Presented by: Tariq Saeed

Plan of HRM Course

Part 1: Introduction
Introduction to HRM Strategic Role of HRM

Part 2: Recruitment and Placement

Job Analysis Human resource planning and Recruitment Employee Testing and Selection Interviewing Candidate Case Study, group work, experimental exercise on recruitment and placement

Plan of HRM Course

Part 3: Training and Development

Training and Developing Employees Managing Strategic Organizational Renewal Performance Management and Appraisal Managing Careers Case Study, group work, experimental exercise on training and development 1st Mid Term Exam Establishing Strategic Pay Plans Pay-for-Performance and Financial Incentives Benefits and Services Case Study, group work, experimental exercise on compensation Comprehensive case etc

Part 4: Compensation

Plan of HRM Course

 Part 5: Labor Relations and Employee Security
   

Labor Relations and Collective Bargaining Employee safety and health Case study etc 2nd Mid Term Exam

 Part 6: Global HRM

   

Managing Global Human Resources Case Study / exercise etc Case study / exercise etc Course Revision / case study / exercise etc

Introduction to HRM and The Strategic Role of HRM Module One (a )

Overview
       Introduction The Strategic Role of HRM The Managers HRM Responsibilities Strategic Planning and Trends HR s Strategic Role The law regarding HRM Summarize and Q&A Session

Introduction to HRM
Management Environment Backdrop Human Resource Management At Work The Changing Environment of Human Resource Management The Changing Role of Human Resource Management The Human Resource Manager s Proficiencies The General Concepts of HRM Summarize and Q&A Session

Management Environment Backdrop for HRM

Emerging Forms of Organizations Changing Concept of Productivity Synopsis of Change Some Key Characteristics of the Competitive Business Environment Technology

Emerging Forms of Organizations

Organizations undergoing tremendous changes Smaller companies coming up that employ fewer people. The shift from vertically integrated hierarchies to networks of specialists. Technicians, replacing manufacturing operatives as the worker elite. Pay tied to the market value of the skills and not to a person s position or tenure in the organization. A change in the paradigm of doing business from making a product to providing a service. The redefinition of work itself: constant learning, more higher- order thinking, less nine-to-five mentality.

Emerging Forms of Organizations

Virtual organization or corporation: Teams of specialists come
together to work on a project and disband after finishing. Virtual workplace: Work anytime anywhere in real space or cyberspace. Modular corporation: Focus on a few core competencies, those a company does best e.g. designing and marketing computers and outsourcing rest e.g. electronics and apparel or anticraft industry. If design and marketing are core competencies then manufacturing or service units are modular components like one used in a childs logo set. Example apparels & electronics industry. FOCUS ON A CORE COMPETENCY OUTSOURCING THE REST

Changing Concept of Productivity

P= Output (goods & services) Input (labor, material & equipment). Getting more out of what is put in. To do more with less - fewer people, less money, less time, less space and fewer resources. Smart working and not hard working.

P = p =

P =

Synopsis of Change
Current model Hierarchy Self-sufficient Security Homogeneous By Individuals Domestic Cost Profits Capital Board of Directors What s affordable Autocratic Organization Structure Worker Expectations Workforce Work Markets Advantage Focus Resources Governance Quality Leadership Twenty-first-century prototype Network Interdependence Personal growth Culturally diverse By teams Global Time Customers Information Varied constituents No compromises Inspirational

Some Key Characteristics of the Competitive Business Environment

Demographic changes and increasing Cultural Diversity. The Skills Gap.. Global Competition.
o Falling Real Wages. o Downsizing. Impact and Effect of the Economic Changes. Weapons of economic competition are commerce, growth rates, investment, trade blocks, imports and exports. Rules of economic or global competition People as a source of competitive advantage (Capital, Raw material & Information all common). A workforce, knowledgeable and skilled at doing complex things keeps company competitive and attracts foreign investment

TECHNOLOGY
Technology: Any equipment, tools or operating methods that are
designed to work more efficient. Technological advances reflect in integrating any technology into any process of changing inputs into outputs. Advances in tech permanently altered the economics of the world, the way people work and the way we manage our HR. Modern civilization evolved over three waves. First wave driven by agriculture, second industrialization and third one based on information. What is a knowledge worker?

TECHNOLOGY
In what ways Does Technology Affect HRM PRACTICES?

