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Ata Ur Rehman 1HRM
Human Resource Management
Ata Ur Rehman
Ata Ur Rehman 2HRM
WHAT IS HUMAN RESOURCE
MANAGEMENT?
The focus of human resource management (HRM) is on managing people within the employer-employee relationship. Specifically, it involves the productive use of people in achieving the organization’s strategic business objectives and the satisfaction of individual employee needs.
Ata Ur Rehman 3HRM
WHAT IS HUMAN RESOURCE MANAGEMENT?
HRM can be a major contributor to the success of an enterprise because it is a key position ‘to affect customer, business results and ultimately shareholders values. Likewise, ineffective HRM can be a major barrier to employee satisfaction and organization success. HRM is thus either a part of the problem or part of the solution in gaining the productive contribution of people.
Ata Ur Rehman 4HRM
WHAT IS HUMAN RESOURCE MANAGEMENT?
The HR Manager, as with any other
functional manager in marketing,
production or finance, is responsible for
performance. His or her position exists
basically to achieve the strategic business
objectives of the organization. If it does
not, the position will become redundant.
Ata Ur Rehman 5HRM
Old myths New RealitiesPeople go into HR because they like people.
HR departments are not designed to provide corporate therapy or asocial or health-and –happiness retreats. HR professionals must create the practices make employers more competitive, not more comfortable.
Anyone can do HR. HR activates are based on theory and research. HR professionals must master both theory and practice.
HR deals with the soft side of a business and therefore is not accountable.
The impact of HR practices on business results can and must be measured. HR Professionals must learn how to translate their work into financial performance.
HR focuses on costs, which must be controlled.
HR practices must create value by increasing the intellectual capital within the firm. HR professionals must add value, not reduce costs.
Ata Ur Rehman 6HRM
HR’s job is to be the policy police and the health and-happiness patrol.
The HR function does not own compliance-mangers do. HR practice do not exist to make employees happy but to help them become committed. HR professionals must help mangers commit employees and administer policies.
HR is full of fads. HR practices have evolved over time. HR professionals must see their current work as part of an evolutionary chain and explain their work with less jargon and more authority.
HR is staffed by nice people.
At times, HR practices should force vigorous debates. HR professionals should be confrontative [sic] and challenging as well as supportive.
HR is HR’s job. HR work is as important to lines managers as are finance, strategy, and other business domains. HR professionals should join with managers in championing HR issues.
Ata Ur Rehman 7HRM
The new role of HR mangers
As HRM becomes more business
oriented and strategically
focused, four key roles for HR
managers can be identified. 1. Strategic Partner
2. Administrative Expert3. Employee Champion
4. Change Agent
HRM Ata Ur Rehman 8
Strategic Human Resource Planning
The process of formulating HR
strategies and establishing
programs or tactics to
implement them.
HRM Ata Ur Rehman 9
The Benefits of
StrategicHR
Planning
Ata Ur Rehman 10HRM
Encouragement of Proactive Rather than Reactive Behavior
Explicit Communication of Company Goals
Stimulation of Critical Thinking and Ongoing Examination of Assumption
Identification of Gaps Between Current Situation and future Vision
Encouragement of line Managers’ Participation
Identification of HR Constraints and Opportunities
Creation of Common Bonds
Ata Ur Rehman 11HRM
The Challenges The Challenges
of Strategicof Strategic
HR PlanningHR Planning
Ata Ur Rehman 12HRM
Maintaining a Competitive Advantage Reinforcing Overall Business Strategy Avoiding Excessive Concentration on Day-to-Day Problems Developing HR strategies Suited to
Unique Organizational Features Coping with the Environment Securing Management Commitment Translating the Strategic Plan into Action Combining Intended and Emergent
Strategies Accommodating Change
HRM Ata Ur Rehman 13
Challenges to Human Resource
Manager Environmental
Organizational
Individual
Ata Ur Rehman 14HRM
Environmental
Rapid Change
Work Force Diversity
Globalization
Legislation
Evolving Work and Family Roles
Skill Shortages and the rise of the Service Sector
How much
responsibility does an organization have
to shields its employees from the
effect of rapid change in the environment?
What risks does this type of “Shock
Absorber” approach to
Management entail?
