HRM PROCESS MODEL FIGEN CAKAR, B.Sc., MSc SUPERVISOR Dr.UMIT S. BITITCI JANUARY 2001 JANUARY 2001.

HRM PROCESS MODELHRM PROCESS MODEL

FIGEN CAKAR, B.Sc., MScSUPERVISOR Dr.UMIT S. BITITCI

JANUARY 2001JANUARY 2001

CONTENTSCONTENTS•Research AimResearch Aim

•BackgroundBackground

•HRM Models from the literature reviewHRM Models from the literature review

•Specific Research ObjectiveSpecific Research Objective

•From study of HR LiteratureFrom study of HR Literature

•Model DevelopmentModel Development

•HRM Business Process Model HRM Business Process Model

•1st Version of HRM Business Process Model1st Version of HRM Business Process Model

•2nd Version of HRM Business Process Model2nd Version of HRM Business Process Model

•HRM Business Process Model on IDEF0HRM Business Process Model on IDEF0

•Comparison of The ModelsComparison of The Models

•Investor In People Standard Investor In People Standard

•ContributionContribution

•Future WorkFuture Work

AIMAIM

To study Human Resource Management (HRM) as a business process in the

manufacturing environment.

Background EFQM EXCELLENCE MODEL

Conclusion HR are key assets to the business. HR have a significant impact on

the business results. Therefore there is a need to understand HRM as a business process

Cultural forcesEconomic

forces

Political forces

Organisation structure

Mission and Strategy

Human resource

management

Michigan Model of HRMMichigan Model of HRMStrategic management and environmental pressures

HR LITERATURE

Michigan Model of HRM

PerformanceSelection Appraisal

Rewards

Development

The human resource cycle

HR LITERATURE

Harvard Model of HRMHarvard Model of HRM

Employee Employee influenceinfluence

Work system

Human resource flow Rewards

Human Resource System

HR LITERATURE

Harvard Model of HRMHarvard Model of HRMA map of the HRM territory

Stakeholder Interest

StakeholdersManagement

Employee groupsGovernmentCommunity

UnionsHRM Policy

ChoicesEmployee Influence

Human resource flowReward systemsWork systems

Situational Factors

Work forcecharacteristics

Business strategy and conditionsManagement

philosophyLabour market

UnionsTask technology

Laws and societal values

Long-term Consequences

Individual well-being

Organisational effectiveness

Societal well-being

HR OutcomesCommitmentCompetenceCongruence

Cost-effectiveness

HR LITERATURE

Guest’s Model of HRMPolicies Human resource outcomes Organisational outcomes

Organisational and job design High job performancePolicy formulation and Strategic planning / High problem - solvingimplementation/management implementationof change

Recruitment, selection and Commitment Successful changesocialisation

Appraisal, training and Flexibility / adaptability Low turnoverdevelopment

Manpower flows - through, up Low absenceand out of the organisation

Reward systems Quality Low grievance level

Communication systems High cost - effectiveness i.e. full utilisation of human

resources

HR LITERATURE

Warwick Model of HRM

Inner context

Socio-economicTechnologicalPolitical-legalCompetitive

CultureStructurePolitics/leadershipTask-technologyBusiness outputs

ObjectivesProduct-marketStrategy & tactics

RoleDefinitionOrganisationHR outputs

HR flowsWork systemsReward systemsEmployee relations

Business strategy content

HRM context

HRM context

HR LITERATURE

HRMHRM LITERATURELITERATURE

According to Legge we can identify 4 HRM models, namely :

•Normative Model

•Descriptive-functional

•Critical-evaluative

•Descriptive-behavioral

Tyson has identified 3 HRM Models

•Descriptive Model

•Analytical Model

•Normative model

Storey has also identified 3 HRM models

•Conceptual Model

•Descriptive Model

•Prescriptive or Normative Model

HRM MODELS GENERIC CLASSIFICATION

SPECIFIC RESEARCH OBJECTIVE

To use systems engineering approach to develop and test a business process

model for HRM to clarify this confusion.

