Human Resources Management

• Human resources management is not only a science but

also a practical activity.

This practice applies to what is happening in the labor

market and in organizations nowadays.

What is happening today in the labor market-the

background for what needs to deal human resource

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background for what needs to deal human resource

management today.

• “Many companies are looking for a recipe for success in all

possible places, but not in the most obvious-own staff”

Jeffrey Pfeffer

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Sources of business success

What is really the source of lasting business success?

� company size - the larger the company the more certain success

� the ability to sell in global markets, not just in local markets

� to have technological advantage over its competitors

� the ability to reduce costs by reducing employment

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� the ability to reduce costs by reducing employment

� to business activity in a profitable sector

� to have excellent strategy

yes and no

the most important factor is different - people

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What is Human Resources Management

• Human resources management (HRM) is a strategic,

integrated and coherent approach to the employment,

development and well-being of people working in

organizations.

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• The overall purpose of human resource management is to

ensure that the organization is able to achieve success

through people. HRM aims to increase organizational

effectiveness and capability of an organization to achieve its

goals by making the best use of the resources available to it.

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What is Human Resources Management

HMR refers to

� strategic management,

� human capital

management,

� corporate social

• performance management,

• organizational learning and

development,

reward management,

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� corporate social

responsibility,

� knowledge management,

� organization development,

� human resource planning,

� recruitment and selection,

� talent management,

• reward management,

• employee relations,

• employee wellbeing and

health and safety

• the provisioning of employee

services.

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World's Most Attractive Employers Index :

1. Google

2. IBM

3. Microsoft

4. BMW

8. Apple

9. Sony

10. Procter&Gamble

11. Shell

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4. BMW

5. Intel

6. General Electric

7. Simens

11. Shell

12. Volkswagen

13. Johnson&Johnson

14. The Coca-Cola Company

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What is Human Resources Management

• Organizations should understand that strong employees

become a source of competitive advantage in a global and

rapidly changing environment.

• HRM must be prepared to deal with the effects of different

Chojn

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PhDHRM must be prepared to deal with the effects of different

changes: globalization, technology changes, workforce

diversity, labor shortages, changing skill requirements,

continuous improvement initiatives, decentralized work sites,

company mergers and employee involvement.

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The Dynamic Environment of HRM

The most important factors affecting the complexity of the

human resource management are:

� diverse cultural environment

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� diverse cultural environment

� development of technology

� workforce diversity

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Diverse cultural environment

Organizations are no longer constrained by national borders in producing goods and services.

� BMW- builds cars in South Carolina.

� McDonald’s sells hamburgers in China

� tractors made in the USA are assembled with parts received from twelve countries and are shipped to over 110 countries.

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To be effective in this boundless world, organizational members and HRM professionals need to adapt to cultures, systems, and techniques different from their own.

They must also ensure that employees with the appropriate mixture of knowledge, skills, and cultural adaptability are available and ready to handle global assignments.

Therefore, they should understand the importance of work in a diverse cultural environment.

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How technology affects HRM practices

Technology changed internal operations in organizations, and work of HRM

professionals. They have become the primary source of information

Information can quickly and easily be communicated via Web sites and

intranets, e-mail, and messaging. Human Resource Information Systems (HRIS)

allow HRM professionals to better facilitate human resource plans, make

decisions faster, clearly define jobs, evaluate performance, and provide cost

effective benefits that employees want.

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effective benefits that employees want.

� How? for example by

� Recruiting by job postings on the Internet.

� Training and development employees via classes online and teleconferences

� New ways of communication and virtual meetings which allow people in

geographically dispersed locations to meet regularly.

� The ability to work remotely, outside the traditional workplace

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Workforce diversity

Organizations become more diverse, that is why HRM should adapt to

those changes. Many organizations today have workforce diversity

programs, for example diversity management, age management, disability

management.

Workforce diversity requires that employers should be more sensitive to

the differences of each group, how? For example by:

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the differences of each group, how? For example by:

• shift ing philosophy from treating everyone alike to recognizing individual

differences and responding to those differences

• recognizing and dealing with the different values, needs, interests, and

expectations of employees. They must avoid any practice or action that can

be interpreted as being sexist, racist, or offensive to any particular group

and, of course, must not illegally discriminate any employee.

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Workforce diversity

� Recruiting and hiring the best employees is a priority for all organizations, but it’s only half of the success for keeping fully staffed

� Employers must retain employees who increasingly demand flexibility. Research shows that more and more young qualified workers would prefer to work in flexible hours or flexible way.

It applies particularly to:

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It applies particularly to:

� young parents,

� people from Generation X (born 1965–1980)

� people from Generation Y (born 1982–early 2000).

� It becomes a difficult balance for employers to maintain as the lines between employees’ work and personal lives are hard to notice.

In Poland it is a new phenomenon, but it is already well known in Western countries (the European Union and the United States).

