HUMAN RESOURCE MANAGEMENT

UNIT I

HUMAN RESOURCE MANAGEMENT

• Meaning & concept of human resource in sports

• Role of sports professionals in developing human resources in society

• Public relations

• Group Dynamics

HUMAN RESOURCE• Human resources is used to describe both the

people who work for a company or organization and the department responsible for managing resources related to employees.

• The term human resources was first coined in the 1960s when the value of labour relations began to garner attention and when notions such as motivation, organizational behaviour, and selection assessments began to take shape

HUMAN RESOURCE MANAGEMENT

• Human resource management is the management of people, focusing on policies and systems, with the aim of maximising staff and volunteer performance

• Human resource management is a contemporary, umbrella term used to describe the management and development of employees in an organization. Also called personnel or talent management (although these terms are a bit antiquated), human resource management involves overseeing all things related to managing an organization’s human capital.

HUMAN RESOURCE MANAGEMENT...

Human resource management is therefore focused on a number of major areas, including:

• Recruiting and staffing

• Compensation and benefits

• Training and learning

• Labour and employee relations

• Organization development

Uniqueness of sport organisations

• The sport industry’s distinctiveness is characterized by the inimitability of sport & its ability to engender irrational passions and emotional attachments, despite the often variable quality of the product

• Sport’s uniqueness is further exemplified by features of intangibility, heterogeneity and inseparability of production and consumption

Managing people in sport organizations

• The distinguishing characteristics of sport combine to create a unique management environment for sport organisations

• The effective management of people who are working and volunteering for the organisation is the critical.

• In the same way that getting the best out of the players is the hallmark of a good coach, getting the best out of employees and volunteers is the hallmark of a good manager.

Human resource management considerations

• Shaped by the environment in which the sport organisation is located

• Government policy and legislation can support, regulate or dictate activities in the public sector,.

• Non-profit and voluntary organisations face volunteer management challenges.

• Professional and commercial sport organisations must meet customer expectations and stakeholder demands

Sector Organisation Mission Typical staffing profile

Public National Institute of

Sport

To develop elite sport on a

national basis with a particular

focus on success at the Olympic

Games and World

Championships

Paid Staff – Head Coach, Executive Director, technical

and administrative support staff, nutritionist, sport

psychologist

Board of Directors – appointed by government

Voluntary Youth Sport Club To provide an appropriate

supportive environment for

youth to enjoy sport in an

atmosphere of fun,

sportsmanship, democracy and

peace.

Volunteers – large numbers in a range of roles. Coach,

manager, event organiser, fund raising, promotion,

maintenance, legal, accounting, risk management.

Paid administrative staff – limited number eg Executive

Director

Volunteer Board of Directors

Non-profit

Membership based

Local Golf Club To be financially self-sustaining

while providing an quality

experience to members and

guests with a commitment to

exceptional perceived value

through loyalty, growth,

leadership and community

citizenship.

Paid staff – Chief Executive Officer, Golf Professional,

Green keeper, Catering staff

Volunteer Board of Directors

Commercial Sport & Fitness

Centre

To inspire our members to

achieve their fitness goals with

the finest fitness equipment,

knowledgeable instructors and a

safe, fun and friendly

atmosphere

Paid staff – Administration, Aquatics, Dance & Fitness

instructors, Management, Operations, Personal

Training, Reception, sales

Professional Sports Franchise Dedicated to winning

Championships, growing new

fans, and providing superior

entertainment, value and service.

Paid – Chief Executive Officer, Vice-President,

management, Marketing and Broadcasting , Legal &

Financial, administrative and support staff

Head Coach, training and sport operations staff

Medical Staff

Stadium staff

Governance – Chair, Board members

Community and event day volunteers

Contemporary sport organizations

• Sport organizations face increased globalization, commercialization and greater accountability

• Changes include:

❖government funding & restructured sport delivery systems

❖Moves to professional status (eg Rugby Union, Triathlon)

❖Development of global brand equity (eg IPL )

❖increasing transnational movement of athletes and coaches

❖growth and increasing sophistication of chain organisations (eg Fitness First which operates in 15 countries)

Changes to staffing

• Growing numbers of paid staff have been appointed in roles traditionally held by volunteers

• Increasingly employees are selected for their technical or professional expertise in managing a business irrespective of their knowledge of the sport

• Board members are recruited for their business acumen and not just their sporting prowess

The people management challenge

• Attracting, developing, and retaining talented people can provide a sport organisation with the resources it needs to prosper, grow and ultimately, gain competitive advantage.