HARD AND SOFT SYSTEM APPROACH TO HRMHARD AND SOFT SYSTEM APPROACH TO HRM

“Hard” HRM emphasises the quantitative, calculative and business-strategy aspects of managing the headcounts resource in as “rational” a way as for any other economic factor.”

“Soft” HRM traces its roots to the human relations school and emphasises communication, motivation and leadership.” (Story , London, 1989)

FROM STUDY OF HR LITERATURE

Model DevelopmentModel Development

Developed v1 of the Business Process model for HRM from literature

Validated the model through consultation with:• 14 industrialists - HR specialist / function• 8 HRM academics

Through structured questionnaires

Feed back from the consultation was used to develop v2 of the model.

1ST VERSION OF HRM PROCESS MODEL”1ST VERSION OF HRM PROCESS MODEL”

Monitor Impact on Business Strategy


Monitor Impact onPeople Satisfaction


Monitor Impact onManage Processes


Monitor Impact onOperate Processes


Monitor Impact onSupport Processes


SetObjective

SetObjective

Establish CurrentCapabilities


PlanPlan

NegotiateBudget

NegotiateBudget

Control HR Inc.Planning,

Monitor,Utilization


Monitor,Utilization

RecruitAssessSelect

RecruitAssessSelect

TrainEducateDevelop

TrainEducateDevelop

Manage HR Performance

Inc.review,appraisal



ManageRedeployment

ManageRedeployment

contains

contains

c o n t a i n s

IMPLEMENT HRM STRATEGY


MONITOR IMPACT ON BUSINESS

RESULT


RESULT

MAKE HRM STRATEGY

MAKE HRM STRATEGY

Figen Cakar, Center for Strategic Manufacturing, 1998

SUB-PROCESSES

ACTIVITIES

2ND VERSION OF HRM PROCESS MODEL”








RESULT

MAKE HRM STRATEGY

contains

contains

c o n t a i n s

SUB-PROCESSES

ACTIVITIES



Monitor,Utilization

RecruitAssessSelect

TrainEducateDevelop



ManageRedeployment

SetObjective


Plan

NegotiateBudget

Set HR Policies Negotiations for Working Condition

HRM PROCESS

A0

Business Strategy Objectives, Vision, Mission

HR Philosophy GovermentLegislation

Resource Avaliableto the Company

Resources (Human, Finance, IT etc.)

BusinessEnvironment

People Satisfaction Objectives (Target etc.)

Feedback

Business Process Satisfaction

Business Performance

1

2

3

MAKEHRMSTRATEGY

IMPLEMENTHRMSTRATEGY

MONITORIMPACT ONBUSINESSRESULTS

I1Business Strategy Objectives, Vision, Mission

C1

HR Philosophy

C2

GovermentLegislation

C4


M1


HR Policies

HRM Strategy (Approved)

Implemented HRM Strategy

C3

BusinessEnvironment

Stakeholder SatisfactionBusiness Objectives

Culture

I2People Satisfaction Objectives (Target etc.)

I3Feedback

O1


Practice

I4Business Performance

SetObjectives

1

Establish Current

Capabilities2

Plan

3

Negotiate Budget

4

Set HR Policies

5

C1

HR Philosophy

O1HR Policies

C2


C4


HRM Strategy (Draft)

Requirements of Business and Business Processes

HR Objectives

Input fromTeam Leader, ManagerReview, appraisal or interview

C3

BusinessEnvironment

Gaps

Negotiations


I2Feedback

O2



M1


Control HRM

A21

AssessSelect

RecruitA22

Train Educate Develop

A23


A24

Manage Redeployment

A25

Negotiations for Working Condition

A26

C1

HR Policies

O1


HR Plan

Business Strategy

Selected People

Trainnig needs

Immediate tranning needsfrom business processes(e.g. New technology)

