HRM and Operations Managementin Today’s Business World

Facilitator: Saadia Malik

Contents

• Human Resources Management – An Overview• Importance of HR function • Role and activities of HR department • Recruitment & Selection/ Staffing Sub Function• Employee Compensation, Performance

Management & Organizational Development• Environmental factors impacting HR Function in

an organization

HUMAN RESOURCES

MANAGEMENT

AN OVERVIEW

Learning Outcomes

• Understanding the importance of HRM function in an organization and its related activities,

• Become better managers in organizations/work place

• Awareness of theories and philosophies forming the basics of deign of HRM function and activities.

• Awareness of the latest issues and happenings in this field

• How HRM links up with Operations Management in today’s dynamic business world

Management

• The process of trying to accomplish goals through other people

Human Resource Management

• A Management Function which focuses on the utilization of individuals to achieve organizational objectives

• All managers at every level must concern themselves with human resources management.

Importance of HR Function

• Linked to the strategic management of an organisation.

• Seeks commitment to organisational goals• Focuses on the individual needs rather

than the collective workforce.• Enables organisations to dissolve power

and become more flexible• Emphasises people are an asset to be

positively utilised by the organisation.

Strategic Importance

• 'Human capability and commitment’ is what differentiates organisations.

• HRM needs to be implemented into the organisational strategy and needs to be considered at the highest management level.

Long term importance of HRM:• It needs to be integrated into the management

functions and is seen to have important consequences on the ability of the organisation to achieve its goals.

• The key functions of HRM which are seen to encourage commitment rather than compliance.

ROLE & ACTIVITIES OF HR

DEPARTMENT

Traditional HR Functions

Human Resource Management Functions

• Recruitment & Selection• Training & Development• Compensation & Benefits• Safety & Health• Employee & Labor Relations

Research vs. Practice

• Effective HR management requires proper understanding and utilization of knowledge gained through research– Recruitment– Realistic job previews– Interviews– Performance appraisals

RECRUITMENT & SELECTION

The Recruitment & Selection Process

• Stage 1 Agree on Vacancy• Stage 2 Job Analysis• Stage 3 Attracting Candidates• Stage 4 Sorting Candidates• Stage 5 Selection Interviews

The Recruitment & Selection Process

Selection

Recruitment

Advertisements

Word of mouth

Walk ins

Recruitment Agencies

Short listed candidates

One-on-one Interviews

Panel Interviews

Telephonic Interviews

Resume Scanning

New Hires

Company’s website

Interviewing

How job assessments help

you reach the ultimate goal

Steps involved in the interviewing process are..

Understand the purpose of the interview

Rethink your interviewing strategy

Create a list of interview questions.

Check your list twice

Tell the applicant about the interview format

Prepare for questions.

Take notes

Develop a list of desired skills

Exercise

• Choose a position for which it is difficult to find a good performer.

• What competencies are important?

• Develop three questions to explore a candidate’s past or present behavior that demonstrates the competencies.

The Dynamic Human Resources Management Environment

Environment of Human Resource Management

EXTERNAL ENVIRONMENTINTERNAL ENVIRONMENT

1

Human Resource

Management

Other Functiona

l Areas

OperationsMarketing

Finance

Leg

al C

on

sid

erat

ion

sT

he

Eco

no

my

Tech

no

log

y

Society

Sh

areho

lders

Unions

Customers Competition Labor Force

Human Resource

Development

Co

mp

ensa

tio

n

and

Ben

efit

s

Staffing

Em

plo

yee and

Lab

or R

elation

s

Safety and Health

Society

• Social responsibility – Implied, enforced or felt obligation of managers to serve or protect interests of groups other than themselves

• Ethics – Discipline dealing with what is good and bad, or right and wrong, or with moral duty and obligation

HR’s Changing Role:Who Performs Human

Resources Management Tasks?

• Human Resource Managers• Outsourcing Firms

• Line Managers• Project Managers

Human Resources Function In Organizations Of Various Sizes

Human Resources Function in a Small Business

Manager/Owner

Sales Operations Finance

The Human Resource Function in a Medium-Sized Business

Sales Manager

President

Operations Manager

Finance Manager

Human Resources Manager

The Human Resource Function in a Large Firm

President and CEO

VP/Dir Marketing

VP/Dir Operations

VP/Dir FinanceVP/Dir Human

Resources

Manager, Training and Development

Manager, Compensation and Benefits

Manager Staffing

Manager Safety and

Health

Manager Labor

Relations

An Evolving Human Resource Organization Example

President and CEO

VP OperationsVP Human Resources

VP Other Major

Functions

Director of Safety and

Health

Executive Development

Manager Training

Manager Other HRM Functions

Employee Benefits

Shared Service Center

Outsourced

The Harvard Model of Human Resources Management

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Changing Nature of Human Resources Management

• Scientific management– Breaking down jobs into

elemental activities and simplifying job design

• Jobs– Comprise a set of tasks,

elements, and job motions (basic physical movements)

• In a piece-rate wage system, pay is based on output

• Assembly-line – Production meshed with

principles of scientific management

• Advantages of task specialization– High output, low costs,

and minimal training• Disadvantages of task

specialization– Boredom, lack of

motivation, and physical and mental fatigue

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Employee MotivationEmployee Motivation

•MotivationMotivation–willingness to work hard because that effort satisfies an employee need

•Improving Motivation–positive reinforcement and feedback

–effective organization and discipline

–fair treatment of people–satisfaction of employee needs–setting of work-related goals

