Unit One

Overview of the Field

Session 1
 Four Ms of Management
• Machine
• Material
• Method
• Manpower
 Management Process
• Planning
• Organizing
• Staffing
• Leading
• Controlling
 Human Resources
• Resource which put together material,
machine and method together to produce
some value
• Only resource able to think and have
skills, knowledge and experience
 Foundational Ideas
• Potential to perform - with every one
• A process, support, guidance and structure
needed for translating potential into
performance
• Managerial responsibility to provide those
conditions for performance
• Creation of an enabling framework for
people to perform more and better while
deriving satisfaction
 Foundational Ideas
• Getting effective results from people
while keeping them satisfied
– Make human resources productive and
get quality results from them
– Make them satisfied with high quality of
work life
– Enhance human resource effectiveness
Have you ever faced these situations?

• Going to grocery store and struggling to find

something and there is no one for help
• Going in a restaurant and no one comes to take
the order
• Going to bank and wait for several minutes to
get the work done
• Going to a clothing store and the salesperson
does not know about the size and price of the
dress you want

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 Discussion Cases
• What is the case about?
• What is happening/ has happened in the
case?
• Why do you think so?

8
 What is HRM?
• A set of people- related policies, programmes
and practices (tools and techniques) as well as
underlying values
• Designed and executed to enhance HR
effectiveness (get effective results from them)
• For supporting organisational goals and
strategies
• By integrating needs of the organisation and
those of its people
• Practices and polices include:
1.Job analysis
2.Planning and recruiting
3.Selecting and orienting
4.Training and developing
5.Appraising employees
6.Compensating employees
7.Managing employee relations and fair
treatment
8.Managing employee safety and health
 Changing Values
• Traditional values
– Compliance
– Loyalty
– Maintenance
 Changing Values
• Emerging values
– Commitment
– Development
– Results
– Empowerment
– Engagement
– Participation
 Changing Roles
• Emerging roles
From
– Operator and administrator
– Protector and expert
To
– Employee champion
– Change agent
– Strategic partner
 Why Important?
• Enhance human resource effectiveness
• Improved productivity and quality of employee
performance
• Greater satisfaction for staff from the job
• Creation of enabling conditions for performance
• Effective utilisation of human capability and
potential
• Achievement of coordinated and inspired efforts
from employees
 HR Effectiveness Indicators
• High level of performance and productivity
achieved
• Quality product or services delivered
• Right number of people with the required
skills and experience employed
• Personnel cost, absenteeism and turnover
controlled
• Job satisfaction and self- esteem attained
• Legal regulations complied
 Importance to All Managers
• Avoid personnel mistakes
• Improve profits and performance
• Working as HR Manager
• HR for entrepreneurs
 Trends Influencing HRM
• Globalization (cost, competition, productivity)
• Technological advances (manufacturing, distribution
network)
• Work nature (critical thinking/problem solving/information
management)
• Service jobs (service vs goods)
• Human capital (knowledge workers, capitalizing on new
technology)
• Off-shoring (export jobs)
• Demographic trends (talent management, gen X, Y, retirees,
nontraditional workers, workers from abroad)
• Economic trends and challenges
(deregulations)
Key Questions for Managing HR
• What are organizational/ unit goals and
strategies?
• Who are the employees?
• What are employees’ needs from work?
• How many and what type of employees are
needed?
• Where to get them from and how to get
them in?
• How to get them to perform?
Key Questions for Managing HR
• How to know how well they performed?
• How to develop their capacity to perform?
• What rewards will sustain and enhance
their performance?
• How to maintain effective relations with
them for continued performance?
 HR Managers Today
• Big picture
• Transactional services
• Integrated talent management approach
• Employee engagement
• Ethics
• High performance work systems
• Evidence based HRM
• Measurement of performance
• Value addition
• New proficiencies
• HR certification
 Unit One
Overview of the Field
Session 2
 HRM Process
Organization goals
and strategies
Development

