RITI-HRM-Class1

Introduction : 

Introduction Management & The Human Resource Management Process Chapter 1: The Strategic Role of Human Resource Management

Course Outline : 

Course Outline ELFH 605 Managing Human Resources Dr. Iman Megahed April 2004

Course Outline References : 

Course Outline References Dessler, Gary. Human Resource Management, 10th ed. Pearson Prentice Hall: 2005 Instructor Handouts

Course Outline Grading : 

Course Outline Grading Grading:

Course Outline Grading : 

Course Outline Grading Grading:

Course Outline Project & Presentation : 

Course Outline Project & Presentation Grading: Class Presentation (20%): During the first week, each group will be requested to select a topic, focused on a particular chapter, to research and present in class.   Course Project (50%): Each group will be required to complete a project. The project should be a detailed study of all HR functions in a real organization. The deliverables of the project will be a written paper and a group class presentation. More details on the project will be provided in a separate paper.

Outline of Introduction : 

Outline of Introduction Introduction What is Management? What is Human Capital and Human Resource Management? How does HRM relate to the functions of management? What is the HRM process?

Outline of Chapter 1 : 

Outline of Chapter 1 The Manager’s Human Resource Management Jobs Why is HR Management Important to All Managers? Line and Staff Aspects of HRM Cooperative Line and Staff HR Management: An Example

Outline of Chapter 1 : 

Outline of Chapter 1 Strategic Planning and Strategic Trends HR’s Strategic Role HR’s Evolving Role Strategic Human Resource Management HR’s Role as a Strategic Partner

Management : 

Management Management the process of coordinating work activities so that they are completed efficiently and effectively with and through other people elements of definition Process - represents ongoing functions or primary activities engaged in by managers Coordinating - distinguishes a managerial position from a non-managerial one

Management : 

Management Management Strives For: Low resource waste (high efficiency) High goal attainment (high effectiveness) Low Waste High Attainment

The Management Process : 

The Management Process Planning Organizing Staffing Leading Controlling

Management Process : 

Management Process Planning Goals and standards Rules and procedures Plans and forecasting. Organizing Tasks Departments Delegating Authority and communication Coordinating

Management Process : 

Management Process Staffing Hiring Recruiting Selecting Performance standards Compensation Evaluating performance Counseling Training and developing

Management Process : 

Management Process Leading Getting the job done Morale Motivation Controlling Setting standards Comparing actual performance to standards Corrective action

Management Functions : 

Management Functions Planning - defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities Organizing - determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are made Staffing - HRM Leading - directing and motivating all involved parties and dealing with employee behavior issues Controlling - monitoring activities to ensure that they are going as planned

Human Resource Management : 

Human Resource Management Planning - defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities Organizing - determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are made Staffing - HRM Leading - directing and motivating all involved parties and dealing with employee behavior issues Controlling - monitoring activities to ensure that they are going as planned

HRM Function : 

HRM Function Human Resource Management is the process of acquiring, training, appraising, and compensating employees and attending to their labor relations, health and safety, and fairness concerns. Definition

HRM People Functions Include: : 

HRM People Functions Include: Job analyses Labor needs Recruit Select candidates Orient and train Wages and salaries Incentives and benefits Performance Communicate Train and develop Employee commitment Equal opportunity Health and safety Grievances/labor relations

HRM is Important to all Managers.Don’t Let These Happen to You! : 

HRM is Important to all Managers.Don’t Let These Happen to You! The wrong person High turnover Poor results Useless interviews Court actions Safety citations Salaries appear unfair Poor training Unfair labor practices

HRM – It’s All About Results : 

HRM – It’s All About Results “For many years it has been said that capital is the bottleneck for a developing industry. I don’t think this any longer holds true. I think it’s the work force and a company’s inability to recruit and maintain a good work force that does constitute the bottleneck….” F. K. Foulkes

Human Resource Management Process : 

Human Resource Management Process

Line and Staff Aspects of HRM : 

Line and Staff Aspects of HRM Authority Making decisions Directing work Giving orders Line Managers Accomplishing goals Staff Managers Assisting and advising line managers Definition

Line Manager’s HRM Jobs : 

Line Manager’s HRM Jobs The right person Orientation Training Performance Creativity Working relationships Policies and procedures Labor costs Development Morale Protecting

Slide 25: 

HR Department Organizational Chart

Cooperative Line & Staff HRExample : 

Cooperative Line & Staff HRExample Exactly which HR management activities are carried out by line managers & by staff managers? There is no single division of responsibility applied to all organizations Example in the recruiting & hiring of employees: Usually the line manager specifies the qualifications needed to fill specific positions. Then the HR manager develops sources of qualified candidates, conduct initial screening (tests) and send those filtered to line manager Line manager conducts the final technical screening tests and selects the one to hire or requests new applicants

Cooperative Line & Staff HR : 

