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8/17/2019 HRM Evaluation.pptx
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HUMAN RESOURCEMANAGEMENT
HUMAN RESOURCEMANAGEMENT
CHAPTER NO. 1
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AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO:
Understand the term HRM and importanceof HRM.
Comprehend four functions of HRM .
Describe evolution of HRM.
Identify key roles played by HR managers.
Eplain challenges faced by HR managers.
Di!erentiate bet"een HRM andinternational HRM.
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HUMAN
&
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RESOURCE
Means debt# e$uity#retain earnings and
selected matters.
Means building#machinery# vehicle
and other material.
FINANCIALRESOURCES
PHYSICALRESOURCES
Include the history ofgroups in theorgani%ation#
relationship# level of
trust etc.
Includes skills# abilities#eperience and other
"ork relatedcharacteristics of people
associated "ith the
organi%ation.
ORGANIZATIONAL
RESOURCES
HUMAN
RESOURCE
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MANAGEMENT
Management is the universal processof getting activities completed "ithand through other people to achieve
organi%ational goals.
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HUMAN RESOURCE MANAGEMENT
&he design of formal systems in anorgani%ation to ensure e!ective ande'cient use of talent to accomplish
organi%ational goals.
Human Resource Management helps in
maimi%ing productivity ( reducingcost by )utting Right )erson *t Right
)lace.
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E'OLUTION OF HRM
?
&
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E'OLUTION OF HRM C%n . . .
1. The CraftSystem
(1600s-1700s)
+mall level of production Industrial Revolution
2. ScientificManagement(Early 1900s)
,ne best "ay to accomplish the task )utting the right person on the -ob "ith the
correct tools and e$uipment Having a standardi%ed method of doingthe -ob )roviding an economic incentive to the"orker
3. HumanRelations(Late 1920s –Early 1930s)
Ha"thorne studies Employee participation program
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E'OLUTION OF HRM C%n . . .
4. BehavioralSciences
&he study of the actions of people at"ork people are the most important
asset of an organi%ation.
5. Personnel
Management
Involve in operational planning and
decision making ( do not incorporateall HR activities.
6. HumanResource
Management
Involve in operational as "ell as strategicplanning and decision making (
incorporate all HR activities/training#career development# EE, etc.0
7. IntellectualCapital
Management
,rgani%ations need to be dynamic both inthe contet of the management of
individual capabilities and themanagement of organi%ational structure.
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FUNCTIONS OF HRM
STAFFING
MAINTENANCE TRAINING
&
DEVELOPMENT
MOTIVATION
H R M
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FUNCTIONS OF HRM C%n . . .
STAFFING•Strategic Human Resource Planning•Recruitment
•Selection
Maintenance Training &Development
Motivation
H R M
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1. STAFFING
&he activities in HRM concerned "ithseeking and hiring $uali1ed
employees are called +ta'ng.
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1. STAFFING
&he basic ob-ective of the sta'ngfunction is to locate ( secure
competent employee.
COMPONENTS OFSTAFFING
a. Strategic HumanResource Planning
b. Recruitment
c. Selection
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a. STRATEGIC HUMAN RESOURCEPLANNING
+trategic Human Resource )lanning isthe process by "hich an organi%ationensures that it has right number and
kind of people capable of e!ectively ande'ciently completing those task that arein direct support of company2s mission
and strategic goals.
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(. RECRUITMENT
&he process by "hich a -ob vacancy is identi1edand potential employees are noti1ed.
&o obtain an ade$uate pool of applicantsthere by more choice to the organi%ation.
)roviding enough information about the -obsuch that those "ho are un$uali1ed "ill notapply.
OBJECTIVES
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c. SELECTION
+election is the process by "hich anorgani%ation chooses from list of applicantsthe person or persons "ho meet the
selection criteria for the position availableconsidering current environmental
conditions.
