History of Human Resource Management Practices

1911

Scientific Management - performance related to working conditions

1920-301914-18

1980 - 2000

First personnel depts.Hawthorne studies

World War I- Selection tests:

Best use of People-Abilities test and IQ

1960 -70

Employee relations- comply with laws- reactive- stand alone

Integration with Business operations

2000 - Now

Performance-driven Social Fit/Alignment

Scientific management-Frederick Taylor(1911)

• Develop rules of motion, standardized work implements, and proper working conditions for every job

• Carefully select workers with the right abilities for the job

• Carefully train workers and provide proper incentives

• Support workers by carefully planning their work and removing obstacles

Practical lessons from scientific management

• Make results-based compensation a performance incentive

• Carefully design jobs with efficient work methods

• Carefully select workers with the abilities to do these jobs

• Train workers to perform jobs to the best of their abilities

• Train supervisors to support workers so they can perform jobs to the best of their abilities

Hawthorne studies – Elton Mayo

• Initial study examined how economic incentives and physical conditions affected worker output

• No consistent relationship found • “Psychological factors” influenced results• Employee attitudes, interpersonal relations and

group processes – Some things satisfied some workers but not others – People restricted output to adhere to group norms

Employee Relations 1960-1970

• Health and safety and the need for specialists became the focus. – The need for specialists to deal with industrial relations

was recognized so that the personnel manager became as spokesman for the organization when discussions where held with trade unions/shop stewards.

• In the 1970 s industrial relations was very important. ′The heated climate during this period reinforced the importance of a specialist role in industrial relations negotiation.

• The personnel manager had the authority to negotiate deals about pay and other collective issues.

Integration with Business Operation

Performance Driven

The Historical Role of Human Resource Management

• Personnel management as a specialized function began around 1900.• Unions and government regulations contributed to the growth of

HRM• HR function primarily as a police agent that enforces government

regulations and ensures the organization's compliance.

• Now, an integral part of organizational strategy and planning

• Three Vital Roles: Advisory to line management

Service to managers and employees

Control by reviewing and measuring performance and by developing, communicating, and implementing policies, procedures and rules

Human Resource Management at WorkHuman Resource Management at Work

• What Is Human Resource Management (HRM)?What Is Human Resource Management (HRM)?– The process of The process of acquiringacquiring, , trainingtraining, , appraisingappraising, and , and

compensating employeescompensating employees, and of , and of attending to attending to their labor relationstheir labor relations, , health and safetyhealth and safety, and , and fairness concernsfairness concerns..

• OrganizationOrganization– People with formally assigned roles who work People with formally assigned roles who work

together to achieve the organizationtogether to achieve the organization’’s goals.s goals.• ManagerManager

– The person responsible for accomplishing the The person responsible for accomplishing the organizationorganization’’s goals, and who does so by managing s goals, and who does so by managing the efforts of the organizationthe efforts of the organization’’s people.s people.

The Management ProcessThe Management Process

Planning

Organizing

Leading Staffing

Controlling

Human Resource Management ProcessesHuman Resource Management Processes

Acquisition

Training

Appraisal

CompensationLabor Relations

Health and Safety

Fairness

Human Resource Management

(HRM)

Personnel Aspects of a ManagerPersonnel Aspects of a Manager’’s Jobs Job

• Conducting job analyses Conducting job analyses • Planning labor needs and recruiting job candidatesPlanning labor needs and recruiting job candidates• Selecting job candidatesSelecting job candidates• Orienting and training new employeesOrienting and training new employees• Managing wages and salariesManaging wages and salaries• Providing incentives and benefitsProviding incentives and benefits• Appraising performanceAppraising performance• Communicating Communicating • Training and developing managersTraining and developing managers• Building employee commitmentBuilding employee commitment

