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Jack Welch- WinningElevate HR to a position of power and primacy
in the organization, and make sure HR people have the special
qualities to help managers build leaders and careers. In fact, the
best HR types are pastors and parents in the same package.
The head of human resources at any company should be at least as
important as the CFO.
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Today HR Activities- what do HR people do?
HR Management Challenges- what external and internal factors
influence what HR people do?
HR Roles- how do HR people do their jobs?
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Nature of Human Resource ManagementHuman Resource (HR)
ManagementThe design of formal systems in an organization to ensure
effective and efficient use of human talent to accomplish
organizational goals.
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Nature of Human Resource Management cont.Who Is an HR Manager?In
the course carrying out their duties, every operating manager is,
in essence, an HR manager.HR specialists design processes and
systems that operating managers help implement.
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Basic HR ConceptsThe bottom line of managing:
Getting resultsHR creates value by engaging in activities that
produce the employee behaviors that the company needs to achieve
its strategic goals.
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Objectives:
Maximize the return on investment from the organization's human
capital and minimize financial risk.To align the capabilities and
behaviors of employees with the short-term and long-term goals of
the retail firm.
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Why HRM Important to All ManagersSo that you dont.........
Hire the wrong person for the jobExperience high turnoverHave
your people not doing their bestWaste time with useless
interviewsHave your employees thing Company is unfair and
unethicalAllow lack of trainingNot manage performance and reward in
proper way.
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Distinguishing Between HRM and PM
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Guests Model of HRMLinked to the strategic management of an
organisation. Seeks commitment to organisational goalsFocuses on
the individual needs rather than the collective workforce.Enables
organisations to devolve power and become more flexibleEmphasises
people as an asset to be positively utilised by the
organisation.
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Storeys Definition of HRM'Human capability and commitment'.
Storey argues that this is what differentiates
organisations.Strategic importance of HRM. It needs to be
implemented into the organisational strategy and needs to be
considered at the highest management level.The long term importance
of HRM. It needs to be integrated into the management functions and
is seen to have importance 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.
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Points of Difference between Personnel and IR Practices and HRM
Practices
Dimension Personnel/IR HRMBeliefs and assumptions1.
ContractCareful delineation of written contractsAim to go 'beyond
contract'2. RulesImportance of devising clear
rules/mutuality'Can-do' outlook; impatience with 'rule'3. Guide to
management actionProcedures'Business need'4. Behaviour
referentNorms/custom and practiceValues/missionManagerial task vis
a vis labourMonitoringNurturing6. Nature of
relationsPluralistUnitarist7.
ConflictInstitutionalisedDe-emphasised
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Strategic aspects
Personnel /IR HRM8. Key relationsLabour managementCustomer9.
InitiativesPiecemealIntegrated10.Corporate planMarginal toCentral
to11. Speed of decisionSlowFast
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Key Levers
Personnel / IR HRM17. SelectionSeparate, marginal
taskIntegrated, key task18. PayJob evaluation (fixed
grades)Performance related19. ConditionsSeparately
negotiatedHarmonisation20. Labour managementCollective bargaining
contractsTowards individual contracts21. Thrust of relations with
stewardsRegularised through facilities and trainingMarginalised
(with exception of some bargaining for change models)22. Job
categories and gradesManyFew23. CommunicationRestricted
flowIncreased flow24. Job designDivision of labourTeamwork25.
Conflict handlingReach temporary trucesManage climate and
culture26. Training and developmentControlled access to
coursesLearning companies27. Foci of attention for
interventionsPersonnel proceduresWide ranging cultural, structural
and personnel strategies
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A Model of the Shift to HRM
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Hard HRMThe 'hard' approach rooted in the manpower planning
approach is concerned with aligning human resource strategy with
business strategy
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Soft HRMThe 'soft' approach is rooted in the human relations
school, with concern for workers' outcomes and encourages
commitment to the organisation by focussing on workers'
concerns.
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The Human Resource System
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The Harvard Model of Human Resource Management
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Guests Model of HRM
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Line and Staff Aspects of HRMLine managerA manager who is
authorized to direct the work of subordinates and is responsible
for accomplishing the organizations tasks.Staff managerA manager
who assists and advises line managers.
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Line Managers HRM ResponsibilitiesPlacing the right person on
the right jobStarting new employees in the organization
(orientation)Training employees for jobs that are new to
themImproving the job performance of each personGaining creative
cooperation and developing smooth working relationshipsInterpreting
the firms policies and proceduresControlling labor costsDeveloping
the abilities of each personCreating and maintaining department
moraleProtecting employees health and physical condition
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High-Performance Work System PracticesEmployment
securitySelective hiringExtensive trainingSelf-managed
teams/decentralized decision makingReduced status
distinctionsInformation sharingContingent (pay-for-performance)
rewardsTransformational leadershipMeasurement of management
practicesEmphasis on high-quality work
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Benefits of a High-Performance Work System (HPWS)Generate more
job applicantsScreen candidates more effectivelyProvide more and
better trainingLink pay more explicitly to performanceProvide a
safer work environmentProduce more qualified applicants per
positionHiring based on validated selection testsProvide more hours
of training for new employeesConduct more performance
appraisals
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Source: HR Department Benchmarks and Analysis Survey 2004
(Washington, DC: Bureau of National Affairs, 2004), 21. To purchase
this publication and find out more about other BNA HR solutions
visit http://hrcenter.bna.com or call 800-372-1033. Used with
permission.
