People who make organizations sucessful… The practices that a company apply to manage employees… A support function of an organization that works for.

Human Resource Management

People who make organizations sucessful…

The practices that a company apply to manage employees…

A support function of an organization that works for the design and implementation of company policies for managing employees…

Ability to create more economic value than its competitors…

Employees

HR Pract ices

HR Depar tment

C o m p e t i t i v e A d v a n t a g e

Mis

managed

Em

plo

yees

• Unwillingness to work toward organizational goals,

• Lower performance,

• Unhappy, unmotivated,

• Increase turnover rate

• Absenteeism,• Sabotage,• Showing lower

responses to customer needs M

anaged E

mplo

yees • High

performance,• Willingness to

contribute to company goals,

• Increased commitment, loyalty and morale,

• Greater motivation,

• Increased efficiency

Environmental Influences

Organizational Demands

Regulatory Issues

Work Design and Work Force Planning

Managing Empoyee

Attitudes and BehaviorsPerfromance Management

Compensating Employees

Incentives and RewardsEmployee Benefits and

Safety Programs

Managing Employee

CompetenciesRecruitment

SelectionTraining and Development

HR Activities

HR Challenges

Changing Role of People in Organizations

18th &19th Century –

• one person completing the whole product,

• people are important,

• respect for the skilled people,

Late 19th century & early 20th century –

• Industrial revolution,

• machines are more important than the

people,

• Fredrick Taylor, the role of people is clearly

defined and they can be easily substituted

• workers’ emotions, ideas and contribution are

not important.

• No personnel function in the organizations

Between WW I and WW II–

poverty, economic depression, unemployment,

Not much attention is given to individuals

Bureaucratic controll of personnel issues

Late 40’s & 50’s- Economies are recovering.

More attention is started to be given to people in organizations

Train people to productively use the tools and the machines

Bureaucratic organizations

Organizational behavior, industrial psychology studies have begun

Personnel functions and departments are emerging

Late 50’s and 60’s – democracy, peace

movements, rights of women,

freedom, independence movements throughout the

world,

• Social sensitivity is rising.

• Interpersonal relationships and

people’s psychological well being

were important

• Needs of people and how to

motivate people were studied.

• Studies on organizational structure

and its relationship to productivity

70’s – Systems approach

Study of various management styles instead of only one

Employees seen as recources to be used productively instead of only costs to be controlled

Concept of Human Resources instead of Personnel

80’ – 90’s Rapid technological

advancements, start of the knowledge era.

Individual seen as knowledge worker.

Individual starting to play a central role in the organization.

Knowledge worker became an asset for the organization instead of only be seen as a resource to be used.

2000 on- Strategic role of people in the organizations. HR seen as business partner and employee advocate

* PERSONNEL MANAGEMENT VS HR MANAGEMENTElement Personnel Management HR Manegement

Employee Relations Characterized by conflict or opposition

Developmental and Collaborative

Orientation Reactive and piecemeal Proaktive and business focused

Organization Separate functions Integrated functions

Client Management Management and employees

Values Order, equity, consistency

Client and problem focused, tailored solutions

Role of Specialist Regulatory and record keeping

Problem sensing, tailored solutions

Role of line management

Passive ownership Active ownership

Overall output Compartmentalized (divided) thinking and acting

Linking various HR levers to business needs

* HR’s Role in Competitive Advantage

*A company’s ability to create more economic value than its competitors

*Accomplished through:

—managing employees effectively

—training employees in skills they need

—making employees feel valued

—motivating employees to be productive

* HR Challenges

*Organizational demands

*Environmental influences

*Regulatory issues

* Organizational Demands:

StrategyCompany Charactheristics

Organizational CultureEmployee Concerns

A plan for achieving a competitive advantage

*Impacts types of jobs employees perform

*Affects attitudes and behaviors employees display

* Organizational Demands:

Strategy

*Are you planning to be a cost leader or produce unique

products/services?

COST LEADERSHİP STRATEGY

DİFFERENTİATİON STRATEGY

* Organizational Demands:

COST LEADERSHİP STRATEGY

The company designs the job in order to

maximize the predictability of the

employee outcomes.

Requires Employees with:• Basic skillsTraining:• Train employees to carry out their

responsibilities,Compensate:• Pay according to their jobs

performed and evaluate them with the job expectations

Assembly Lines!

* Organizational Demands:

Company choose to perform jobs geared toward a particular

objective like creativity and customer service.

Requires Employees with:• Specific skills, new perspectives,

creativity, high organizational commitment

Training:• Train employees to create new

skills and support theri growth!Compensate:• Pay according to individual

potential, unique experiences, team sucess and long term sucess

Google!DİFFERENTİATİON

STRATEGY

* Organizational Demands:

Company Charactheristics

*Company Size

Small or Large Business!!!

*Stage of Development

Starting out, Emerging Growth, Maturity, Decline

* Organizational Demands:

Organizational Culture

Assumptions, values and beliefs of a company that affect how employees behave:

Do not forget these are only two examples, each

company has its own unique culture

Bureaucratic cultures value

rules, formalization,

hierarchy

Entrepreneurial cultures value

creativity, knowledge exchange, innovation

* Organizational Demands:

Employee Concerns

*Psychological Contract

*Work Life Balance

*Justice

*Environmental Influences

* Environmental Influences:

Labor Force Trends

Influences how companies recruit/select. Some recent trend in Turkish Labor Market:

*Diverse in race, gender and age

*Number of women expected to grow

*Overall unemployment rate % 9.9

*% 19.3 unemployment rate among young people in Turkey

*Size of group 55-and-older increasing due to the new retirement policy in Turkey

* Environmental Influences:

Technology

*Requires many employees to possess basic computer proficiency

*Challenges privacy issues and potential misuse by employees

*Broadens access to recruit employees from larger market

*Enables virtual workforce

* Environmental Influences:

Globalization

* Blurs country boundaries in business activities

* Enables international joint ventures and partnerships

* Challenges companies with differences in values and beliefs

* Encourages offshoring—sending work once performed domestically to other countries for lower costs

* Environmental Influences:

Ethics and Social Responsibility

Companies and their management being held accountable for ethical behavior

Corporate policies and procedures spell out ethical behavior Involves how companies behave toward their stakeholdersCan help foster positive reputation and consumer support