Key HRM Processes-MS2010

8/7/2019 Key HRM Processes-MS2010

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. ,Maria Paz T Castro DBM- ,CEU March 12 2011

Processes Processes Key Human Resource Management


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New Perspectives

Human Resource Management

Trends in the 21st

Century


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Trends in HRM

Multi tasking has become a way of l i fe for many

employees who need to make the most of.every minute

1 Ch ange i n Chang e in Labor LaborForceForce

2 High HighPer fo rmancPe r fo rmanc e Wor k e WorkSys t emsSys t ems

3 F o c u s Focus on onS t r a t egS t r a t egyy

4Te c h n o l o gTe c h n o l o g y C h an g es y C h an ge s 5 Employee EmployeeRe la t i onshRe la t i onsh i p Ch anges i p Chang es


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LABOR FORCECHANGES

Internal labor force contracted people/employees inan organization

External labor market individuals actively seekingemployment

1


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The EU s labor force is expected to shrink by.about 0 2 percent a year between 2000 and. ,2030 By 2030 there will be 110 million people

,over the age of 65 in the EU25 up from 71.million in 2000 This means that as the old

age population grows the working age

. ,population will shrink By 2030 the working age population in the EU25 will stand at 280.million compared to 303 million today The

EU25 would lose an average of one million. ,workers a year By 2050 the over 60 years

population in OECD countries will rise from% %8 to 19 and the number of children will

% .drop by 33 below today s level

:Source http ://. . / /humanscience wikia com wiki Employment_trends_in_the_2

News on Aging Labor Force
http://humanscience.wikia.com/wiki/Employment_trends_in_the_21st_century#Aginghttp://humanscience.wikia.com/wiki/Employment_trends_in_the_21st_century#Aginghttp://humanscience.wikia.com/wiki/Employment_trends_in_the_21st_century#Aginghttp://humanscience.wikia.com/wiki/Employment_trends_in_the_21st_century#Aginghttp://humanscience.wikia.com/wiki/Employment_trends_in_the_21st_century#Aginghttp://humanscience.wikia.com/wiki/Employment_trends_in_the_21st_century#Aginghttp://humanscience.wikia.com/wiki/Employment_trends_in_the_21st_century#Aging


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Composition of labor force will change because of

shif ts in population Change in distribution of

workers by age

Growing youth labor force( - )16 24 Fastest growing age segment

( - )45 64 as baby boom generation ages

Overall work force will be

aging

Aging Work Force


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HR professionals wil l spend much of their t ime on

concerns re la ted to

Retirement planning

Retraining older workers Motivating workers whose careers have plateaued

Control of rising costs of health care and other

benefits , ,Find ways to attract retain

and prepare the youth laborforce

Aging Work Force


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Agin

g

Work

Force

Changing values from one generation to the next when people reach different life stages

R eq ui re c om pa ni es to develop HR

pract ices providing

o pp or tu ni ti es f or Individual

contr ibut ion

Entrepreneurship Flexibil i ty of&work hours

work place

Generation Y-Born 1976 1995

:Career assumption frequently change jobs High value on money and helping others

dless of age l f i l lment ( & , &u s e s k i l l s a b i l i t i e s m e e t i n t e r e s t s l i f e s t y l

=n system fair more committed to their companies ork act ivi t ies and family l i fe


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World Bank Study estimate that 68 million European Union immigrants will be needed to meet

-labor requirements during the period from 2003.2050 This has prompted the EU to adopt a goal of

%raising labor force participation rates to 70 and has spurred efforts to increase the

participation of women which saw some progress. % % .from 50 8 in 1997 to 59 in 2005 The UN ,estimates that Japan would need to admit 647 000

immigrants annually for the next 50 years in order to maintain the size of its working

. , -population at the 2000 level By 2013 labor force.growth in the United States will be zero China

will be short 10 million while India will have a.surplus of 47 million Significant labor shortages will develop in OECD countries unless

immigration policies are dramatically liberalized or large numbers of manufacturing and service

