© 2003 Prentice Hall, Inc. 1-1 Course Outline Managing Human Resources.

© 2003 Prentice Hall, Inc.1-1

Course Outline

Managing HumanResources


Course Outline References

¨ Dessler, Gary. Human Resource Management, 10th ed. Pearson Prentice Hall: 2005


Outline of Introduction

I. Introduction

II. What is Management?

III. What is Human Capital and Human Resource Management?

IV. How does HRM relate to the functions of management?

V. What is the HRM process?


I. 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

II. Strategic Planning and Strategic Trends

III. HR’s Strategic RoleHR’s Evolving Role

Strategic Human Resource Management

HR’s Role as a Strategic Partner


Management

Management the process of coordinating work activities so

that they are completed efficiently and effectively with and through other people

elements of definitionProcess - represents ongoing functions or primary

activities engaged in by managersCoordinating - distinguishes a managerial position

from a non-managerial one


Organization and Manager

An organization consists of people with formally assigned roles who work together to achieve the organization’s goals.

Manager is a person responsible for accomplishing the organization’s goals and who does so by managing the efforts of the organization’s people.


Management

Management Strives For:Low resource waste (high efficiency)

High goal attainment (high effectiveness)

ResourceUsage

Efficiency (Means)

GoalAttainment

Effectiveness (Ends)

Low Waste High Attainment


The Management Process

Planning Organizing Staffing Leading Controlling


Management Process

Planning Establishing Goals and standards Developing Rules and procedures Developing Plans and forecasting.

Organizing Giving each subordinate a specific Tasks Establishing Departments Delegating authority to subordinates Establishing channels of Authority and

communication Coordinating the work of subordinates


Management Process

Staffing Determining what type of people should be

Hiring Recruiting employees Selecting employees Setting Performance standards Compensating employees Evaluating performance Counseling employees Training and developing employees


Management Process

Leading Getting the job done Maintaining Morale Motivating subordinates

Controlling Setting standards such as quotas,quality standards Comparing actual performance to standards Taking Corrective action


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

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, , where decisions are made and who is decision taker

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

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.

Def

initi

on


HRM People Functions Include:

Conducting Job analyses

Planning Labor needs

Recruiting candidates

Select candidates Orient and training

new employees Wages and salaries Incentives and

benefits

Appraising Performance Communicating Train and develop

managers Employee commitment Equal opportunity Health and safety Grievances/labor

relations Knowing employment

law


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

The wrong person High turnover Poor results Useless interviews Company taken to Court for discriminatory

actions Safety citations Salaries appear unfair Poor training Unfair labor practices


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


Line and Staff Aspects of HRM

Authority Right to Make decisions Directing work Giving orders

Line Managers Accomplishing goals by issuing orders

Staff Managers Assisting and advising line managers

Defini

tion


Line Manager’s HRM Jobs

The right person Orientation Training Performance Creativity Working

relationships

Policies and procedures

Labor costs Development Morale Protecting


HR Department Organizational

Chart


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


Changing Environment of HR Management

Globalization Technological Advances Exporting Jobs The Nature of Work Workforce Diversity


Globalization

0

10

20

30

40

50

60

70

80

1920 1950 1970 2000

% fortune 500 with aglobal presence


Globalization

Globalization is the tendency of firms to extend their sales,ownership and manufacturing to new markets abroad.

Eg : Toyota manufactures camry in kentucky and Dell produces PC s in china

Companies expand abroad for several reasons – sales expansion,seek new foreign products and services to sell.

Infosys,tcs,tata steel,mittal steel,ge,american exp,dell ,google ,indian firms affected by recession.


Companies Expansion - Sales Expansion

Google expanded its china presence by initiating its Google china instant messaging service.

Walmart is opening stores in south America.

Dell is aggressively building plants in china and selling there knowing the future market


New foreign products and services

Apparel manufacturers design and cut fabrics in Miami and then have actual products assembled in Central America where the labour cost is low.

Prospects of finding new partners abroad – IBM sold its PC division to Chinese firm Lenovo


Globalization

More globalization means more competition and more competition means more pressure to be world class - to lower costs to make employees more productive and to do things better and less expensively.

