Tehzeeb Sakina Amir IU – Spring 2011 HRMm - MBA Human Resource Management

Start up session Welcome & Class introduction Course facilitator introduction Course Objectives Importance of HRM Outlines HRM ways for the benefit of the organization and employees Issues in HRM in changing work environment Suggests ways of managing human capital

Start up session Teaching methodology  Teaching will mainly be done through coaching the students with interactive sessions.  The key to success is to keep the concept clear, simple and always look for its practical application in a working environment

Class norms - To get the maximum benefit out of the course students are strongly recommended to:  Arrive and leave in time! No early leaves / late comings  Come Prepared! This is not a lecture-only course!  Planned & surprise class quizzes/activities, be regular!  Assignments and other related work has to be submitted on time. Late submission will not be acceptable and will be marked zero!  Do your own work! Copied work will be marked zero!  Cell phones switch off or put on silent please!  No personal, political and religious examples & comments. Start up session

Course content (modules) – soft copy or copy from temp folder. Testing & Grading  Grading will focus on your overall performance rather than one or two aspects. A mid-term examination & a final examination will be taken.  Class Participation Class quizzes, assignments25%  Mid-term25%  Term project10%  Final Exam40%  TOTAL100% Course outline and grading

Resources  Gary Dessler and Biju Varkkey “Human Resource Management” eleventh edition  Snell S. and Bohlander G. “The Handbook of Human Resource Management” 2007  Society for Human Resource Management via  HRM research papers and scholarly journals Books & Journals

CR nomination  Groups formation  Class information ( addresses)  Term Project Selection of CR & Groups formation

Your understanding Human Resource Management Human Resource Management

To sum up…. HRM is one function of management process where policies and practices focus on carrying out “people” including recruiting, screening, training, rewarding and appraising.

HRM functions To perform the ‘people’  Conducting job analysis  Planning labor needs & recruiting job candidates  Selecting  Orienting and training  Managing wages & salaries  Providing incentives and benefits  Performance appraisals  Communicating – interviewing, counseling, disciplining  Training and developing  Building employee commitment

HRM functions A manager must know:  Employment laws  Equal opportunity and affirmative action  Employee health & safety  Handling grievances & labor relations HRM specialties  Recruiters  HR development specialists  Job analysts  Compensation managers  Training specialists  Employment/industrial relations specialists  Employee welfare officers

Small mistakes = huge loses What can go wrong!  Hire the wrong person  High turnover  People not performing  Waste time with useless interviews  Have your company taken to court because of discriminatory actions  Have your company cited under occupational safety laws for unsafe practices  Unfair and inequitable salaries  Lack of training  Commit unfair labor practices

Every manager is an HR manager…

Authority – line and staff Authority – the right to make decisions, direct other’s work and give orders.  Line authority – direct activities in own department and in service areas  Staff authority – to advise other managers

HR manager’s duties A line function A coordinative function – to ensure line managers are implementing organization’s policies, rules. Staff functions- assist and advise line managers The size of HR department reflects the size of the company

HR Manager’s Proficiencies HR proficiencies Business proficiencies Leadership proficiencies Learning proficiencies Managing within the Law Managing Ethics

The changing environment and HRM

Major changes in work environment Globalization trends & implications Technological trends Nature of work  High-tech jobs  Service jobs  Knowledge work & human capital Workforce demographic trends  Availability of ‘Employable Talent’

Labor Legislation and Laws

Labor Laws Pakistan Labor legislation is the responsibility of both Federal and Provincial governments Total labor force in Pakistan  million people 47% agriculture sector 10.5 % in manufacturing 42.5% in various other professions (source: labourunity.org)

Labor Laws Pakistan Article 11 of the constitution prohibits child labor, forced labor and slavery Article 17 right to exercise freedom of association and unions Article 18 right to enter any lawful profession, occupation, business Article 25 prohibits discrimination on basis of gender Article 37 (e) provision for just and humane work conditions Laws of hiring & firing Laws of working hours (7hrs/day. 42 hrs/week – factories act) Leaves paid Child labor (below 14 years) Strikes and Lock-outs