Ata Ur Rehman 15HRM
Organizational Competitive Position; Cost, Quality,
Distinctive Capabilities. Decentralization Downsizing Organizational Restructuring Self-managed Work Teams Organizational Culture Technology Outsourcing
Ata Ur Rehman 16HRM
Individual
Matching People and Organization
Ethical Dilemmas & Social Responsibility
Productivity
Empowerment
Brain Drain
Job Insecurity
HRM Ata Ur Rehman 17
Strategic HR Choices
The Options Available to a Firm in Designing its
Human Resources System
Ata Ur Rehman 18HRM
A firm’s Strategic HR Choices are the options it has available in designing its Human Resources System. Choices are strategic to the extent that they affect the firm’s performance either favorably or unfavorably in the long run.
Work Flows Staffing Employee Separations Performance Appraisal Training and
Development Compensations Employee Relations Employee Rights Internal Management
Does an Employer
have an Ethical
Duty to Help
Employees
Prepare for the
Change that is
Certain to come?
HRM Ata Ur Rehman 19
HR Audit
A periodic review of the effectiveness with which a
company uses its resources. Frequently
includes an evaluation of the HR department itself.
Ata Ur Rehman 20HRM
The audit, which is typically conducted by the HR department, deals with a broad set of questions, including;
Is the turn over rate exceptionally low or high?
Are the people quitting good employees who are frustrated in their present job, or are they marginal performers?
Is the firm receiving a high return on the money it spends on recruitment, training and pay-for-performance plans?
Is the firm complying with government regulation?
How well is the company managing employee diversity?
Is the HR department providing the services that the line managers need?
Are HRM policies and procedures helping the firm accomplish its long-term goals?
HRM Ata Ur Rehman 21
Building Managerial Skills
Selecting HR Strategies
to increase firm’s Performance
Ata Ur Rehman 22HRM
Ethical Issue?
The dark side of strategic planning is that workers are sometimes thought of as numbers on a page or dollars in a budget rather than as flesh-and-blood human beings. When divisions are spun off or merged, individual employees are dramatically affected.
What responsibility does the employer have toward its employees in situation like these?
Ata Ur Rehman 23HRM
The key factors that firm should consider in determining which HR strategies will have a positive impact on firm performance:
The greater the match between HR strategy and the firm’s overall organizational strategies.
The greater the extant to which the HR strategy is attuned to the environment in which the firm is operating.
The more the HR strategy is molded to unique organizational features.
The more the HR strategy enables the firm to capitalize on its distinctive competencies.
The more the HR strategies are mutually consistent or reinforce one an other.
Ata Ur Rehman 24HRM
Organizational Strategies
HRStrategies
Improved Firm Performance
Environment
Organizational Characteristics
Organizational Capabilities
Consistency
Consistency
Consi
stency
Consiste
ncy
FITFIT
FIT FIT
Effective HR Strategy Formulation & Implementation
HRM Ata Ur Rehman 25
HRM POLICIES
Ata Ur Rehman 26HRM
HRM policies are general statements, which serve to guide decision making. As such, they direct the actions of the HRM function towards achieving its strategic objectives. HRM policies are generally put in writing and communicated to all employees. They typically serve three major purposes: To reassure employees that they will be treated fairly and objectively To help managers make quick and consistent decisions To give managers the confidence to resolve problems and to defend their decisions.
Ata Ur Rehman 27HRM
Subjects covered by HRM policies
include transfers, promotions,
terminations and pay increases.
The statement for example, “It is
the policy of this organization
whenever feasible to promote from
within”, gives a clear guideline to
managers and employees about
how promotional opportunities will
be handled.
Ata Ur Rehman 28HRM
An Issue!
Retention of Top Talent is a
critical element in the strategy
of today’s leaner--------
Organizations. How Career
Development activities can
contribute to Retention?
Ata Ur Rehman 29HRM
An Issue!
Many believe that top managers care
little about Human Resources.
Compared to such areas as Finance,
Production, Marketing and
Engineering. What might account for
this perception and what would you
do to change it?
Ata Ur Rehman 30HRM
An Issue!
Many countries have Government
regulations that make it very difficult
to lay-off employees unless the lay-off
can be justified business reasons. Do
you think that Pakistan should develop
a similar policy? Why or why not?
Ata Ur Rehman 31HRM