University of Latvia, Latvia Personnel Management 08-09-2013 Inesa Voronchuka Aivars Kalnins University of Latvia, Latvia

2. Thema. Personnel Politics and Strategy in Organisation

LITERATURE (I) Armstrong, M. Handbook of Human Resource Management Practice. -10th ed., 2006 ( e-resource - 2011.).pp. 3-27. Cole G.A. Pesonnel Management. London. 1997. Dessler G., Human Resource Management, 12th Edition, Pearson,2011.

2. Thema. Personnel Politics and Strategy in Organisation Personnel policy – formulation of values and certainty of organization (guidelines, basic principles) concerning main functions of organization. All targets are enlightened to above mentioned things in a personnel area.

Personnel policy A statement of intended conduct, a rule of behavior; An expression of the organisation`s values and beliefs concerning all the major functions of the enterprise; A policy states how the organisation intends to approach the fulfilment of its overal objectives.

Examples of personnel policies are as follows (I): “the company will conform to the spirit as well as to the letter of the law in employment matters” “all vacancies will be advertised within the organisation” “the company will always negotiate in good faith with trade union representatives”;

Examples of personnel policies are as follows (II): “pay levels will be maintained so as to compete with the best in the industry” “employees will be encouraged to participate in training and development activities of mutual benefit to the individual and the company” “every employee will have the right to fair treatment in matters of discipline”.

strategies that are consistent (compatible) with them. Personnel policy Once these rules of behaviour have been established, whether in written form or through custom and practice , it is possible to develop strategies that are consistent (compatible) with them.

Personnel Politics and Strategy Is a statement of long-term objectives to be achieved.

Typical examples of personnel strategies are (I): Ensure that the organisation`s needs for skilled manpower for the next five years are met Maintain wage and salary levels sufficient to recruit, retain and motivate staff at all levels in the organisation; Achieve harmonious relationships between management and those for whom they are responsible;

Typical examples of personnel strategies are (II): Ensure that adequate facilities are made available for maintaining and improving the knowledge and skills of the workforce; Provide adequate communication systems between management and other employees, and between departments and functions Provide mechanisms for enabling the organisation to cope with the human consequences of change.

Development a strategic plan of organisation Mission Vision Strategy

Elements of a Mission Statement Desired image in the marketplace Target market for products or services Product or services (described Local, national, or global reach – where your clients are located

The typical approach to strategic planning of organisation 1. Establish why the organization exists, its mission. 2. Define what you want the organization`s near future to be. 3. Establish what needs to be done – and what needs to be done dafferently – to reach the stated objectives.

Why? Behaviors driven by HRM Recruitment and turnover Committment to the firm Loyalty Effort Innovation Attitude toward customers Ability to do the required job (skills & competences)

Examples of choices in terms of HR policies influencing these variables Individual work vs. team work Pay for job (position/role) vs. pay for individual performance vs. pay for group vs. pay for needs Make or buy skills (training or selecting?) Promote from the ranks vs hire at all levels? Job security vs. no committments

Corresponding “philosophical choices” Motivate by money vs. peers vs. work quality Egalitarianism vs. Meritocracy Assume shirking (ill-will) vs. Commitment Centralized vs. decentralized control

HRM approaches Linear model Interdependent model Interactive-evolutionary model Strategy Structure HRM Strategy Structure HRM context Strategy Structure HRM context

Before next Thursday Case (your own organization): Mission Vission Aim/goal Personnel Policy Personnel Strategy Organisational structure