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c. SELECTION
• &he primary ob-ective of selection activities is to
predict "hich -ob applicant "ill be suitable if hired#
during the selection process# candidate are also
informed about the -ob and organi%ation
• )roper selection can minimi%e the cost of replacement
and training resulting in more productive "orkforce
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FUNCTIONS OF HRM C%n . . .
Staffing
Maintenance
Motivation
TRAINING &DEVELOPMENT
•Orientation•Employee Training•Employee Development•Organization Development•Career DevelopmentH R M
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). TRAINING * DE'ELOPMENT
&raining is the systematic process of altering the behaviorof employees in a direction that "ill achieve organi%ationalgoals.
Development can be de1ned as 3E!orts to improveemployees2 ability to handle a variety of assignments are.4
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). TRAINING * DE'ELOPMENT
&he basic ob-ective of &raining ( Development function isto take competent "orkforce# adapt them to the
organi%ation# and help them to obtain up5to5date skills#kno"ledge# and abilities for their -ob responsibilities
COMPONENTS OF
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COMPONENTS OFTRAINING * DE'ELOPMENT
Orientation
Employee Training
Employee
Development
Organization
Development
CareerDevelopment
COMPONENTS OF
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COMPONENTS OFTRAINING * DE'ELOPMENT C%n . . .
• I t c o v e r s t h e a c t i v i t i e s i n v o l v e i n t h e i n t r o d u c i n g a n e " e m p l o y e e
t o o r g a n i % a t i o n a n d t o h i s o r h e r " o r k u n i t .
a. Orientation
• E m p l o y e e t r a i n i n g i s d e s i g n e d t o a s s i s t e m p l o y e e a c $ u i r i n g b e t t e r s k i l l f o r t h e c u r r e n t - o b .
b. Employee Training
• & h e f o c u s o f e m p l o y e e d e v e l o p m e n t i s o n a f u t u r e p o s i t i o n " i t h i n t h e
o r g a n i % a t i o n f o r t h e " h i c h e m p l o y e e r e $ u i r e a d d i t i o n a l
c o m p e t e n c i e s .
c. EmployeeDevelopment
d. CareerDevelopment
e.Organizational
Development
•
&he focus of career developmentis to provide the necessaryinformation and assignment inhelping employees reali%e their
career goals.
• ,rgani%ational Development isthe part of HRM that deals "ith
facilitating system "ide changein the organi%ation.
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FUNCTIONS OF HRM C%n . . .
Training&
Development
Staffing
Maintenance
Motivation Motivation and Job Design Performance management Reward & Compensation Employee Benefits
H R M
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+. MOTI'ATION
*n inner force that impels human
beings to behave in a variety of "ays.
MOTIVATION
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+. MOTI'ATION
&he basic ob-ective of motivationfunction is to retain good sta! andto encourage them to give of their
best.
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COMPONENTS OF MOTI'ATION * -ob should be designed in a such a "ay
that itshould facilitate the achievement of the
organi%ational ob-ective# stimulate
performanceand recogni%e the capacity and needs
of those"ho are to perform it.
1.
JobDesign
)rocess "hich is used to identify#encourage#
measure# evaluate and improveemployees through
performance appraisal.
2.
PerformanceManagement Compensation is "hat employee
receives inechange for their contribution to theorgani%ation.Compensation management help the
organi%ationto obtain# maintain and retain aproductive
6orkforce.
3.Compensation
Management
Employees bene1t are generallymembership
based #non 1nancial re"ard o!ered toattract and
keep the employees# regardlesstheir
4.Employee
Benefit
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FUNCTIONS OF HRM C%n . . .
Motivation
Staffing
Maintenance•Health & safety•Communication
•Employee relations
Training &DevelopmentH R M
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,. MAINTENANCE FUNCTION
*ctivities in HRM concerned "ith maintainingemployees commitment and loyalty to the
organi%ation.
