33556104 Strategic Human Resource Manangement

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    Queen Margaret University, EdinburghB.A. International Hospitality Management

    Institute For Technology and Management- Instituteof Hotel Management and Catering Technology.

    Navi Mumbai

    STRATEGIC HUMAN RESOURCE MANAGEMENT

    Though people are recognized as most valuable resourcethere is seldom a matching long term strategy of humanresource management (and asset formation) atorganizational level

    2008

    Module no: - B 3106

    Module Coordinator: - Prof Arpita.R.Pandey

    Module Teacher Team: - Prof Daisy Narendra, Prof Mona Sinha

    Name: - KULDEEP SINGH NEGIMatriculation no.: - 08006553

    Word count: - 2000

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    A company is known by the people it keeps : - Unknown . The organization is form by its

    people and as a result, the success and failure of organisation is affect if the people

    working there are affected. In customer driven service sector organisation its a challenge

    to manage people or employee. Such service driven organisation tends to take a long-term view of managing their employee than only focussing upon the regular operational

    of monitoring their workers. There is an emphasis on human resource planning and

    integration between the management of people resources and corporate business

    strategies are emphasised in strategic human resource management (SHRM). Caring for

    customer and delivery of high quality services to customers and clients are additional

    dimensions of managing all resources strategically in excellent organisations. Definition

    SHRM is the explicit management, planning, integration, leadership of resources and

    assets (welsh 2008). Obvious this means People like Employees, managers,

    supervisors, colleagues and other stakeholders in the organisation. Culture which means

    The management of values, attitudes, behaviour, meanings actors in the organisation (the

    people) bring to the social world that is their work e.g. in a hotel/supermarket/hospital.

    Performance = the management of standards, output, productivity, quality, and service.

    Learning = the management of training, staff development, flexibility, the establishment

    of continuous learning within service organizations. Outcomes the attainment of high

    value added services, customer satisfaction, profitability, market niches, new products

    and integration of operations with the business strategy of the organisation. Marketing is

    of course strongly link with this corporate objective (welsh 2008).

    Assets or Resources An organizations employees are its human capital , a term more

    useful than human resources because it allows us to consider employees as assets rather

    than as resources that are to be consumed. One might think of it as simply

    interchangeable with the concept Human Resources. The differences in the concepts arekey to understanding how Human Capital might be able to help improve understanding

    and integration of employee issues in strategic planning (Batten 1999).

    The Human Capital view of people is based more on an economic perspective. Human

    Capital views people as a valuable asset rather than merely as a cost. Assets are those

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    things that bring long term value to an organization. When viewed this way, it is easy to

    think of people and/or what they accomplish as adding long term value to an

    organization. Only when the right employees are on board and are provided the training,

    tools, structures, incentives, and accountability to work effectively is organizational

    success possible. (GAO, 1999, page 102.)

    One would not equate people with more classic assets such as facilities, property or

    financial capital. However, this concept makes it easier to see the need to invest in and

    develop people as an asset, much as we invest in other types of assets. It is easier to

    understand why it is important to invest resources to obtain and keep the right people in

    the right jobs, and to develop them through appropriate training and recognition.

    Human Capital is not a cost to be minimized, but a strategic asset to be enhanced.

    (GAO, 1999, page 102) Human Capital is subject to intangible factors such as leadership

    and work environment. People also have a great capacity for a constant influx of energy,

    are flexible, and are adaptive to change. The most important point to remember is the

    human part of human capital . People respond as whole individuals; organizations need

    to consider the whole individual in managing their human capital.

    We must also keep in mind that it is not what we spend on employees that make them an

    asset. Rather, it is what value they bring to the organization. Increasing our investment in

    them in appropriate ways will increase their value to the organization. It is not as easy as

    making everyone happy, in the hopes of getting better mission accomplishment. Though

    clearly employees who feel valued will likely accomplish more (Batten 1999).