Personnel MistakesPersonnel Mistakes• Hire the wrong person for the jobHire the wrong person for the job• Experience high turnoverExperience high turnover• Have your people not doing their bestHave your people not doing their best• Waste time with useless interviewsWaste time with useless interviews• Have your firm in court because of discriminatory Have your firm in court because of discriminatory

actionsactions• Have your firm cited for unsafe practicesHave your firm cited for unsafe practices• Have some employees think their salaries are unfair Have some employees think their salaries are unfair

and inequitable relative to others in the organizationand inequitable relative to others in the organization• Allow a lack of training to undermine your Allow a lack of training to undermine your

departmentdepartment’’s effectivenesss effectiveness• Commit any unfair labor practicesCommit any unfair labor practices

Basic HR ConceptsBasic HR Concepts

• The bottom line of managing:The bottom line of managing:

Getting resultsGetting results

• HR creates value HR creates value by engaging in activities that produce by engaging in activities that produce

the employee behaviors that the organization needs to the employee behaviors that the organization needs to

achieve its strategic goals.achieve its strategic goals.

• Hiring the right people for the right jobs and motivating, appraising, and developing them will likely get the results you are seeking. Remember that success comes through people.

• Many unprecedented changes in business world (new HR visions, advanced HRIS, new HR structure, and re-engineering of HR processes)

• Request for HR to add higher value (lower costs, increase quality, stronger linkage to business)

NEED TO TRANSFORM HR FUNCTION1. What are the essential HR competencies at corporate &

business levels?

2. How can corporations acquire/develop these new competencies?

What Are the Key HR Competencies Needed?

16

Top 3 CompetenciesNew Competencies, have not been identified in previous studiesCritical/Essential Competencies for HR Specialists

New Trends:

Importance of Measuring HR Eff. & Impact

Process Orientation in HR Services’ Delivery

THESE 2 COMPETENCIES

BECOME INCREASINGLY

MORE IMPORTANT

FROM HRM TOWARD HCM

New Orientation of HCM

Enhancing Organizational PerformanceEnhancing Organizational Performance

Expanding Human CapitalExpanding Human Capital

Delivering Cost-Effective Compliance SystemsDelivering Cost-Effective Compliance Systems

New Orientation of HCM

1) Enhancing Organizational Performance

▲ Involvement in Strategic Planning

▲ Decision Making on Merger & Acquisition and Downsizing

▲ Redesigning Organizations and Work Processes

▲ Ensuring Financial Accountability for HR Results

New Orientation of HCM

2) Expanding Human Capital2) Expanding Human Capital

▲ ▲ Attracting and Retaining HRAttracting and Retaining HR

▲ ▲ Developing HR Capabilities Developing HR Capabilities (CBHRM)(CBHRM)

▲ ▲ Identifying and Rewarding Performance Identifying and Rewarding Performance (PBHRM)(PBHRM)