Cooperative Line & Staff HR Some activities tend to be HR alone: 60% of firms assign HR pre-employment testing 75% college recruiting 86% benefits administration 84% exit interviews 88% personnel record keeping Some activities tend to be split between line & HR managers: Employee interviews Performance appraisal Skills training Job analysis & descriptions

Changing Environment of HR Management : 

Changing Environment of HR Management Globalization Technological Advances Exporting Jobs The Nature of Work Workforce Diversity

Globalization : 

Globalization

Technological Advances and the Nature of Work : 

Technological Advances and the Nature of Work Technology mandates and enables companies to be more competitive Knowledge intensive jobs in industries such as aerospace, computers, telecommunications, and biotechnology are replacing factory jobs in steel, auto, rubber and textiles Carrier

Exporting Jobs : 

Exporting Jobs Competitive pressures and the search for greater efficiencies are prompting more employers to export jobs abroad. Technology has facilitated the move of jobs offshore. Call centers in India allow for: 24 hours, cheaper labor, standardized, efficient service

The Workforce Itself is Diverse : 

The Workforce Itself is Diverse US Department of Labor website

The Workforce Itself is Diverse : 

The Workforce Itself is Diverse More women, minorities, and older employees are joining the workforce Workforce diversification offers increasing opportunities including: a wide range of skills and talents (languages), different points of view, different life experiences Old perspective was melting pot approach. Now, there is a celebration of differences The challenge lies in the widening range of employee needs (benefits range is much wider so may be flexi-time would be adopted)

Consequences of these basic trends : 

Consequences of these basic trends Technology Global expansion Strengths and Weaknesses Uncertainty, Turbulence, Rapid Change, Changing power bases Companies must be Fast, Responsive, and Cost-effective Improved competition

HR’s evolving role : 

HR’s evolving role Protector and Screener Strategic Partner Change Agent

HR’s evolving role as strategic partner : 

HR’s evolving role as strategic partner HR operations Corporate strategy Corporate strategy HR programs Corporate strategy HR programs Corporate strategy HR operations Corporate strategy HR programs FedEx

The New HR Manager : 

The New HR Manager New Proficiencies HR proficiencies Business proficiencies Leadership proficiencies Learning proficiencies The need to know the employment laws HR and technology Technology improves HR functioning in 4 main ways: self-service, call centers, productivity improvement, and outsourcing

Technology can be the Human Resources engine of change : 

Technology can be the Human Resources engine of change

HR and technology : 

HR and technology Basic HR systems demand paperwork 70% of HR’s employees time = paperwork Off the shelf forms from Office Depot/Officemax Online forms Human Resource Information Systems (HRIS) HR on the Internet

HR portals : 

HR portals Employees can answer their own questions HR moves from reactive to proactive

Plan for the Rest of the Book : 

Plan for the Rest of the Book Chapter 3: Strategic Human Resource Management & the HR Scorecard Part II: Recruitment and Placement Chapter 4: Job Analysis Chapter 5: Personnel Planning and Recruiting Chapter 6: Employee Testing and Selection Chapter 7: Interviewing Candidates

Plan for the Rest of the Book : 

Plan for the Rest of the Book Part III: Training and Development Chapter 8: Training and Development Chapter 9: Appraising Performance Chapter 10: Managing Careers

Plan for the Rest of the Book : 

Plan for the Rest of the Book Part IV: Compensation Chapter 11: Establishing Pay Plans Chapter 12: Pay-for-Performance and Financial Incentives Chapter 13: Benefits and Services

Chapter 3 : 

Chapter 3 Strategic Human Resource Management and the HR Scorecard Management

Strategic Management : 

Strategic Management The set of managerial decisions and actions that determines the long-run performance of an organization.

The Strategic Management Process : 

Exhibit 8.1 The Strategic Management Process

The Strategic Management Process : 

Exhibit 8.1 The Strategic Management Process Definition: The process of identifying and executing the organization’s mission by matching its capabilities with the demands of its environment. Example: Walmart & Kmart

Strategic Management Process : 

Strategic Management Process Step 1: Identifying the organization’s current vision, mission, objectives, and strategies Mission: the firm’s reason for being Goals: the foundation for further planning Where we are now? What business we want to be in, wrt our strengths and weaknesses? Step 2: Conducting an external analysis The environmental scanning of specific and general environments Focuses on identifying opportunities and threats

Components of a Mission Statement : 

Components of a Mission Statement Customers: Who are the organization’s customers? Products or services: What are the organization’s major products or services? Markets: Where does the organization compete geographically? Technology: How technologically current is the organization? Concern for survival growth, and profitability: Is the organization committed to growth and financial stability? Philosophy: What are the organization’s basic beliefs, values, aspirations, and ethical priorities? Self-concept: What is the organization’s major competitive advantage and core competencies? Concern for public image: How responsive is the organization to societal and environmental concerns? Concern for employees: Does the organization consider employees a valuable asset? Source: Based on F. David, Strategic Management, 8th ed. (Upper Saddle River, NJ: Prentice Hall, 2001), pp. 65–66.

