HRM and Operations Management in Todays Business World Facilitator: Saadia Malik.
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HRM and Operations Managementin Today’s Business World
Facilitator: Saadia Malik
Contents
• Human Resources Management – An Overview• Importance of HR function • Role and activities of HR department • Recruitment & Selection/ Staffing Sub Function• Employee Compensation, Performance
Management & Organizational Development• Environmental factors impacting HR Function in
an organization
HUMAN RESOURCES
MANAGEMENT
AN OVERVIEW
Learning Outcomes
• Understanding the importance of HRM function in an organization and its related activities,
• Become better managers in organizations/work place
• Awareness of theories and philosophies forming the basics of deign of HRM function and activities.
• Awareness of the latest issues and happenings in this field
• How HRM links up with Operations Management in today’s dynamic business world
Management
• The process of trying to accomplish goals through other people
Human Resource Management
• A Management Function which focuses on the utilization of individuals to achieve organizational objectives
• All managers at every level must concern themselves with human resources management.
Importance of HR Function
• Linked to the strategic management of an organisation.
• Seeks commitment to organisational goals• Focuses on the individual needs rather
than the collective workforce.• Enables organisations to dissolve power
and become more flexible• Emphasises people are an asset to be
positively utilised by the organisation.
Strategic Importance
• 'Human capability and commitment’ is what differentiates organisations.
• HRM needs to be implemented into the organisational strategy and needs to be considered at the highest management level.
Long term importance of HRM:• It needs to be integrated into the management
functions and is seen to have important consequences on the ability of the organisation to achieve its goals.
• The key functions of HRM which are seen to encourage commitment rather than compliance.
ROLE & ACTIVITIES OF HR
DEPARTMENT
Traditional HR Functions
Human Resource Management Functions
• Recruitment & Selection• Training & Development• Compensation & Benefits• Safety & Health• Employee & Labor Relations
Research vs. Practice
• Effective HR management requires proper understanding and utilization of knowledge gained through research– Recruitment– Realistic job previews– Interviews– Performance appraisals
RECRUITMENT & SELECTION
The Recruitment & Selection Process
• Stage 1 Agree on Vacancy• Stage 2 Job Analysis• Stage 3 Attracting Candidates• Stage 4 Sorting Candidates• Stage 5 Selection Interviews
The Recruitment & Selection Process
Selection
Recruitment
Advertisements
Word of mouth
Walk ins
Recruitment Agencies
Short listed candidates
One-on-one Interviews
Panel Interviews
Telephonic Interviews
Resume Scanning
New Hires
Company’s website
Interviewing
How job assessments help
you reach the ultimate goal
Steps involved in the interviewing process are..
Understand the purpose of the interview
Rethink your interviewing strategy
Create a list of interview questions.
Check your list twice
Tell the applicant about the interview format
Prepare for questions.
Take notes
Develop a list of desired skills
Exercise
• Choose a position for which it is difficult to find a good performer.
• What competencies are important?
• Develop three questions to explore a candidate’s past or present behavior that demonstrates the competencies.
The Dynamic Human Resources Management Environment
Environment of Human Resource Management
EXTERNAL ENVIRONMENTINTERNAL ENVIRONMENT
1
Human Resource
Management
Other Functiona
l Areas
OperationsMarketing
Finance
Leg
al C
on
sid
erat
ion
sT
he
Eco
no
my
Tech
no
log
y
Society
Sh
areho
lders
Unions
Customers Competition Labor Force
Human Resource
Development
Co
mp
ensa
tio
n
and
Ben
efit
s
Staffing
Em
plo
yee and
Lab
or R
elation
s
Safety and Health
Society
• Social responsibility – Implied, enforced or felt obligation of managers to serve or protect interests of groups other than themselves
• Ethics – Discipline dealing with what is good and bad, or right and wrong, or with moral duty and obligation
HR’s Changing Role:Who Performs Human
Resources Management Tasks?
• Human Resource Managers• Outsourcing Firms
• Line Managers• Project Managers
Human Resources Function In Organizations Of Various Sizes
Human Resources Function in a Small Business
Manager/Owner
Sales Operations Finance
The Human Resource Function in a Medium-Sized Business
Sales Manager
President
Operations Manager
Finance Manager
Human Resources Manager
The Human Resource Function in a Large Firm
President and CEO
VP/Dir Marketing
VP/Dir Operations
VP/Dir FinanceVP/Dir Human
Resources
Manager, Training and Development
Manager, Compensation and Benefits
Manager Staffing
Manager Safety and
Health
Manager Labor
Relations
An Evolving Human Resource Organization Example
President and CEO
VP OperationsVP Human Resources
VP Other Major
Functions
Director of Safety and
Health
Executive Development
Manager Training
Manager Other HRM Functions
Employee Benefits
Shared Service Center
Outsourced
The Harvard Model of Human Resources Management
8-8-2929
Changing Nature of Human Resources Management
• Scientific management– Breaking down jobs into
elemental activities and simplifying job design
• Jobs– Comprise a set of tasks,
elements, and job motions (basic physical movements)
• In a piece-rate wage system, pay is based on output
• Assembly-line – Production meshed with
principles of scientific management
• Advantages of task specialization– High output, low costs,
and minimal training• Disadvantages of task
specialization– Boredom, lack of
motivation, and physical and mental fatigue
8-8-3030
Employee MotivationEmployee Motivation
•MotivationMotivation–willingness to work hard because that effort satisfies an employee need
•Improving Motivation–positive reinforcement and feedback
–effective organization and discipline
–fair treatment of people–satisfaction of employee needs–setting of work-related goals
•Improving Motivation (cont.)–design of jobs to fit employee–work responsibility–empowerment–restructuring of jobs when necessary
–rewards based on company as well as individual performance
–achievement of company goals
8-8-3131
Evolution of Theories of Employee Motivation
Self-actualization
EsteemSocial
Safety/Security
Physiological (financial)
Abraham Maslow’s Pyramid of Human
Needs
Douglas McGregor’sTheory X and Theory Y
•Theory X Employee• Dislikes work• Must be coerced• Shirks responsibility• Little ambition• Security top motivator
•Theory Y Employee• Work is natural• Self-directed• Controlled• Accepts responsibility• Makes good decisions
Frederick Herzberg’sHygiene/Motivation
Theories
•Hygiene Factors• Company policies• Supervision• Working conditions• Interpersonal relations• Salary, status, security
•Motivation Factors• Achievement• Recognition• Job interest• Responsibility• Growth• Advancement
8-8-3232
Contemporary Trends in Human Resources Management
• Job Training– extensive and varied– Enhances on the job skills
and work knowledge
• Cross Function Training– an employee learns more
than one job
• Job Rotation– horizontal movement
between two or more jobs according to a plan
• Empowerment– giving employees
authority to make decisions
• Teams– group of employees work
on problems in their immediate work area
8-8-3333
Contemporary Trends in Human Resources Management (cont.)
