HUMAN RESOURCE MANAGEMENT Prof H.M Usman Gondal CHAPTER NO. 1

AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO: Understand the term HRM and importance of HRM. Comprehend four functions of HRM . Describe evolution of HRM. Identify key roles played by HR managers. Explain challenges faced by HR managers. Differentiate between HRM and international HRM.

We can Divide this Term into Three Parts HUMAN RESOURCE MANAGEMENT

HUMAN ?

ORGANIZATIONAL RESOURCES FINANCIAL RESOURCES PHYSICAL RESOURCES Means debt, equity, retain earnings and selected matters. Means building, machinery, vehicle and other material. ORGANIZATIONAL RESOURCES HUMAN RESOURCE Include the history of groups in the organization, relationship, level of trust etc. Includes skills, abilities, experience and other work related characteristics of people associated with the organization.

MANAGEMENT Management is the universal process of getting activities completed with and through other people to achieve organizational goals.

HUMAN RESOURCE MANAGEMENT The design of formal systems in an organization to ensure effective and efficient use of talent to accomplish organizational goals. Human Resource Management helps in maximizing productivity & reducing cost by Putting Right Person At Right Place.

EVOLUTION OF HRM ?

2. Scientific Management (Early 1900s) EVOLUTION OF HRM Cont . . . 1. The Craft System (1600s-1700s) Small level of production Industrial Revolution One best way to accomplish the task Putting the right person on the job with the correct tools and equipment Having a standardized method of doing the job Providing an economic incentive to the worker 2. Scientific Management (Early 1900s) 3. Human Relations (Late 1920s – Early 1930s) Hawthorne studies Employee participation program

6. Human Resource Management 7. Intellectual Capital Management EVOLUTION OF HRM Cont . . . 4. Behavioral Sciences The study of the actions of people at work; people are the most important asset of an organization. 5. Personnel Management Involve in operational planning and decision making & do not incorporate all HR activities. 6. Human Resource Management Involve in operational as well as strategic planning and decision making & incorporate all HR activities(training, career development, EEO etc.) 7. Intellectual Capital Management Organizations need to be dynamic both in the context of the management of individual capabilities and the management of organizational structure.

H R M FUNCTIONS OF HRM STAFFING MAINTENANCE MOTIVATION TRAINING & DEVELOPMENT MOTIVATION H R M

Training & Development FUNCTIONS OF HRM Cont . . . STAFFING Strategic Human Resource Planning Recruitment Selection Maintenance Training & Development Motivation H R M

1. STAFFING The activities in HRM concerned with seeking and hiring qualified employees are called Staffing.

COMPONENTS OF STAFFING The basic objective of the staffing function is to locate & secure competent employee. COMPONENTS OF STAFFING a. Strategic Human Resource Planning b. Recruitment c. Selection

STRATEGIC HUMAN RESOURCE PLANNING Strategic Human Resource Planning is the process by which an organization ensures that it has right number and kind of people capable of effectively and efficiently completing those task that are in direct support of company’s mission and strategic goals.

b. RECRUITMENT The process by which a job vacancy is identified and potential employees are notified. OBJECTIVES To obtain an adequate pool of applicants there by more choice to the organization. Providing enough information about the job such that those who are unqualified will not apply.

c. SELECTION Selection is the process by which an organization chooses from list of applicants the person or persons who meet the selection criteria for the position available considering current environmental conditions.

c. SELECTION The primary objective of selection activities is to predict which job applicant will be suitable if hired, during the selection process, candidate are also informed about the job and organization Proper selection can minimize the cost of replacement and training resulting in more productive workforce

TRAINING & DEVELOPMENT FUNCTIONS OF HRM Cont . . . Staffing Maintenance Motivation TRAINING & DEVELOPMENT Orientation Employee Training Employee Development Organization Development Career Development H R M

2. TRAINING & DEVELOPMENT Training is the systematic process of altering the behavior of employees in a direction that will achieve organizational goals. Development can be defined as “Efforts to improve employees’ ability to handle a variety of assignments are.”