MAINTENANCE
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,. MAINTENANCE FUNCTION
&he last phase of HRM process is calledmaintenance function. &he main ob-ective of this
function is to do such HRM activities that maintainemployees commitment and loyalty "ith the
organi%ation.
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+erving as an intermediarybet"een the organi%ation and itsunion.
Designing discipline andgrievance handling systems.
Designing andimplementing employee
communication system.
Designing and
implementing programs toensure employee healthand safety.
COMPONENTS OF MAINTENANCE
Health andSafety
CommunicationEmployees/
Labor Relation
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ROLES OF HR MANAGER
Administrative
Role
Employee Advocate
Role
Operational
Role
Strategic
Role
+erve as
3Morale,'cer4
Clerical
*dministration
7usinessContributo
r
HR*ctivities
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ROLES OF HR MANAGER C%n . . .
• C l e r i c a l a n d a d m i n i s t r a t i v e s u p p o r t o p e r a t i o n s / e . g . # p a y r o l l a n d b e n e 1 t s " o r k 0 .
1. Administrative
Role
• 3 C h a m p i o n 4 f o r e m p l o y e e c o n c e r n s • E m p l o y e e c r i s i s m a n a g e m e n t • R e s p o n d i n g t o e m p l o y e e c o m p l a i n t s2.
Employee Advocate Role
• I d e n t i 1 c a t i o n a n d i m p l e m e n t a t i o n o f H R p r o g r a m s a n d p o l i c i e s 8 h i r i n g # t r a i n i n g # c o m p e n s a t i n g a n d o t h e r a c t i v i t i e s t h a t s u p p o r t t h e
o r g a n i % a t i o n .
3.OperationalRole
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ROLES OF HR MANAGER C%n . . .
4.Strategic Role
9ocusing on developing HR
activities that enhanceorgani%ational
performance. Involvement in strategic planning. )articipating in decision making on
mergers# ac$uisitions# anddo"nsi%ing. *ccounting and documenting the
1nancial results of HR activities.
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HR MANAGEMENT CHALLENGES
Economic and &echnologicalChanges
6orkforce *vailability and:uality
;ro"th in Contingent6orkforce
Demographics and DiversityIssues
7alancing 6ork and 9amily
,rgani%ational Restructuring#
Mergers# and *c$uisitions
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R MANAGEMENT CHALLENGES C%n . .
+hift in -obs for manufacturing and agricultureto service industries and telecommunications. )ressures of global competition causing 1rms toadapt by lo"ering costs and increasingproductivity. ;ro"th of information technology.
1. Economic & TechnologicalChanges
Inade$uate supply of "orkers "ith needed skillsfor 3kno"ledge -obs4Education of "orkers in basic skills
2. Workforce Availability and
Quality
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R MANAGEMENT CHALLENGES C%n . .
Increases in temporary "orkers# independentcontractors# leased employees# and part5timers causedby< =eed for >eibility in sta'ng decisions Increased di'culty in 1ring regular employees.
3. Growth in Contingent Workforce
3Right5si%ing48eliminating of layers of management#closing facilities# merging "ith other organi%ations# andout placing "orkers. Intended results are >atter organi%ations# increases in
productivity# $uality# service and lo"er costs. HR managers must "ork to"ard ensuring culturalcompatibility in mergers.
4. Organizational Restructuring,Mergers, and Acquisitions
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R MANAGEMENT CHALLENGES C%n . .
Dual5career couples +ingle5parent households Decline in the 3traditional family4
6orking mothers and family?childcare +ingle employee 3backlash4 against family5oriented programs.
5. Balancing Work & Family
More diversity of race# gender# age etc.
6. Demographics andDiversity Issues
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I n e # n a
i % n a - H . $ a
n
R e " % . # c e M
a n a / e $ e n
INTERNATIONAL
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INTERNATIONALHRM 0IHRM
International HRM /IHRM0 is the process of
procuring# allocating # and e!ectively utili%inghuman resources in a multinational corporation.