Recruiting Employee Selection Training and Development Ethics and Employee Rights Motivating Knowledge Workers Paying Employees Market Value Communications A legal concern Work Life Balance

Human Resource Management At Work

Management? What is Human Resource Management? Why is Human Resource Management Important to All Managers? Line and Staff Aspects of Human Resource Management

Management
Definition: Designing & maintaining an environment in
which individuals working together in groups achieve selected aims efficiently. Management has five functions: Planning, Organizing, Staffing, Leading & Controlling. One of the functions i.e STAFFING and its related activities are expressed as HRM. Management can be classified into:  Money - Financial Management  Material - Material Management  Machines - Operational Management  Men - Human Resources Management

What is Human Resources Management?

HRM is the process of acquiring, training, appraising and
compensating employees and attending to their labor relations, health and safety and fairness concerns. 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 . HRM study will provide you with the concepts and techniques you need to carry out the people or personnel aspects of management.

DEVELOPMENT OF HUMAN RESOURCE MANAGEMENT THOUGHT PROCESS

Evolution Of Human Resources Management

The Industrial Revolution (1776) The Emergence of Free Collective Bargaining Scientific Management US Civil Services Commission Private Industry s Approach to Personnel Management Human Relations Movement The Behavioral Sciences

Development Of HRM
Pioneer Work

Peter Drucker 1950 Douglas Mcgreger Maslows Hierarchy Of Needs 1960 1960 - 1970 1970 - 1980 1980 - 1985

Behavioral Science Movement Organizational Development Movement The Corporate Culture Cult The Art Of Japanese Management

Growth Of Human Resources Management File Maintenance Stage Government Accountability Stage Organizational Accountability Stage Strategic Partner-ship Stage

Stage 1 Stage 2 Stage 3 Stage 4

File Maintenance Government Accountability Organizational Accountability

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Basic Concepts & Techniques of HRM

Conducting job analyses (determining the nature of each employee s job) Planning labor needs and recruiting job candidates Selecting job candidates Orienting and training new employees Managing wages and salaries (compensating employees) Providing incentives and benefits Appraising performance Communicating (interviewing, counseling, disciplining) Training and developing managers Building employee commitment Employee health and safety Handling grievances and labor relations

Why is Human Resource Management Important to all Managers?

It helps you not to make the following mistakes while managing:

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 taken to court because of discriminatory actions Have your company cited under federal occupational safety laws 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 department s effectiveness Commit any unfair labor practices Can help ensue that you get results through people

Line and Staff Aspects of HRM

All managers are, in a sense, human resource managers, since they all get involved in activities like recruiting, interviewing, selecting, and training. Definition of line versus staff authority. Authority is the right to make decisions, to direct the work of others,
and to give orders.

Line - Authority gives managers the right (or authority) to issue

orders to other managers or employees. It creates a superior subordinate relationship.

Staff Authority gives the manager the right (authority) to advise

other managers or employees. It creates an advisory relationship.

Line and Staff Aspects of HRM

Human Resource Manager s Duties Human Resource Managers Specialist Include: Cooperative Line and Staff HR Management: From Line Manager to HR Manager

Human Resource Manager s Duties

A Line Function . A Coordinative Function . Staff Functions (assist and advise ) .

Human Resource Manager s Line and Staff Authority

Line Authority : The authority exerted by an HR manager by directing the activities of the people in his or her own department and in service areas, like the plant cafeteria . Staff Authority :Staff authority gives the right (authority ) to advise other managers or employees.

Human Resource Manager s Line and Staff Authority

Implied Authority : The authority exerted by an HR manager by virtue of others knowledge that he or she has access to top management ( in areas like testing and affirmative action). Functional Control : The authority exerted by an HR manager as coordinator of personnel activities. Employee Advocacy : HR must take responsibility for clearly defining how management should be treating employees, make sure employees have the mechanisms required to contest unfair practices, and represent the interests of employees within the framework of its primary obligations to senior management.