• The right coach, manager, CEO or player can transform the fortunes of a sport organization from bottom of the pile to a league or world champion.

Competitive advantage through human resources

• The ‘best mix’ of people will allow the sport organisation to meet its strategic objectives now and into the future.

• This can be achieved through strategic:▪ Planning

▪ Recruitment

▪ Retention

▪ Reward and recognition

▪ Training and development

Human resource management

• Policies, practices, procedures, and systems that influence the behaviour, attitudes, values and performance of people who work for the organisation.

• HRM ensures generic strategic decisions are implemented effectively by coordinating the people related aspects

The HRM system …• can be shaped by many factors including:

– the type of organisation (eg public or private sector),

– the external environment in which the organisation operates (eg the nature of the labour market)

– the choices made by the organisation about how work is organised (eg the extent to which rewards are equally shared within the organisation).

As a result of these factors and choices there will be different human resource configurations within different sport organisations

Evolution of HRM

• The first formal personnel practices were implemented during the late Victorian period in the UK

• These were basically welfare workers with a concern for the well being of the worker coupled with recognition that improved welfare for workers would also enhance the performance of the business.

Summary

• Sport organisations face a number of challenges to effectively managing employees and volunteers

• Human resource management and strategic human resource management concepts and approaches provide a framework for people management

• Effective human resource management is essential for the sustainability of sport organisations

PUBLIC RELATIONS

• Public relations is commonly defined as the planned effort to influence opinion through good character & socially responsible performance, based on mutually satisfactory two way communications

• Public relations indicates the positive relationship of the institution, program or organisation & its total complement of human resources as well as its public constituencies

PUBLIC RELATIONS......

• Public relations considers important factors such as :

• Consumer or user interest

• Human relationship

• Public understanding

• Goodwill

PUBLIC RELATIONS......

• In business, public relations attempts to show the important place that specialized enterprises have in society& how they exist & operate in the public interest.

• In education, public relations is concerned with improving public opinion ,proclaiming & transmitting the need of the school or college, & acquainting constituents with the value of programmes & what is being done in the public’s interest.

Sports Public Relations Experts

• Sports PR experts coordinate the flow of information from teams to the press--and feed the public hunger for sports news items, team data and player information.They also play an important "promotional" role in generating public interest, increasing teams' visibility and filling stadiums with fans

Sports Public Relations Experts..

• Who They Are - Often working seven days a week during the season, PR staffs for sports teams vary in size--some large universities have whole departments to coordinate public relations, while small colleges have a single staff member. Responsibilities include everything from dining with news media to supervising printing and delivery of game programs.What They Do - College and professional PR personnel do everything from writing newspaper stories and press releases to organizing press briefings, preparing press guides and maintaining team historical files. They are responsible for responding to media and public information requests--and often for positioning difficult or sensitive news stories relating to teams or players so as to throw the most positive light on a situation.

• Background/Education Required - Writing and communication skills are essential, and an interest in new media, Internet journalism and desktop publishing will be very helpful. Experience at school newspaper, radio and TV stations is helpful, as is a college degree in English, communications or public relations.

Sports Public Relations Experts...

• The different areas involved in Sports Public Relations consist of these parts.

PLYAER RELATIONS

MEDIA RELATIONS

COMMUNITY RELATIONS

INVESTORS RELATIONS

PLAYER RELATIONS....

•In the world of sports, there has been more news on the labor-management front than there has been over what’s really important – who won the game and why.

• One major task for the public relations official is the responsibility to promote team unity. They can do little to impede media critism but they must do a great deal to soothe players’ painful reactions to public ridicule.

• The public relations expert is as responsible as the coach to organize a program that psyches up the players and counters negative psychological factors. Energizing the team by plastering the locker room with opponents’ macho quotes is a common practice in college and the pros.

• Sophisticated PR people realize it is better to inspire than• degrade.

Another very important project that the public relations expert must do is conduct courses on PR with all the players and coaching staff. Players often turn to PR expert for advice when they have a personal problem, which may explode in public forum.