Appraisal and Reviews

Feedback from the process

Developed People

HR Performance Result

Redeployment

Feedback to policy on Working Condition

(Terms and Conditions effect)

(Redeployment)

(Training and Development)

Aggreed

Terms and Conditions

I1

HRM Strategy (Approved) C2

HR Philosophy

C3


C4

Practice

M1




A31

Monitor Impact on

People Satisfaction

A32

Monitor Impact on Manage

ProcessesA33

Monitor Impact on Operate

ProcessesA34

Monitor Impact on Support

ProcessesA35

I1


O1Stakeholder SatisfactionI2

Business Objectives

HRM Strategy

C1

Culture

C3

BusinessEnvironmentCompetitors

C2


C4


Efficient Business Performance

Effective Business Strategy

Shareholder Satisfaction

Policy on Working Condition

Compansation Policy

Questionnaire

Satisfied People

Performance Improvement

Process Policies

Uncertainties

Performance Measurement

Effective Processes

Reduced Uncertainties

Effectives Business Strategy

Process Satisfaction


Information from External & Internal Environment

Customer Requirement

Business Strategy

Customer Inquiry

Market Analysis Feedback

Risk Management

Product & Service Development

Customer Satisfaction

Compatitive Advantage

Current Resources & Situations

Improved Process Performance


M1



HRM PROCESS MODEL ON IDEF0

HRM PROCESS

A0





BusinessEnvironment


Feedback



1

2

3

MAKEHRMSTRATEGY




C1

HR Philosophy

C2


C4


M1


HR Policies



C3

BusinessEnvironment


Culture


I3Feedback

O1


Practice


SetObjectives

1

Establish Current

Capabilities2

Plan

3

Negotiate Budget

4

Set HR Policies

5

C1

HR Philosophy

O1HR Policies

C2


C4




HR Objectives


C3

BusinessEnvironment

Gaps

Negotiations


I2Feedback

O2



M1


Control HRM

A21

AssessSelect

RecruitA22


A23


A24

Manage Redeployment

A25


A26

C1

HR Policies

O1


HR Plan

Business Strategy

Selected People

Trainnig needs




Developed People


Redeployment



(Redeployment)


Aggreed


I1


HR Philosophy

C3


C4

Practice

M1




A31

Monitor Impact on

People Satisfaction

A32


ProcessesA33


ProcessesA34


ProcessesA35

I1



Business Objectives

HRM Strategy

C1

Culture

C3


C2


C4






Compansation Policy

Questionnaire

Satisfied People


Process Policies

Uncertainties


Effective Processes







Business Strategy

Customer Inquiry


Risk Management







M1




HRM PROCESS

A0





BusinessEnvironment


Feedback



HRM PROCESS

A0





BusinessEnvironment


Feedback



1

2

3

MAKEHRMSTRATEGY




C1

HR Philosophy

C2


C4


M1


HR Policies



C3

BusinessEnvironment


Culture


I3Feedback

O1


Practice


SetObjectives

1

Establish Current

Capabilities2

Plan

3

Negotiate Budget

4

Set HR Policies

5

C1

HR Philosophy

O1HR Policies

C2


C4




HR Objectives


C3

BusinessEnvironment

Gaps

Negotiations


I2Feedback

O2



M1


Control HRM

A21

AssessSelect

RecruitA22


A23


A24

Manage Redeployment

A25


A26

C1

HR Policies

O1


HR Plan

Business Strategy

Selected People

Trainnig needs




Developed People


Redeployment



(Redeployment)