Equal Opportunity Employment Discrimination on the basis of race, colour, religion, sex or national origin Article 38 aims at achieving equality Defenses against discrimination allegations  Disparate treatment – intentional discrimination  Disparate impact – neutral employment policy creating an adverse impact. (college degree requirement). Not intentional.  Adverse Impact: the overall impact of employer practices that result in higher percentage of a particular groups members being rejected or not promoted. Adverse impact can be shown through: Disparate rejection rates Restricted policy Population comparison Mc-Donnell-Douglas Test

Bona Fide Occupational Qualification BFOQ - requirement that an employee be of a certain religion, sex, age or national origin which is necessary for organization’s functioning Business Necessity – proof that there is an overriding business purpose for the discriminatory practice and should therefore be acceptable

Handling discrimination charges Good intentions are no excuse!! Can not hide behind collective bargaining Agreement may be the best option… Diversity

Some discriminatory practices Recruitment  Word of mouth  Misleading information  Help wanted ads Selection standards  Educational requirements  Tests  Preference to blood relations  Height, weight and physical characteristics  Criminal records  Application forms

Some discriminatory practices Existing employees  Promotions  Transfers  Layoffs Personal appearance  Dress  Hair/beard  Uniforms

THE STRATEGIC HRM more a partner than a cost centre..

The new HRM face Traditional Strategic HRM Creating High Performance Work systems Hiring/firing Payroll Benefits plan Testing & interviewing technology Union legislation Equal employment legislation

Strategic - concepts Strategy is ‘The company’s plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats and to maintain a competitive advantage. Strategic management is “The process of identifying and executing the organization’s mission by matching its capabilities with the demands of the environment.”  Strategic Plan + Implementation of the Plan

Strategic management - Steps Step 1Define current business and developing a mission Step 2SWOT evaluating internal & external strengths, weaknesses, opportunities and threats Step 3formulating a new business statement Step 4translating mission into goals Step 5formulate strategies or courses of action Step 6Implement the strategies Step 7Evaluate performance

Strategies - Types Corporate Strategy Business 1 competitive strategy Functional strategies Business 2 competitive strategy Functional strategy Corporate strategy – one organization into multi business but one corporate strategy Competitive strategy – business level strategy The Competitive Advantage – the edge, the differences with competitors that organization use to increase market share. Functional strategy – basic courses of action in departments.

Strategic Fit Dilemma of manager – misfit Two possibilities to overcome:  Fit – the manager should align functional strategies with and support its corporate and competitive strategies. Can result in limited growth  Leveraging – supplementing what you have and doing more with what you have Manager must underplay firm’s weaknesses & capitalize on unique core strength of the company

HRM Role in strategic front HRM Strategic Plan is “formulating and executing HR policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims.”  HRM helps to create the ‘competitive advantage” for the organization The Competitive advantage can take many forms: quality, research, software systems, diversity of the workforce, trained employees, HR policies & practices etc.

Linking organization & HR strategies Company’s competitive environment Company’s strategic situation Company’s internal strengths And weaknesses Strategic plan (expand/cut cost/diversify) Organizational performance HR strategies Courses of action

Challenges to HRM Need to support corporate productivity and performance improvement efforts Employees play an expanded role in employer’s performance improvement efforts HR units must be more involved in designing – not just executing – the company’s strategic plan

HRM Strategic Roles The Strategic Roles:  The Execution Role – the doing part  The Formulation Role – expanded role – where included in working of formulating corporate and competitive strategies

The Strategic HRM System The HR Function HR professionals With strategic management competencies Employee Behaviors Employees Competencies, Values, Motivation, & Behaviors required The HR System High Performance Work system

High Performance Work Systems A system which tends to create human resource with unique support to organizational needs Aims to maximize competencies, commitment and abilities of the employees which produce superior performance Vary from organization to organization

High Performance Work Systems Includes practices:  Employment security  Selective hiring  Extensive training  Self managed teams and decentralized decision making  Reduce status quo  Information sharing  Contingent rewards (pay-for performance)  Transformational leadership  Measurement of management practices  Emphasis on high quality work

Assessing HRM performance Absence rate Cost per hire HR expense factor Time to fill Turnover rate

Southwest Airlines "Our people are our single greatest strength and most enduring long term competitive advantage." Gary Kelly, CEO Southwest Airlines The Mission of Southwest Airlines The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. To Our Employees We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.