People/Personnel People/Personnel Aspects of Aspects of Management JobManagement Job HRM is the process of HRM is the process of

ACQUIRING, ACQUIRING, TRAINING, TRAINING, APPRAISING, APPRAISING, COMPENSATING COMPENSATING EMPLOYEES;EMPLOYEES;ATTENDING to their ATTENDING to their LABOR RELATIONS,LABOR RELATIONS, HEALTH and SAFETY HEALTH and SAFETY and FAIRNESS and FAIRNESS

CONCERNSCONCERNS

EIGHT HRM ACTIVITIESEIGHT HRM ACTIVITIES

1. 1. HRHR PLANNINGPLANNING

2. 2. RECRUITMENTRECRUITMENT

3. 3. SELECTIONSELECTION

4. 4. ORIENTATIONORIENTATION

5. 5. TRAININGTRAINING

Identification Identification and Selection and Selection of Competent of Competent EmployeesEmployees

Providing Providing Employees with Employees with Up to date Up to date Knowledge & Knowledge & SkillsSkills

EIGHT HRM ACTIVITIESEIGHT HRM ACTIVITIES

6. 6. PERFORMANCEPERFORMANCE MANAGEMENTMANAGEMENT

7. 7. COMPENSATIOCOMPENSATIONN & BENEFITS & BENEFITS

8. 8. CAREERCAREER DEVELOPMENTDEVELOPMENT

Making sure that Making sure that the organization the organization RetainsRetains Competent and Competent and High-PerformingHigh-Performing

employees who employees who are Capable of are Capable of SustainingSustaining High High PerformancePerformance

Planning:Planning: Organizing: Specifying Tasks, Establishing Organizing: Specifying Tasks, Establishing

Depts., Est. Channels of Authorities, Depts., Est. Channels of Authorities, Delegation of Authorities, Coordination of Delegation of Authorities, Coordination of Subordinates ActivitiesSubordinates Activities

Staffing:Staffing: Leading:Leading: Getting others to get the Job done, Getting others to get the Job done,

Motivating SubordinatesMotivating Subordinates Controlling:Controlling: Setting Standards- Actual Setting Standards- Actual

performance is compared with them, Taking performance is compared with them, Taking Corrective Actions Corrective Actions

Why is HR Management Why is HR Management Important to All Important to All Managers?Managers? Hiring Wrong person for the jobHiring Wrong person for the job Experience High TurnoverExperience High Turnover Employees not doing their bestEmployees not doing their best Wastage of time in useless interviewsWastage of time in useless interviews Company taken to court- due to Discriminatory ActionCompany taken to court- due to Discriminatory Action Govt. Action against company on Unsafe practicesGovt. Action against company on Unsafe practices Uncomfortable employees- due to Unfair and Uncomfortable employees- due to Unfair and

inequitable Salariesinequitable Salaries Potential Losses due to Lack of TrainingPotential Losses due to Lack of Training Unfair Labor PracticesUnfair Labor Practices

Line and Staff Aspects Line and Staff Aspects of HRMof HRM AUTHORITYAUTHORITY

LINE MANAGERSLINE MANAGERS

STAFF MANAGERSSTAFF MANAGERS

HR Manager’s Main HR Manager’s Main FunctionsFunctions LINE FUNCTIONLINE FUNCTION

Directs the Activities of his/her peopleDirects the Activities of his/her people COORDINATIVE FUNCTIONCOORDINATIVE FUNCTION

-to Ensure that Line Managers are -to Ensure that Line Managers are Implementing HR Policies and Implementing HR Policies and Procedures Procedures Functional Control- Right Arm of Functional Control- Right Arm of

STAFF FUNCTIONSTAFF FUNCTIONAssisting and Advising Line ManagersAssisting and Advising Line Managers

HR Manager’s Main HR Manager’s Main FunctionsFunctionsSTAFF FUNCTIONSTAFF FUNCTION

Assisting and Advising Line ManagersAssisting and Advising Line Managers CEO:CEO:

Assists in Strategy Design and Execution. Assists in Strategy Design and Execution. Better understand the Personnel Aspect Better understand the Personnel Aspect of strategic options.of strategic options.