•Improving Motivation (cont.)–design of jobs to fit employee–work responsibility–empowerment–restructuring of jobs when necessary

–rewards based on company as well as individual performance

–achievement of company goals

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Evolution of Theories of Employee Motivation

Self-actualization

EsteemSocial

Safety/Security

Physiological (financial)

Abraham Maslow’s Pyramid of Human

Needs

Douglas McGregor’sTheory X and Theory Y

•Theory X Employee• Dislikes work• Must be coerced• Shirks responsibility• Little ambition• Security top motivator

•Theory Y Employee• Work is natural• Self-directed• Controlled• Accepts responsibility• Makes good decisions

Frederick Herzberg’sHygiene/Motivation

Theories

•Hygiene Factors• Company policies• Supervision• Working conditions• Interpersonal relations• Salary, status, security

•Motivation Factors• Achievement• Recognition• Job interest• Responsibility• Growth• Advancement

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Contemporary Trends in Human Resources Management

• Job Training– extensive and varied– Enhances on the job skills

and work knowledge

• Cross Function Training– an employee learns more

than one job

• Job Rotation– horizontal movement

between two or more jobs according to a plan

• Empowerment– giving employees

authority to make decisions

• Teams– group of employees work

on problems in their immediate work area

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Contemporary Trends in Human Resources Management (cont.)

• Job enrichmentJob enrichment– vertical enlargement

• allows employees control over their work

– horizontal enlargement• an employee is assigned a

complete unit of work with defined start and end

• Flexible time– part of a daily work

schedule in which employees can choose time of arrival and departure

• Alternative/Virtual workplace– nontraditional work location

• Telecommuting– employees work

electronically from a location they choose

• Temporary and part-time employees– mostly in fast-food and

restaurant chains, retail companies, package delivery services, and financial firms

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Employee Compensation

• Types of pay– hourly wage

• the longer someone works, the more s/he is paid– individual incentive or piece rate

• employees are paid for the number of units they produce during the workday

– straight salary• common form of payment for management

– commissions• usually applied to sales and salespeople

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• Gain sharing– an incentive plan joins employees in

a common effort to achieve company goals in which they share in the gains

• Profit sharing– sets aside a portion of profits for

employees at year’s end

Employee Compensation (cont.)

Employee Performance Management

• Setting Quantifiable Objectives • Agree over expectations to perform• Set time for discussion sessions• Listen to the Employee• Feedback process for evaluating employee

performance• Commonly used feedback programs are 90

degree, 180 and 360 degree

Organizational Development

• Training & Development of Employees• Change Management Methods• Inter Organizational Communication

Job Design

• Task analysisTask analysis– how tasks fit together to form a jobhow tasks fit together to form a job

• Worker analysisWorker analysis– determining worker capabilities and responsibilities for a determining worker capabilities and responsibilities for a

jobjob

• Environment analysisEnvironment analysis– physical characteristics and location of a jobphysical characteristics and location of a job

• ErgonomicsErgonomics– fitting task to person in a work environmentfitting task to person in a work environment

• Technology and automationTechnology and automation– broadened scope of job designbroadened scope of job design

Copyright 2009 John Wiley & Sons, Inc.Copyright 2009 John Wiley & Sons, Inc. 8-8-3939

Job AnalysisJob Analysis

• Method Analysis (work methods)Method Analysis (work methods)– Study methods used in the work included in Study methods used in the work included in

the job to see how it should be donethe job to see how it should be done– Primary tools are a variety of charts that Primary tools are a variety of charts that

illustrate in different ways how a job or work illustrate in different ways how a job or work process is doneprocess is done

Copyright 2009 John Wiley & Sons, Inc.Copyright 2009 John Wiley & Sons, Inc. 8-8-4040

Process Flowchart SymbolsProcess Flowchart Symbols

Operation:Operation:An activity directly contributing to product or serviceAn activity directly contributing to product or service

Storage:Storage:Store of the product or serviceStore of the product or service

Inspection:Inspection:Examining the product or service for completeness, Examining the product or service for completeness, irregularities, or qualityirregularities, or quality

Transportation:Transportation:Moving the product or service from one location to anotherMoving the product or service from one location to another

Delay:Delay:Process having to waitProcess having to wait

Managing Diversity in Workplace

• Employers must strive to manage diversity in the workplace

• Programs include - Education

- Awareness - Communication - Fairness - Commitment

Types of Work Related Behaviors

• Joining the organization• Remaining with the organization• Maintaining work attendance• Performing required job responsibilities• Exhibiting organizational citizenship

Environmental factors impacting HR Function in an organization

The Changing Job MarketWhat’s Happening in the External World?

“When the rate of change outside exceeds the rate of change inside, the end is near”

Jack Welch

Chairman, General Electric

The Changing Job MarketWhat’s Happening in The External World? (Big

Picture) • Redefinition of Loyalty/Security• Increase in Part-Time, Contract Employment• Mergers and Acquisitions• Doing more with Less

The Changing Job Market What’s Happening In The External World?

(The 21st Century Worker)

• Employability• External vendor-mindedness (Me Inc.)• Resiliency• Flexibility and adaptability• Security comes from within

Job Security is an illusion. Security comes from being employable not employed

The Changing Job Market(Personal Readiness)

• Need for continuous learning• Need for understanding of accomplishments• Need for continuous networking

Roundtable Discussion

What are the factors impacting organizations and their ability to attract, recruit

and retain?

Action Planning Guide

• What are your learning actions from today’s session?

• How do you plan to implement them at your work place in future?

Thanks for your time and attention!!