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HUMAN RESOURCES DEVELOPMENT

A METHODOLOGY FOR ORGANISATIONAL CLIMATE

ESTIMATION

http://www.bized.co.ukOFTEN ASKED QUESTIONS ?

• Are we in the right business ?• Do we have the right people ?• Are we in the right industries ?• Are we in the right states ?• Given the same country climate, why are

we where we are ?

is it because we have/lack Purpose Values Standards of behaviour Strategy

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• Organisations are driven by human capital and it is crucial to have a scientific look at this factor of production

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HRM & HRD• HRM - deals with optimum utilization of human

capital - integrative & supportive

• HRD - deals with development and upgradation

of human capital

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• HRM takes the stock of human capital as given and tries to optimally allocate it among different processes/activities such that output is maximized.

• HRD tries to bring about qualitative changes in this stock of human capital in accordance with the needs of the organization and corporate objectives. It tries to mould the stock as per requirements.

http://www.bized.co.ukWhy Study Human Resources Management

• Human Resources Management (HRM)

– The process of managing human resources (human capital and intellectual assets) to achieve an organization’s objectives.

• “Why Study HRM?”

– Staffing the organization, designing jobs and teams, developing skillful employees, identifying approaches for improving their performance, and rewarding employee successes—all typically labeled HRM issues—are as relevant to line managers as they are to managers in the HR department.

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EMPLOYMENT HR DEV

COMPENSATIONMGT

HUMAN RELATIONS

Org design

Job design

Job analysis

Perf. app

Training

Career pl

Job eva

Wage

Perks

Motivaton

Morale

Job satisfaction

Communication

Grievance

Discp. action

Planning

Recruitment

Selection

Induction

Placement

Quality of life

AN ILLUSTRATION

OBJECTIVES & POLICIES OF HRM

OPERATIVE FUNCTIONS OF HRM

MANAGERIAL FUNCTIONS OF HRM

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Manager’s Mind Map

Get strategyvetted by Board

Schedule ofimplementation

Project planning

Liaise with Other Depts.

Implement

Monitor expenses

Allocate Budget

Manage the Budget

Manage the team

Appraisal

Development

Manage enquiries

Deal with customers

Design appropriateInstruments

Processing

Detailing

Reportpreparation

Move the Committee

Sanction

Outgo of funds

Monitoring

http://www.bized.co.ukHuman Resources Management

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Recruitment

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Recruitment• The process by which a job vacancy

is identified and potential employees are notified.

• The nature of the recruitment process is regulated and subject to employment law.

• Main forms of recruitment through advertising in newspapers, magazines, trade papers and internal vacancy lists.

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Recruitment

• Job description – outline of the role of the job holder

• Person specification – outline of the skills and qualities required of the post holder

• Applicants may demonstrate their suitability through application form, letter or curriculum vitae (CV)

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Selection

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Selection

• The process of assessing candidates and appointing a post holder

• Applicants short listed – most suitable candidates selected

• Selection process – varies according to organisation:

http://www.bized.co.ukSelection• Interview – most common method

• Psychometric testing – assessing the personality of the applicants – will they fit in?

• Aptitude testing – assessing the skills of applicants

• In-tray exercise – activity based around what the applicant will be doing, e.g. writing a letter to a disgruntled customer

• Presentation – looking for different skills as well as the ideas of the candidate

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Employment Legislation

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Employment Legislation

• Increasingly important aspect of the HRM role

• Wide range of areas for attention

• Adds to the cost of the businessEven in a small business, the

legislation relating to employees is important – chemicals used in a hairdressing salon for example have to be carefully stored and handled to protect employees.

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Discrimination

• Crucial aspects of employment legislation:

– Race

– Gender

– Disability

Disability is no longer an issue for employers to ignore, they must take reasonable steps to accommodate and recruit disabled workers.

Copyright: Mela, http://www.sxc.hu

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Discipline

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Discipline• Firms cannot just ‘sack’ workers

• Wide range of procedures and steps in dealing with workplace conflict

– Informal meetings

– Formal meetings

– Verbal warnings

– Written warnings

– Grievance procedures

– Working with external agencies

http://www.bized.co.ukDevelopment

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Development

• Developing the employee can be regarded as investing in a valuable asset

– A source of motivation

– A source of helping the employee fulfil potential

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Training

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Training

• Similar to development:

– Provides new skills for the employee

– Keeps the employee up to date with changes in the field

– Aims to improve efficiency

– Can be external or ‘in-house’

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Rewards Systems

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Rewards Systems

• The system of pay and benefits used by the firm to reward workers

• Money not the only method

• Fringe benefits

• Flexibility at work

• Holidays, etc.

