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1-Ev-MBA-Bup-HRM-Cl-1.pptx

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The document discusses the evolution of human resource management from a focus on personnel matters to strategic investment in employees. It explains that effective HRM involves staffing, training, performance management, compensation, health and safety, and labor relations. Additionally, maintaining an appropriate level of job insecurity can increase work effort, but high insecurity reduces motivation.

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HRM-1
Prior to 1960s personnel department in any organization were often perceived as the “health and happiness” of crews. Under the old management paradigm, managers were primarily autocratic, making all the decisions, and maintaining tight controls over employees. Under the new management paradigm, managers are primarily participative, and focus on leadership by sharing the management functions. Managers and employers have good working relationship, as people are the most important asset. They set objectives together, and influence each other to bring about change to continually improve the organization. People not building or machinery make a company success.
View of HR In the past, some viewed their employees are variable costs of production, while physical assets are treated as investments. Current practices in many organizations indicates that employees are viewed as valuable investments. Strategists have found that... having superior production facilities or superior production are usually not enough to sustain an advantage over competitors. Physical facilities can be duplicated, cloned, or reverse-engineered and no longer provide a sustainable advantage. Many strategists ....maintainable advantage usually derives from outstanding depth in selected human skills, logistic capabilities, knowledge bases, or other service strengths that competitors can not produce....... Thus, with this perspective, there is recognition of the importance of having superior human resource. Contemporary management practices indicate that ..... many leading companies have recognized the importance of Human resources and have adopted an investment perspective for the development of human resource.
Manager’s Human Resource Management Jobs • Management process – The five basic functions of planning, organizing, staffing, leading, and controlling. • 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. They thought how to manage people for better out put
Line manager and Staff manager • 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.
Line Managers’ HRM Responsibilities 1. Placing the right person on the right job 2. Starting new employees in the organization (orientation) 3. Training employees for jobs new to them 4. Improving the job performance of each person 5. Gaining creative cooperation and developing smooth working relationships 6. Interpreting the firm’s policies and procedures 7. Controlling labor costs 8. Developing the abilities of each person 9. Creating and maintaining department morale 10.Protecting employees’ health and physical condition
In small organizations, line managers may carry out all these personnel tasks unassisted. But as the organization grows, they need the assistance, specialized knowledge, and advice of a separate human resource staff. The human resource department provides this specialized assistance. Even Organizations with as few as 200 employees usually have Human resource manager Griffin 8th edn,p438 One HR employee per 100 employee Desslar 12th edn p8
Human Resource Manager’s Duties In providing this specialized assistance, the human resource manager carries out three distinct functions: 1. A line function. The human resource manager directs the activities of the people in his or her own department. 2. A coordinative function. The human resource manager also ensures that line managers are implementing the firm’s human resource policies and practices is call functional authority (for example, adhering to its sexual harassment policies). 3. Staff (assist and advise) functions. Assisting and advising line managers is the HEART of the human resource manager’s job. He or she advises the CEO; so, the CEO can better understand the personnel aspects of the company’s strategic options. Assists in hiring, training, evaluating, rewarding, counseling, promoting, and firing employees. It administers the various benefit programs (health and accident insurance, retirement, vacation, and so on). It helps line managers comply with equal employment and occupational safety laws, and plays an important role in handling grievances and labor relations.
It carries out an innovator role, by providing up-to-date information on current trends and new methods for better utilizing the company’s employees (or human resources ). It plays an employee advocacy role, by representing the interests of employees within the framework of its primary obligation to senior management. Although human resource managers generally can’t manipulate line authority, they are likely to exert implied authority. This is because line managers know the HUMAN RESOURCE MANAGER has top management’s ear in areas like testing and affirmative action. HRM makes a balance between two primary responsibilities: (1) Assisting organization in its strategic direction and representation (2) Advocating for the organization’s employees
Constant balancing of efficiency and effectiveness for employer and equity for employee Employee Employer Equity Efficiency & Effective (Organizational Justice) (Legal) HR A Difficult Task for HRM HRM makes a balance between two primary responsibilities: (1) Assisting organization in its strategic direction and representation (2) Advocating for the organization’s employees
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 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
Examples of HUMAN RESOURCE MANAGEMENT SPECIALTIES include: •Recruiters. Search for qualified job applicants. •Equal employment opportunity (EEO) coordinators. Investigate and resolve EEO grievances; examine organizational practices for potential violations; and compile and submit EEO reports. •Job analysts. Collect and examine information about jobs to prepare job descriptions. •Compensation managers. Develop compensation plans and handle the employee benefits program. •Training specialists. Plan, organize, and direct training activities. •Labor relations specialists. Advise management on all aspects of union management relations.
