What managers are expected to do ? • Remain profitable, competitive – Adapt to changing environments, requirements/demands of customers/clients • Deliver Services – Provide high quality services to the satisfaction of clients efficiently and effectively
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What managers are expected to do ? Remain profitable, competitive – Adapt to changing environments, requirements/demands of customers/clients Deliver Services.
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What managers are expected to do ?
• Remain profitable, competitive – Adapt to changing environments,
requirements/demands of customers/clients• Deliver Services
– Provide high quality services to the satisfaction of clients efficiently and effectively
What are the changing trends in environmental factors of organisations
and what are the implications for
managers?
External factors
• Political• Economic• Socio-cultural• Technological• Labour Market• Industry Characteristics
Quality Customer service • Values: (Tsa-wa-sum, Lay Jum Dey,Tha Damtshig)
– Integrity, trust, responsibility, discipline, dedication, deligence and cooperation
– Customer care, courtesy, patience, politeness, fairness and friendliness
– Professional Knowledge, skill, creativity, innovativeness, accountability and impartiality
– Leadership values as visionary, dynamism, receptiveness and approachability
• Commercial Culture(DHI)– (GG +, 2005)
Legal Changes– BCSR- Act – Labour and Employment Act
• Forced labour• Child labour• Discrimination of employees
– Job applicant and transfer, promotion, demotion, pay working conditions• Sexual harassment• Employment contract• Wages• Hrs of work• Health and safety• Workers association• Disputes resolution
Economic Changes
• Liberalisation- FDI• Membership of WTO• Economic Dev Policy- Private Sector
Development– Service Hub
Socio-Cultural Changes• Change in labour force structure
– Increasing Women in the work-force– Increasing “Educated lot”
• Concept of work– Varying motives to work– Varying nature of work
• Values:– Work and life-balance– Oppose intolerance– Tendency to question tight system of control
• Attitude towards work– Life-long emp Vs enjoyable, challenging, paying jobs (psychological contract)
Technological Changes
• Advent of ICT-info access• E-business• Changed nature of work
– Start-up, growth, maturity, decline, revival• Business strategy
– Prospectors, defenders
Impact of Env changes
• Structural Change– Growth of Service Sectors, Knowledge economy,
• Organisational Change– Cost Reduction-profitability, doing more with less– De-bureaucratisation– Responsiveness- – Flexible firm-nature of jobs
Defining HRM
• The policies, practices, and systems that influence employees’ behavior, attitudes, and performance. (Prof C W Fontaine)
• Productive use of people in achieving organizations strategic objectives and satisfying individual employee needs (R J Stone)
Defining HRM
• “…strategic and coherent approach to the management of an organisation’s most valued assets- the people working there who individually and collectively contribute to the achievement of its objectives.”
• (Armstrong and Baron, 2008)Handbook of Strategic HRM
Summary• HRM comprises of:
– Specific practices– Formal HR policies which directly and partially
constrain such practices– Overarching HR philosophy which specify values that
inform policies and practiceThis affect attraction, development, motivation and
retention of employees who ensure effective functioning and survival of organisations and its members
Jackson & Schuler
…….Summary
• HRM involves management decisions related to policies and practices which together shape the employment relationship and are aimed at achieving individual, organisational and societal goals
• HRM in organisation is more than simply a bundle of HR practices. It includes roles of HR Professionals , CEO people centered vision, front-line managers belief in HRM etc– Boselie, P
Versions of HRM
• “Hard HRM”– Emphasizes that people are important resource
through which organisations achieve competetive advantage
– Regards people as human capital from which return can be obtained by investing judiciously in their development
Versions of HRM
• Soft HRM• “treats employees as valued assets, a source
of competitive advantage through their commitment, adaptability and high quality skills etc
• Stresses need to gain “ hearts and minds’ of employees –involvement, commn, etc.
Models of HRM
• Matching Model• Harvard Model • Commitment Model
Matching Model
• “ HR system and organisation structure should be managed in a way that is congruent with organizational strategy.”– “there is a human resource cycle which consists of
four generic processes that are performed in all organisations”
Situational Factors:Work Force CharacteristicsBusiness strategy and conditionsManagement PhilosophyLabour MarketUnionsTask TechnologyLaws and societal values
HRM Policy Choices:
Employee InfluenceHR FlowsRewards systemsWork systems
HR Outcomes:
CommitmentCompetenceCongruenceCost effectiveness
Long-Term Consequences
Individual well beingOrganizational effectivenessSocietal well-being
Beer et al 1984 in Armstrong and Baron (2008)
Commitment Model of HRM
• “policies of mutuality will elicit commitment which in turn will yield both better economic performance and greater human development”.
• Unit cost, quality, delivery, flexibility and speed• Theriou & Chatzoglou (2008)
How HR Practice links with organizational performance
Business Strategy
HR Strategy
HR Outcomes•Competence•Commitment•Flexibility
Quality of goods and
services
Productivity
Financial Performance
HR Effectiveness
HR Practices
Source: Guest, Michie, Sheehan, Conway and Metochi, (2000), CIPD
The People and Performance Model;(Prucell, Kinnie, Hutchinson, Rayton and Swart (2003); Understanding the people and Performance Link: Unlocking the Black Box, CIPD Research Report, London)