INTRODUCTION TO HRMstudent.bms.lk/CBM/Slides/28/HRM/w1/Lecture 1...Lecture 1 INTRODUCTION TO HRM...

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Lecture 1

INTRODUCTION TO HRM

Certificate In Business ManagementModule 402

Jeeshan Mirza

CBM Topic Overview

1. Introduction To HRM

2. Recruitment & Selection

Lecture Overview• What Is HRM

• Evolution of HRM

• HRMs Contributing Role

• HRM Functions

• Current & Future HRM Challenges

What is Human Resource Management

Definition, Key Concepts

Sugar Bakery

By: Jane

Hire

Train

Hire Train

Policies

Policies

Problems

Employee Relations

Strategy

StrategyCompensation Rewards

Job Analysis

Definition▷Human resource management is designing

management systems to ensure that human talent isused effectively and efficiently to accomplish organizational goals

-Mathis

▷Human resource management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns

-Dessler

Definition▷Human resource management can be defined as a

strategic, integrated and coherent approach to the employment, development and well-being of the people working in organizations

-Armstrong

▷HRM are the policies, practices, and systems that influence employees’ behavior, attitudes, and performance

-Raymond Noe

Definition▷Design and application of formal systems in an

organization to ensure the effective and efficient use of human talent to accomplish organizational goals.

▷Activities undertaken to attract, develop, and maintain an effective workforce within an organization

-CBM Notes

Common Elements

Management SystemPolicies, procedures, recruiting, training, compensation, labor relations, health, safety

StrategicOrganizational goals, integrated

PerformanceEfficiency, effectiveness, behaviour, attitude

Key Idea # 1

HR is not a person or department

It is system-a set of activities, policies, procedures designed to help an organization achieve its objectives

Key Idea # 2

Technology, marketing, product can imitable by competitors

At the end a company’s competitive advantage is having innovative employees who can constantly come up with better products/services

Evolution Of HRM The Emergence & Development of the HRM Discipline

Before Industrial Revolution Agro based economies

Before Industrial RevolutionCraftsmen producing goods in villages, cottage type industry

Evolution of HRM Before Industrial Revolution

▷HRM or any similar activity non existent

▷Businesses typically built around master craftsmen

▷Apprentices would assist craftsmen as employees

▷Family members, community, slaves

Industrial Revolution 1750-1850Conversion of economy from agro to industry based, factories with long working hours, poor condition

Evolution of HRM Industrial Revolution

▷A department was set up to look into workers wages, welfare and other related issues

▷Workers record maintenance, housing health care

▷Deal with labor union; began in 1790

Evolution of HRM Industrial Revolution

▷Larger employers such as Cadbury, Lever Brothers began to appoint welfare officers

▷To manage new initiatives designed to make life less harsh for their employees

▷Unemployment benefit, sick pay and subsidized housing

Evolution of HRM Industrial Revolution

▷ Improves commitment of staff, compare the organization favorably with competitors

▷Higher productivity, a longer-serving workforce and a bigger pool of applicants for each job

▷Commitment to welfare reduces scope for the of adversarial industrial relations

Post Industrial Revolution 1850-1950Study of work- Frederick Taylor, Hawthorne Studies, McGregor; World War 1, 2

Evolution of HRM Post Industrial Revolution

▷Emergence of personnel manager

▷Focus shifted slightly from welfare towards other organizational objectives

▷Responsibilities in the areas of staffing, training and organization design

Evolution of HRM Post Industrial Revolution

▷Personnel specialists looked at management and administrative processes analytically

▷How organizational structures could be designed and labor deployed so as to maximize efficiency

▷Social relationships in the workplace and employee morale became important

Evolution of HRM Until The 1980’s

▷Most people employed by organizations were required simply to provide manual labor

▷Relatively little skill, experience or intelligence was needed to do the jobs

▷The requisite training was cheap and speedy to provide, and payment methods unsophisticated

Evolution of HRM Until The 1980’s

▷Finding people to do the work was rarely a problem

▷There were no restrictions when it came to firing those who were not satisfactory

▷Or who displeased managers in some other way

Economic Liberalization Era 1980+Corporatization, overseas expansion, growth of businesses, computers at workplace

Evolution of HRM Economic Liberalization Era

▷HRM replaced Personnel Management

▷ Integration with management of the company; instead of acting on behalf

▷Demand for higher-level skills had grown

▷Need for many more people to fill professional and managerial jobs

Evolution of HRM Economic Liberalization Era

▷Harder to find individuals with the right skills, qualifications, attributes and experience

▷Competitors keen to secure the services of the best talent by offering better deal

▷Sophisticated approaches to recruitment, selection, retention, employee relations and performance management

Evolution of HRM Economic Liberalization Era

▷Process becomes more complex for organizations that employ people in different countries

▷Diverse legislative and public policy; cultural difference

▷Led to the evolution of a more complex human resource management function

Digital, Social Media EraE-Commerce, Social Media, Technology, Globalization, Intense Competition, Millennials