Encompasses more functions. Has more heterogeneous functions. Involves constantly changing perspectives.
Re$uires more involvement in employees2personal lives. In>uenced by more eternal sources. Involves greater level of risk than typical domesticHRM.
HRM vs. IHRM
THE CONCEPT OF
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THE CONCEPT OFTRANSNATIONALITY
Each of these de1nitions# depending upon ho" theorgani%ation perceives itself # has implications forthe role of international HRM.
M-inai%na- C%$2anie"
Refers to companies that have developed astrategic posture and organi%ational capabilitythat allo" them to be very sensitive andresponsive to di!erences in nationalenvironments around the "orld.
G-%(a-C%$2anie"
Refers to companies that have developedinternational operations that are much moredriven by the need for global e'ciency andcentrali%ed in strategic and operationaldecisions.
Ine#nai%n
a-
7ased on &ransferring and adapting the parent
company2s kno"ledge or epertise to foreign
FUNCTION OF
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FUNCTION OFINTERNATIONAL HRM
@. &he &hree broad Human Resource activities<
A. &he &hree ma-or Country categories involved inInternational HRM activities<
B. &he &hree type of Employee of an International 9irm<
Host countryNationals(HCNs)
Parent CountryNationals(PCNs)
Third CountryNational(TCNs)
Procurement Allocation Utilization
Host country Home Country Other Country
Highlighting the broad functions of HRM#
Morgan /@0 has presented a modelthat consist of three dimensions "hichare<
APPROACHES TO IHRM
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APPROACHES TO IHRM
APPROACHES DEFINITIONS
ETHNOCENTRIC
M=C simply eports HR practices and policiesused in the home country to the foreignsubsidiaries. It Emphasi%es consistency and
integration across all subsidiaries.POLYCENTRIC
HR policies are adapted to meet thecircumstances in each foreign location.
REGIOCENTRIC
Represents a regional grouping ofsubsidiaries. HR policies are coordinated and
integrated "ithin the region.
GEOCENTRIC
HR policies are developed to meet the goalsof the global net"ork of home countrylocations and foreign subsidiaries.
Ev%-i%n3
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Human Resource
Management
%3 HRM
Craft+ystem
+cienti1cManageme
nt
HumanRelations
7ehavioral+ciences
)ersonnelManageme
ntHRM
IntellectualCapital
Management
+cienti1c
Management+&*99I=;
+cienti1c
Management
&R*I=I=;
(DEFEG,)ME=&
+cienti1c
ManagementM,&IF*&I,=
+cienti1c
ManagementM*I=&*I=CE
G%a-" %3 HRM
Enhancing)roductivity (
:uality
)romotingIndividual;ro"th (
Development
Complying "ithGegal ( +ocial
,bligations
9acilitating,rgani%ationalE!ectiveness
Fnci%n"%3
HRM
R%-e" %3 HRMana/e#
*dministrativeEmployee*dvocate
,perational +trategic
HRMana/e$enC!a--en/e"
Economic ( &echnological Changes
6orkforce*vailability( :uality
;ro"th inContingent6orkforce
Demographics (
DiversityIssues
7alancing6ork (9amily
Mergers (*c$uisition
Ine#nai%na-
HRM
CHAPTER : 1
HRM Fs. IHRM
&he Concept
,f &ransnationality
9unction ,f
InternationalHRM
*pproaches toIHRM
• Strategic HumanResource planning
• Recruitment• Selection
• Orientation• Employee Training• EmployeeDevelopment• Organizational
Development• CareerDevelopment
• Motivation & JobDesign• Perormance
Management• Re!ar" &Compensation• #ene$ts
• Healt% & Saety• Communication• EmployeeRelations
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THOUGHT OF THE DAY
People are defnitely a company’s realest asset. Itdoesn't make any dierence whether the productis cars or cosmetics. A company is only as good
as the people it keeps.
“Mary Kay Ash”