Human Resources Management & Development May 04, 2005 (Wednesday) Presented By: Tariq Saeed To Pakistan Steel Mills
Overview • Introduction to Human Resource Management. • Evolution & Development of HRM • Foundations of HRM • Theory & Practice • Strategic HRM • Motivation of Employees & Leadership • Performance Management
The Concept Of HRM Has evolved through the Development of Management Thought process
Definition Of Management Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.
Types Of Management Management is classified into four branches in accordance with the type of resources it deals with, i.e.,
Human Resource Management The branch of Management of The Human Resources
Evolution Of Human Resources Management • The Industrial Revolution (1776) • The Emergence of Free Collective Bargaining • Scientific Management • US Civil Services Commission • Private Industry’s Approach to Personnel Management • Human Relations Movement • The Behavioral Sciences
Pioneer Work Behavioral Science Movement Organizational Development Movement The Corporate Culture Cult The Art Of Japanese Management Peter Drucker 1950 Douglas Mcgreger Maslows Hierarchy Of Needs 1960 1960 - 1970 1970 - 1980 1980 - 1985 Development Of HRM
Growth Of Human Resources Management • File Maintenance Stage • Government Accountability Stage • Organizational Accountability Stage • Strategic Partner-ship Stage
Stage 1 Stage 2 Stage 3 Stage 4 File Maintenance Government Accountability Organizational Accountability Strategic Partner
Change From Personnel To HRM • From personnel department to HRM department. • A change in approach and a change in name. • Treating seriously the issues of attracting developing motivating people and to utilize them effectively. • The organizations now rate high on development of following: • personnel and HRM policies • systems, practices • Agreements • consistent with the corporate strategy
What Is HRM Concerned About? “Human Resource Management is concerned with the problems, organizations face at all levels of the organization”. “These activities undertaken by the organizations are the means by which they assure themselves of A long term supply of people with needed competencies and required levels of loyalty and commitment ”. ( “Professor Michael Bear”)
Definition Of The Functions Of HRM Human Resource Managementis the process of acquiring, training, appraising, and compensating, retaining employees and attending to their labor relations, health and safety, and fairness concerns.
Present Concept Of HRM Human resource management in its present form is an approach to the management of people based on four fundamental principles. • Human resources are the most important assets of an organization. Their Management is the key to its success. • Success is most likely if the personnel policies and procedures are closely linked with, objectives and strategic plans. • The corporate culture and values, organizational climate and managerial behavior culture influences the achievement of excellence. This culture be managed. • HRM is concerned with integration. Getting all the members of the organization involved in working together with a common sense.
HRM Concept • HRM involves all the management decisions and actions that affect the nature of the relationship between the organization and employees i.e., Its Human Resources. • It communicates the instrumental values about people and the notion that people no less than, physical plans and financial resources may be viewed and managed as assets. • The most important implication of this approach is the development of trust between employees, managers and unions
HRM Concept • Human Resource Management is the responsibility of all those who manage people. • It is the management concerned with people at work and with their relationship within an enterprise. • It applies to all fields of employment. • It aims at achieving both efficiency and justice. • It seeks to brings together and develop into an effective organization, all the people of an enterprise, to make there best contribution to its success both as an individual and as member of working group. • It seeks to provide fair terms and conditions of employment and satisfying work for the employed.
Emerging Trends In HRM • Three basic traditions. • Personnel Administration. • Labor Relations. • Organizational Development. • Changes in basic values of society. • Fundamental shift in ideology to the concern for the whole and not a part of community. • Concern with the rights of the managed not just the managers. • A shift towards greater concern for the systems of the organization. Contd..
Employee involvement and union-management collaboration. • To identify problems and develop processes. • Competence and commitment issues given attention. • Traditional control on information flow giving way to more openness to employees and increase communications • Shift from short term perspective to long term perspective to problems and their solutions • Increased emphasis on training and development activities, performance appraisal and improvement processes. Contd..
A concern for the outcomes not just the role and policies • Flexibility in application of HR policies to individuals and the business • Flexibility in control at the top to a more participative and collaborative management • Willingness to talk about the problems in organization • Change in attitudes towards conflicts • HRM concerned with the groups of shareholders, employees, the union and the government
Job analyses Labor needs Recruit Select candidates Orient and train Wages and salaries Incentives and benefits Performance Management Employees Communications Train and develop Employee commitment Equal opportunity Health and safety Grievances/labor relations HRM PeopleFunctions Include:
The wrong person High turnover Poor results Useless interviews Court actions Safety citations Salaries appear unfair Poor training Unfair labor practices HRM Is Important to All Managers.Don’t Let These Happen In Your Areas!
Line And Staff Aspects Of HRM Definition • Authority • Making decisions • Directing work • Giving orders • Line Managers • Accomplishing goals • Staff Managers • Assisting and advising line managers
The right person Orientation Training Performance Creativity Working relationships Policies and procedures Labor costs Development Morale Protecting Line Manager’s HRM Jobs
Staff Manager’s HRM Jobs • Line authority • Implied authority • Functional control • Employee advocacy
Activities Which Constitutes HRM • Staffing. • Retention. • Development. • Adjustment. • Managing Change. • Together these activities constitutes the HRM System.