Human Resource Management Specialties

1. Recruiters 2. Job Analysts 3. Compensation Managers 4. Training Specialists 5. Labor Relations/ IR Specialists 6. Equal Employment Opportunity (EEO) Coordinators

Cooperative Line and Staff HR Management

Both line Manager and HR Managers have HRM duties. There is no single division of responsibilities regarding line or Staff HR duties. Relationship is generally cooperative. In Recruiting & Hiring line Managers describe the qualifications, employees need to full specific positions, Then the HR Teams takes over and provides final candidates through their process. In Training, the line manager again describes what he or she expects the employee to be able to do. Then the human resource team devises a training program, which the line manager then administers. Employment Testing, Insurance Benefits Administration, Employment Interviews, Performance Appraisal, Skills Training, Job Descriptions and Disciplinary Procedures are shared between HR and Line Managers. Some activities are usually HR s alone. HRM is part of every manager s job.

The Changing Environment of HRM

Changes are occurring today that are requiring human Resource Managers to play an increasingly central role in managing companies.

These changes or trends include:

Globalization Trends Technological Trends Trends in the Nature of work

Globalization Trends
Globalization is the tendency of firms to extend their sales, ownership and or manufacturing to new markets abroad. Companies expand abroad for several reasons: Sales Expansion Seek new foreign products & services to sell and cut labour costs Forming Partnerships Globalization Implications:
More globalization means more competition. To make employees more productive and to do things better and less expensively. Growing integration of the world economy into a single, huge market place. Both workers & Companies have to work harder & smarter than they did work out globalization and HR helps Companies to do this: It brings both benefits & threats. For Consumers it means lower prices & higher quality. The prospect of working harder and with less secure jobs. (jobs outsourcing) For business owners benefits like searching millions of customers & facing new competitors.

Technological Trends
No need of expensive inventories Companies operate their own internet based networks & check out all inventory, material, machines & people requirement Can monitor their sales and stores All functional working based on technology/computers Technology cuts timings, provides speed to market Companies use virtual online communities to improve efficiency

Trends in the Nature of Work

High-Tech Jobs Service Jobs Just in time Manufacturing Techniques Knowledge Work and Human Capital Nature of Work & implications for HR Workforce Demographic Trends Use of internet based customer ordering

The Changing Role of Human Resource Management

Human Resource Managers job has Grown Broader and Strategic Overtimes:
Strategic Human Resource Management Creating High-Performance Work Systems Measuring the Human Resource Management Team s performance HR Metrics Managing with the HR Scorecard Process

Strategic Human Resource Management

Strategic Planning is the company s plan for how it will match its internal strengthens & weakness with external opportunities & threats in order to maintain a competitive advantage. While, strategy is a course of action. Strategic Human Resource Management means formulating & executing HRM policies and practices that produce the employee competencies and behaviors, the company needs to achieve it strategic aims. Strategic Human Resource Plans enable the company to hire the employee who could exhibit the behaviors the company needs to accomplish its goals.

Strategic Human Resource Management

HRM Strategic Role means several things: o Partnering with their top managers in designing and executing company strategies o Express their departmental plans and accomplishments in measureable terms The top management today wants to see how the HR Managers Plan will make the company more valuable e.g.; by boosting company peoples skill levels and their by improving performance.

Creating High-Performance Work Systems

The emphases on Strategic Human Resource Management is one change and a focus on productivity and performance is an other. HRM Practices can improve performance in three main ways: Managing with Technology Effective HR Practices High-Performance Work Systems

Managing with Technology

Improve HR Performance in five main ways
Self Service Call Centers Productivity Improvement Outsourcing Web based or electronic HR Services

Effective HR Practices
Screening Applicants through personality testing can produce employee who perform better (psychometric tests & personality assessment , behavioral based interviews ) Well trained employees perform better than untrained Safe workplaces produce fewer lost time accidents and accidents costs than unsafe ones The most productive and highest performing companies have world class training & plant safety programs

High Performance Work System

A high performance work system is an integrated set of human resource management policies and practices that together produce superior employee performance

Measuring the Human Resource Management Team s performance

In today s performance based environment, employers naturally expect their Human Resource Management teams to provide measurable evidence of their efficiency and effectiveness and for that of their proposed programs. For example : How much more productive will our employees be if we institute a new training program. How productive is our HR Team in terms of staff per employee, compared to our competitors ? The fundamental requirement for such measurability is that the Human Resource manager needs the numbers . Specially the quantitative performance measures ( metrics ).For example , median HR expenses as a proportion of companies total operating costs average about 0.8% . Or 1 % HR Staff per 100 employees .