Aggreed


I1


HR Philosophy

C3


C4

Practice

M1




A31

Monitor Impact on

People Satisfaction

A32


ProcessesA33


ProcessesA34


ProcessesA35

I1



Business Objectives

HRM Strategy

C1

Culture

C3


C2


C4






Compansation Policy

Questionnaire

Satisfied People


Process Policies

Uncertainties


Effective Processes







Business Strategy

Customer Inquiry


Risk Management







M1




1

2

3

MAKEHRMSTRATEGY




C1

HR Philosophy

C2


C4


M1


HR Policies



C3

BusinessEnvironment


Culture


I3Feedback

O1


Practice


HRM PROCESS

A0





BusinessEnvironment


Feedback



1

2

3

MAKEHRMSTRATEGY




C1

HR Philosophy

C2


C4


M1


HR Policies



C3

BusinessEnvironment


Culture


I3Feedback

O1


Practice


SetObjectives

1

Establish Current

Capabilities2

Plan

3

Negotiate Budget

4

Set HR Policies

5

C1

HR Philosophy

O1HR Policies

C2


C4




HR Objectives


C3

BusinessEnvironment

Gaps

Negotiations


I2Feedback

O2



M1


Control HRM

A21

AssessSelect

RecruitA22


A23


A24

Manage Redeployment

A25


A26

C1

HR Policies

O1


HR Plan

Business Strategy

Selected People

Trainnig needs




Developed People


Redeployment



(Redeployment)


Aggreed


I1


HR Philosophy

C3


C4

Practice

M1




A31

Monitor Impact on

People Satisfaction

A32


ProcessesA33


ProcessesA34


ProcessesA35

I1



Business Objectives

HRM Strategy

C1

Culture

C3


C2


C4






Compansation Policy

Questionnaire

Satisfied People


Process Policies

Uncertainties


Effective Processes







Business Strategy

Customer Inquiry


Risk Management







M1




SetObjectives

1

Establish Current

Capabilities2

Plan

3

Negotiate Budget

4

Set HR Policies

5

C1

HR Philosophy

O1HR Policies

C2


C4




HR Objectives


C3

BusinessEnvironment

Gaps

Negotiations


I2Feedback

O2



M1


HRM PROCESS

A0





BusinessEnvironment


Feedback



1

2

3

MAKEHRMSTRATEGY




C1

HR Philosophy

C2


C4


M1


HR Policies



C3

BusinessEnvironment


Culture


I3Feedback

O1


Practice


SetObjectives

1

Establish Current

Capabilities2

Plan

3

Negotiate Budget

4

Set HR Policies

5

C1

HR Philosophy

O1HR Policies

C2


C4




HR Objectives


C3

BusinessEnvironment

Gaps

Negotiations


I2Feedback

O2



M1


Control HRM

A21

AssessSelect

RecruitA22


A23


A24

Manage Redeployment

A25


A26

C1

HR Policies

O1


HR Plan

Business Strategy

Selected People

Trainnig needs




Developed People


Redeployment



(Redeployment)


Aggreed


I1


HR Philosophy

C3


C4

Practice

M1




A31

Monitor Impact on

People Satisfaction

A32


ProcessesA33


ProcessesA34


ProcessesA35

I1



Business Objectives

HRM Strategy

C1

Culture

C3


C2


C4






Compansation Policy

Questionnaire

Satisfied People


Process Policies

Uncertainties


Effective Processes







Business Strategy

Customer Inquiry


Risk Management







M1




Control HRM

A21

AssessSelect Recruit

A22


A23


A24

Manage Redeployment

A25


A26

C1

HR Policies

O1


HR Plan

Business Strategy

Selected People

Trainnig needs




Developed People


Redeployment



(Redeployment)


Aggreed


I1


HR Philosophy

C3


C4

Practice

M1



HRM PROCESS

A0





BusinessEnvironment


Feedback



1

2

3

MAKEHRMSTRATEGY




C1

HR Philosophy

C2


C4


M1


HR Policies



C3

BusinessEnvironment


Culture


I3Feedback

O1


Practice


SetObjectives

1

Establish Current

Capabilities2

Plan

3

Negotiate Budget

4

Set HR Policies

5

C1

HR Philosophy

O1HR Policies

C2


C4




HR Objectives


C3

BusinessEnvironment

Gaps

Negotiations


I2Feedback

O2



M1


Control HRM

A21

AssessSelect

RecruitA22


A23


A24

Manage Redeployment

A25


A26

C1

HR Policies

O1


HR Plan

Business Strategy

Selected People

Trainnig needs




Developed People


Redeployment



(Redeployment)