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Trade Unions

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Trade Unions

• Importance of building relationships with employee representatives

• Role of Trade Unions has changed

• Importance of consultation and negotiation and working with trade unions

• Contributes to smooth change management and leadership

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Productivity

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Productivity• Measuring performance:

• How to value the workers contribution

• Difficulty in measuring some types of output – especially in the service industry

• Appraisal

– Meant to be non-judgmental

– Involves the worker and a nominated appraiser

– Agreeing strengths, weaknesses and ways forward to help both employee and organisation

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Figure 1Figure 1–4 –4 Productivity EnhancementsProductivity Enhancements

http://www.bized.co.ukSummary of HR Functions

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Recent Trends in Human Resource Management

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Competitive Challenges and HRM

• The most pressing competitive issues facing firms:

1. Going global

2. Embracing new technology

3. Managing change

4. Managing talent, or human capital

5. Responding to the market

6. Containing costs

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Competitive Advantage through People

• Core Competencies

– Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers.

• Sustained competitive advantage through people is achieved if these human resources:

– Have value.

– Are rare and unavailable to competitors.

– Are difficult to imitate.

– Are organized for synergy.

http://www.bized.co.ukChallenge 1: Going Global (cont’d)

• Corporate Social Responsibility

– The responsibility of the firm to act in the best interests of the people and communities affected by its activities

• Impact on HRM

– Different geographies, cultures, laws, and business practices

– Issues:

• Identifying capable managers and workers

• Developing foreign culture and work practice training programs.

• Adjusting compensation plans for overseas work

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Challenge 1: Going Global

• Globalization

– The trend toward opening up foreign markets to international trade and investment

• Impact of globalization

– “Anything, anywhere, anytime” markets

– Partnerships with foreign firms

– Lower trade and tariff barriers

• NAFTA, EU, APEC trade agreements

• WTO and GATT

http://www.bized.co.ukChallenge 2: Embracing New Technology

• Knowledge Workers

– Workers whose responsibilities extend beyond the physical execution of work to include planning, decision making, and problem solving.

• Knowledge-Based Training

• Online instruction

• “Just-in-time” learning via the Internet on company intranets

http://www.bized.co.ukInfluence of Technology in HRM

• Human Resources Information System (HRIS)

– A computerized system that provides current and accurate data for the purposes of control and decision making.

– Benefits:

• Store and retrieve of large quantities of data.

• Combine and reconfigure data to create new information.

• Institutionalization of organizational knowledge.

• Easier communications.

• Lower administrative costs, increased productivity and response times.

http://www.bized.co.ukHRM IT Investment Factors

• Fit of the application to the firm’s employee base.

• Ability to upgrade Increased efficiency and time savings

• Compatibility with current systems

• Availability of technical support

• Time required to implement and train staff members to use HRIS

• Initial and annual maintenance costs

• Training time required for HR and payroll

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Challenge 3: Managing Change

• Types of Change

– Reactive change

• Change that occurs after external forces have already affected performance

– Proactive change

• Change initiated to take advantage of targeted opportunities

• Managing Change through HR

– Formal change management programs help to keep employees focused on the success of the business.

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Challenge 4: Managing Talent, or Human Capital

• Human Capital

– The knowledge, skills, and capabilities of individuals that have economic value to an organization.

– Valuable because capital:

• is based on company-specific skills.

• is gained through long-term experience.

• can be expanded through development.

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Challenge 5: Responding to the Market

• Total Quality Management (TQM)

– A set of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement.

• Six Sigma

– A process used to translate customer needs into a set of optimal tasks that are performed in concert with one another.

http://www.bized.co.ukChallenge 5: Responding to the Market (cont’d)

• Reengineering and HRM

– Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.

• Requires that managers create an environment for change.

• Depends on effective leadership and communication processes.

• Requires that administrative systems be reviewed and modified.

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Challenge 6: Containing Costs

• Downsizing

– The planned elimination of jobs (“head count”).

– Layoffs

• Outsourcing

– Contracting outside the organization to have work done that formerly was done by internal employees.

• Offshoring

– The business practice of sending jobs to other countries.

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LEADS MODEL

• L• E• A• D• S

• LISTENING• EMPOWERING• ADAPTING• DELIVERING• SELF-

UNDERSTANDING

HR-Leadership: emerging models

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GROW MODEL

• G• R• O• W

• GOALS• REALITY• OPTIONS• WILL

HR-Leadership: emerging models

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BOOST MODEL

• B• O• O• S• T

• BALANCE• OBSERVE• OWNERSHIP• SPECIFIC• TIME

HR_Leadership: emerging models

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Thank You