    Effective management of human resources is necessarily strategic. One cannot hope to

    continue to accomplish the work without having some future view of who might be

    leaving and when, what skills might be needed and why, and some idea of the current

    impact of the local economy and employment trends. We need to remember that effective

    management of human resources must be, and is, conducted in large part by line

    managers. Some good managers out there are making the strategic link between mission

    and people (Batten 1999).

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    Flexible working hours Why is there a need for work-life balance and flexible working?

    The hours and times people work have always been subject to change but the pace of this

    change is now more rapid than ever because: Customers expect to have goods and

    services available outside traditional working hours Organizations want to match their

    business needs with the way their employees work Individuals want to achieve a better balance between work and home life.

    Matching customer and business needs Organizations are under constant pressure to

    produce goods and services, of the right quality and the right price, as and when

    customers want them. This pressure can often mean that new ways of working have to be

    found to make the best use of staff and other resources. Flexible patterns of work can

    help you to address these pressures by maximizing the available labour and improving

    customer service. Flexible working can also help you to reduce absenteeism and increase

    productivity, employee commitment and loyalty. What is flexible working? There are

    many different forms of flexible working. Flexible working can describe the place we

    work such as home working or the kind of contract we are on such as a temporary

    contract. Common kinds of flexible working include part-time working, flexi time, job

    sharing and shift-working.

    Ways of working Annualized hours describes working time organized on the basis of

    the number of hours to be worked over a year rather than a week; it is usually used to fit

    in with peaks and trough of work. Pay will depend on the hours worked each pay period.

    Compressed hours allow individuals to work their total number of agreed hours over a

    shorter period. For example, employees might work their full weekly hours over four

    rather than five days. They would be paid for a full-time job but would not receive

    overtime payments for the agreed extra hours they work in any one day. Flexi time

    gives employees choice about their actual working hours, usually outside certain agreedcore times. Individuals are paid for the hours that they work. Home working doesnt

    have to be on a full-time basis and it may suit an employee to divide their time between

    home and office. What individuals are paid for depends on the hours they work.

    Employers are required to carry out a risk assessment of the activities undertaken by

    home workers, identifying any hazards and deciding whether enough steps have been

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    taken to prevent harm to them or anyone else who may be affected by their work. Further

    details are available from the Health and Safety Executive (www.hse.gov.uk). Job-

    sharing typically involves two people employed on a part-time basis, but working

    together to cover a full-time post. Both receive pay for the hours they work. Shift

    working gives employers the scope to have their business open for longer periods than an

    eight-hour day. Agreed flexible working arrangements may mean that a shift premium isnot needed. Staggered hours allow employees to start and finish their day at different

    times. This is often useful in the retail sector, for example, where it is important to have a

    greater number of staff over the lunch period but less at the start and end of each day. Pay

    will depend on hours worked in total rather than the time at which they are worked.

    Term-time working allows employees to take unpaid leave of absence during the school

    holidays.

    Flexible working opportunities benefit everyone: employers, employees and their

    families. Many employers know that it makes good business sense to provide flexible

    working opportunities for their staff. Employers should know flexible working

    arrangements enable them: to retain skilled staff and reduce recruitment costs; to raise

    their staff morale and decrease absenteeism; it helps reduction in worker stress and

    improvements in employee satisfaction and loyalty; it gives greater flexibility for

    business operating hours, it help to react to changing market conditions more effectively

    improved productivity; and improved corporate image, becoming an employer of

    choice. Employers are open to considering requests to work an alternative working

    pattern and may have an established procedure for handling requests. For individuals, the

    opportunity to work flexibly can greatly improve their ability to balance home and work

    responsibilities.

    Employee empowerment in practice Empowerment of (customer-contact) employees in

    Hospitality defined as: The notion of devolving decision-making authority and responsibility to frontline employees for control and enhancement of service quality and

    customer satisfaction. National Culture defined as: The collective programming of the

    mind which distinguishes the members of one group or category of people from another

    (Hofstede, 1991). In a competitive environment in which organizations must be faster,

    leaner, provide better service quality, be more efficient, and more profitable, an

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    empowered and proactive service worker is thought to be essential (Melhem, 2004).

