investment Perspective of Human Resources HR Investment Considerations • Economic Rationale For Investment in Training - Difference between specific and general training - Specific Training has to be shared - Employees with prerequisite skills should be hired? - On-the-job or tuition reimbursement - Lay off decision in case of specific training - Few skills that are not transferable to other employers • Utility Theory - Financial attractiveness of hiring and development of employees - Economic value of HR programs, activities and procedures - Validity of selection test for predictive ability - Relationship with increased production, contribution to profitability, cost of testing

16. An Investment Perspective of Human Resources HR Investment Considerations • Outsourcing as an alternative to investment in human resources - Capabilities and strategic advantage can not be developed - More resources required internally for any kind of services - Excessive dependency on suppliers can be avoided • Head hunting • Payroll functions • HRIS • Benefits administration • Employee assistance program

17. An Investment Perspective of Human Resources Investment In Training & Development • Investment in Employability - Decline in prevalence of employment security policies - Investment in the development of employees for better employability (Telenor) - Growth opportunities, learning environment, training and retraining - GE case of Jack Welch (The building was still standing but people were gone) - Future employability is dependent on valuable learning experience and challenging assignments - Security no longer comes from employed but being employable