HUMAN RESOURCE

MANAGEMENT
1 BBA, Unit 1
FOUNDATIONAL IDEAS

 Potential to perform - with every one

 A process, support, guidance and structure
needed for translating potential into performance
 Managerial responsibility to providing those
conditions for performance
 Creation of an enabling framework for people to
perform more and better while deriving
satisfaction

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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

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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

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CHANGING VALUES

 Traditional values
 Compliance
 Loyalty
 Maintenance

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CHANGING VALUES

 Emerging values
 Commitment
 Development
 Results
 Empowerment
 Engagement
 Participation

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CHANGING ROLES

 Emerging roles
From
 Operator and administrator
 Protector and expert
To
 Employee champion
 Change agent
 Strategic partner

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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

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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

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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)
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 Economic trends and challenges (deregulations)
HRM PROCESS

Organization goals
and strategies
Development

Staffing Performance Appraisal

Rewards and
Employee relations
needs
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HR information
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?

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KEY QUESTIONS FOR MANAGING HR

 How to know how well they performed?

 How to develop their capacity to perform?

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 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

 Ethics

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 High performance work systems

 Evidence based HRM

 Measurement of performance

 New proficiencies

 HR certification
ORGANIZATION GOALS AND STRATEGIES

 Grow or diversify
 Satisfy customers

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 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

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 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

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 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

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 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

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 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

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 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

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 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
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 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

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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
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APPRAISING PERFORMANCE

 Develop criteria and information system for

assessment
 Observe, assess and evaluate performance against

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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

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 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

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
 Make efforts to give rewards
 Recommendation for rewards
EMPLOYEE RELATIONS

 Employee participation programs

 Employee protection programs

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 Employee rights programs

 Employee assistance programs

 Employee communication programs

 Other social and informal programs

EMPLOYEE RELATIONS

 Employee participation programs

 Employee protection programs

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 Employee rights programs

 Employee assistance programs

 Employee communication programs

 Other social and informal programs

LINE AND STAFF ASPECTS OF HRM

 Line authority-
 for managing functions

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 Staff authority-
 for advising and supporting line functions
LINE AND STAFF ASPECTS OF HRM

 Line-staff HR cooperation: Sharing HR responsibilities

 Line Manager’s HR responsibilities:

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 Recruitment and selection
 Orientation, training and development

 Employee relations and retentions

 Work environment

 Organization culture

 Work efficiency and effectiveness

STRATEGIC PLANNING AND STRATEGIC HRM
HR’s main responsibility-
 strategic goals and practices alignment

How?

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 Developing competitive advantage (strength, weakness,
opportunity, threat)

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)
STRATEGIC PLANNING AND STRATEGIC HRM

HR and competitive advantage:

 Employees and management as differentiating factors

Strategic HRM

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 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
Competitive
Environment

Company’s

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Company’s strategic plan
strategic situation

Company’s
Company’s HR (and
internal
other functional)
strengths and strategies:
weaknesses Basic course of action
HR functions as per
company strategy
Organizational
performance
LINKING CORPORATE AND HR STRATEGIES
Company’s strategic plan:
What business are you in?
On what basis will you compete?
Hoiw do you plan to expand?

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

Conform to ethical standards and EEOC and other HR related laws