Staffing Performance Appraisal

Rewards and
relations
Employee
needs

HR information
 Organization Goals and Strategies
• Grow or diversify
• Satisfy customers
• Improve customer service
• Compete
• Improve quality and increase productivity
• Lower costs
• Increase or sustain profit
• Adapt to fast changing technology
• Become more flexible
• Prevent obsolescence
 Employee Information System
• Personal information
• Organizational information
• Job/ career and experience information
• Performance/ potential assessment information
• Qualification, training and competency information
• Payroll and benefits information
• Development and succession plan information
• Others information (disciplinary, medical,
references, absenteeism)
 Employees’ Needs
• Economic returns on personal investment
(time, talents and efforts)
• Other benefits
• Job security and stability
• Quality work environments
• Recognition of contributions
• Feeling of self worth
• Growth and advancement
• Social connectedness and supports
• Psychological satisfaction and security
 Staff Planning
• Assess current staff
• Analyze business plans
• Forecast staffing level and categories
• Assess availability of staff
• Determine staffing needs (shortage or surplus)
• Formulate programs to address the needs
– Recruitment, training,
– retention, promotion,
– redeployment, redundancy
 Staffing
• Analyze jobs
• Prepare job descriptions and specifications
• Explore internal or external sources for the
required staff
• Communicate about vacancies and jobs
• Attract suitable and discourage unsuitable
candidates
• Select the most suitable candidate through
matching the job and the person
 Managing Performance
• Allocate responsibility and resources
– Assess the suitability and availability
– Assess the requirements of the resources
– Set clear performance targets and prepare
performance plan
– Develop their understanding of the goals
– Prepare the staff to accept the tasks assigned.
– Ensure adequate and timely supply of resources.
– Delegate adequate authority for performance.
– Anticipate performance problems
 Managing Performance
• Communicate
– Communicate performance expectations
– Have a regular meeting
– Determine reporting formats and information flow
patterns
– Give and seek information and opinions
– Give performance feedback
– Listen actively to what the staff say and explore
what they want to say
– Consult before and convince after taking
decisions
– Use interpersonal skills effectively
 Managing Performance
• Lead and motivate
– Give clear direction and a sense of purpose
– Inspire for higher performance
– Attend to performance obstacles and remove them
– Praise and value individuals and their performance
– Celebrate success
– Build team spirit, trust and relationship
– Present role model and demonstrate by example
– Treat fairly and equitably
– Highlight the value of the performer’s work
– Provide opportunities for using ability
– Involve in decisions
 Managing Performance
• Coordinate
– Conduct meetings with staff
– Develop mechanisms to share
information
– Develop plans collaboratively
– Create inter-functional teams
– Develop functional allocation chart
– Pool resources as much as possible
 Managing Performance
• Supervise and monitor
– Establish a warm and trusting relationship and
work environment
– Prepare supervision work plan and checklist
– Observe performance, discuss and guide
– Help performers identify and solve their
problems
– Support staff for both work outputs and personal
development
– Be fair with all in relationships and appear to be
fair
– Maintain discipline and reward
– Ensure quality of work
– Develop regular reporting systems
 Appraising Performance
• Develop criteria and information system for
assessment
• Observe, assess and evaluate performance
against performance targets
• Have periodic performance review sessions
covering both strengths and weaknesses
• Give performance feedback with suggestions for
improvements
• Complete appraisal forms
• Initiate development/ corrective actions
• Revise work plan for the next period
 Training and Developing Staff
• Develop capability for implementation
• Identify training and development
needs of staff
• Provide and facilitate development
opportunities
• Coach, guide and provide
performance feedback
• Utilise staff capability
• Search for and make available
external training opportunities
 Rewarding Performance
• Reward good performance
– Financial and tangible rewards
– Personal and developmental rewards
–
 Make efforts to give rewards
– Recommendation for rewards
 Employee Relations
• Employee participation programs
• Employee protection programs
• Employee rights programs
• Employee assistance programs
• Employee communication programs
• Other social and informal programs
 Line and Staff Aspects of HRM
• Authority –
− the right to make decisions, to direct the work of others
and to give orders
• Line authority-
– Issue orders to other managers or employees
– for managing functions
– Line managers
• Staff authority-
– for advising and supporting line functions
– Staff managers
Line and Staff Aspects of HRM
– Line-staff HR cooperation: Sharing HR
responsibilities
– Line Manager’s HR responsibilities:
• Recruitment and selection
• Orientation, training and development
• Employee relations and retentions
• Work environment
• Organization culture
• Work efficiency and effectiveness
Organizing HR Department Responsibilities
• Recruiters
• EEO Representatives or affirmative action
coordinators
• Job analysts
• Compensation managers
• Training specialists
New ways to organize HR functions
• Transactional HR group (Day to day HR support)
• Corporate HR group (Giving advices to top level)
• Embedded HR group (Embed HR into all depts)
• Center of expertise (Eg. Change management) 39
Strategic Planning and Strategic HRM
• Strategic Plan (SWOT)
- Where we are now and where we want to be and
how to get there

• Strategy
- Course of action

• Strategic management
- Process of identifying and executing the
organization’s strategic plan
Levels of strategic planning:
– Corporate strategy (company-wide:
diversification, integration, consolidation,
expansion)
– Competitive strategy (product/service
differentiation, market share, cost leadership,
differentiation, value addition, niche market)
– Functional strategy (basic courses of action)

41
Strategic Planning and Strategic HRM
HR’s main responsibility
What are our
− strategic goals and practices
strategic alignment
plans
How? and goals?
– Formulating and executing HR policies and practices -
>produce the employee
Whatcompetencies
employee and behaviors ->
needed by the behaviors
company (SHRM)
and skills do
we need to achieve
our strategic aims?

What HR policies and practices

will enable us to produce the
necessary employee behaviors
and skills?
Strategic Planning and Strategic HRM
HR and competitive advantage:
– Employees and management as differentiating
factors
Strategic HRM
– HR’s role in strategy formulation
– HR’s role in strategy execution
Identifying, analyzing and balancing external
opportunities (exploitation) and threats
(minimization/neutralization) and its internal
strengths (maximization) and weaknesses
(minimization);

Cascading down the roles and

responsibilities from organization
level to individual level.
Linking Corporate and HR Strategies
Company’s strategic plan:
What business are you in?
On what basis will you compete?
How do you plan to expand?

Train
Develop employee Appraise
personnel Recruit Interview s based and
plans and candidates and select on job reward
job employees requireme employees
description nts

Conform to ethical standards and EEOC and other HR related laws

 SHRM Tools
• Strategy map
Graphical tool that summarizes how employees
performance contribute to overall achievement of
strategic goals
• HR scorecard
Process for managing employee performance and
aligning all employees with key objectives by assigning
financial and non financial goals
• Digital dashboard
Presenting on graphs and charts
the strategic map 45
 Class Discussion Case

1. Jack Nelson’s Problem

2. Siemens Builds a Strategy Oriented HR
System

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