MEDIA RELATIONS.......

• The goal of the public relations consultant is to create, through the organization of news and advertising, an advantageous image for the team. This is done by creating of favorable public opinion by using many research techniques and communications media.

• The principal instrument of publicity is the press release, which provides the mass media with the raw material and background for a news story. The growth of modern public relations is generally attributed to the development of the mass media, which accelerated the spread of ideas and increased the importance of public opinion by giving more people access to current events.

• Public relations experts work to maintain this favorable opinion of the team.

• Professional teams work closely with the news media on a daily basis, providing them a wide variety of info about players, staff and the organization.

MEDIA RELATIONS.......

• It is important to get the reporters on your side. If a crisis arises, DON'T DENY IT. Instead, put it in the best possible light. This may seem like a difficult task, but it can be done and it gives you more credibility with the media and the public.

• As a public relations employee, you must think about your team, athletic department, or organization and consider that they may have the power to influence a story, whether in a positive or negative direction. It's important to realize that these groups have the ability to color the way that a story is reported. It's important to remember that in most cases the reporter will report the facts but, it is up to you to have the skills to make sure the "FACTS" are reported in the most favorable light.

INVESTOR RELATIONS....

• There are two reasons for professional sports. The first is to make money and the second is it makes money.

• The Public Relations professional must be actively involved in marketing helping the clients cause or improving the clients’ profits. The PR professional must have known as much about the whole marketing process as the marketing manager.

• In the past few years, salaries in professional sports have escalated, with corresponding increases in ticket prices, beyond anything remotely resembling economic good sense. In most cases it is a wise move for players to use agents to negotiate contracts. Many agents are reputable lawyers or accountants who not only negotiate contracts, but also guard the players’ money and investments. Since sports teams are private businesses managed for their owner’s profit, the Public Relations expert is involved at a high level – justifying athletes’ high salaries, encouraging attendance for winning and losing teams, arranging appearances for player to personalize the teams’ public image and creating special events to keep the interest alive when the play on the field is dull.

INVESTOR RELATIONS....

• A new area of investing in a team is the selling of “official” team representation. Local and national companies are willing to pay handsomely to become an official sponsor or provider. The public relations team must take part in attempting to attract bidders and then letting the community know who the major sponsors and providers are for the team.

• In order to be considered a success, a major sports team must be as successful at the bank as they are at the stadium. This is aided by a strong, knowledgablepublic relations team.

COMMUNITY RELATIONS....

• Public relations is about interacting with the various publics within the organization and the community.

• Public relations experts work to maintain a favorable opinion of the sports club that they are working for. One of the most important assignments is getting the crowd to the game and really getting them into the game. When cheering goes up, team morale goes up too.

• One obstacle that the public relations team may face is giving the fans a good reason to get their support. Fans enjoy being rewarded even if it’s trivial. When the crowd is involved, the event becomes more memorable. Any type of contest or giveaway attracts crowds and builds commoraderybetween the community and the team.

• Another challenge that faces the public relations officials is creating publicity to make the fans feel confident that their interests are important to management. Management needs and wants public backing when it makes those hard decisions that effect players and managers and also when they are forced to raise any prices.

COMMUNITY RELATIONS....

• One very important way to reach out to the local community is to take part in events and functions that help out a charity or organization. Public relations employees will send out a list of possible speakers from the team to a constantly updated list of target organizations in order to get the team out into the community to touch all the important fans that cheer for them.

• The public relations department must provide excellent opportunities for the the players to be visible and active in the community. The public relations team must make the program visible in the community activities beyond the playing field. This is extremely important because people enjoy being recognized as part of a group.

GROUP DYNAMICS/TEAMWORK

• Group dynamics are the processes that occur between group members. These dynamics are affected by each member's internal thoughts and feelings, their expressed thoughts and feelings, their nonverbal communication, and the relationship between group members.

• Group dynamics helps you understand how each person's actions make sense in the context of the group.

CONCEPT OF GROUP DYNAMICS

• The term “ Group Dynamics” was founded by Kurt Lewin to study group decision, group productivity, group interaction, group cohesiveness and group communication.

• Group dynamics contains two terms: Group and Dynamics.

• Group is basically a collectivity of two or more persons.