2. TRAINING & DEVELOPMENT The basic objective of Training & Development function is to take competent workforce, adapt them to the organization, and help them to obtain up-to-date skills, knowledge, and abilities for their job responsibilities

TRAINING & DEVELOPMENT COMPONENTS OF TRAINING & DEVELOPMENT Orientation Employee Training Development Employee Organization Career Development

TRAINING & DEVELOPMENT Cont . . . COMPONENTS OF TRAINING & DEVELOPMENT Cont . . . a. Orientation It covers the activities involve in the introducing a new employee to organization and to his or her work unit. b. Employee Training Employee training is designed to assist employee acquiring better skill for the current job. c. Employee Development The focus of employee development is on a future position with in the organization for the which employee require additional competencies. d. Career Development The focus of career development is to provide the necessary information and assignment in helping employees realize their career goals. e. Organizational Development Organizational Development is the part of HRM that deals with facilitating system wide change in the organization.

H R M FUNCTIONS OF HRM Cont . . . Motivation Staffing Maintenance Training & Development Staffing Maintenance Motivation Motivation and Job Design Performance management Reward & Compensation Employee Benefits H R M

3. MOTIVATION MOTIVATION An inner force that impels human beings to behave in a variety of ways.

3. MOTIVATION The basic objective of motivation function is to retain good staff and to encourage them to give of their best.

COMPONENTS OF MOTIVATION A job should be designed in a such a way that it should facilitate the achievement of the organizational objective, stimulate performance and recognize the capacity and needs of those who are to perform it. 1. Job Design Process which is used to identify, encourage, measure, evaluate and improve employees through performance appraisal. 2. Performance Management Compensation is what employee receives in exchange for their contribution to the organization. Compensation management help the organization to obtain, maintain and retain a productive Workforce. 3. Compensation Management Employees benefit are generally membership based ,non financial reward offered to attract and keep the employees, regardless their performance level. 4. Employee Benefit

Training & Development FUNCTIONS OF HRM Cont . . . Motivation Staffing Maintenance Health & safety Communication Employee relations Training & Development H R M

4. MAINTENANCE FUNCTION MAINTENANCE Activities in HRM concerned with maintaining employees commitment and loyalty to the organization.

4. MAINTENANCE FUNCTION The last phase of HRM process is called maintenance function. The main objective of this function is to do such HRM activities that maintain employees commitment and loyalty with the organization.

COMPONENTS OF MAINTENANCE Health and Safety Communication Employees/ Labor Relation Designing and implementing programs to ensure employee health and safety. Serving as an intermediary between the organization and its union. Designing discipline and grievance handling systems. Designing and implementing employee communication system.

ROLES OF HR MANAGER Serve as “Morale Officer” Administrative Role Clerical Administration Serve as “Morale Officer” Administrative Role Employee Advocate Operational Strategic HR Activities Business Contributor

ROLES OF HR MANAGER Cont . . . 1. Administrative Role Clerical and administrative support operations (e.g., payroll and benefits work). Employee Advocate Role 2. “Champion” for employee concerns Employee crisis management Responding to employee complaints Operational Role 3. Identification and implementation of HR programs and policies—hiring, training, compensating and other activities that support the organization.

ROLES OF HR MANAGER Cont . . . 4. Strategic Role Focusing on developing HR activities that enhance organizational performance. Involvement in strategic planning. Participating in decision making on mergers, acquisitions, and downsizing. Accounting and documenting the financial results of HR activities.