Strategic Management Process (cont’d) : 

Strategic Management Process (cont’d) Step 3: Conducting an internal analysis Assessing organizational resources, capabilities, activities, and culture: Strengths (core competencies) create value for the customer and strengthen the competitive position of the firm. Weaknesses (things done poorly or not at all) can place the firm at a competitive disadvantage. Steps 2 and 3 combined are called a SWOT analysis. (Strengths, Weaknesses, Opportunities, and Threats)

Identifying the Organization’s Opportunities : 

Exhibit 8.3 Identifying the Organization’s Opportunities

Strategic Management Process (cont’d) : 

Strategic Management Process (cont’d) Step 4: Formulating strategies Strategy is a course of action presenting how the organization can move from its current business to the one it wants to be in? Develop and evaluate strategic alternatives Select appropriate strategies for all levels in the organization that provide relative advantage over competitors Match organizational strengths to environmental opportunities Correct weaknesses and guard against threats

Strategic Management Process (cont’d) : 

Strategic Management Process (cont’d) Step 5: Implementing strategies Implementation: effectively fitting organizational structure and activities to the environment The environment dictates the chosen strategy; effective strategy implementation requires an organizational structure matched to its requirements. Step 6: Evaluating Results How effective have strategies been? What adjustments, if any, are necessary?

Types of Organizational Strategies : 

Types of Organizational Strategies Corporate-Level Strategies Identifies the portfolio of businesses that comprise the company and the ways these businesses relate to each other. Examples: diversification, integration Types of Corporate Strategies Growth: expansion into new products and markets Stability: maintenance of the status quo Renewal: redirection of the firm into new markets

Levels of Organizational Strategy : 

Exhibit 8.4 Levels of Organizational Strategy

Strategic Planning 101 : 

Strategic Planning 101 There are three levels of strategic planning as shown below Corporate Strategy Business Strategy Business Strategy Business Strategy Business Strategy Functional Strategies

Business-Level Strategy : 

Business-Level Strategy Business-Level Strategy A strategy that seeks to determine how an organization should compete Companies try to achieve competitive advantage for each business they are in. Competitive advantage is any factor that allows an organization to differentiate its products or services from those of its competitors.

HR and Competitive Advantage : 

HR and Competitive Advantage Today, most companies have easy access to the same technologies, so technology itself is rarely enough to set a firm apart. Its usually the people & the management system that make the difference.

Strategic Human Resource Management : 

Strategic Human Resource Management HR strategies refers to the specific human resource management courses of action the company pursues to achieve its aims. Strategic Human Resource Management means formulating and executing HR systems (HR policies & activities) that produce the employee competencies and behaviors the company needs to achieve its strategic aims

HR’s Strategic Roles : 

HR’s Strategic Roles Today’s HR managers fulfill two basic strategic planning roles: strategy execution and strategy formulation Strategy execution (traditional role): top management formulates the company’s corporate strategies and HR develops systems that support or align with the corporate strategy. Strategy formulation (today’s role): a partner in the setting of the corporate strategy and its execution.

HR Scorecard Approach : 

HR Scorecard Approach HR Scorecard: Measures the HR function’s effectiveness and efficiency in producing employee behaviors needed to achieve the company’s strategic goals.

Steps in the HR Scorecard Approach : 

Steps in the HR Scorecard Approach Step 3: Identify the Strategically Required Organizational Outcome Step 4: Identify the Required Workforce Competencies & Behaviors Step 5: Identify Relevant HR System Policies & Activities Step 1: Define the Business Strategy Step 2: Outline the company’s value chain Step 6: Design the HR Scorecard Measurement System Step 7: Periodically Evaluate the Measurement System

The Value Chain Approach : 

The Value Chain Approach

HR Scorecard ApproachExample (Paris Hotel) : 

HR Scorecard ApproachExample (Paris Hotel) The Strategy: “The Hotel will use superior guest services to differentiate its properties, and to thereby increase the length of stays and the return rate of guests, and thus boost revenues and profitability” The Value Chain: Service industry, where the product is a satisfied customer. Value chain activities: inbound logistics, operational activities, outbound activities, service activities, support activities.

HR Scorecard ApproachExample (Paris Hotel) : 

HR Scorecard ApproachExample (Paris Hotel) 3. Strategically Required Organizational Outcomes: Each step in the chain presents opportunities for improving guest services. Produce fewer complaints, more written complaints, more guest returns, longer stays, higher expenditure per visit. 4. Relevant Workforce Competencies: motivated, high moral employees 5. Strategic HR System Policies and Activities: Fair and strict HR practices will produce higher moral and thus better service

HR Scorecard ApproachExample (Paris Hotel) : 

HR Scorecard ApproachExample (Paris Hotel) 6. The HR Scorecard (cause and effect relation): Improved disciplinary procedures – how many grievances per month -? means Improved moral – seminar attitude surveys -? leads to High quality service – customer complaints per month

Thank You : 

Thank You