INTRODUCTION TO HRMstudent.bms.lk/CBM/Slides/32/HRM/1 Introduction To HRM.pdf · Sophisticated...

Lecture 1

INTRODUCTION TO HRM

Certificate In Business ManagementModule 402

CBM Topic Overview

1. Introduction To HRM

2. Recruitment & Selection

Lecture Overview• What Is HRM

• Evolution of HRM

• HRMs Contributing Role

• HRM Functions

• Factors Influencing HRM

What is Human Resource Management

Definition, Key Concepts

Definition▷ Human resource management is designing

management systems to ensure that human talent isused effectively and efficiently to accomplish organizational goals

-Mathis

▷ Human resource management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns

-Dessler

Definition▷ Human resource management can be defined as a

strategic, integrated and coherent approach to the employment, development and well-being of the people working in organizations

-Armstrong

▷ HRM are the policies, practices, and systems that influence employees’ behavior, attitudes, and performance

-Raymond Noe

Definition▷ Design and application of formal systems in an

organization to ensure the effective and efficient use of human talent to accomplish organizational goals.

▷ Activities undertaken to attract, develop, and maintain an effective workforce within an organization

-CBM Notes

Common Elements

Management SystemPolicies, procedures, recruiting, training, compensation, labor relations, health, safety

StrategicOrganizational goals, integrated

PerformanceEfficiency, effectiveness, behaviour, attitude

Sugar Bakery

By: Jane

Class DiscussionWhat would happen to Sugar Bakery if Jane, kept on expanding the business but didn’t hire an HR person, or implement HR program?

Sugar Bakery

By: Jane

Hire

Train

Hire Train

Policies

Policies

Problems

Employee Relations

Strategy

StrategyCompensation Rewards

Job Analysis

Key Idea # 1

HR is not a person or department

It is system-a set of activities, policies, procedures designed to help an organization achieve its objectives

Herb Kelleher, Chairman & CEO South West Airlines

Our competitors can buy all the physical things, copy our strategy, our routes. But they cannot buy or imitate the dedication, devotion, loyalty and spirit of our people. That is the most powerful thing of all, people are our core reason for success

At Virgin, clients do not come first. Employees come first! If you take care of your employees they will take care of the customers

Richard Branson

The Starbucks EffectPeople and service constitute Starbucks’s competitive advantage

““If you look at our semiconductors

and melt them down for silicon, that’s a tiny fraction of the costs.

The rest is intellect and mistakes.”

Gordon Moore

Key Idea # 2

Technology, marketing, product can imitable by competitors

At the end a company’s competitive advantage is having innovative employees who can constantly come up with better products/services




• HRM Functions


Evolution Of HRM The Emergence & Development of the HRM Discipline

Before Industrial Revolution Agro based economies

Before Industrial RevolutionCraftsmen producing goods in villages, cottage type industry

Evolution of HRM Before Industrial Revolution

▷ Organized HRM or any similar activity non existent

▷ Businesses typically built around master craftsmen, apprentices, family/community members, slaves

▷ Farmers, craftsmen, government personnel would do recruiting, training, motivating

Industrial Revolution 1750-1850Conversion of economy from agro to industry based, factories with long working hours, poor condition

Evolution of HRM Industrial Revolution

▷ Welfare department was set up to look into workers wages, welfare, factory safety, washroom, meal facility

▷ To manage new initiatives designed to make life less harsh for their employees

▷ Deal with labor union; began in 1790

Post Industrial Revolution 1850-1950Study of work- Frederick Taylor, Hawthorne Studies, McGregor; World War 1, 2

Evolution of HRM Post Industrial Revolution

▷ Personnel manager-from welfare towards other organizational objectives

▷ Took over responsibilities from supervisors in the areas of staffing, training, payroll, benefits

▷ Objective- ensuring satisfied employees, avoiding disputes with management

Evolution of HRM Until The 1980’s

▷ Most people employed by organizations were required simply to provide manual labor

▷ Little skill, experience or intelligence; training was cheap, payment methods unsophisticated

▷ Finding people to do the work was rarely a problem; fewer restrictions when it came to firing

Economic Liberalization Era 1980+Corporatization, overseas expansion, growth of businesses, computers at workplace

Evolution of HRM Economic Liberalization Era

▷ HRM- integration with management of the company; instead of acting on behalf

▷ Demand for higher-level skills had grown; need for professional and managerial jobs

▷ Harder to find right individuals; growing competition for talent

Evolution of HRM Economic Liberalization Era

▷ Legislation tougher; process changes for international expansion

▷ Sophisticated approaches to recruitment, selection, retention, employee relations and performance management

▷ Led to the evolution of a more complex human resource management function

Digital, Social Media EraE-Commerce, Social Media, Technology, Globalization, Intense Competition, Millennials

Evolution of HRM Digital, Social Media Era

▷ HRM shifting from administrative role to strategic

▷ Technology facilitating administrative processes and functions of HRM

▷ Technology, social media changing how employers recruit, select, train, appraise, and motivate employees; data/analytics based HRM