The bottom line is that the growing integration of the world class economy into a single huge market place is increasing the intensity of competition in a wide range of manufacturing and service industries.


Advantages and Disadvantages of

Globalization For consumers it is having more variety of

products at a cheaper prices For business owners it is having many new

customers and more competitors. For employees it poses a threat of job

offshoring. US Imports and exports : 47 billion $ 1960 * 562billion $ -1980 4.3 trillion $ 2008


Technological Advances and the Nature of Work

Technology mandates and enables companies to be more competitive

High Tech Jobs - Knowledge intensive jobs in industries such as aerospace, computers, telecommunications, and biotechnology are replacing factory jobs in steel, auto, rubber and textiles

Eg : zaara ,lockheed,indian railways

Carrier

http://www.global.carrier.com/

http://www.alcoa.com/

http://www.global.carrier.com/


Service Jobs Two thirds of US force is employed in

producing and delivering services not products.

Reason for service oriented industry – more manufacturing jobs are shifting to low wage countries.

Service jobs have also shifted to countries like India and Philippines where skilled labour are available at low cost.


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


Knowledge Work and Human Capital

Human Capital refers to knowledge education, training,skills and expertise of a firm’s workers.

“ the center of gravity in employment is moving fast from manual and clerical workers to knowledge workers”

HR managers listed “critical thinking/problem solving” and “info tech application” as the two applied skills in importance over next few years.

HRM skills – recruiting,screening,training and paying employees – more important to employers

Bank example


Demographic Trends

In spite of the recession and job losses workforce demographic trends are making finding and hiring good employees more of a challenge around the world.

Skill shortage is identified as a main hurdle in achieving demographic dividend from its young growing population.


The Workforce Itself is Diverse

AsianBlackHispanicMenWomen

US Department of Labor website

http://www.dol.gov/

http://www.dol.gov/


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)


Generation Y

Young workers are more family oriented or dual balanced.

Old workers are work centric. Todays “millennial” or “generation Y” employees will

bring challenges and strength. The most high maintenance workforce in the history of

world . Refer to them as “most praised generation”. As the first generation to cope up with IT.


Economic challenges and Trends

In 2001 – 2007 – Gross National Product boomed .Home prices leaped upto 20% and unemployment remained docile (4.7%)

2007-2008 – all these measures seemingly fell off the cliff.Home prices dropped to 20% and unemployment rose to 8%


Consequences of these basic trends

Technology

Global expansion

Strengths and Weaknesses

Uncertainty, Turbulence, Rapid Change, Changing power bases

Companies must be Fast,Responsive, andCost-effective

Improved competition


Important Trends In human Resource Management

The New Human Resource Managers Strategic Human Resource Management Evidence Based Human Resource

Management Managing ethics.


New Human Resource Managers

They are more involved in big picture issue.

Example : Wiscosin based Signicast corp’s president Terry Lutz and his board decided to build a new computerized plant.New automation of plant demanded new employees.HRM dept evolved to select train and organize tech friendly employees


New HRM

New ways to provide transactional services

They outsource more of their services to outside vendors.

They use latest technologies (internet based websites) to enable employees to self administer benefit plans.

Employees of Dell set up call centers to solve HR related enquiries


New HRM

They have new proficiencies. They require broader business

knowledge HR managers need to be familiar with

strategic planning,marketing,finance and production.


HR’s evolving role

Protector and Screener

Strategic Partner

Change Agent


HR’s evolving role as strategic partner

HR operations

Corporate strategy

Corporate strategy

HR programsCorporate strategy

HR programs

Corporate strategy

HR operations

Corporate strategy

HR programs

FedEx

http://www.fedex.com/us

http://www.fedex.com/us


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.


Strategic Management

The set of managerial decisions and actions that determines

the long-run performance of an organization.


Instructor presentation questions: [email protected]

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

Today’s HR managers fulfill two basic strategic planning roles: strategy execution and strategy formulationStrategy 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: 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

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



HR Scorecard ApproachExample (Paris Hotel)

1. 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”

2. 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.




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




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

© 2003 Prentice Hall, Inc. 1-1 Course Outline Managing Human Resources.

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Transcript of © 2003 Prentice Hall, Inc. 1-1 Course Outline Managing Human Resources.