Principles Of Management Chapter 10 GTU MBA

7/31/2019 Principles Of Management Chapter 10 GTU MBA

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Human ResourceDevelopment


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The Importance of HumanThe Importance of Human

Resource Management (HRM)Resource Management (HRM)

As a significant source of competitive advantage People-oriented HR creates superior shareholder value.

As an important strategic tool Achieve competitive success through people by treating

employees as partners.

To improve organizational performance High performance work practices lead to both high

individual and high organizational performance.


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The HRM ProcessThe HRM Process

The HRM process is an ongoing procedurethat tries to keep the organization suppliedwith the right people in the right positions,when they are needed.


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The HRM Process: TraditionalView

Includes seven basic activities Human resource planning

Recruitment

Selection

Socialization

Training and development

Performance appraisal

Promotions, transfers, demotions and separations


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The HRM Process:Traditional View

Training &Development

Recruitment SelectionHuman

ResourcePlanning

Socialization

PerformanceAppraisal

Promotions, Transfers,Demotions & Separations


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Managing HumanManaging Human

ResourcesResources

Human Resource (HR) Planning Planning for the future personnel needs of an

organization, taking into account both internal activities

and factors in external environment.

Basic aspects in HR planning:

Planning for future needs

Planning for future balance

Planning for recruiting or laying off employees

Planning for the development of employees


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Recruitment

Selection

Socialization


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Training and DevelopmentTraining and Development

Training programs are directed toward maintaining andimproving current job performance while developmentprograms seek to develop skills for future jobs.

Employee Training

Types of training Training Method


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Training MethodsTraining Methods

On-the-job TrainingMethods

Coaching

Job rotation

Training positions

Planned work activities

Off-the-job TrainingMethods

Vestibule training

Behaviorally experiencedtraining

Role play

Computer assisted

instruction

Management developmentprogrammes


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Employee PerformanceEmployee Performance

ManagementManagement

Performance Management System A process of establishing performance standards and

appraising employee performance.


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Performance AppraisalPerformance AppraisalMethodsMethods

Method Advantage Disadvantage

Written essays Simple to use More a measure of evaluators writingability than of employees actual

performance

Critical

incidents

Rich examples; behaviorally

based

Time-consuming; lack quantification

Graphic rating

scales

Provide quantitative data; less

time-consuming than others

Do not provide depth of job behavior

assessed

BARS Focus on specific and

measurable job behaviors

Time-consuming; difficult to develop

Multiperson

comparisons

Compares employees with one

another

Unwieldy with large number of

employees; legal concerns

MBO Focuses on end goals; resultsoriented

Time-consuming

360-degree

appraisals

Thorough Time-consuming


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Promotions, transfers,demotions, & separation

Reflect an employees value to the organization.

High performers may be promoted or transferredto help them develop their skills.

Low performers may be demoted, transferred toless important positions or even separated.


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BenefitsBenefits

Benefits of a Fair, Effective and Appropriate

Compensation System

Helps attract and retain high-performance employees.

Impacts the strategic performance of the firm.

Types of Compensation

Base wage or salary

Wage and salary add-ons

Incentive payments

Skill-based pay

Variable pay


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Factors That InfluenceFactors That Influence

Compensation and BenefitsCompensation and Benefits


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Contemporary Issues in ManagingContemporary Issues in Managing

Human ResourcesHuman Resources

Managing Downsizing

The planned elimination of jobs in an organization

Provide open and honest communication.

Provide assistance to employees being downsized.

Reassure and counseling to surviving employees.

Managing Workforce Diversity

Widen the recruitment net for diversity.

Ensure selection without discrimination.

Provide orientation and training that is effective.


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Tips for Managing DownsizingTips for Managing Downsizing

Communicate openly and honestly: Inform those being let go as soon as possible.

Tell surviving employees the new goals and expectations.

Explain impact of layoffs.

Follow any laws regulating severance pay or benefits. Provide support/counseling for surviving employees.

Reassign roles according to individuals talents andbackgrounds.

Focus on boosting morale: Offer individualized reassurance.

Continue to communicate, especially one-on-one.

Remain involved and available.


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Current Issues in HRMCurrent Issues in HRM

(cont.)(cont.)

Work-Life Balance Employees have personal lives that they dont leave

behind when they come to work.

Organizations have become more attuned to theiremployees by offering family-friendly benefits:

On-site child care

Summer day camps

Flextime

Job sharing Leave for personal matters

Flexible job hours

Principles Of Management Chapter 10 GTU MBA

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