.jobs are shifted overseas

News on Labor ForceShortage


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Greater diversity in the work force challenges employers to create HRM practices that ensure they fully utilize the, ,talents skills and values of

.all employees

Labor force is growing more diverse in racial and ethnic

.terms

More women and minority populations in the paid

labor force

Diverse Work Force


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HRM Practices That Support Diversi ty

Management


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Create organizational structure that values diversity

-Ensure HRM systems are bias free Encourage career development for women and minorities

Promote knowledge and acceptance of cultural differences

Ensure involvement in education within and outside the

organizationDeal with employee s resistance

to diversity

Activit ies in Managing

Cultural Diversi ty

Asia

Europe

America


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,Employers are looking for math verbal and interpersonal skills

which will enable workers to handle variety of,responsibilities interact with

,customers and think creatively

Shift in skills due to use of computers to do routine tasks

Physical strength and mastery of equipment are no longer

important for jobs

Skil l Deficiencies of the Work Force


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2 HIGHPERFORMANCEWORK SYSTEMS

Organizations that have the best

possible fit between their socialsystem (people and how they interact)and technical system (equipment and

processes)


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Nature of workforce and technology available have

changed

Customers are demanding for high quality and customized products Employees are seeking flexible

work arrangements Employers are looking for ways to

tap people s creativity and interpersonal skills

HR professionals who keep up with such changes are positioned to

-help create high performance work systems

creating theorganizat ion s

competi t iveadvantage

Teamwork

Skills

Knowledge


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Reliance on knowledge

workers Empowerment of employees

to make decisions Use of teamwork

Trends in High Performance Work Systems


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- ,The growth in e commerce plus shift from a manufacturing to a

,service and information economy has changed the nature of

employees that are most indemand

-High growth jobs have common characteristic of specialized

knowledge

Companies are increasingly, ,trying to attract develop and retain knowledge workers to meet

their human capital needs

They set up rewards for innovation and for creating and exchanging knowledge

.A Knowledge Workers

Employeeswhosemaincontributiontothe

, organizationisspecializedknowledgesuchas

, knowledgeofcustomersaprocessoraprofession


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,With this responsibility employees must be able to

,listen to customers adapt to,changing needs and creatively

solve a variety of problems

Employees share the resulting losses and rewards

HRM practices that ensure success of employee

empowerment Performance management

Training Work design

Compensation

B. Employee Empowerment

G i v i n g e m p l o y e e s r e s p o n s i b i l i t y a n d a u t h o r i t y

t o m a k e d e c i s i o n s r e g a r d i n g a l l a s p e c t s o f p r o d u c t d e v e l o p m e n t o r c u s t o m e r s e r v i c e


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One of the ways to increase employee responsibility and

control is to assign work

to teams Teamwork can motivate employees by making work

more interesting andsignificant

New teams help raise laborproductivity

.C Teamwork

T h e a s s i g n m e n t o f w o r k t o g r o u p s o f e m p l o y e e s

w i t h v a r i o u s s k i l l s w h o i n t e r a c t t o a s s e m b l e a p r o d u c t o r p r o v i d e a s e r v i c e


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3STRATEGY FOCUS

HR professionals use their knowledge of the

business and of human resources to help theorganization develop strategies and to alignHRM policies and practices with those

strategies


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:Business Strategy Issues Affect ing HRM


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Total Quali ty Management

Company wide effort to continuously improve the

, ,ways people machines and systems accomplish work

,To promote quality firms need an environment that,supports innovation

,creativity and risk taking to meet customer demands

One that fosters,communications problem

solving and team effort

1. High Quality Standards


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Failure of merger is due to people issues

HR has a significant

role in carrying out a

merger or acquisition

Differences between businesses involved in

the deal can createconflicts

Training should include development of skills

in conflict resolution

.2 Mergers and Acquisit ions

Mergerstwocompanies becomingone

Acquisitionsonecompany buyinganother

Two firms in one industry.Ex Bri t ish Petroleum

and Amoco Oil Firms across industry l ines

. +Ex Cit icorp bankingTravel ler s Group insurance

Global megamergers mergers of big TNCs in different

countr ies


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Case of the Mixed Up Merger


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3. Downsizing

Downsizing is a permanentdownscaling while a layoff is a temporary downscaling

where employees may laterbe rehired.