HRMActivities All these activities are the special responsibilities of HR Department but these are also at the core of every managers job throughout an organization. The line managers have authority and have considerable impact on the way workers actually behave.
These Activities Can Be Carried Out At: • Individual levels. • Work teams. • Departmental levels. • Organizational levels
Staffing • Identifying work requirements within an organization. • Determining the numbers of people and the skills mix necessary for the the work. • Recruiting, selecting and promoting qualified candidates.
Retention • Rewarding employees’ for performing their jobs effectively. • Ensuring harmonious working relations between employees and managers. • Maintaining a safe and healthy work environment.
Development A function whose objectives is to preserve and enhance employees’ competence in their jobs through improving their knowledge, skills, abilities and other characteristics; (“COMPETENCIES”)
Adjustment Comprises activities intended to maintain compliance with the organization's HR policies (e.g. through discipline) and business strategies (e.g. cost leadership)
Managing Change An ongoing process whose objective is to enhance the ability of an organization to anticipate and respond to development in its external and internal environments and to enable employees at all levels to cope with the changes.
Change In Recruiting Strategy A change in recruiting strategy in accordance with the expected job requirements means: • Develop selection procedure that will identify the kind of competencies required for future employees. • Change in compensation policies. • New incentive systems be developed. • Offer new training & development programs. • Assessment procedures will be changed. • New rewards procedures. • Discharge, promote or transfer some employees. • Provide mechanism to remaining employees to cope with change.
Objectives Of HRM Department Broad objective to optimize the usefulness of all workers in an organization Special objective To help line managers manage those workers more effectively. The HR department accomplishes this special objective through policy initiation and formulation, advice, service and control in resonance with line managers. Thus the HR responsibilities are shared by the hr department and line managers.
Special Objectives The special objective is accomplished through: • Policy incitation and formulation. • Advise. • Service. • Control in close coordination with line managers.
How Do Line Managers’ Share These Activities HR Provides Expertise : Line Managers Use it to Manage People Effectively
Environment Strategic Objectives Organization Culture HR Strategy Performance management Training and development Reward management Employee relations Job analysis recruitment Organizational structure Outputs The HRMProcess
Strategic Human Resources Management • Strategic HRM mean getting everybody from top of the organization to the bottom doing things to implement the strategy of business effectively. • To use people most wisely with respect to the strategic needs of the organization. • This needs an integrative frame work that systematically links HR activities with business needs. (Systems Approach) • Development of a map and time line to ensure alignment between HR strategy and business strategy.
Strategic HRM Activities • HR Philosophy • HR Policies • HR Programs • HR Practices • HR Processes
Human Resources PhilosophyOr HR Contribution in Company Growth & Success A firm’s HR philosophy is generally a broad statement about how it regards its people, the role they play in the overall success of a business, and how they are to be treated and managed. • Empowering people to drive to business from the closest point to the market. • Developing the skills to be the best in the business. • Building career opportunities. • Building teamwork. • Helping people succeed by the building an environment with high integrity, strong and consistent values, and continuous improvement. • Changing environment towards effective time management, cost consciousness and improving interaction for increasing productivity by proactive support to line managers.
ORGANIZATIONAL STRATEGY Initiates the process of identifying strategic business needs and provides specific opportunities to them INTERNAL CHARACTERISTICS EXTERNAL CHARACTERISTICS STRATEGIC BUSINESS NEEDS Expressed in mission or vision statements and translated into strategic business objectives STRATEGIC HUMAN RESOURCES MANAGEMENT ACTIVITIES • Human Resources Philosophy expressed in statements defining business values and culture. • Human Resources Policies expressed as shared values (guidelines). • Human Resources Programs articulated as Human Resources strategic. • Human Resources Practices for leadership, managerial and operational roles. • Human Resources processes for the formulation and implementation of other activities. • Express how to treat and value people. • Establishes guidelines for action on people related business issues and HR program. • Coordinates efforts to facilitate change to address major people related business issues. • Motivates needed role behaviors. • Defines how these activities are carried out
Roles Of HR Manager • Business person • Shaper of change • Consultant to the organization and partner to line managers • Strategy formulator and implementer • TALENT MANAGER(I.E network with professional colleagues, including recruiters,line managers, and other HR professionals) • ASSET MANAGER AND COST CONTROLLER(Based on understanding financial and accounting procedures.)
Strategic Planning and Trends Definition • Strategyis the company’s long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.
Strategic Planning 101 There are three levels of strategic planning as shown below Corporate Strategy Business Strategy Business Strategy Business Strategy Business Strategy Functional Strategies
The Strategic Planning Process • SWOT analysis - Strengths, Weaknesses, Opportunities, and Threats • Best strategic plans balance a company’s Strengths and Weaknesses with the Opportunities and Threats the firm faces • Basic strategic trends • Globalization • Technological advances • The nature of work • The workforce
HR’s Evolving Role Protector and Screener Change Agent Strategic Partner
Definition Strategic HRM Clarify the business strategy • Strategic Human ResourceManagement: linking HRM with strategic goals and objectives to improve business performance and develop organizational cultures fostering innovation and flexibility. Realign the HR functions and key people practices Create needed competencies and behaviors Realization of business strategies and results Evaluate and refine
How HR Helps Strategy Execution • Functional strategies should support competitive strategies • Value chain analysis • Outsourcing • Strategy Formulation