HRM and Operations Management

in Today’s Business World

 – Human Resources Management – An
Overview
– Importance of HR function
– Role and activities of HR department
Contents – Recruitment & Selection/ Staffing Sub
Function
– Employee Compensation, Performance
Management & Organizational
Development
– Environmental factors impacting HR
Function in an organization
HUMAN RESOURCES
MANAGEMENT
AN OVERVIEW
 – Understanding the importance of HRM
function in an organization and its
related activities,
– Become better managers in
organizations/work place

Learning – Awareness of theories and philosophies

forming the basics of deign of HRM
Outcomes function and activities.
– Awareness of the latest issues and
happenings in this field
– How HRM links up with Operations
Management in today’s dynamic
business world
Management
– The process of trying to accomplish goals through
other people
Human
Resource
Management – A Management Function which focuses on the
utilization of individuals to achieve organizational
objectives
– All managers at every level must concern
themselves with human resources management.
 – Linked to the strategic management of an
organization.
– Seeks commitment to organizational goals

Importance – Focuses on the individual needs rather than the

collective workforce.
of HR – Enables organizations to dissolve power and
Function become more flexible
– Emphasizes people are an asset to be positively
utilized by the organization.
 – 'Human capability and commitment’ is what
differentiates organizations.
– HRM needs to be implemented into the
organizational strategy and needs to be
considered at the highest management level.
Strategic Long term importance of HRM:
Importance – It needs to be integrated into the management
functions and is seen to have important
consequences on the ability of the organization
to achieve its goals.
– The key functions of HRM which are seen to
encourage commitment rather than compliance.
Traditional
HR Functions
Human
Resource
Management – Recruitment & Selection

Functions – Training & Development

– Compensation & Benefits
– Safety & Health
– Employee & Labor Relations
 – Effective HR management requires proper
understanding and utilization of
knowledge gained through research
– Recruitment
Research vs. – Realistic job previews
– Interviews
Practice – Performance appraisals
RECRUITMENT &
SELECTION
 – Stage 1 Agree on Vacancy
The – Stage 2 Job Analysis
Recruitment – Stage 3 Attracting Candidates
& Selection – Stage 4 Sorting Candidates
Process – Stage 5 Selection Interviews
The Recruitment &
Advertisements
Selection Process
Recruitment Agencies Resume Scanning

Recruitment Word of mouth

Short listed candidates

Walk ins

Company’s website

Telephonic Interviews
Selection
New Hires
One-on-one Interviews

Panel Interviews
 How job assessments help
you reach the goal.

Interviewing
Steps involved in the interviewing process are..

Understand the purpose of the interview

Rethink your interviewing strategy

Develop a list of desired skills

Create a list of interview questions.

Check your list twice

Tell the applicant about the interview format

Prepare for questions.

Take notes
The Dynamic
Human
Resources
Management
Environment
 Environment of Human Resource Management

Unions EXTERNAL ENVIRONMENT Society

INTERNAL ENVIRONMENT
Legal Considerations

Technology
Marketing g Operations
fin Hu
t af m
S De an
ve Re
lo so
pm u
en rce
Em r Relat
Lab

t
ploy
o

Human
Resource
ee a ns

n
Managemen
1

Shareholders
and ensatio
The Economy

efits
io
nd

Ben
Other

p
Com
Finance Safety and Functional
Health Areas

Customers Competition Labor Force

 – Social responsibility – Implied, enforced or felt
obligation of managers to serve or protect interests
of groups other than themselves
Society – Ethics – Discipline dealing with what is good and
bad, or right and wrong, or with moral duty and
obligation
HR’s Changing Role:
Who Performs
Human
Resources
Management Tasks?
– Human Resource Managers
– Outsourcing Firms
– Line Managers
– Project Managers
Human Resources
Function In
Organizations Of
Various Sizes
Human
Resources
Function in a
Small
Business Manager/Owner

Sales Operations Finance

The Human
Resource
Function in a
Medium-Sized President
Business

Human
Sales Operations Finance
Resources
Manager Manager Manager
Manager
 The Human
Resource Function
in a Large Firm President
and CEO

VP/Dir VP/Dir VP/Dir Human

VP/Dir Finance
Marketing Operations Resources

Manager, Manager, Manager Manager

Manager
Training and Compensation Safety and Labor
Staffing
Development and Benefits Health Relations
An Evolving
Human
Resource
Organization
President
Example and CEO

VP Other Director of
VP Human
VP Operations Major Safety and
Resources
Functions Health

Manager Shared
Executive Manager Employee
Other HRM Service
Development Training Benefits
Functions Center