Different techniques indownsizing include:

providing incentives totake early retirement

transfer to subsidiarycompanies

simply terminate theemployment of a

certain number of people

Rightsizing is downsizingin the belief that anenterprise really shouldoperate with fewer people.

Plannedeliminationoflarge numbersofpersonnelwiththe

goalofenhancingthefirms

competitiveness


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.1 Reducing costs labor is

a large part of a ,company s total costs thus downsizing is an

at tract ive option to cutcosts

.3 Replacing labor withtechnology closing,o ut da te d f ac to ri es

,automating or i nt roducing technolog ical

changes reduces need for

labor.4 Mergers and acquisi t ions

need less bureaucrat ic;overhead lay off

managers

.5 Moving to more economical

Reasons for Downsizing


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Organizations with international

operations hire at least some of their

employees in the foreign countries theyoperate

Technology is lowering the barriers to overseas operations but the challenge is the

employee s lack of familiarity with

technology

.4 Expanding Global Markets

Fortodayandtomorrows, workerstalentcomesfroma

globalworkforce

HR pract ices must take i nt o c on si de ra ti on

differences in cul ture and business pract ices

Even hir ing at home may involve selection of

employees from othercountr ies


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5. Reengineering

Reengineeringinvolves reviewingall the processesperformed by allthe firms majorfunctions arereviewed when

new technology isadopted

Employees mayneed training fortheir new jobs, ornew recruits areneeded for newsets of skills Acompletereviewofthefirms criticalworkprocessesto

makethemmoreefficientand abletodeliverhigherquality


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Gives the company access-to in depth expertise and

is often more economical as well

HR functions commonly outsourced

Payroll administrationTrainingRecruitment

Selection of employees

6. Outsourcing

(T h e p r a c t i c e o f h a v i n g a n o t h e r c o m p a n y a

, - , )v e n d o r t h i r d p a r t y p r o v i d e r o r c o n s u l t a n t

p r o v id e s e r v i c e s


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4 TECHNOLOGICALCHANGES

Computerization of processes in anorganization has brought about compelling

changes in the work environment


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Large quantities of employee data (includingtraining records, skills,compensation rates, and

benefits usage and cost)can easily be stored onpersonal computers andretrieved at a later time

E-HRM applications arepossible through the useof computer networkingand the Internet whichenable employees indifferent geographic areas

HR InformationSystem

C o m p u t e r s y s t e m t o, ,a c q u i r e s t o r e

, ,m a n i p u l a t e a n a l y z e,r e t r i e v e a n d

d i s t r i b u t e i n f o r m a t i o n r e l a t e d

t o a f i r m s H R


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5 EMPLOYEERELATIONSHIPCHANGES

Technology and diversification hasimpacted as well on the relationships of

employees in the work place


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A psychological contract orwhat an employeeimplicitly expects tocontribute has changedfrom the traditionalexpectations of employers(time, effort, skills,abilities & loyalty) to new

expectations (quality,creativity, innovation,timeliness & skills)

Alternative workarrangements or flexiblework schedules for

Employee Relat ionship Changes

L a y o f f s a n d b a n k r up t c i e s h av e

p l a y e d a m a j o r r o l e i n c h a n g i n g t h e

b a s i c r e l a t i o n s h i p b e t w e en e m p l o y e e s

a n d e m p l o y e r s


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:Links three poles the,environment human

resource strategy and the business strategy

HR strategies are influenced by contextual variables

,such as markets,technology national

,government policies regional bloc,policies trade unions

and other factors

Strategic HRM , Requiresthinkingaheadandplanningwaysfora

, companytobettermeettheneedsofitsemployees andfortheemployeestobettermeettheneedsof .thecompany

