HRM Human Resource management. HRM Class Emphasis Show “best-in-class” HRM practices Understand...

HRM

Human Resource management

HRM

Class Emphasis

Show “best-in-class” HRM practices

Understand how HRM practices support business strategy

How to use, design, purchase HRM products and services

Understand current HRM issues

HRM

What do we need to know?

What is HRM?

What challenges make HRM important for business success?

What does it mean for HRM to be “strategic”?

How has the HR function changed?

HRM

Key Issues/ Hot Topics

E-HRM (Training, Surveys, Benefits Enrollment)

Downsizing

Work-Life Balance

Outsourcing the Function? Which Parts?

“Winning the War for Talent”

Pay: Linking Pay to Performance, Stock Options

Performance Management Systems

The “Human Element” in Mergers and Acquisitions

Benefit Cost Containment and Sharing

Security

Diversity

HRM

What are the Goals of Indian Business?

Create “Value” and “Wealth”“Value” and “Wealth” for whom?To create “value” and “wealth” a company has to be competitive

HRM

Good HRM is Necessary to Meet Competitive Challenges

Globalization New Markets Expatriates

Meeting Stakeholders’ Needs Unions, Employees, Community, Shareholders, Customers Balanced Scorecard Quality

High-Performance Work Systems Teams, virtual teams, integrate technology and social systems

New Economy Development of e-business Value of knowledge Labor force skills don’t match job requirements Changes in employment relationship Demanding work but more flexibility

HRM

HRM Practices

Analysis and Design of Work (How do we provide value?) HR Planning (How to use the labor force?)Recru HRMent (Find )Selection (Choose )Training & Development ( Teach )Compensating Human Resources ( Pay)Performance Management (Measure)Employee Relations (Get along with them)

HRM

Does HRM Matter?

Companies with happy workers have greater annual return to shareholders than companies that do not

Employee morale is related to customer satisfaction

Companies with progressive HRM practices significantly outperform companies that have less progressive practices on financial indicators (ex. sales and dividend growth)

HRM

Key to Implementing the Business Strategy

Business Strategy & Processes

• Reliability

• Growth in Market Share

• Safety

• Asset Utilization

• Environmental Stewardship

• Process Improvement

HR Strategy

• Talent Acquisition and Retention

• Clear Vision and Objectives

• Teamwork & Communication

• Accountability

• Leadership

Competitive Advantage

• Lower Fixed Costs

• World Class Performance

• Faster Decision Making

• Improved Revenues

• Efficient Operations

Profits, Growth,

Shareholder Value

HRM

HRM is successfully engenders a pool of highly motivated and uniquely capable people who individually and collectively use this drive and talent to build and deploy organizational capabilities for creating an competitive advantage for the company over competitors that they can not easily replicate in the marketplace

Definition

HRM

HRM: Whose Responsibility?

Traditionally: HRM was a functional responsibilityCurrent: Shift to functional manager as HR key playerFunction builds partnerships with line managersConfiguration of function may vary across organizations but clearly there is a move from a transactional orientation to transformational orientationOutsourcing of HRM Administrative tasks - e.g. record keeping, legal,

benefits Use of Consultants E-HRM (Web for benefit enrollment, training) Third party provider

HRM

Traditional HR Function Model

Head of HR

Staffing Training Compensation Employee Relations

HR Generalists

HRM

New HR Model

Sr. HR Team

Administrative Service Center

Center of Excellence

Business Partners

Transactions

Focus on efficiency

Specialists Expertise and Design Consulting

Generalists with responsibility to line managers as consultants and planners

HRM

An HR Function That Creates Value….

Knows the business basics

Communicates in management language

Proposes ideas and develop action plans

Helps management implement ideas

Follows-through

Gets out of the HR department - talk to customers

HRM

HR Competencies

Strategic Partner Programs that relate to business issues and strategies

(e.g, succession planning, recru HRMent, retention)

Administrative Expert Use of Technology (self-service) Outsourcing

Change Agent

Employee Advocate

HRM

Evaluating the HR Function

Audit of Practices

User Reactions

Benchmarking Society for Human Resource Management (www.shrm.com) National Human Resource Development Network (NHRDN) National Institute of Personnel Management (NIPM) Indian Society for Training and Development

(www.istdhrd.org)

Metrics (e.g., survey results, turnover rates)