Line Managers:Line Managers:Assists in Hiring, Training, Evaluating,Assists in Hiring, Training, Evaluating,Rewarding, Counseling, Firing employees.Rewarding, Counseling, Firing employees.

HR Manager’s Main HR Manager’s Main FunctionsFunctions -Benefits programs- Health, -Benefits programs- Health,

Insurance, Retirement Insurance, Retirement-Comply with the Equal-Comply with the Equal Employment Laws, Occupational Employment Laws, Occupational

Safety Laws, Safety Laws,-Handling Grievances in Labor-Handling Grievances in Labor Relations Relations-Employee Advocacy Role:-Employee Advocacy Role: --How Mangers should be Treating --How Mangers should be Treating Employees Employees --Represents Employees Interests --Represents Employees Interests

HR JOB DUTIESHR JOB DUTIES

RECRUITERSRECRUITERS EEO COORDINATORSEEO COORDINATORS JOB ANALYSTSJOB ANALYSTS COMPENSATION MANAGERSCOMPENSATION MANAGERS TRAINING SPECIALISTSTRAINING SPECIALISTS LABOR RELATIONS LABOR RELATIONS

SPECIALISTSSPECIALISTS

STRATEGIC HRMSTRATEGIC HRM

The central challenge- to provide a set The central challenge- to provide a set of services that make sense in terms of services that make sense in terms of the company’s strategic plan.of the company’s strategic plan.

STRATEGIC PLAN/ STRATEGY:STRATEGIC PLAN/ STRATEGY:How a company will match its Internal How a company will match its Internal Strengths and Weaknesses with Strengths and Weaknesses with External Opportunities and Threats in External Opportunities and Threats in order to Maintain a Competitive order to Maintain a Competitive Advantage.Advantage.

STRATEGIC HRMSTRATEGIC HRMThe Basic Strategic Process The Basic Strategic Process

starts;starts; Where are we NOW as a Where are we NOW as a

Business?Business? Where do we want to BE?Where do we want to BE? The managers then Formulate The managers then Formulate

Strategies to take the Strategies to take the company from where it is now company from where it is now to where it wants to be.to where it wants to be.

Strategies are the Courses of Strategies are the Courses of Action.Action.

STRATEGIC HRMSTRATEGIC HRM

Companies Companies various strategiesvarious strategies e.g., …. e.g., ….Must confirm to and support its Must confirm to and support its Strategic PlanStrategic Plan

Strategic Plan may calls for the Strategic Plan may calls for the ImprovementImprovement of the Products of the of the Products of the companycompany

Then, One of the HR strategy may be Then, One of the HR strategy may be to provide to provide Specialized TrainingSpecialized Training and and Specific ScreeningSpecific Screening of Employees of Employees

The Changing The Changing Environment of HR Environment of HR ManagementManagement

HR’s Changing Role:HR’s Changing Role:

First took over HIRING and FIRING from First took over HIRING and FIRING from Supervisors Payroll dept., Benefit PlansSupervisors Payroll dept., Benefit Plans

Expanded Role in Employee Selection Expanded Role in Employee Selection Training and PromotionTraining and Promotion

Emergence of Union Legislation in 1930sEmergence of Union Legislation in 1930s Equal Employment Legislation Equal Employment Legislation

The Changing The Changing Environment of HR Environment of HR ManagementManagementFollowing Trends are creating ChangesFollowing Trends are creating Changes

in How Companies Organize, in How Companies Organize, Manage, and Use their HR Manage, and Use their HR Departments:Departments:

CHANGING ENVIROMMENTCHANGING ENVIROMMENT1.1. GLOBALIZATIONGLOBALIZATION2.2. TECHNOLOGICAL ADVANCESTECHNOLOGICAL ADVANCES3.3. EXPORTING JOBSEXPORTING JOBS4.4. NATURE OF WORKNATURE OF WORK5.5. WORKFORCE DEMOGRAPHICSWORKFORCE DEMOGRAPHICS

MEASURING HR’s MEASURING HR’s CONTRIBUTIONS: CONTRIBUTIONS: STRATEGYSTRATEGY

HR’s Central task is to provide services that make SENSE in HR’s Central task is to provide services that make SENSE in terms of the Company’s Strategy.terms of the Company’s Strategy.

