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Human Resource Management
People who make organizations sucessful…
The practices that a company apply to manage employees…
A support function of an organization that works for the design and implementation of company policies for managing employees…
Ability to create more economic value than its competitors…
Employees
HR Pract ices
HR Depar tment
C o m p e t i t i v e A d v a n t a g e
Mis
managed
Em
plo
yees
• Unwillingness to work toward organizational goals,
• Lower performance,
• Unhappy, unmotivated,
• Increase turnover rate
• Absenteeism,• Sabotage,• Showing lower
responses to customer needs M
anaged E
mplo
yees • High
performance,• Willingness to
contribute to company goals,
• Increased commitment, loyalty and morale,
• Greater motivation,
• Increased efficiency
Environmental Influences
Organizational Demands
Regulatory Issues
Work Design and Work Force Planning
Managing Empoyee
Attitudes and BehaviorsPerfromance Management
Compensating Employees
Incentives and RewardsEmployee Benefits and
Safety Programs
Managing Employee
CompetenciesRecruitment
SelectionTraining and Development
HR Activities
HR Challenges
Changing Role of People in Organizations
18th &19th Century –
• one person completing the whole product,
• people are important,
• respect for the skilled people,
Late 19th century & early 20th century –
• Industrial revolution,
• machines are more important than the
people,
• Fredrick Taylor, the role of people is clearly
defined and they can be easily substituted
• workers’ emotions, ideas and contribution are
not important.
• No personnel function in the organizations
Between WW I and WW II–
poverty, economic depression, unemployment,
Not much attention is given to individuals
Bureaucratic controll of personnel issues
Late 40’s & 50’s- Economies are recovering.
More attention is started to be given to people in organizations
Train people to productively use the tools and the machines
Bureaucratic organizations
Organizational behavior, industrial psychology studies have begun
Personnel functions and departments are emerging
Late 50’s and 60’s – democracy, peace
movements, rights of women,
freedom, independence movements throughout the
world,
• Social sensitivity is rising.
• Interpersonal relationships and
people’s psychological well being
were important
• Needs of people and how to
motivate people were studied.
• Studies on organizational structure
and its relationship to productivity
70’s – Systems approach
Study of various management styles instead of only one
Employees seen as recources to be used productively instead of only costs to be controlled
Concept of Human Resources instead of Personnel
80’ – 90’s Rapid technological
advancements, start of the knowledge era.
Individual seen as knowledge worker.
Individual starting to play a central role in the organization.
Knowledge worker became an asset for the organization instead of only be seen as a resource to be used.
2000 on- Strategic role of people in the organizations. HR seen as business partner and employee advocate
* PERSONNEL MANAGEMENT VS HR MANAGEMENTElement Personnel Management HR Manegement
Employee Relations Characterized by conflict or opposition
Developmental and Collaborative
Orientation Reactive and piecemeal Proaktive and business focused
Organization Separate functions Integrated functions
Client Management Management and employees
Values Order, equity, consistency
Client and problem focused, tailored solutions
Role of Specialist Regulatory and record keeping
Problem sensing, tailored solutions
Role of line management
Passive ownership Active ownership
Overall output Compartmentalized (divided) thinking and acting
Linking various HR levers to business needs
* HR’s Role in Competitive Advantage
*A company’s ability to create more economic value than its competitors
*Accomplished through:
—managing employees effectively
—training employees in skills they need
—making employees feel valued
—motivating employees to be productive
* HR Challenges
*Organizational demands
*Environmental influences
*Regulatory issues
* Organizational Demands:
StrategyCompany Charactheristics
Organizational CultureEmployee Concerns
A plan for achieving a competitive advantage
*Impacts types of jobs employees perform
*Affects attitudes and behaviors employees display
* Organizational Demands:
Strategy
*Are you planning to be a cost leader or produce unique
products/services?
COST LEADERSHİP STRATEGY
DİFFERENTİATİON STRATEGY
* Organizational Demands:
COST LEADERSHİP STRATEGY
The company designs the job in order to
maximize the predictability of the
employee outcomes.
Requires Employees with:• Basic skillsTraining:• Train employees to carry out their
responsibilities,Compensate:• Pay according to their jobs
performed and evaluate them with the job expectations
Assembly Lines!
* Organizational Demands:
Company choose to perform jobs geared toward a particular
objective like creativity and customer service.
Requires Employees with:• Specific skills, new perspectives,
creativity, high organizational commitment
Training:• Train employees to create new
skills and support theri growth!Compensate:• Pay according to individual
potential, unique experiences, team sucess and long term sucess
Google!DİFFERENTİATİON
STRATEGY
* Organizational Demands:
Company Charactheristics
*Company Size
Small or Large Business!!!
*Stage of Development
Starting out, Emerging Growth, Maturity, Decline
* Organizational Demands:
Organizational Culture
Assumptions, values and beliefs of a company that affect how employees behave:
Do not forget these are only two examples, each
company has its own unique culture
Bureaucratic cultures value
rules, formalization,
hierarchy
Entrepreneurial cultures value
creativity, knowledge exchange, innovation
* Organizational Demands:
Employee Concerns
*Psychological Contract
*Work Life Balance
*Justice
*Environmental Influences
* Environmental Influences:
Labor Force Trends
Influences how companies recruit/select. Some recent trend in Turkish Labor Market:
*Diverse in race, gender and age
*Number of women expected to grow
*Overall unemployment rate % 9.9
*% 19.3 unemployment rate among young people in Turkey
*Size of group 55-and-older increasing due to the new retirement policy in Turkey
* Environmental Influences:
Technology
*Requires many employees to possess basic computer proficiency
*Challenges privacy issues and potential misuse by employees
*Broadens access to recruit employees from larger market
*Enables virtual workforce
* Environmental Influences:
Globalization
* Blurs country boundaries in business activities
* Enables international joint ventures and partnerships
* Challenges companies with differences in values and beliefs
* Encourages offshoring—sending work once performed domestically to other countries for lower costs
* Environmental Influences:
Ethics and Social Responsibility
Companies and their management being held accountable for ethical behavior
Corporate policies and procedures spell out ethical behavior Involves how companies behave toward their stakeholdersCan help foster positive reputation and consumer support
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