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HR ActivitiesStrategic HR ManagementWhat is
Strategic?MetricsEnvironmental Scanning/AnticipationHigh
Performance Work PracticesLeveraging Core Competencies
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HR Activities ContinuedEqual Employment OpportunityCompliance
Multicultural OrganizationsDiversityAffirmative ActionGlobal
Impacts: Resources, Markets, EmployeesEEOC and the OFCCP
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HR Activities ContinuedStaffingAttractionSelectionAttrition
ModelJob DescriptionJob Analysis QualificationsRecruiting,
InterviewingHR DevelopmentOrientationSocializationJob
TrainingLeadership DevelopmentPerformance Management
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HR Activities ContinuedCompensation and BenefitsBase PayMerit
Pay/IncentivesGainsharingEmployee OwnershipManagement of Health and
Dental CostsCafeteria PlansEmployee Rewards
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HR Activities ContinuedHealth, Safety, and SecurityOSHA
(1970)who has the responsibility for healthy employees?Safety in
the workplaceSecurity post 9-11EAPsHealth PromotionEmployee and
Labor RelationsUnionizationPolicies and ProceduresCommunication
(Justice Theory)
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Issues of Greatest ConcernSmall BusinessesLarge piece of
economic sectorLarger piece of job creation in U.S.
When do we need an HR person? (80-100 employees)
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Management of Human Capital In OrganizationsPhysical, Financial,
Intangible andHuman CapitalThe collective value of the
capabilities, knowledge, skills, life experiences, and motivation
of an organizational workforce.Also known as intellectual
capital.How to measure the strategic value of human assets?Core
CompetencyA unique capability that creates high value and
differentiates an organization from its competition.HR
competencies: a source of competitive advantage.
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HR Management ChallengesGlobalization of BusinessOutsourcing and
increased competitionStockholder, employee, manager concerns?Is
this socially responsible?Should the U.S. pass legislation
protecting these jobs? Why/Why not?What about the perspective that
this is good for the long run as it lowers the costs of goods and
services? Do you agree? Why/Why not?
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HR Management ChallengesGlobalization of BusinessThe threat of
terrorism- How does this impact what we do? OSHA?Economic and
Technological ChangesOccupational shifts from manufacturing and
agriculture to service industries and telecommunications.Pressures
of global competition causing firms to adapt by lowering costs and
increasing productivity.Technological Shifts and the InternetGrowth
of information technology.
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Source: U.S. Bureau of Labor Statistics, www.bls.gov.
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HR Management ChallengesWorkforce Availability and Quality
ConcernsInadequate supply of workers with needed skills for
knowledge jobs80% of manufacturing jobs report shortage of
qualified workersEducation of workers in basic skillsNot enough
specific skills, not enough technology skillsGrowth in Contingent
WorkforceRepresents 20% of the workforceIncreases in temporary
workers, independent contractors, leased employees, and part-timers
caused by:Need for flexibility in staffing levelsIncreased
difficulty in firing regular employees.Reduced legal liability from
contract employeesBoeing Strategy- manage employment cycles in
suppliers and partners
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HR Management ChallengesWorkforce Demographics and
DiversityIncreasing Racial/Ethnic DiversityFrom the Melting Pot to
the Salad BowlMore Women in the WorkforceSingle-parent
householdsDual-career couplesDomestic partnersWorking mothers and
family/childcareSignificantly Aging WorkforceAge discrimination
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HR Management ChallengesOrganizational Cost Pressures and
RestructuringMergers and AcquisitionsRight-sizingeliminating of
layers of management, closing facilities, merging with other
organizations, and outplacing workersIntended results are flatter
organizations, increases in productivity, quality, service and
lower costs.Costs are survivor mentality, loss of employee loyalty,
and turnover of valuable employees.HR managers must work toward
ensuring cultural compatibility in mergers.
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HR Management RolesAdministrative RoleClerical and
administrative support operations (e.g., payroll and benefits
work)Technology is transforming how HR services are
delivered.Outsourcing HR services to reduce HR staffing
costsOperational and Employee Advocate RoleChampion for employee
concernsEmployee crisis managementResponding to employee
complaints
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Note: Example percentages are based on various surveys.