This can affect the way things are,done at a business site improving everything from hiring practices and employee training

programs to assessment techniques and discipline


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The firm must choose one ormore HR strategies availablefor handling expectedshortages and surpluses of labor

Strategic options differ widelyin their expense, speed, andeffectiveness

Options for reducing laborsurplus cause differingamounts of human suffering

Options for avoiding a labor

HR STRATEGIES

F o r e c a s t s f o r l a b o r d e m a n d a n d s u p p l y

w i l l d e t e r m i n e i f t h e r e w i l l b e a

s h o r t a g e o r s u r p l u s o f l a b o r f o r e a c h j o b c a t e g o r y a t a c e r t a i n

t i m e


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OPTION

Downsizing Pay

reduct ionsDemotionsTransfers

Work sharing Hiring

freeze Natural

at t r i t ion Early

ret i rementRetraining

Options for Reducing A Surplus

SPEED OFRESULT

FastFastFastFastFastSlowSlowSlowSlow

AMOUNT OF SUFFERINGCAUSED

HighHighHigh

ModerateModerate

LowLowLowLow


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OPTION

Overt ime Temporary

employeesOutsourcing

Retrainedtransfers Turnover

reduct ions New external

hires Technological

innovat ion

Options for Avoiding A Shortage

SPEED OFRESULT

FastFastFast

SlowSlowSlowSlow

ABILITY TO CHANGELATER

HighHighHigh

HighModerateLowLow


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HR policies ensure thatemployees are aware of acompany's expectations of its workforce, such as dailystart times or restrictions onsurfing the Internet duringbusiness hours.

HR guidelines holdemployers accountable for

obeying local and nationallaws, such as fair hiringpractices and zero tolerancefor sexual harassment.

HR guiding principles linkemployee programs to a

HRM POLICIES

V i t a l i n r e s o l v i n gp e r s o n n e l

i s s u e s a n d f i n d i n g H R s o l u t i o n s


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P o l i c y M a n u a l s - published

guidelines for employees awareness of.the firm's practices Clarifies the rules and gives HR consistence in

.dealing with its workforce

L e g a l i t i e s - Formal HR policies

.reduce legal risks In the absence of,such a formal policy a company will have difficulty defending itself in a

.wrongful termination lawsuit

P r o t e c t i o n - Some policies protect

(employees' rights such as the rights

)of those with disabilities while others look after the company's

( . ).interests ex trade secrets

HR Policies Types of HRM Policies

Attendance PolicyRecruitment PolicyLeave of Absence PolicyPerformance Planning and EvaluationProbationary PeriodCompensationCompensatory LeaveOvertime LeaveAnnual Leave

Educational Leave


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The key task of HRM are to: Ensure the right staff is

recruited into theorganization

Retain top performers in thesystem

Define a career path foremployees

Improve non-performers andenable them to achieve

The common denominator in

these tasks is competency

-COMPETENCY BASED HRM

C o m p e t e n c y i s d e f i n e d a s t h e

s k i l l s o r a b i l i t y

t o d o t h e d e s i g n a t e d j o be f f e c t i v e l y


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R e c r u i t m e n t - most difficult phase

to judge a candidate due to time

;constraints tests given must be based/on core specific competencies the firm

is looking for

K e y E m p l o y e e R e t e n t i o n Have a competency review framework

/evaluation to identify top percentage of employee performers

Competency Management

Core Competency A s e t o f k n o w l e d g e a n d s k i l l s t h a t m a k e t h e f i r m s u p e r i o r t o c o m p e