STRATEGY:STRATEGY:A company’s plan for how it will A company’s plan for how it will balancebalance its its Internal Internal Strengths Strengths and and weaknessesweaknesses with Extern anal with Extern anal OpportunitiesOpportunities and and ThreatsThreats in order to in order to MaintainMaintain a a Competitive Advantage.Competitive Advantage.

Globalization and IncreasedGlobalization and Increased Competition have placed Competition have placed HR in front in most firm’s strategic planning efforts.HR in front in most firm’s strategic planning efforts. Thus HR Managers are more Thus HR Managers are more involvedinvolved in in PartneringPartnering with their top managers in both with their top managers in both Designing Designing and and ImplementingImplementing their company's Strategies. their company's Strategies.

MEASURING HR’s MEASURING HR’s CONTRIBUTIONS: CONTRIBUTIONS: STRATEGYSTRATEGY

That is why Today’s Business world That is why Today’s Business world Emphasizes onEmphasizes on Gaining CompetitiveGaining Competitive Advantage through People.Advantage through People.

Competitiveness and Operational Competitiveness and Operational Improvement involve Improvement involve ExpertiseExpertise of of all managers that they must be all managers that they must be able to able to ExpressExpress Departmental Departmental Plans Plans and and AccomplishmentsAccomplishments in in Measurable TermsMeasurable Terms

MEASURING HR’s MEASURING HR’s CONTRIBUTIONS: CONTRIBUTIONS: METRICSMETRICS

METRICS:METRICS: Set of Set of QuantitativeQuantitative Performance Performance Measures, HR Managers Use to Measures, HR Managers Use to ASSESS their Operations.ASSESS their Operations.Cost per Hire:Cost per Hire:Advertising Agency Fees+ Advertising Agency Fees+ Employee Referrals + Travel Costs Employee Referrals + Travel Costs of Applicants and Staff+ of Applicants and Staff+ Relocation Costs / Number of HiresRelocation Costs / Number of Hires

MEASURING HR’s CONTRIBUTIONS: MEASURING HR’s CONTRIBUTIONS: HR SCORECARDHR SCORECARD

HR SCORECARD:HR SCORECARD:It is a Concise Measurement It is a Concise Measurement System, It shows theSystem, It shows the Quantitative Quantitative Standards, or MetricsStandards, or Metrics the firm uses.the firm uses.

It measures the HR It measures the HR Functions Functions Effectiveness and EfficiencyEffectiveness and Efficiency in in producing Required Employee producing Required Employee BehaviorsBehaviors Needed to Achieve the Needed to Achieve the Company’s Company’s Strategic Goals.Strategic Goals.

HR Manager’s ProficienciesHR Manager’s Proficiencies

Today’s Challenging Business Today’s Challenging Business Scenario requires following Scenario requires following Proficiencies in a HR Proficiencies in a HR ManagerManager

HR PROFICIENCIESHR PROFICIENCIESTraditional knowledgeTraditional knowledge and skills and skills in areas such as employee in areas such as employee Recruitment, Selection, Training, Recruitment, Selection, Training, Compensation etc.Compensation etc.

HR Manager’s HR Manager’s ProficienciesProficiencies

BUSINESS PROFICIENCIESBUSINESS PROFICIENCIESCreating profitable enterprises Creating profitable enterprises that serve customers that serve customers EffectivelyEffectively. . Thus HR Managers need to be Thus HR Managers need to be familiar with familiar with how company how company OperatesOperates,, e.g., Strategic Planning, e.g., Strategic Planning, Production, Finance, Marketing, and Production, Finance, Marketing, and so on.so on.

HR Manager’s ProficienciesHR Manager’s Proficiencies

LEADERSHIP PROFICIENCIESLEADERSHIP PROFICIENCIESThey need the Ability to work with They need the Ability to work with and and LeadLead Management Groups and Management Groups and to Drive the to Drive the ChangesChanges required. required.

LERARNING PROFICIENCIESLERARNING PROFICIENCIES As the new Technologies are being As the new Technologies are being

Introduced continually the HR Introduced continually the HR Managers must keep themselves Managers must keep themselves Abreast Abreast of and of and Apply new Apply new TechnologyTechnology affecting the HR field. affecting the HR field.