External Influence Staffing Hiring people Maintenance Keeping them Training & Development preparing Motivation Stimulating HRM HRM: Primary activities
There are six functional are as associated with effective HRM: 1. Staffing, 2. HR development, 3. Performance management, 4. Compensation, 5. Safety and health, 6. Employee and labor relations. Human Resource Management Functions
1. Staffing: is the Process through which an organization ensures that it always has the proper number of employees with the appropriate skills in the right jobs, at the right time, to achieve organizational objectives. Staffing involves job analysis, human resource planning, recruitment and selection 2. Human resource development (HRD): Major HRM functions consisting not only of training and development but also of individual career planning and development activities, organization development, and performance appraisal. 3. Performance management (PM): Goal-oriented process directed toward ensuring that organizational processes are in place to maximize the productivity of employees, teams, and ultimately, the organization.
4. Compensation: The term compensation includes the total of all rewards provided to employees in return for their services. The rewards may be one or a combination of the following:  Direct Financial Compensation (Core Compensation): Pay that a person receives in the form of wages, salaries, commissions, and bonuses.  Indirect Financial Compensation (employee benefits): All financial rewards that are not included in direct compensation, such as paid vacations, sick leave, holidays, and medical insurance.  Nonfinancial Compensation: Satisfaction that a person receives from the job itself or from the psychological or physical environment in which the person works.
5. Safety and Health: safety involves protecting employees from injuries caused by work-related accidents. Health refers to the employees’ freedom from physical or emotional illness. 6. Employee and Labor Relations: Internal employee relations comprise the HRM activities associated with the movement of employees within the organization such as promotions, demotion, termination, and resignation.
1-18 1-18 HRM Functions
Vice-president Employment Manger Compensation & benefit Manger Training & development Manger Employee Relations Manger Sample of HRM Organization •Recruiting •Employment planning Selected Job Activities • Job Analysis • Job evaluation • Salary planning • Training • Career development • Organizational development • Employee Complaints • Service award • Communication Program
Thank you
Work Effort Job Insecurity Low Level Moderate Level High Level With an appropriate level of job insecurity, employees may work harder and this work effort increases as insecurity escalates from low to moderate levels but it declines with high levels of insecurity. This relation is an average tendency, there may be exceptions. Work Effort and Job Security Relationship
Investment perspective of Human resources Human resources Investment Consideration Factor Investment on Training and Development Investment Practice for Improved Retention •Organizational Cultures Emphasizing Interpersonal Relationship Values One of the most important determinants of employee retention is the organization’s culture. Firm with cultures characterized by interpersonal relationship values (respect for people and team orientation) and other task value (A survey of 904 pers, reported 14 months more than task value). “Fear less Culture” in which employee can speak up to challenge without being harmed. Retention Improves: •Positive relation with superior •Absence of conflict-laden relationship •Having input into decisions •Less emphasis on formal authority •Information sharing •Support employees

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1-Ev-MBA-Bup-HRM-Cl-1.pptx

  • 2. Prior to 1960s personnel department in any organization were often perceived as the “health and happiness” of crews. Under the old management paradigm, managers were primarily autocratic, making all the decisions, and maintaining tight controls over employees. Under the new management paradigm, managers are primarily participative, and focus on leadership by sharing the management functions. Managers and employers have good working relationship, as people are the most important asset. They set objectives together, and influence each other to bring about change to continually improve the organization. People not building or machinery make a company success.
  • 3. View of HR In the past, some viewed their employees are variable costs of production, while physical assets are treated as investments. Current practices in many organizations indicates that employees are viewed as valuable investments. Strategists have found that... having superior production facilities or superior production are usually not enough to sustain an advantage over competitors. Physical facilities can be duplicated, cloned, or reverse-engineered and no longer provide a sustainable advantage. Many strategists ....maintainable advantage usually derives from outstanding depth in selected human skills, logistic capabilities, knowledge bases, or other service strengths that competitors can not produce....... Thus, with this perspective, there is recognition of the importance of having superior human resource. Contemporary management practices indicate that ..... many leading companies have recognized the importance of Human resources and have adopted an investment perspective for the development of human resource.
  • 4. Manager’s Human Resource Management Jobs • Management process – The five basic functions of planning, organizing, staffing, leading, and controlling. • 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. They thought how to manage people for better out put
  • 5. Line manager and Staff manager • 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.
  • 6. Line Managers’ HRM Responsibilities 1. Placing the right person on the right job 2. Starting new employees in the organization (orientation) 3. Training employees for jobs new to them 4. Improving the job performance of each person 5. Gaining creative cooperation and developing smooth working relationships 6. Interpreting the firm’s policies and procedures 7. Controlling labor costs 8. Developing the abilities of each person 9. Creating and maintaining department morale 10.Protecting employees’ health and physical condition
  • 7. In small organizations, line managers may carry out all these personnel tasks unassisted. But as the organization grows, they need the assistance, specialized knowledge, and advice of a separate human resource staff. The human resource department provides this specialized assistance. Even Organizations with as few as 200 employees usually have Human resource manager Griffin 8th edn,p438 One HR employee per 100 employee Desslar 12th edn p8
  • 8. Human Resource Manager’s Duties In providing this specialized assistance, the human resource manager carries out three distinct functions: 1. A line function. The human resource manager directs the activities of the people in his or her own department. 2. A coordinative function. The human resource manager also ensures that line managers are implementing the firm’s human resource policies and practices is call functional authority (for example, adhering to its sexual harassment policies). 3. Staff (assist and advise) functions. Assisting and advising line managers is the HEART of the human resource manager’s job. He or she advises the CEO; so, the CEO can better understand the personnel aspects of the company’s strategic options. Assists in hiring, training, evaluating, rewarding, counseling, promoting, and firing employees. It administers the various benefit programs (health and accident insurance, retirement, vacation, and so on). It helps line managers comply with equal employment and occupational safety laws, and plays an important role in handling grievances and labor relations.