• Dynamics comes from Greek word meaning FORCE. Thus, “Group dynamics is concerned with the

interactions of forces among group members in a social situation.”

Why do people join group ?

• The people often join groups since the groups give the members a stability and enhances their achievement capacity. The main reasons to join a group are:

✓Have a sense of security

✓Have a status

✓Develop Self-esteem

✓Power

✓Goal achievement

ROLES

• Various parts played by group members.Thereare two elements that define this role identity-

✓ Role Perception-An individual is expected to behave according to his own perception in the group.

✓ Role Expectation-It is defined as how others believe one should behave in a given situation.

STATUS• Status is “ a socially defined position or rank given to

groups or groupmembers by others.”

• Group members get high status or low status in the Group based on their authority and performance.

✓ High status members of the group have more freedom to deviate from the norms. This facility enables them to have the discriminatory powers in decision making.

✓ Low status members of the group should not have freedom to deviate from the norms as it leads to status inequality.

Theories of Group Formation

• BALANCE THEORY

• EXCHANGE THEORY

• SYSTEMS THEORY

BALANCE THEORY

• Balance Theory : Propounded by “ Theodore New-Comb” which states that-

“ Persons are attracted with one another on the basis of similar attitudes towards commonly relevant objectives and goals.”

BALANCE THEORY

Individual X Individual Y

Z

Common attitudes and values, Religion, Politics, Lifestyle, marriage etc

Exchange theory

Exchange theory of groups is based upon reward-cost outcomes of interactions.

A minimum positive level (reward greater than cost) of an outcome must exist in order for attraction or affiliation to take place.

Rewards from interactions gratify needs, while costs incur anxiety, frustration, embarrassment, or fatigue. Propinquity, interaction, and common attitude all have roles in exchange theory.

Systems theory

• Systems theory describes how individuals behave within a system. As groups are considered systems, systems theory helps us begin to understand group dynamics. Systems theory involves understanding that group dynamics is a more complex process than just summing up the individual characteristics of each group member. Instead, group dynamics is best understood by combining the characteristics of each group member, how each group member's actions affect the group, and how these group interactions affect each group member. This creates a cyclical and reciprocal feedback loop which simultaneously impacts all group members and all group members relationships

PRINCIPLES OF GROUP DYNAMICS

• The members of the group must have a strong sense of belonging to the group .The barrier between the leaders and to be led must be broken down.

• The more attraction a group is to its members, the greater influence it would exercise on its members.

• The grater the prestige of the group member in the eyes of the member in the eyes of the members , the grater influence he would exercise on the theme

CONTI....

• The successful efforts to change individuals sub parts of the group would result in making them confirm to the norms of the group.

• The pressures for change when strong can be established in the group by creating a shared perception by the members for the need for the change.

FEATURES OF GROUP DYNAMICS

✓ Concerned with group

✓Changes

✓Rigidity or flexibility

✓Continuous process

IDENTIFIABLE STAGES OF GROUP DEVELOPMENT

➢ Forming

➢ Storming

➢Norming

➢ Performing

➢Adjourning

Managing Intergroup Dynamics

❑Hierarchy

❑ Plans

❑ Linking Roles

❑ Task Forces

❑ Integrating Roles/ Groups

❑ Superordinate Goals

Teams in the Modern Workplace

“A working group’s performance in a function of what its members do as individuals. A team’s performance includes both individual results and what we call ‘collective work products’. A collective work products is what two or more members must work on together…..[it] reflects the joint, real contribution of team members.”

Teams in the Modern Workplace

1. The work group has a strong, clearly focused leader; the team has shared leadership roles.

2. The workgroup has individual accountability; the team has individual and mutual accountability.

3. The work group’s purpose is the same as the organization; the team has a specific purpose.

4. The work group has individual work-products; the team has collective work products.

5. The work group runs efficient meetings; the team encourages open-ended, active problem-solving meetings.

6. The work group measures effectiveness indirectly (for example, financial performance of the overall business); the team measures performance directly by assessing collective work-products.

7. The work group discusses, decides, and delegates; the team discusses, decides, and does real work together.

Team Building

Both intragroup and intergroup effectiveness can be

increased through team building, a technique which uses a

series of steps to bring the group members together, make

them share their perceptions of each other and understand

each other’s point of view.