D e f i n e a C a r e e r P a t h ,Competencies are defined for each role.HR professional should define a career map associated with them

-I m p r o v i n g N o n P e r f o r m e r s

Have an institutionalized

competency evaluation and recording system to prevent misfit of competency or domain expertise of employees


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Advances in technology andthe way we access and shareinformation have changed thepractice of knowledge

management

Many enterprises now havesome kind of knowledge

management framework inplace

Knowledge managementinvolves data mining and somemethod of operation

KNOWLEDGE MANAGEMEN

A n o r g a n i z a t i o n c o n s c i o u s l y

a nd c om p r eh en s i ve l y, ,g a t h e r s o r g a n i z e s

,s h a r e s a n d a n a l y z e s i t s

k n o w l e d g e i n t e r m s o f

, ,r e s o u r c e s d o c u m e n t s a n d p e op l e s ki l l s


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A knowledge management plan

involves a survey of

corporate goals and a close examination,of the tools both

traditional and,technical that are

required for addressing the needs

.of the company The challenge is to

select or build software that fits

the overall plan and encourage employees

to share .information

This major process... Includes these activities....

Gathering Data entryOCR and scanningVoice inputPulling information from various sourcesSearching for information to include

Organizing CatalogingIndexingFilteringLinking

Refining ContextualizingCollaboratingCompactingProjectingMining

Disseminating FlowSharingAlertPush


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The career planning processis comprised of four steps

One might seek the servicesof a career development professional to helpfacilitate his or herjourney through thisprocess

Whether or not you chooseto work with aprofessional, or workthrough the process onyour own is less importantthan the amount of

CAREER PLANNING

,A l i f e l o n g p r o c e s s w h i c h i n c l u d e s

c h o o s i n g a n,o c c u p a t i o n g e t t i n g

,a j o b g r o w i n g i n,t h e j o b p o s s i b l y

,c h a n g in g c a r e e r s a n d e v e n t u a l l yr e t i r i n g


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.1 S e l f - -Gather information about yourself through a self

( , , , / ,assessment interests values roles skills aptitudes preferred, ,environments developmental needs your realities.2 O p t i o n s ,Explore the occupations which you are interested in

,research industries where you would like to work know the, ,labor market get specific information thru part time work

, , ,internships volunteer jobs interviews written materials.3 M a t c h - , ,Identify possible occupations evaluate them explore,alternatives choose both a short term and a long term option.4 A c t i o n Develop the steps you need to take in order to reach

, :your goal for example investigating sources of additional, ,training and education develop a job search strategy write

, , ,your resume gather company information compose cover letters prepare for job interviews

Steps in Career Planning


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Intensifying need of firmsto prepare for theretirement of their leaders

because of Aging workforce Downsizing thru early

retirement Few middle managers

and unprepared fortop-level jobs

SUCCESSION PLANNING

P r o c e s s o f i d e n t i f y i n g a n d

t r a c k i n g h i g h p o t e n t i a l e m p l o y e e s

w h o c a n f i l l t o p

m a n a g e m e n t p o s i t i o n s w h e n t h e y b e c o m e v a c a n t


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Benefits of Succession Planning

- F o c u s i s o n h i g h p o t e n t i a l e m p l o y e e s t h o s e p e o p l e t h e o r g a n i z a t i o n b e l i e v e s c a n s u c c e e d i n-h i g h e r l e v e l b u s i n e s s p o s i t i o n s

Regular review of leadership

talent Provides

developmentexperiencesbeforepromotion

Attracts and

retains


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Process for Succession Planning

Forecast how manyand what kindsof leaders areneeded over afuture time

frame (say 2years) Assess talents of

current

employees Develop employeesidentified ashavingmanagementtalent through


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Case of the Run Away Talent


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Talent Management


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Key HRM Processes

. ,Maria Paz T Castro DBM- ,CEU March 12 2011

Listening Listening Thank you for

Key HRM Processes-MS2010

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