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HUMAN RESOURCES
DEVELOPMENT
A METHODOLOGY FOR
ORGANISATIONAL CLIMATE
ESTIMATION
OFTEN ASKED QUESTIONS
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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
HRM & HRD
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• 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.
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Why 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.
AN ILLUSTRATION
MANAGERIAL FUNCTIONS
OF HRM
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OBJECTIVES & POLICIES
OF HRM
OPERATIVE FUNCTIONS OF HRM
EMPLOYMENT
HR DEV
Org design
COMPENSATION
MGT
HUMAN RELATIONS
Perf. app
Planning
Motivaton
Training
Job eva
Morale
Recruitment
Job design
Career pl
Wage
Selection
Perks
Job analysis
Job satisfaction
Communication
Induction
Quality of life
Placement
Grievance
Discp. action
Allocate
Budget
Manage the
Budget
Project planning
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Implement
Monitor
expenses
Manage the team
Development
Schedule of
implementation
Appraisal
Move the Committee
Manager’s Mind Map
Sanction
Liaise with
Other Depts.
Monitoring
Processing
Outgo of funds
Design appropriate
Instruments
Get strategy
vetted by Board
Report
preparation
Manage enquiries
Deal with
customers
Detailing
Human 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.
Recruitment
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• 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
Selection
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• The process of assessing candidates and
appointing a post holder
• Applicants short listed – most suitable
candidates selected
• Selection process – varies according to
organisation:
Selection
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• Interview – most common method
• Psychometric testing – assessing the personality
of the applicants – will they fit in?
• Aptitude testing
of applicants
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assessing
the
skills
• 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
Even 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.
• Adds to the cost of the
business
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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
Discipline
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Discipline
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• Firms cannot just ‘sack’ workers
• Wide range of procedures and steps in dealing with
workplace conflict
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Informal meetings
Formal meetings
Verbal warnings
Written warnings
Grievance procedures
Working with external agencies
Development
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Development
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• Developing the employee can be regarded as
investing in a valuable asset
– A source of motivation
– A source of helping the employee fulfil
potential
Training
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Training
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• 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
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Money not the only method
Fringe benefits
Flexibility at work
Holidays, etc.
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 1–4
Productivity Enhancements
Summary 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:
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Have value.
Are rare and unavailable to competitors.
Are difficult to imitate.
Are organized for synergy.
Challenge 1: Going Global
(cont’d)
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• 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
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Challenge 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
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Influence 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.
HRM IT Investment http://www.bized.co.uk
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.
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Challenge 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.
HR-Leadership: emerging models
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LEADS MODEL
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LISTENING
EMPOWERING
ADAPTING
DELIVERING
SELFUNDERSTANDING
HR-Leadership: emerging models
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GROW MODEL
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GOALS
REALITY
OPTIONS
WILL
HR_Leadership: emerging models
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BOOST MODEL
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BALANCE
OBSERVE
OWNERSHIP
SPECIFIC
TIME
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Thank You