Evolution of HRM Digital, Social Media Era

▷HRM shifting from administrative role to strategic

▷Enabling organization to achieve corporate goals and objectives; improving performance and driving shareholder value

▷Technology facilitating administrative processes and functions of HRM

Evolution of HRM Digital, Social Media Era

▷Changing workforce, circumstances-globalization, millennials, flexibility, regulations

▷Management of jobs to management of people-improving employee engagement

▷Focus on employees as internal customers; develop human capital

Evolution of HRM

Source: HR Dictionary

Personnel Management▷More traditional approach to managing people

▷Essentially workforce centered; direct efforts mainly at organization's employees

▷Finding , training them, compensation, administration, welfare, labor relations

▷Explaining management’s expectations, justifying management’s actions

Personnel Management▷Satisfying employees’ work-related needs

▷Dealing with problems, modify management action that could produce an unwelcome employee response

▷Primary focus-achieving efficiency, justice in managing people, ensuring satisfied employees, avoiding disputes

▷Considered administrative function

Personnel Management▷Not totally identified with management interests

▷Always some degree of being in between management and the employees

▷Mediating the needs of each to the other

Human Resource Management

▷Modern way of managing people

▷Aligned with strategy of organization; directed mainly at management needs

▷Greater emphasis on planning, monitoring and control, rather than mediation

▷Problem solving undertaken with other members of management rather than directly with employees or their representatives

Human Resource Management

▷Relatively distant from the workforce as a whole

▷Perceives people as asset, recognizes them as value creators, manages individually not collectively

▷People can develop a sustainable competitive advantage

▷Delivered in collaboration with line managers

Key Idea # 3

We are in the era of Human Capital management

There is intense competition for the best talent; human capital may be company’s defining asset

HRM’s Contributing RoleImpact in Organizations

HRM’s Contributing RoleStaffing Objectives

▷ Ensuring that the business is appropriately staffed; recruitment and selection

Performance Objectives

▷ Ensure employees are well motivated and committed

▷ Training and development, appraisal

▷ Performance targets, employee engagement

HRM’s Contributing RoleChange Management Objectives

▷Adapting to external factors, reorganization, cultural changes/shifts

Administration Objectives

▷ Facilitating organizations smooth running

▷Maintaining record, information of employees

▷Managing compliance

HRM’s Contributing Role

Negative Perceptions▷ Bureaucratic and administrative focused

▷ Too detail oriented

▷ Too costly

▷Does not understand the main business

▷HR managers seen more concerned about activities than results, and hard to link HR efforts to employee, managerial, and business performance organizational metrics

3

Key Idea # 4

HR needs to shift to strategic aspects of managing people; assist company achieve its business objectives

Role has to shift from operational/administrational

HRM FunctionsRole of HRM Function In An Organization

Responsibilities Of HR Department- Raymond Noe

HRM Function▷All managers are human resource managers- they

are involved recruiting, interviewing, selecting, training

Manager

Line Manager Staff Manager

A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks-production and sales

A manager who assists and advises line managers. Human resource managers are staff managers. They assist and advise line managers in areas like recruiting, hiring, and compensation

HRM Function▷All supervisors spend much of their time on

personnel-type tasks

▷Direct handling of people integral part of every line manager’s responsibility, from president to first-line supervisor

▷Small organizations-line managers may carry out all personnel duties unassisted

▷As organization grows, line managers need assistance, specialized knowledge, advice of HR

Key Idea # 5

All managers are HR managers

HR role and activities will need to be played by line managers, with HR department playing facilitation role

Distributed HR

All managers thus must understand HRM

HRM Function

Organizational Chart Of Smaller Company

HRM Function

Organizational Chart Of HR Department in Large Company

HRM Function

Organizational Chart Shared Services

Current & Future HRM Challenges

Trends influencing human resource management

Current & Future HRM Challenges

Organizational Cost Pressures

▷Containing costs while retaining top talent and maximizing productivity

▷Mergers & Acquisitions

▷Downsizing & Layoffs

▷Outsourcing, Offshoring, Productivity Enhancements

Current & Future HRM Challenges

Workforce Demographics & Diversity

▷Millennials Vs Generation X Vs Baby Boomers

▷Racial and ethnic diversity

▷Women in workforce

▷Aging workforce

Current & Future HRM Challenges

Economics & Job Changes

▷Occupational shifts

▷Service industry growth

▷Contingent workforce/Flexibility

▷Changing attitude towards work

▷Work life balance

Current & Future HRM Challenges

Economics & Job Changes

▷ Imbalanced labor force

▷Migration

▷Employee rights, rigid regulations, privacy concerns

Current & Future HRM Challenges

Globalization of Organizations

▷Expatriates

▷Global economic factors

▷Global legal factors

▷Ethics

Current & Future HRM ChallengesHR Technology

▷HRMIS, Cloud Computing

Real time information on the go

Reduces administrational actions;

Data analytics

▷Social Media

▷Flexi Time

Thanks!Any questions?

You can find me at:jeeshan2000@gmail.com

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