  • 9. It carries out an innovator role, by providing up-to-date information on current trends and new methods for better utilizing the company’s employees (or human resources ). It plays an employee advocacy role, by representing the interests of employees within the framework of its primary obligation to senior management. Although human resource managers generally can’t manipulate line authority, they are likely to exert implied authority. This is because line managers know the HUMAN RESOURCE MANAGER has top management’s ear in areas like testing and affirmative action. HRM makes a balance between two primary responsibilities: (1) Assisting organization in its strategic direction and representation (2) Advocating for the organization’s employees
  • 10. Constant balancing of efficiency and effectiveness for employer and equity for employee Employee Employer Equity Efficiency & Effective (Organizational Justice) (Legal) HR A Difficult Task for HRM HRM makes a balance between two primary responsibilities: (1) Assisting organization in its strategic direction and representation (2) Advocating for the organization’s employees
  • 11. 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 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
  • 12. Examples of HUMAN RESOURCE MANAGEMENT SPECIALTIES include: •Recruiters. Search for qualified job applicants. •Equal employment opportunity (EEO) coordinators. Investigate and resolve EEO grievances; examine organizational practices for potential violations; and compile and submit EEO reports. •Job analysts. Collect and examine information about jobs to prepare job descriptions. •Compensation managers. Develop compensation plans and handle the employee benefits program. •Training specialists. Plan, organize, and direct training activities. •Labor relations specialists. Advise management on all aspects of union management relations.
  • 13. External Influence Staffing Hiring people Maintenance Keeping them Training & Development preparing Motivation Stimulating HRM HRM: Primary activities
  • 14. There are six functional are as associated with effective HRM: 1. Staffing, 2. HR development, 3. Performance management, 4. Compensation, 5. Safety and health, 6. Employee and labor relations. Human Resource Management Functions
  • 15. 1. Staffing: is the Process through which an organization ensures that it always has the proper number of employees with the appropriate skills in the right jobs, at the right time, to achieve organizational objectives. Staffing involves job analysis, human resource planning, recruitment and selection 2. Human resource development (HRD): Major HRM functions consisting not only of training and development but also of individual career planning and development activities, organization development, and performance appraisal. 3. Performance management (PM): Goal-oriented process directed toward ensuring that organizational processes are in place to maximize the productivity of employees, teams, and ultimately, the organization.
  • 16. 4. Compensation: The term compensation includes the total of all rewards provided to employees in return for their services. The rewards may be one or a combination of the following:  Direct Financial Compensation (Core Compensation): Pay that a person receives in the form of wages, salaries, commissions, and bonuses.  Indirect Financial Compensation (employee benefits): All financial rewards that are not included in direct compensation, such as paid vacations, sick leave, holidays, and medical insurance.  Nonfinancial Compensation: Satisfaction that a person receives from the job itself or from the psychological or physical environment in which the person works.
  • 17. 5. Safety and Health: safety involves protecting employees from injuries caused by work-related accidents. Health refers to the employees’ freedom from physical or emotional illness. 6. Employee and Labor Relations: Internal employee relations comprise the HRM activities associated with the movement of employees within the organization such as promotions, demotion, termination, and resignation.
  • 19. Vice-president Employment Manger Compensation & benefit Manger Training & development Manger Employee Relations Manger Sample of HRM Organization •Recruiting •Employment planning Selected Job Activities • Job Analysis • Job evaluation • Salary planning • Training • Career development • Organizational development • Employee Complaints • Service award • Communication Program
  • 21. Work Effort Job Insecurity Low Level Moderate Level High Level With an appropriate level of job insecurity, employees may work harder and this work effort increases as insecurity escalates from low to moderate levels but it declines with high levels of insecurity. This relation is an average tendency, there may be exceptions. Work Effort and Job Security Relationship
  • 22. Investment perspective of Human resources Human resources Investment Consideration Factor Investment on Training and Development Investment Practice for Improved Retention •Organizational Cultures Emphasizing Interpersonal Relationship Values One of the most important determinants of employee retention is the organization’s culture. Firm with cultures characterized by interpersonal relationship values (respect for people and team orientation) and other task value (A survey of 904 pers, reported 14 months more than task value). “Fear less Culture” in which employee can speak up to challenge without being harmed. Retention Improves: •Positive relation with superior •Absence of conflict-laden relationship •Having input into decisions •Less emphasis on formal authority •Information sharing •Support employees