Aggreed


I1


HR Philosophy

C3


C4

Practice

M1




A31

Monitor Impact on

People Satisfaction

A32


ProcessesA33


ProcessesA34


ProcessesA35

I1



Business Objectives

HRM Strategy

C1

Culture

C3


C2


C4






Compansation Policy

Questionnaire

Satisfied People


Process Policies

Uncertainties


Effective Processes







Business Strategy

Customer Inquiry


Risk Management







M1





A31

Monitor Impact on

People Satisfaction

A32


ProcessesA33


ProcessesA34


ProcessesA35

I1



Business Objectives

HRM Strategy

C1

Culture

C3


C2


C4






Compansation Policy

Questionnaire

Satisfied People


Process Policies

Uncertainties


Effective Processes







Business Strategy

Customer Inquiry


Risk Management







M1



Michigan ModelMichigan Model•Hard HRM

•Focus on individual and organisational Performance

•Based on strategic control, organisational structure systems for managing people

•Concentrates on managing human assets to achieve strategic goals

•Normative

•Output focus

•not clear

Harvard ModelHarvard Model •Soft HRM

•Focus on people

•Based on Individual influence, Work system, Rewards, Human resource flow

•Concentrates on outcomes for people

•Analytical & Normative

•Output focus

•not clear

HRM Business Process ModelHRM Business Process Model•Hard

•Focus on Business process and results

•Based on developing business objectives to the HRM process and monitoring business results

•Concentrates on business processes and outcomes for business

•Normative

•Process focus

•Systems engineering approach

COMPARISON OF THE MODELS

“The Investor in People Standard

The organisation is committed to supporting the development of its people

PRINCIPLES

INDICATORS


People are encouraged to improve their ownand other people’sperformance

contains

contains

c o n t a i n s

PLANNING ACTIONCOMMITMENT

EVALUATION

contains

People believe their contribution to theorganisation is recognised

The organisation is committed to ensuring equality of opportunity in the development of its people

The organisation has a plan with clear aims and objectives which are understood by everyone

The development of people is in line with the organisation’s aims and objectives

People understand how they contribute to achieving the organisation’s aims and objectives

Managers are effective in supporting the development ofpeople

People learn anddevelop effectively

The development of people improves the performance of the organisation, teams and individuals

People understand the impact of the development of people on the performance of theorganisation, teamsand individuals

2ND VERSION OF HRM PROCESS MODEL”








RESULT

MAKE HRM STRATEGY

contains

contains

c o n t a i n s

SUB-PROCESSES

ACTIVITIES



Monitor,Utilization

RecruitAssessSelect

Train, Educate, DevelopIIP - Comprehensive


IIP_Some coverage

ManageRedeployment

IIP-Limited coverage

SetObjective


PlanIIP _Some coverage

NegotiateBudget

Set HR Policies Negotiations for Working Condition

ContributionContribution

•Clarify Confusion

•Introduce system thinking approach in to the field

•Introduce HRM as a Business Process

•A generic Business Process model for HRM

•Lessons learned the validation and testing

FUTURE WORKFUTURE WORK

• Finalise detailed processFinalise detailed process • Finalise audit workbookFinalise audit workbook

• Test with collaboration companiesTest with collaboration companies

• Analyse test results and learn from Analyse test results and learn from experience experience

HRM PROCESS MODEL FIGEN CAKAR, B.Sc., MSc SUPERVISOR Dr.UMIT S. BITITCI JANUARY 2001 JANUARY 2001.

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Transcript of HRM PROCESS MODEL FIGEN CAKAR, B.Sc., MSc SUPERVISOR Dr.UMIT S. BITITCI JANUARY 2001 JANUARY 2001.