- Individual, Team, Organization

Expanding Issues in HCM

Talent management & Retention Strategy

Internal Labor market & Career Opportunity

External Labor Market & Diversity Management

Alignment &Employment Brand

IT ImpactsM&A and

Restructuring

Legal Compliance

CBHRM, PBHRM

Telework & Alternate Work

HR Restructuring

HR Professional Career

Integrated HCM

Jobs Profile and

Employees Profile

Compensation System

PerformanceManageme

nt

Recruitment

Selection

Career MgtHR

Development

B

E

B

A

N

K

E

R

J

A

B

E

B

A

N

K

E

R

J

A

Elements HR Infrastructure

RECRUITMENT&

SELECTION

FORMATIONVISION

STRATEGIC

MISION

ORGANIZATION JOB ANALYSISWORK LOAD

ANALYSIS

RECRUITMEN SYSTEM

SELECTION SYSTEM

REPLACEMENT SYSTEM

MUTATION SYSTEM

REWARD & PUNISHMENT

SYSTEM

PERFORMANCE APRAISAL SYSTEM

SALARY SYSTEM

BENEFIT SYSTEM

FACILITY SYSTEM

SAFETY & HEALTH SYSTEM

CAREER PLANNING

SYSTEM

HRM INFORMATION SYSTEM

DEVELOPMENT SYSTEM

PENSION/LAYOFF SYSTEM

“PURNA KARYA“ SYSTEM

GOOD CORPORATE GOVERNANCE

MAIN JOB FUNCTION

JOB DESCRIPTIONS

JOB REQUIREMENT

BUSINESS PROCESS

FORMATION & QUANTITY

HUMAN RESOURCE

AUDIT SYSTEM

WORK RELATIONS

SYSTEM

HUMAN RESOURCES

MANAGE MENT

SYSTEM

REPLACEMENT&

EMPOWERMENT

PERFORMANCEAPPRAISAL

REMUNERATIONSAFETY

&HEALTH

DEVELOPMENT AUDITPENSION /

LAYOFF

ADMINISTRATIVE HUMAN RESOURCES MANAGEMENT SYSTEM

COMPETENCE BASE

VALUE CHAIN

ORGANIZATION STRUCTURE &

SHAPE

PORTO FOLIO

QUALITATIVE

QUANTITATIVE

Gaining Competitive Advantage through the Strategic Roles of HCM

• Competitiveness refers to a company’s ability to maintain and gain market share in its industry– It is related to company’s effectiveness

• Human resource management refers to the policies, practices, and systems that influence employees’ behavior, attitudes, and performance– Many companies refer to HRM as involving “people

practices“

Changing the Image of HR

• HR Practices can, should, and must be modified to align with and anticipate business strategy.

• HR Departments can, should, and must find ways to accomplish necessary transaction work while focusing aggressively on work that executes strategy, increases employee contribution, and transform organizations.

• HR Professionals can, should, and must become partners with other senior managers by creating value and delivering results.

HR Departmentsdeals only withpolicy-making,

policing,and transacting

HRM Practices• Job Analysis - the process of

getting detailed information about jobs.

• Recruitment - the process through which the organization seeks applicants.

• Training - a planned effort to facilitate learning of job-related knowledge, skills, and behavior.

• Job design - making decisions about what tasks should be grouped into a particular job.

• Selection - identifying the applicants with the appropriate knowledge, skills, and ability.

• Development - the acquisition of knowledge, skills, and behavior that improves employees' ability to meet the challenges of future jobs.

Performance management - helps ensure that employees’ activities and outcomes are congruent with the organization’s objectives. Pay structure, incentives, and benefits. Labor and employee relations.

Competitive Challenges Influencing HCM

• Three competitive challenges that companies now face will increase the importance of HCM practices: The Global

Challenge

The Challenge ofSustainability

The TechnologyChallenge

I. The Sustainability Challenge

• Sustainability refers to the ability of a company to survive and succeed in a dynamic competitive environment

• Sustainability includes the ability to: A. Deal with economic and social changes, B. Engage in responsible and ethical business practices, C. Provide high quality products and services, and D. Put in place methods to determine if the company is

meeting stakeholders’ needsStakeholders refers to shareholders, the community,

customers, and all other parties that have an interest in seeing that the company succeeds

I. The Sustainability Challenge. Con’t

A. The changing structure of the economy– Impact of Financial Crisis– The competition for labor

• Skill demands for jobs are changing• Knowledge is becoming more valuable

– Intellectual capital refers to the creativity, productivity, and service provided by employees

– Knowledge workers are employees who contribute to the company not through manual labor but through a specialized body of knowledge

– Empowerment means giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service

I. The Sustainability Challenge. Con’t

• A learning organization embraces a culture of lifelong learning, enabling all employees to continually acquire and share knowledge

• The psychological contract describes what an employee expects to contribute and what the company will provide to the employee for these contributions

• Alternative work arrangements include independent contractors, on-call workers, temporary workers, and contract company workers

I. The Sustainability Challenge. Con’t

B. Legal and Ethical Issues • Human capital managers must satisfy three

basic standards for their practices to be considered ethical:– HCM practices must result in the

greatest good for the largest number of people

– Employment practices must respect basic human rights of privacy, due process, consent, and free speech

– Managers must treat employees equitably and fairly

II. The Global Challenge• Companies are finding that to survive they must compete in

international markets as well as fend off foreign corporations’ attempts to gain ground in the country.