HR and TECHNOLOGYHR and TECHNOLOGY

Technology improves HR Technology improves HR Functioning in Four Main Ways:Functioning in Four Main Ways:1. Self-Service1. Self-Service2. Centralized Call Centers2. Centralized Call Centers -Answering questions of -Answering questions of employees from remote areas employees from remote areas -no need to establish HR Dept. -no need to establish HR Dept. at each location at each location

HR and TECHNOLOGYHR and TECHNOLOGY

Improving HR ProductivityImproving HR ProductivityInternet, Computer SystemsInternet, Computer Systems-HR Information Systems-HR Information Systems-New Software's for Managing HR-New Software's for Managing HR Activities- Activities- Payroll AdministrationPayroll Administration

OutsourcingOutsourcingPension Plans, Employee Pension Plans, Employee Counseling, Background Checks, Counseling, Background Checks, Temporary Staffing,Temporary Staffing,

STRATEGIC HRM STRATEGIC HRM

STRATEGIC MANAGEMENT:STRATEGIC MANAGEMENT:

A process of A process of IdentifyingIdentifying and and ExecutingExecuting the the organization’sorganization’s Mission, Mission, by Matching the company’s by Matching the company’s Compatibilities Compatibilities with the with the Demands Demands of its of its EnvironmentEnvironment

STRATEGIC STRATEGIC MANAGEMENT MANAGEMENT PROCESSPROCESS1.1. DEFINE THE BUSINESS AND ITSDEFINE THE BUSINESS AND ITS

MISSION: MISSION:

VISION; VISION; Broader and more Broader and more Future-oriented than the MissionFuture-oriented than the Mission

MISSION;MISSION; more Specific and more Specific and Short-term based than the VisionShort-term based than the Vision-Who we are? What we do? -Who we are? What we do? Where we are headed? Where we are headed?

STRATEGIC STRATEGIC MANAGEMENT MANAGEMENT PROCESSPROCESS2. PERFORM EXTERNAL AND2. PERFORM EXTERNAL AND

INTERNAL AUDIT INTERNAL AUDIT-SWOT Analysis; -SWOT Analysis; Compile and Organize the Compile and Organize the process of Identifying Company process of Identifying Company Strengths, Weaknesses and Strengths, Weaknesses and Opportunities and ThreatsOpportunities and Threats

STRATEGIC STRATEGIC MANAGEMENT MANAGEMENT PROCESSPROCESS3. TRANSLATE THE MISSION INTO3. TRANSLATE THE MISSION INTO

STRATEGIC GOALS STRATEGIC GOALS

-The Specific Goals are -The Specific Goals are deviseddevised which cover the overall which cover the overall Mission Mission of the organization of the organization

STRATEGIC STRATEGIC MANAGEMENT MANAGEMENT PROCESSPROCESS4. FORMULATE A STRATEGY TO ACHIEVE 4. FORMULATE A STRATEGY TO ACHIEVE

THE STRATEGIC GOALSTHE STRATEGIC GOALS

- Strategy is a Course of Action.- Strategy is a Course of Action. It shows It shows how a company will movehow a company will move from the business from the business to the business to the business it wants to be in it wants to be in - as stated in the- as stated in the Vision, Mission, and Strategic Goals. Vision, Mission, and Strategic Goals.

- It describes “How de we get from- It describes “How de we get from here to there”. here to there”.

STRATEGIC STRATEGIC MANAGEMENT MANAGEMENT PROCESSPROCESS5.IMPLEMENT THE STRATEGY5.IMPLEMENT THE STRATEGY

Translating the Strategies Translating the Strategies into into ACTIONSACTIONS and and RESULTSRESULTS

Applying all the Management Applying all the Management FunctionsFunctions

STRATEGIC STRATEGIC MANAGEMENT MANAGEMENT PROCESSPROCESS6. EVALUATE THE STRTATEGY6. EVALUATE THE STRTATEGY

Strategic Control:Strategic Control: -It keeps the company’s Strategy -It keeps the company’s Strategy UpUp to date. to date. -The Assessment of the progress -The Assessment of the progress toward the Strategic Goals and the toward the Strategic Goals and the Corrective Action is taken.Corrective Action is taken.

