You are on page 1of 40

Introduction to Human Resource Management

In Brief:
We will know: what Human Resource Management is, how it relates to the management process, and how it is changing in response to trends in the workplace. It illustrates how all managers can use HR concepts and techniques, HRs role in strategic planning and improved organizational performance, the competencies required of HR managers

Interesting Issues:

Human Resources play a key role in helping companies meet the challenges of global competition. Strategic objectives to lower costs, improve productivity and increase organizational effectiveness are changing the way every part of the organization, including the HR department, does business.

Introduction

The World of Work - continues to change, but at an even more rapid pace. HR must understand the implications of:

globalization technology changes workforce diversity changing skill requirements continuous improvement initiatives the contingent work force decentralized work sites and employee involvement
4

Understanding Cultural Environments

Todays business world is truly a global village. This term refers to the fact that businesses currently operate around the world.

Understanding Cultural Environments

HRM must ensure that employees can operate in the appropriate language communications are understood by a multilingual work force Ensure that workers can operate in cultures that differ on variables such as status differentiation societal uncertainty assertiveness individualism HRM also must help multicultural groups work together.

The Changing World of Technology


Has altered the way people work. Has changed the way information is created, stored, used, and shared. The move from agriculture to industrialization created a new group of workers the bluecollar industrial worker. Since WWII, the trend has been a reduction in manufacturing work and an increase in service jobs.
7

The Changing World of Technology

Knowledge Worker - individuals whose jobs are designed around the acquisition and application of information. Why the emphasis on technology: makes organizations more productive helps them create and maintain a competitive advantage provides better, more useful information

The Changing World of Technology

How Technology Affects HRM Practices


Recruiting Employee Selection Training and Development Ethics and Employee Rights Motivating Knowledge Workers Paying Employees Market Value Communication Decentralized Work Sites Skill Levels Legal Concerns
9

Workforce Diversity

The challenge is to make organizations more accommodating to diverse groups of people.

10

Labor Supply

11

The Management Process


Planning

Controlling

Organizing

Leading

Staffing

12

Human Resource Management at Work

What Is Human Resource Management (HRM)?

The policies and practices involved in carrying out the people or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising.

13

Human Resource Management at Work

Human Resource Management (HRM)

14

Human Resource Management at Work


Acquisition

Fairness Human Resource Management (HRM)

Training

Health and Safety

Appraisal

Labor Relations

Compensating

15

Personnel Aspects of a Managers Job


Conducting job analyses Planning labor needs and recruiting job candidates

Selecting job candidates


Orienting and training new employees Managing wages and salaries

Providing incentives and benefits


Appraising performance Communicating

Training and developing managers


Building employee commitment
16

Personnel Mistakes

Hire the wrong person for the job Experience high turnover

Have your people not doing their best


Waste time with useless interviews Have your company in court because of discriminatory actions Have your company cited by OSHA for unsafe practices Have some employees think their salaries are unfair and inequitable relative to others in the organization Allow a lack of training to undermine your departments effectiveness Commit any unfair labor practices
17

Basic HR Concepts

The bottom line of managing: Getting results HR creates value by engaging in activities that produce the employee behaviors that the company needs to achieve its strategic goals.

18

Line and Staff Aspects of HRM

Line manager

A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organizations tasks.

Staff manager

A manager who assists and advises line managers.

19

Line Managers HRM Responsibilities


1. 2.

Placing the right person on the right job Starting new employees in the organization (orientation)

3.
4. 5.

Training employees for jobs that are new to them


Improving the job performance of each person Gaining creative cooperation and developing smooth working relationships Interpreting the firms policies and procedures Controlling labor costs Developing the abilities of each person Creating and maintaining department morale Protecting employees health and physical condition
20

6. 7. 8. 9. 10.

Human Resource Managers Duties


Line Function
Line Authority Implied Authority

Coordinative Function
Functional Authority

Functions of HR Managers

Staff Functions
Staff Authority Innovator Employee Advocacy
21

Human Resource Specialties


Recruiters

Labor Relations Specialists

Training Specialists

Human Resource Specialties

EEO Coordinators

Job Analysts

Compensation Managers

22

FIGURE 11 HR Organization Chart for a Large Organization

Source: www.hr.wayne.edu/orgcharts.php. Accessed May 6, 2007.