Outsourced
 Changing Nature of Human Resources Management

– Advantages of task specialization

– Jobs
– Comprise a set of tasks,
elements, and job motions
(basic physical movements)
– High output, low costs, and
minimal training
– Disadvantages of task
specialization
– Boredom, lack of motivation,
and physical and mental fatigue
 Employee Motivation
– Motivation
– willingness to work hard because that
effort satisfies an employee need
– Improving Motivation
– positive reinforcement and feedback
– effective organization and discipline
– fair treatment of people
– satisfaction of employee needs
– setting of work-related goals
– Improving Motivation (cont.)
– design of jobs to fit employee
– work responsibility
– empowerment
– restructuring of jobs when necessary
– rewards based on company as well as
individual performance
– achievement of company goals
 Evolution of Theories of Employee Motivation

Abraham Maslow’s Douglas McGregor’s Frederick Herzberg’s

Pyramid of Human Theory X and Theory Y Hygiene/Motivation
Needs Theories
•Theory X Employee •Hygiene Factors
• Dislikes work • Company policies
• Must be coerced • Supervision
• Shirks responsibility • Working conditions
Self- • Little ambition • Interpersonal relations
actualization • Security top motivator • Salary, status, security
•Theory Y Employee •Motivation Factors
Esteem • Work is natural • Achievement
• Self-directed • Recognition
Social • Job interest
• Controlled
• Accepts responsibility • Responsibility
Safety/Security • Growth
• Makes good decisions
Physiological (financial) • Advancement
Contemporary Trends in Human Resources
Management

– Job Training
– extensive and varied
– Enhances on the job skills and – Empowerment
work knowledge – giving employees authority to
make decisions
– Cross Function Training
– an employee learns more than
one job – Teams
– group of employees work on
problems in their immediate
– Job Rotation work area
– horizontal movement between
two or more jobs according to a
plan
Contemporary Trends in Human Resources
Management (cont.)
– Job enrichment
– vertical enlargement
– allows employees control over their
work
– horizontal enlargement
– an employee is assigned a complete
unit of work with defined start and
end
– Flexible time
– part of a daily work schedule in
which employees can choose
time of arrival and departure
– Alternative/Virtual workplace
– nontraditional work location
– Telecommuting
– employees work electronically from
a location they choose
– Temporary and part-time
employees
– mostly in fast-food and restaurant
chains, retail companies, package
delivery services, and financial firms
Employee Compensation
– Types of pay
– hourly wage
– the longer someone works, the more s/he is paid
– individual incentive or piece rate
– employees are paid for the number of units they produce during the
workday
– straight salary
– common form of payment for management
– commissions
– usually applied to sales and salespeople

8-31
Employee Compensation (cont.)

– Gain sharing
– an incentive plan joins employees in a
common effort to achieve company goals in
which they share in the gains

– Profit sharing
– sets aside a portion of profits for employees
at year’s end

8-32
 – Setting Quantifiable Objectives
Employee – Agree over expectations to perform
Performance – Set time for discussion sessions
Management – Listen to the Employee
– Feedback process for evaluating employee
performance
Organizational – Training & Development of Employees

Development – Change Management Methods

– Inter Organizational Communication
 – Task analysis
– how tasks fit together to form a job

– Worker analysis
– determining worker capabilities and
responsibilities for a job

– Environment analysis
Job Design – physical characteristics and location of a job

– Ergonomics
– fitting task to person in a work environment
– Technology and automation
– broadened scope of job design
Job Analysis

– Method Analysis (work methods)

– Study methods used in the work included in the job to see
how it should be done
– Primary tools are a variety of charts that illustrate in
different ways how a job or work process is done
 – Employers must strive to manage diversity in the
workplace
– Programs include
Managing - Education
Diversity in
- Awareness
Workplace
- Communication
- Fairness
- Commitment
 – Joining the organization
Types of – Remaining with the organization
Work – Maintaining work attendance
Related – Performing required job responsibilities
Behaviors – Exhibiting organizational citizenship
 The Changing Job Market
What’s Happening in The External World? (Big Picture)

• Redefinition of Loyalty/Security
• Increase in Part-Time, Contract Employment
• Mergers and Acquisitions
• Doing more with Less
 The Changing Job Market
What’s Happening In The External World?
(The 21st Century Worker)

• Employability
• External vendor-mindedness (Me Inc.)
• Resiliency
• Flexibility and adaptability
• Security comes from within

Job Security is an illusion.

Security comes from being
employable not employed
 The Changing Job
Market
(Personal Readiness)

• Need for continuous learning

• Need for understanding of
accomplishments
• Need for continuous networking