Measuring the Human Resource Management Team s performance

Other measureable elements are : Absence rate Cost of hire Time to fill HR expense factor Turnover rate

Roles Of HR Manager
Business person Shaper of change Consultant to the organization and partner to line managers Strategy formulator and implementer TALENT MANAGER (I.E network with professional colleagues, including recruiters, line managers, and other HR professionals) ASSET MANAGER AND COST CONTROLLER (Based on understanding financial and accounting procedures.)

BUSINESS TRENDS AND HR COMPETENCIES

Critical trends for HRM: Globalization Technology Change Knowledge Speed in market change Cost control

Emerging leadership competencies for HR: Credibility People skills Understanding Business of Businesses A Consultative Approach Comfort with change Visioning.

The Changing Role of HR

Yesterday Success factors Business judgment intuition Paternalistic Hungry, naked defenseless creatures Driving people through basic needs Providing people with food, clothing and shelter Today Information strategic plan mission Professional Thinking and rational beings Tomorrow Flexibility agility speed

Organizational style Employees considered as.. Motivational methods Role of HR

Empowered learning vibrant Fully evolved completely satisfied, mature human beings

Driving people People drive through social and themselves intellectual needs Motivate by As a change agent providing effective As innovator fair appraisals As a strategic partner systems

HRM & Philosophy Of Islam

Authority and responsibility. Participative management. Rewards and performance Equal opportunities concept. Leadership Evaluation & improvement. Commitment & motivation Balanced approval

Thank You Shukria

for staying alive

The General Concepts of HRM

The Basic Themes and Features
First, HR management is the responsibility of every manager Second, the intensely competitive nature of business today means human resource managers must defend their plans and contributions in measurable terms. Measuring HR s Performance HR Scorecard Third, all managers need to keep the strategic reasons for and implications of their personnel actions in mind. Fourth, all managers rely on information technology. Improving Productivity Through HRIS. Fifth, virtually every personnel-related decision managers make has legal implications. Therefore, know your employment laws.

Summary
1. All managers perform certain basic functions planning, organizing, staffing, leading, and controlling. 2. Staffing, personnel management, or human resource management includes activities like recruiting, selecting, training, compensating, appraising, and developing employees 3. HR management is a part of every mangers responsibilities. These responsibilities include placing the right person in the right job, and then orienting, training, and compensating to improve his or her job performance 4. The HR department carries out three main functions. The HR manage exerts line authority in his or her unit and implied authority elsewhere in the organization. He or she ensures that the organization s HR objectives and policies are coordinated and implemented. And he or she provides various staff services to line management, such as partnering with the CEO in designing the company s strategy, and assisting in the hiring, training, evaluating, rewarding, promoting, and disciplining of employees at all levels.

Key terms - HRM

Management Process: The five basic functions of planning, organizing, staffing, leading, and controlling. Human Resource Management (HRM): The polices and practices involved in carrying out the people or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising. Line Authority: The authority exerted by an HR manager by directing the activates of the people in his or her own department and in service areas 9like the plant cafeteria). Staff Authority: Staff authority gives the manager the right (authority) to advise other managers or employees. Line Manager: A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization s tasks. Staff Manager: A manager who assists and advises line managers. Implied Authority: The authority exerted by an HR manager by virtue of others knowledge that he or she has access to top management (in areas like testing and affirmative action). Functional Control: The authority exerted by an HR manager as coordinator of personnel activates.

Key terms - HRM

Employee Advocacy: HR must take responsibility for clearly defining how management should be trading employees, make sure employees have the mechanisms required to contest unfair practices, and represent the interests of employees within the framework of its primary obligation to senior management. Globalization: The tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroad. Strategy: The company s long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage. Strategic Human Resource Management: Strategic human resource management means formulating and executing human resource polices the employee competencies and behaviors the company needs to achieve its strategic aims. High Performance Work System: A high performance work system is an integrated set of human resource management policies and practices that together produce superior employee performance. Metrics: A set of quantitative performance measures HR mangers use to assess their operations.

OBJECTIVES AND RESPONSIBILITIES OF HR

First Objective: To optimize the usefulness of all workers in an
organization.

Second Objective: To help line mangers manage those workers more

effectively.

The HR department accomplishes this special objective through policy

initiation and formulation, advice, service, and control in close communication and coordination with line managers.

The HR devises a compensation and benefits system, that employees

will perceive as attractive and fair, to provide training and consultation to line managers on all employee relations issues-such as conflict resolution and team building.