• Every business must be prepared to deal with the global economy. This is made easier by technology.

• Offshoring refers to the exporting of jobs from developed countries to less developed countries.

• Many companies are entering international markets by exporting their products overseas, building manufacturing facilities in other countries, entering into alliances with foreign companies, and engaging in e-commerce

II. The Global Challenge. Con’t

Managing a Diverse Workforce • To successfully manage a diverse workforce, managers must

develop a new set of skills, including:– Communicating effectively with employees from a wide variety

of cultural backgrounds.– Coaching and developing employees of different ages,

educational backgrounds, ethnicity, physical ability, and race.– Providing performance feedback that is based on objective

outcomes.– Creating a work environment that makes it comfortable for

employees of all backgrounds to be creative and innovative.

III. The Technology Challenge

• Technology has reshaped the way we play, plan our lives, and where we work– The overall impact of the Internet– The Internet has created a new

business model – e-commerce – in which business transactions and relationships can be conducted electronically

III. The Technology Challenge. Con’t• Advances in technology have:

– changed how and where we work,– resulted in high-performance models of work systems,– increased the use of teams to improve customer service and product

quality,– changed skill requirements,– increased working partnerships,– led to changes in company structure and reporting relationships,– increased the availability of Human Resource Information Systems

(HRIS), which are used to acquire, store, manipulate, analyze, retrieve, and distribute HR information,

– increased the availability of e-HRM, which is the processing and transmission of digitalized information used in HRM,

– increased the competitiveness of high performance work systems.

Meeting Competitive Challenges Through HCM Practices

• HCM practices that help companies deal with the competitive challenges can be grouped into four dimensions– The human capital environment– Acquiring and preparing human

capital– Assessment and development of

human capital– Compensating human capital

Meeting Competitive Challenges Through HCM Practices. Con’t

• Managing internal and external environmental factors allows employees to make the greatest possible contribution to company productivity and competitiveness

• Customer needs for new products or services influence the number and type of employees businesses need to be successful

• Besides interesting work, pay and benefits are the most important incentives that companies can offer employees in exchange for contributing to productivity, quality, and customer service

• Human capital management practices of both managers and the human capital function must be aligned and contribute to the company’s strategic goals

Evolusi Manajemen Insani (i)Atribut Manajemen Personalia Manajemen SDM Manajemen Modal

Insani

Perspektif Perusahaan

Karyawan diperlakukan sebagai Biaya; dituntut Kerja Keras, Sistem insentif umumnya berbasis sistem Taylor untuk memaksimalkan laba.

Karyawan diperlakukan sebagai Aset; Diberdayakan secara Parsial dan Selaras; Untuk menciptakan nilai tambah.

Karyawan diperlakukan sebagai Kapital; Diberdayakan secara terintegrasi untuk menciptakan nilai baru.

Manajemen Manusia

(i) Bisnis dikembangkan tanpa melibatkan manajemen manusia (orang mengikuti)

(ii) Fokus pada aktifitas (fungsional)

Fokus keselarasan fungsi dan kapabilitas berbasis aset berwujud.

Dikembangkan secara terintegrasi berbasis kapital tidak berwujud.

Evolusi Manajemen Insani (ii)Manajemen Personalia

Manajemen SDM Manajemen Modal Insani

Praktik Fungsi dasar (mulai dari rekrutmen, penggajian, dll)

Praktik Terbaik (Bisa Copy)

Kesesuaian Terbaik (Sesuai konteksnya)

Asumsi terhadap Lingkungan Bisnis

Hukum sebab akibat (linier)

Tidak linier tapi masih satu arah (Dinamis)

Tidak linier dan multi arah (system)

Bagaimana memotivasi orang

Dominasi konsep Mc Gregor (x), manusia itu malas

Motivasi Y tantangan pekerjaan, karir yang jelas

Manusia dimanusiakan engage

Isi spesifikasi pekerjaan

Dominan berbasis fungsi (pengetahuan teknis)

Dominan berbasis talent pool

Berbasis knowledge worker

END OF SESSION 1