TYPES OF STRATEGIC TYPES OF STRATEGIC PLANNINGPLANNING CORPORATE STRATEGYCORPORATE STRATEGY

--IdentifiesIdentifies the the PortfoliosPortfolios of Businesses and of Businesses and the Ways in which these Relate to each the Ways in which these Relate to each other. other.-Following are few of the Corporate Strategy-Following are few of the Corporate Strategy Possibilities: Possibilities:

a. Diversificationa. Diversification Corporate Strategy;Corporate Strategy; The Firm will Expand by Adding new The Firm will Expand by Adding new Product Lines. Product Lines.B. Vertical Integration Strategy;B. Vertical Integration Strategy; The Firm Expands by Producing its own The Firm Expands by Producing its own Raw Materials, or Selling its Products Raw Materials, or Selling its Products Direct. Direct.

TYPES OF STRATEGIC TYPES OF STRATEGIC PLANNINGPLANNING C. Consolidation;C. Consolidation;

Reducing the Reducing the company’scompany’s Size Sized. Geographic Expansion;d. Geographic Expansion; Taking the company Taking the company Abroad Abroad

TYPES OF STRATEGIC TYPES OF STRATEGIC PLANNINGPLANNING BUSINESS LEVEL/COMPETITIVE BUSINESS LEVEL/COMPETITIVE

STRATEGY:STRATEGY:-How to Build and Strengthen the-How to Build and Strengthen the business’s business’s Long-term competitiveLong-term competitive position position in the Marketplace. in the Marketplace. -How Telenor will compete with Ufone-How Telenor will compete with Ufone

-Companies try to Achieve -Companies try to Achieve CompetitiveCompetitive Advantage Advantage for each Business they are for each Business they are in. in.

TYPES OF STRATEGIC TYPES OF STRATEGIC PLANNINGPLANNING

-Competitive Advantage;-Competitive Advantage;

Companies use several Companies use several Competitive Competitive StrategiesStrategies to Achieve to Achieve Competitive Advantage.Competitive Advantage.

-Cost Leadership;-Cost Leadership; The company wants to Become The company wants to Become Low-Cost leaderLow-Cost leader in the industry. in the industry. For Example; Wal-mart For Example; Wal-mart

TYPES OF STRATEGIC TYPES OF STRATEGIC PLANNINGPLANNING-Differentiation (Competitive Strategy);-Differentiation (Competitive Strategy); A firm seeks to be Unique in its industryA firm seeks to be Unique in its industry For example; For example;

Volvo Volvo stresses the Safety of its carsstresses the Safety of its carsTarget Target for Upscale Brands than for Upscale Brands than Wal-Mart Wal-Mart

-Focusers;-Focusers; They find out/ develop a Market They find out/ develop a Market Niche and compete by providing a Niche and compete by providing a product or service customers can get product or service customers can get in no other way. in no other way.

TYPES OF STRATEGIC TYPES OF STRATEGIC PLANNINGPLANNING FUNCTIONAL STRATEGIESFUNCTIONAL STRATEGIES Individual Business is composed of Individual Business is composed of

Departments.Departments. -Functional Strategies Identify the basic -Functional Strategies Identify the basic

Courses of ActionsCourses of Actions that each that eachdepartment will pursue in order to help department will pursue in order to help the business Attain its Competitive the business Attain its Competitive Goals.Goals.

-It should -It should make sensemake sense in terms of in terms of business’s competitive strategy.business’s competitive strategy.

--DELL’s HR StrategyDELL’s HR Strategy of putting its of putting its Activities on the Web to support parent Activities on the Web to support parent firm’s firm’s LOW-Cost Competitive Strategy. LOW-Cost Competitive Strategy.