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Workforce diversity

What does it mean?

1. the creation of global organizations means their world never sleeps. It causes for example the need to consult and cooperatewith people (co-workers or customers) who live in different time zones. So, many employees of global firms are “on-call” twenty-four hours a day.

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four hours a day.

2. communication technology allows employees to work outside their traditional work places, for example at home. So, many people in technical and professional jobs can work any time and from any place.

3. Organizations ask employees to put in longer hours. It’s not unusual for employees to work more than forty-five hours a week.

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The labor supply

• Do we have enough of skilled labor?

Unemployment is increasing but there is lack of highly skilled professionals. In the past decade, most of the largest companies have made significant cuts in their overall staff.

• We call this phenomenon downsizing. Why is there the trend of downsizing?

• Organizations are trying to increase their flexibility in order to

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• Organizations are trying to increase their flexibility in order to respond to changes better . Quality-emphasis programs are creating flatter structures and redesigning work to increase efficiency. The result is a need for fewer employees.

• It does not mean that big companies are disappearing, but they are changing the way they operate. Big isn’t necessarily inefficient. A lot of big companies manage to blend large size with efficency by dividing their organization into smaller, more flexible units.

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The labor supply

Downsizing as a strategy is here to stay.

It is part of a larger goal of balancing staff to meet changing needs.

When organizations become overstaffed, they will likely cut jobs. At the

same time, they are likely to increase staff if doing so adds value to the

organization.

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A better term for this organizational action, then, might be rightsizing.

Rightsizing involves linking staffing levels to organizational goals.

Rightsizing promotes greater use of outside firms for providing necessary

products and services—called outsourcing— in an effort to remain flexible

and responsive to the ever-changing work environment.

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Remember

• Downsizing- an activity in an organization aimed at creating

greater efficiency by eliminating certain jobs

• Rightsizing- linking employees’ needs to organizational strategy.

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• Outsourcing- sending work “outside” the organization to be

done by individuals not employed full time in the organization.

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The labor supply

• How Do Organizations Balance Labor Supply?

• Thousands of organizations have decided they can save

money and increase their flexibility by converting many

jobs into temporary or part-time positions, giving rise to

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jobs into temporary or part-time positions, giving rise to

what is commonly referred to as the contingent

workforce.

•

• Today temporary workers can be found everywhere: in

the services in the building sector, in IT sector, in

secretarial, among engineers, in marketing, in education

and even in senior management positions.

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The labor supply

� Why the organizational emphasis on contingent employees?

Organizations facing a rapidly changing environment must be ready

to quickly adjust their workforce. Having too many permanent, full-

time employees limits management’s ability to react.

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� For example, an organization that faces significantly decreased

revenues during an economic downturn may have to cut staff.

Deciding whom to lay off and how layoffs will effect productivity is

extremely complex in organizations with a large permanent

workforce.

On the other hand, organizations that rely heavily on contingent

workers have greater flexibility because workers can be easily added

or taken off projects as needed.

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Contingent workforce

� Definition: the part-time, temporary, and contract workers used by

organizations to fill peak staffing needs or perform work not done by

core employees.

� Contingent workers have become an important resource as HR struggles to

balance the supply of workers available, yet maintain cost control. Part-time,

temporary, and contract workers are valuable to many organizations.

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PhDtemporary, and contract workers are valuable to many organizations.

We can distinguish three types of contingent workers:

� Part-Time Employees

� Temporary Employees

� Contract Workers Jago

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Contingent workforce

• Part-Time Employees

are those who work fewer than 40 hours a week. Generally, part-timers are afforded few, if any, employee benefits. Part-time employees are generally a good source of workers for organizations to supplement their staff during peak hours. Part-time employees may also be a function of job sharing, where two employees split one full-time job.

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time job.

• Temporary Employees

such as part-timers, are generally employed during peak production periods. Temporary workers also act as fill-ins when some employees are off work for an extended time. Temporary workers create a fixed cost to an employer for labor “used” during a specified period.

• .

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Contingent workforce

• Contract workers, subcontractors, and consultants

(who may be referred to as freelancers) are contracted by

organizations to work on specific projects. These workers, typically

highly skilled, perform certain duties. Often their fee is set in the

contract and paid when the organization receives particular results.

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Contract workers are used because their labor cost is fixed and they

incur none of the costs associated with a full-time employee

population.

Additionally, some contract arrangements may exist because the

contractor can provide virtually the same good or service in a more

efficient manner.

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Summary: contingent workforce

For employers and human resource management it is an important

difference whether the worker is employed full-time or temporarily.

This distinction is important because it has consequences for income,

social security and health insurances of the organization and employee.

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In addition, for the human resource management contingents workers are

challenging, especially in:

• time management of their work

• motivating them

• building good / correct relationship between full-time and temporary

workers employed in one place of work.

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