    Coincidentally, and perhaps even ironically, employee empowerment worked to the

    benefit of employers as well, energizing their workforces, streamlining their hiring

    processes, and increasing staff productivity to the extent that employees sensed that they

    didnt have to stay in the same dead-end jobs and there was a whole world of opportunity

    open to them (Pogorzelski 2003; Erstad, 1997). Empowerment is often thought to be atechnique capable of generating improvements in worker morale by offering them greater

    control over what happens at work (Spector, 1986). Organizations may attempt to

    empower employees as part of a quality initiative in the hope that, among other things,

    levels of satisfaction will improve and absenteeism and turnover will decline.

    Developing Entrepreneurial Staff There are two phases in developing an

    entrepreneurial workplace. Phase I creates the environment necessary to support and

    encourage it. Phase II is building your staff's entrepreneurial skills. Empowerment

    through Coaching The new breed of leaders recognizes that in today's complex business

    environment autocracy no longer works; yet the empowerment alone is not enough.

    Coaching aims to enhance the learning ability and performance of others. "It involves

    providing feedback, but also uses other techniques such as motivation, effective

    questioning and consciously matching your management style to the coachee's readiness

    to undertake a particular task. It is based on helping the coachee to help her/himself

    through interacting dynamically with her/him - it does not rely on a one-way flow of telling and instructing.".

    Employee Ownership of Quality Quality is not something that management can

    mandate or dictate. To gain employee commitment to the quality process, your

    company's management, control, and reward systems must be modified to give

    employees greater responsibility and opportunity to become quality and customer

    oriented and motivate them to strive for continuous improvement. Give ownership for

    quality to your employees, elicit and listen to their ideas about improvement and

    empower them to make more decisions and perform tasks that are quality related.

    Building and Nurturing Customer Relationship Creating a work environment that

    encourages rapid response to customers' needs and attentive follow-through is the key to

    leveraging the power of the service-profit chain. This is only possible when people are

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    empowered to make decisions and are motivated to solve problems. By encouraging

    employees to go beyond the literal boundaries of their jobs - to make suggestions for

    improvement - you gain not just a part, but the full potential of their contributions to the

    business.

    Benefits of employees empowerment are the Development of interpersonal, analytical,

    and leadership skills. Instilling a quality consciousness among all the employees. High

    quality product. More effective use of resources. More individual job satisfaction

    .Improved two-way communications between employees and their management should

    understand primary aim for the company, obstacles for employee's productivity, sources

    of employee's motivation and knowing the empowerment level of the employees.

    Empowerment is not an impulse, it is a hard long complex process that needs the

    commitment, support and understanding of all parties involved. Both management andemployees share the responsibility for making it work. Being such a hard process,

    empowerment should be introduced gradually in order to be fully integrated into the

    working environment. It should not be viewed as a magical pill that can cure all the

    organizations problems at once, it needs a long fostering period before we can pick its

    fruits.

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    https://learn.qmu.ac.uk/webct/urw/lc9140001.tp0/cobaltMainFrame.dowebct

    http://www.emeraldinsight.com/Insight/viewPDF.jsp?Filename=html/Output/Published/EmeraldFullTextArticle/Pdf/0410110702.pdf

    B3106 STRATEGIC HUMAN RESOURCE MANAGEMENT - B3106 Strategic HumanResource Management (Edinburgh) 2008-9

    Section Instructor: Arthur Ingram , Rita Welsh , Russell Rimmer

    www.acas.org.uk/media/ pdf /i/t/B20_1. pdf

    www.berr.gov.uk/files/file21364. pdf

    www.worklife.govt.nz/consultation/qualityflexiblework/ flexible-work-discussion-document .pdf

    www.opm.gov/programs/shrm/ mtg2rp.pdf