Evolution of HRM Digital, Social Media Era

▷ Knowledge workers-develop human capital

▷ Changing workforce, circumstances-globalization, millennials, flexibility

▷ Management of jobs to management of people-improving employee engagement

▷ Focus on employees as internal customers

Evolution of HRM

Source: HR Dictionary

Personnel Management▷ More traditional approach to managing people

▷ Essentially workforce centered; direct efforts to satisfy organization's employees

▷ Finding , training them, compensation, administration, welfare, labor relations

▷ Explaining management’s expectations, justifying management’s actions

Personnel Management▷ Modify management action that could produce

an unwelcome employee response

▷ Primary focus-achieving efficiency, justice in managing people, ensuring satisfied employees, avoiding disputes

▷ Effectiveness judged according to ability to avoid industrial disputes, prevent accidents, and fill vacancies

Personnel Management▷ Considered administrative function

▷ Not totally identified with management interests

▷ Always some degree of being in between management and the employees

▷ Mediating the needs of each to the other

Human Resource Management

▷ Modern way of managing people

▷ Aligned with strategy of organization; directed mainly at management needs

▷ Greater emphasis on planning, monitoring and control, rather than mediation

▷ Problem solving undertaken with other members of management rather than directly with employees or their representatives

Human Resource Management

▷ Relatively distant from the workforce as a whole

▷ Perceives people as asset & human capital , recognizes them as value creators, manages individually not collectively

▷ People can develop a sustainable competitive advantage

▷ Delivered in collaboration with line managers

Key Idea # 3

We are in the era of Human Capital management

There is intense competition for the best talent; human capital may be company’s defining asset

The head of human resources of a company should be at least as important as a CFO

Jack Welch

6




• HRM Functions


HRM’s Contributing RoleImpact in Organizations

HRM’s Contributing Role▷ Support organizations in achieving its objectives

▷ Developing, implementing HRM strategies that are integrated with business strategy

▷ Contribute to the development of a high-performance culture

▷ Ensure that the organization has the talented, skilled and engaged people it needs

HRM’s Contributing Role▷ Create a positive employment relationship

between management and employees and a climate of mutual trust

▷ Encourage the application of an ethical approach to people management

HRM’s Contributing Role

Negative Perceptions▷ Bureaucratic and administrative focused

▷ Too detail oriented

▷ Too costly

▷ Does not understand the main business

▷ HR managers seen more concerned about activities than results, and hard to link HR efforts to employee, managerial, and business performance organizational metrics

3

Key Idea # 4

HR needs to shift to strategic aspects of managing people; assist company achieve its business objectives

Role has to shift from operational/administrational




• HRM Functions


HRM FunctionsRole of HRM Function In An Organization

Responsibilities Of HR Department- Raymond Noe

HRM Function▷ All managers are human resource managers- they

are involved recruiting, interviewing, selecting, training

Manager

Line Manager Staff Manager

A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks-production and sales

A manager who assists and advises line managers. Human resource managers are staff managers. They assist and advise line managers in areas like recruiting, hiring, and compensation

HRM Function▷ All supervisors spend much of their time on

personnel-type tasks

▷ Direct handling of people integral part of every line manager’s responsibility, from president to first-line supervisor

▷ Small organizations-line managers may carry out all personnel duties unassisted

▷ As organization grows, line managers need assistance, specialized knowledge, advice of HR

Key Idea # 5

All managers are HR managers

HR role and activities will need to be played by line managers, with HR department playing facilitation role

Distributed HR

All managers thus must understand HRM

HRM Function

Organizational Chart Of Smaller Company

HRM Function

Organizational Chart Of HR Department in Large Company

HRM Function

Organizational Chart Shared Services




• HRM Functions


Factors Influencing HRMTrends influencing human resource management

Factors Influencing HRM

Organizational Cost Pressures

▷ Containing costs while retaining top talent and maximizing productivity

▷ Mergers & Acquisitions

▷ Downsizing & Layoffs

▷ Outsourcing, Offshoring, Productivity Enhancements


Workforce Demographics & Diversity

▷ Millennials Vs Generation X Vs Baby Boomers

▷ Racial and ethnic diversity

▷ Women in workforce

▷ Aging workforce

https://populationpyramid.net/sri-lanka/2050/


Economics & Job Changes

▷ Occupational shifts

▷ Service industry growth

▷ Contingent workforce/Flexibility

▷ Changing attitude towards work

▷ Work life balance


Economics & Job Changes

▷ Imbalanced labor force

▷ Migration

▷ Employee rights, rigid regulations, privacy concerns


Globalization of Organizations

▷ Expatriates

▷ Global economic factors

▷ Global legal factors

▷ Ethics

Factors Influencing HRMHR Technology

▷ HRMIS, Cloud Computing

Real time information on the go

Reduces administrational actions;

Data analytics

▷ Social Media

▷ Flexi Time

INTRODUCTION TO HRMstudent.bms.lk/CBM/Slides/32/HRM/1 Introduction To HRM.pdf · Sophisticated...

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