These efforts help members to resolve their problems and

work together in a cooperative and collaborative mode.

Team building, and third party peacemaking can be used as

useful intervention strategies to develop greater

organizational effectiveness.

Team Building

Training Guidelines For Developing Effective Self-Managed Teams

Steps of Training Summary

1. Establishing CredibilityThe trainers must first establish their knowledge and

believability

2. Allow ventilationThe trainers must have their anxieties and unsolved

issues cleared before starting

3. Provide an OrientationThe trainers should give specific verbal directions and

provide clear expectations and models of behaviour

4. Invest in the processEarly on, have the team identify its problems and

concerns

5. Set Group GoalsThe Trainees create, through consensus their own mission statement and then set goals and specific

activities and behaviours to accomplish these goals.

6. Facilitate the Group ProcessThe trainees are taught about how groups function and are given techniques, such as nominal grouping

and paired comparison.

Team Building …

Steps of Training Summary

7. Establish Intragroup

Procedures

This involves setting up a meeting format that might

include reporting minutes, making announcements,

discussing problems and issues, proposing solutions,

taking action, and making new assignments.

8. Establish Intergroup Process Although the team is self-managed, leaders must be

selected in order to interact with others, such as

supervisors, managers and other teams.

9. Change the Role of the

Trainers

As the team becomes more experienced and

empowered, the trainers take on a more passive role.

10. End of the Trainers’

Involvement

At this point, the team is on its own and is self-

managed.

CONCLUSION

• The groups operate on a common task and common attitudes. The group dynamics is concerned with the interaction between the group members in a social situation. This is concerned with the gaining in the knowledge of the group, how they develop and their effect on the individual members and the organization in which they function.

• The group dynamics is essential to study since it helps to find how the relationships are made within a group and how the forces act within the group members in a social setting. This helps to recognize the formation of group and how a group should be organized, lead and promoted.

CASE STUDY• In 1980 , Richard semler joined SEMCO , founded by his father 27

years earlier, having 100 employees and manufacturing hydraulic pumps for ships, producing about $4million in revenue and tottered on the edge of bankruptcy.

• For the next 2 years, top managers constantly sought bank loans and fought off rumors that the company was about to sink.

• They also travelled 4 continents that enabled the company to reduce its cyclical marine business to 60% of total sales.

• Today SEMCO has many factories producing range of products like marine pumps, digital scanners, commercial dishwashers, truck filters and mixing equipment for substances ranging from bubble gum to rocket fuel.

• Customers include Alcoa, saab, General motors and SEMCO is regarded as one of the best company in Brazil to work for by press

CONTI...• The company’s survival and ultimate success is due largely to a major change in its

management approach.• SEMCO emphasized on 3 fundamental values- democracy , information , profit

sharing. These values helped in gaining confidence on work groups as a primary mechanism for managing the company.

• After some experimentations SEMCO found that they need 150 employees per factory and all are divided into 10 member group given a major responsibilities for outcomes associated with their areas.

• Costs rose up because of duplication of effort and lost economies of scale. within a year sales got doubled ,inventory dropped from126 to 46 days,8 new products appeared that had been tied up in R&D for 2 years and the product rejection rate at inspection dropped from 33 to 1% and increased productivity enabled the company to reduce the workforce by 32& through attrition and early retirement.At SEMCO once the members of a group agree on a monthly production schedule, they meet it . At end of the month every body has done their work allotted except for motors that had not yet arrived, despite repeated phone calls to the supplier.finally 2 employees went to the supplier’s plant and got delivery on the last day of the month and every one sat for the whole night till mng 4.45 and completed the assignment ( meat slicers)

CONTI...

• Work groups have access to important information like Balance Sheet, P&L analysis, cash flow statements for his or her division every month.

• All workers voluntarily attend monthly classes so that they can learn to read and understand the numbers.

• Another factor is that although top level managers are strict about meeting the financial targets, workers have wide latitude in determining the necessary actions and carrying them out.

• Profit sharing plan, twice a year employees receive about 25% of the after tax profits for their division.

• Employees vote on how to disburse the funds, which are visually distributed equally.

• A survey was conducted by college graduates by Brazilian magazine found that 25% of men and 13% of women cited SEMCO as the company they most wanted to work for