23

FIGURE 12 HR Organizational Chart (Small Company)

24

FIGURE 13 Employment and RecruitingWho Handles It? (Percentage of All Employers)

Note: Length of bars represents prevalence of activity among all surveyed employers.
Source: HR MAGAZINE, BNA/Society for Human Resource Management, 2002. Reproduced with permission via Copyright Clearance Center.

Who handles in your institution??

25

The Changing Environment of Human Resource Management


Globalization Trends

Changes and Trends in Human Resource Management

Technological Trends

Trends in the Nature of Work

Workforce Demographic Trends

26

The Changing Role of Human Resource Management


Strategic Human Resource Management

Managing with the HR Scorecard Process

New Responsibilities for HR Managers

Creating HighPerformance Work Systems

Measuring the HRM Teams Performance

27

TABLE 11

Technological Applications for HR

Application Service Providers (ASPs) and technology outsourcing Web portals PCs and high-speed access

Streaming desktop video


The mobile Web and wireless net access E-procurement Internet- and network-monitoring software Bluetooth Electronic signatures Electronic bill presentment and payment

Data warehouses and computerized analytical programs

28

High-Performance Work System Practices


Employment security Selective hiring Extensive training Self-managed teams/decentralized decision making Reduced status distinctions Information sharing Contingent (pay-for-performance) rewards Transformational leadership Measurement of management practices Emphasis on high-quality work

29

Benefits of a High-Performance Work System (HPWS)


Generate more job applicants Screen candidates more effectively Provide more and better training Link pay more explicitly to performance Provide a safer work environment Produce more qualified applicants per position

Hiring based on validated selection tests


Provide more hours of training for new employees Conduct more performance appraisals
30

FIGURE 15 Five Sample HR Metrics


HR Metric* Absence rate How to Calculate It # of days absent in month Average # of employees during month # of workdays 100

Cost per hire

Advertising + agency fees + employee referrals + travel cost of applicants and staff + relocation costs + recruiter pay and benefits
Number of hires

HR expense factor Time to fill

HR expense

Total operating expense


Total days elapsed to fill job requisitions Number hired

Turnover rate

Number of separations during month Average number of employees during month

100
31

Sources: Robert Grossman, Measuring Up, HR Magazine, January 2000, pp. 2935; Peter V. Le Blanc, Paul Mulvey, and Jude T. Rich, Improving the Return on Human Capital: New Metrics, Compensation and Benefits Review, January/February 2000, pp. 1320; Thomas E. Murphy and Sourushe Zandvakili, Data and Metrics-Driven Approach to Human Resource Practices: Using Customers, Employees, and Financial Metrics, Human Resource Management 39, no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] SHRM/BNA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org. See also, SHRM Research 2006 Strategic HR Management Survey Report, Society for Human Resource Management..

Measuring HRs Contribution

The HR Scorecard

Shows the quantitative standards, or metrics the firm uses to measure HR activities. Measures the employee behaviors resulting from these activities. Measures the strategically relevant organizational outcomes of those employee behaviors.
32

The Human Resource Managers Proficiencies

New Proficiencies

HR proficiencies Business proficiencies Leadership proficiencies

Learning proficiencies

33

HR Certification

HR is becoming more professionalized. Society for Human Resource Management (SHRM)

SHRMs Human Resource Certification Institute (HRCI)

SPHR (senior professional in HR) certificate PHR (professional in HR) certificate


34

HR Certification (Cont)

Nepal Universities with HR Diploma Degree MCAN- Strategically planning

35

The Human Resource Managers Proficiencies (contd)

Managing within the Law


Equal employment laws Occupational safety and health laws Labor laws

Managing Ethics

Ethical lapses Sarbanes-Oxley in 2003


36

Basic Themes

HRM is the responsibility of every manager. HR managers must defend their plans and contributions in measurable terms.

All personnel actions and decisions have strategic implications.


All managers rely on information technology. Virtually every personnel decision has legal implications.
37

The Plan of this course: Basic Themes


Reality

in Nepalese Context

Donald

Trump, Jack Welch, BKC, Anil S,


38

Based on your personal experiences, list ten examples showing how you did use (or could have used) human resource management techniques at work or school.

39

1) situations where they have improved the efficiency of their work through the use of technology made available to them through human resource systems; 2) employed the services of nontraditional workers (or been employed as a nontraditional worker); 3) developed metrics to measure how they have added value in terms of human resource contributions; 4) kept themselves abreast of employment law in order to minimize risk to their company; 5) Utilized self-service HR technology; 6) employed High Performance Work Systems concepts in their job/department.
40