• Job enrichmentJob enrichment– vertical enlargement
• allows employees control over their work
– horizontal enlargement• an employee is assigned a
complete unit of work with defined start and end
• Flexible time– part of a daily work
schedule in which employees can choose time of arrival and departure
• Alternative/Virtual workplace– nontraditional work location
• Telecommuting– employees work
electronically from a location they choose
• Temporary and part-time employees– mostly in fast-food and
restaurant chains, retail companies, package delivery services, and financial firms
8-8-3434
Employee Compensation
• Types of pay– hourly wage
• the longer someone works, the more s/he is paid– individual incentive or piece rate
• employees are paid for the number of units they produce during the workday
– straight salary• common form of payment for management
– commissions• usually applied to sales and salespeople
8-8-3535
• Gain sharing– an incentive plan joins employees in
a common effort to achieve company goals in which they share in the gains
• Profit sharing– sets aside a portion of profits for
employees at year’s end
Employee Compensation (cont.)
Employee Performance Management
• Setting Quantifiable Objectives • Agree over expectations to perform• Set time for discussion sessions• Listen to the Employee• Feedback process for evaluating employee
performance• Commonly used feedback programs are 90
degree, 180 and 360 degree
Organizational Development
• Training & Development of Employees• Change Management Methods• Inter Organizational Communication
Job Design
• Task analysisTask analysis– how tasks fit together to form a jobhow tasks fit together to form a job
• Worker analysisWorker analysis– determining worker capabilities and responsibilities for a determining worker capabilities and responsibilities for a
jobjob
• Environment analysisEnvironment analysis– physical characteristics and location of a jobphysical characteristics and location of a job
• ErgonomicsErgonomics– fitting task to person in a work environmentfitting task to person in a work environment
• Technology and automationTechnology and automation– broadened scope of job designbroadened scope of job design
Copyright 2009 John Wiley & Sons, Inc.Copyright 2009 John Wiley & Sons, Inc. 8-8-3939
Job AnalysisJob Analysis
• Method Analysis (work methods)Method Analysis (work methods)– Study methods used in the work included in Study methods used in the work included in
the job to see how it should be donethe job to see how it should be done– Primary tools are a variety of charts that Primary tools are a variety of charts that
illustrate in different ways how a job or work illustrate in different ways how a job or work process is doneprocess is done
Copyright 2009 John Wiley & Sons, Inc.Copyright 2009 John Wiley & Sons, Inc. 8-8-4040
Process Flowchart SymbolsProcess Flowchart Symbols
Operation:Operation:An activity directly contributing to product or serviceAn activity directly contributing to product or service
Storage:Storage:Store of the product or serviceStore of the product or service
Inspection:Inspection:Examining the product or service for completeness, Examining the product or service for completeness, irregularities, or qualityirregularities, or quality
Transportation:Transportation:Moving the product or service from one location to anotherMoving the product or service from one location to another
Delay:Delay:Process having to waitProcess having to wait
Managing Diversity in Workplace
• Employers must strive to manage diversity in the workplace
• Programs include - Education
- Awareness - Communication - Fairness - Commitment
Types of Work Related Behaviors
• Joining the organization• Remaining with the organization• Maintaining work attendance• Performing required job responsibilities• Exhibiting organizational citizenship
Environmental factors impacting HR Function in an organization
The Changing Job MarketWhat’s Happening in the External World?
“When the rate of change outside exceeds the rate of change inside, the end is near”
Jack Welch
Chairman, General Electric
The Changing Job MarketWhat’s Happening in The External World? (Big
Picture) • Redefinition of Loyalty/Security• Increase in Part-Time, Contract Employment• Mergers and Acquisitions• Doing more with Less
The Changing Job Market What’s Happening In The External World?
(The 21st Century Worker)
• Employability• External vendor-mindedness (Me Inc.)• Resiliency• Flexibility and adaptability• Security comes from within
Job Security is an illusion. Security comes from being employable not employed
The Changing Job Market(Personal Readiness)
• Need for continuous learning• Need for understanding of accomplishments• Need for continuous networking
Roundtable Discussion
What are the factors impacting organizations and their ability to attract, recruit
and retain?
Action Planning Guide
• What are your learning actions from today’s session?
• How do you plan to implement them at your work place in future?
Thanks for your time and attention!!
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