HR MANAGEMENT CHALLENGES Economic and Technological Changes Workforce Availability and Quality Growth in Contingent Workforce Demographics and Diversity Issues Balancing Work and Family Organizational Restructuring, Mergers, and Acquisitions

HR MANAGEMENT CHALLENGES Cont . . . 1. Economic & Technological Changes Shift in jobs for manufacturing and agriculture to service industries and telecommunications. Pressures of global competition causing firms to adapt by lowering costs and increasing productivity. Growth of information technology. 2. Workforce Availability and Quality Inadequate supply of workers with needed skills for “knowledge jobs” Education of workers in basic skills

HR MANAGEMENT CHALLENGES Cont . . . 3. Growth in Contingent Workforce Increases in temporary workers, independent contractors, leased employees, and part-timers caused by: Need for flexibility in staffing decisions Increased difficulty in firing regular employees. 4. Organizational Restructuring, Mergers, and Acquisitions “Right-sizing”—eliminating of layers of management, closing facilities, merging with other organizations, and out placing workers. Intended results are flatter organizations, increases in productivity, quality, service and lower costs. HR managers must work toward ensuring cultural compatibility in mergers.

HR MANAGEMENT CHALLENGES Cont . . . 5. Balancing Work & Family Dual-career couples Single-parent households Decline in the “traditional family” Working mothers and family/childcare Single employee “backlash” against family-oriented programs. 6. Demographics and Diversity Issues More diversity of race, gender, age etc.

International Human Resource Management

INTERNATIONAL HRM (IHRM) International HRM (IHRM) is the process of procuring, allocating , and effectively utilizing human resources in a multinational corporation. HRM vs. IHRM Encompasses more functions. Has more heterogeneous functions. Involves constantly changing perspectives. Requires more involvement in employees’ personal lives. Influenced by more external sources. Involves greater level of risk than typical domestic HRM.

THE CONCEPT OF TRANSNATIONALITY Each of these definitions, depending upon how the organization perceives itself , has implications for the role of international HRM. Multinational Companies Refers to companies that have developed a strategic posture and organizational capability that allow them to be very sensitive and responsive to differences in national environments around the world. Global Companies Refers to companies that have developed international operations that are much more driven by the need for global efficiency and centralized in strategic and operational decisions. International Companies Based on Transferring and adapting the parent company’s knowledge or expertise to foreign markets.

FUNCTION OF INTERNATIONAL HRM Highlighting the broad functions of HRM, Morgan (1986) has presented a model that consist of three dimensions which are: The Three broad Human Resource activities: The Three major Country categories involved in International HRM activities: The Three type of Employee of an International Firm: Procurement Allocation Utilization Host country Home Country Other Country Host country Nationals (HCNs) Parent Country Nationals (PCNs) Third Country National (TCNs)

APPROACHES TO IHRM APPROACHES DEFINITIONS ETHNOCENTRIC MNC simply exports HR practices and policies used in the home country to the foreign subsidiaries. It Emphasizes consistency and integration across all subsidiaries. POLYCENTRIC HR policies are adapted to meet the circumstances in each foreign location. REGIOCENTRIC Represents a regional grouping of subsidiaries. HR policies are coordinated and integrated within the region. GEOCENTRIC HR policies are developed to meet the goals of the global network of home country locations and foreign subsidiaries.

HR Management Challenges Evolution of HRM Craft System Scientific Management Human Relations Behavioral Sciences Personnel Management HRM Intellectual Capital Management Goals of HRM Enhancing Productivity & Quality Promoting Individual Growth & Development Complying with Legal & Social Obligations Facilitating Organizational Effectiveness CHAPTER : 1 Functions of HRM Human Resource Management Scientific Management STAFFING Scientific Management TRAINING & DEVELOPMENT Scientific Management MOTIVATION Scientific Management MAINTAINCE Strategic Human Resource planning Recruitment Selection Orientation Employee Training Employee Development Organizational Development Career Development Motivation & Job Design Performance Management Reward & Compensation Benefits Health & Safety Communication Employee Relations Roles of HR Manager Administrative Employee Advocate Operational Strategic HR Management Challenges Economic & Technological Changes Workforce Availability & Quality Growth in Contingent Workforce Demographics & Diversity Issues Balancing Work & Family Mergers & Acquisition International HRM (IHRM) HRM Vs. IHRM The Concept Of Transnationality Function Of International HRM Approaches to IHRM

THOUGHT OF THE DAY People are definitely a company’s realest asset. It doesn't make any difference whether the product is cars or cosmetics. A company is only as good as the people it keeps. “Mary Kay Ash”