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Strategic Role for HRAdministrative RoleOperational RoleEmployee
Advocate RoleStrategic RoleContributing at the Table to
organizational results HR becomes a strategic business partner
by:Focusing on developing HR programs that enhance organizational
performance.Involving HR in strategic planning at the
onset.Participating in decision making on mergers, acquisitions,
and downsizing.Redesigning organizations and work
processesAccounting and documenting the financial results of HR
activities.Some HR people get this, some dontCEOs want those that
do and oust those that dont
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HR TechnologyHuman Resource Management System (HRMS)An
integrated system providing information used by HR management in
decision making.Purposes (Benefits) of HRMSAdministrative and
operational efficiency in compiling HR dataAvailability of data for
effective HR strategic planningUses of HRMSAutomation of payroll
and benefit activitiesEEO/affirmative action trackingHR Workflow:
increased access to HR informationEmployee self-service reduces HR
costs.
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Uses of an HRMSHRMS Bulletin boardsWhat information will be
available and what is information needed?Data accessTo what uses
will the information be put?Employee self-serviceWho will be
allowed to access to what information?Web-based services and
accessExtended linkageWhen, where, and how often will the
information be needed?
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Ethics and HR ManagementFirms with High Ethical StandardsAre
more likely to reach strategic goals.Are viewed more positively by
stakeholdersAre better able to attract and retain human
resources.Ethics and Global DifferencesDifferent legal, political,
and cultural factors in other countries can lead to ethical
conflicts for global managers.Foreign Corrupt Practices Act
(FCPA)Prohibits U.S. firms from engaging in bribery and other
practices in other countries.
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Leaders are Readers The Smartest Guys in the Room (2004)McLean
and Elkind The tale of Enron is a story of human weakness, of
hubris and greed and rampant self-delusion; of ambition run amok;
of a grand experiment in the deregulated world; of a business model
that didnt work; and of smart people who believed their next gamble
could cover up their last disasterand who couldnt admit they were
wrong.
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HRs Role in Organizational EthicsHR management plays a key role
as the keeper and voice of organizational ethics.What is Ethical
Behavior?What ought to be done.Dimensions of decisions about
ethical issues in management:Extended consequencesMultiple
alternativesMixed outcomesUncertain consequencesPersonal
effects
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HRs Role in Organizational Ethics (contd)Responses to Ethical
Situations Are guided by values and personal behavior codes that
include:Does response meet all applicable laws, regulations, and
government codes?Does response comply with all organizational
standards of ethical behavior?Does response pass the test of
professional standards for ethical behavior?
The newspaper test
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Ethical Behavior and Organizational CultureOrganizational
CultureThe shared values and beliefs in an organizationCommon forms
of unethical conduct:Lying to supervisorsEmployee drug use or
alcohol abuseFalsification of recordsFostering Ethical BehaviorA
written code of ethics and standards of conductTraining on ethical
behavior for all employeesA means for employees to obtain ethical
adviceConfidential reporting systems for ethical misconduct
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Ethical Behavior and Organizational CultureClassic Management
ArticleThe perpetuation of unethical practices in
organizationsSocializationAttritionJustification from small to
large
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HR Management Competencies and CareersImportant HR
CompetenciesStrategic contribution to organizational
successBusiness knowledge of organization and its
strategiesEffective and effective delivery of HR
servicesFamiliarity with HRMS technologyPersonal credibility
SPEAK THE LANGUAGE OF THE BUSINESS
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HR Management as a Career FieldHR GeneralistA person with
responsibility for performing a variety of HR activities.HR
SpecialistA person with in-depth knowledge and expertise in a
limited area of HR.HR ManagerA person who is a line manager for HR
Generalists and Specialists
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Source: HR Department Benchmarks and Analysis 2004 (Washington,
DC: Bureau of National Affairs, 2004), 119. To purchase this
publication and find out more about other BNA HR solutions visit
http://hrcenter.bna.com or call 800-372-1033. Used with
permission.
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The Human Resource Certification Institute offers three types of
professional certifications for HR generalists.Details on these
certifications are available from the Human Resources Certification
Institute, www.hrci.org.
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Other HR CertificationsCertified Compensation Professional
(CCP), sponsored by the World at Work AssociationCertified Employee
Benefits Specialist (CEBS), sponsored by the International
Foundation of Employee Benefits PlansCertified Benefits
Professional (CBP), sponsored by the WorldatWork
AssociationCertified Performance Technologist (CPT), co- sponsored
by the American Society for Training & Development and the
International Society for Performance ImprovementCertified Safety
Professional (CSP), sponsored by the Board of Certified Safety
ProfessionalsOccupational Health and Safety Technologist (OHST),
given by the American Board of Industrial Hygiene and the Board of
Certified Safety ProfessionalsCertified Professional Outsourcing,
provided by New York University and the Human Resource Outsourcing
Association
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