CH.3- Strategic HRM:CH.3- Strategic HRM: Achieving Strategic FitAchieving Strategic Fit Should a firm simply Should a firm simply Fit Fit

CapabilitiesCapabilities to the to the Opportunities and Threats that Opportunities and Threats that they see, they see, or or Should they Should they Stretch well Stretch well beyondbeyond their Capabilities to their Capabilities to take Advantagetake Advantage of an of an OpportunityOpportunity

CH.3- Strategic HRM:CH.3- Strategic HRM: Achieving Strategic FitAchieving Strategic Fit 1. Micheal Porter; 1. Micheal Porter;

Fit point of view. Fit point of view. All of the firm’s Activities must All of the firm’s Activities must be tailored to or Fit its over all be tailored to or Fit its over all Corporate Strategy. Corporate Strategy.

2. Gary Hamel and C.K. Prahald2. Gary Hamel and C.K. Prahald Argue that being preoccupied with Fit Argue that being preoccupied with Fit cancan Limit Growth. Limit Growth. They say that by They say that by Leveraging-Leveraging- SupplementingSupplementing what you have what you have donedone and and doing moredoing more with what with what you have-you have- can be can be more importantmore important then just Fitting then just Fitting thethe Strategic Plans to current resources Strategic Plans to current resources

CH.3- Strategic HRM: CH.3- Strategic HRM: HR and Competitive HR and Competitive AdvantageAdvantage Every successful company has one or Every successful company has one or

more more Competitive AdvantageCompetitive Advantage around around which it builds its Competitive which it builds its Competitive Strategy.Strategy.

TechnologyTechnology and other differentiating and other differentiating elements rarely differentiate any elements rarely differentiate any firmfirmfrom others. from others.

It is the It is the Human ResourceHuman Resource and the and the ManagementManagement Systems that make Systems that make the difference.the difference.

CH.3- Strategic HRM: CH.3- Strategic HRM:

The specific HRM courses of action The specific HRM courses of action the company pursues to achieve its the company pursues to achieve its aims.aims.

SHRM is SHRM is FormulatingFormulating and and Executing Executing HR Systems-HR Systems- HR Policies and HR Policies and Activities- that produce the Activities- that produce the employee employee CompetenciesCompetencies and and BehaviorsBehaviors the company needs to the company needs to Achieve its Achieve its Strategic Aim.Strategic Aim.

CH.3- Strategic HRM: CH.3- Strategic HRM: HR’s Strategic RoleHR’s Strategic Role HR Managers should be part of the HR Managers should be part of the

firm’s firm’s strategic planningstrategic planning executiveexecutive team. They Identify the team. They Identify the Human Human IssuesIssues that are vital to that are vital to business business strategystrategy and help and help establish establish andand executeexecute strategy. strategy.

HR Managers need to have in-depth HR Managers need to have in-depth understanding of the understanding of the Value creating Value creating PropositionProposition of the firm. of the firm.

CH.3- Strategic HRM: CH.3- Strategic HRM:

HR’s Strategy Execution Role: HR’s Strategy Execution Role: -Top Management Formulates the -Top Management Formulates the company’s Corporate and company’s Corporate and Competitive Strategies….Competitive Strategies….

HR’s Strategy Formulating Role:HR’s Strategy Formulating Role:

CH.3- Strategic HRM:CH.3- Strategic HRM:Creating a Strategy-oriented Creating a Strategy-oriented HR SystemHR System

HR Process; Three HR Process; Three Components-Components-1. HR Professionals1. HR Professionals2. HR Policies and Activities 2. HR Policies and Activities 3. Employee Behavior and 3. Employee Behavior and Competencies Competencies

Translating Strategy into HR Translating Strategy into HR Policy and PracticePolicy and Practice

CH.3- Strategic HRM:CH.3- Strategic HRM:Creating a Strategy-oriented Creating a Strategy-oriented HR SystemHR System Translating Strategy into HR Policy and Translating Strategy into HR Policy and

PracticePractice-Management Formulates a -Management Formulates a Strategic Plan.Strategic Plan.-Any Strategic Plan implies -Any Strategic Plan implies certaincertain workforce workforce Requirements Requirements in terms of in terms of Employee Skills,Employee Skills, Attributes and Behavior. Attributes and Behavior.-HR dept. must deliver those Employee-HR dept. must deliver those Employee Skills, Attributes and Behavior in order to Skills, Attributes and Behavior in order to EnableEnable the firm to the firm to AchieveAchieve its Strategic its Strategic Goals. Goals.