HRM Human Resource management

HRM Class Emphasis Show “best-in-class” HRM practices Understand how HRM practices support business strategy How to use, design, purchase HRM products and services Understand current HRM issues

HRM What do we need to know? What is HRM? What challenges make HRM important for business success? What does it mean for HRM to be “strategic”? How has the HR function changed?

HRM Key Issues/ Hot Topics E-HRM (Training, Surveys, Benefits Enrollment) Downsizing Work-Life Balance Outsourcing the Function? Which Parts? “Winning the War for Talent” Pay: Linking Pay to Performance, Stock Options Performance Management Systems The “Human Element” in Mergers and Acquisitions Benefit Cost Containment and Sharing Security Diversity

HRM What are the Goals of Indian Business? Create “Value” and “Wealth” “Value” and “Wealth” for whom? To create “value” and “wealth” a company has to be competitive

HRM Good HRM is Necessary to Meet Competitive Challenges Globalization New Markets Expatriates Meeting Stakeholders’ Needs Unions, Employees, Community, Shareholders, Customers Balanced Scorecard Quality High-Performance Work Systems Teams, virtual teams, integrate technology and social systems New Economy Development of e-business Value of knowledge Labor force skills don’t match job requirements Changes in employment relationship Demanding work but more flexibility

HRM HRM Practices Analysis and Design of Work (How do we provide value?) HR Planning (How to use the labor force?) Recru HRMent (Find ) Selection (Choose ) Training & Development ( Teach ) Compensating Human Resources ( Pay) Performance Management (Measure) Employee Relations (Get along with them)

HRM Does HRM Matter? Companies with happy workers have greater annual return to shareholders than companies that do not Employee morale is related to customer satisfaction Companies with progressive HRM practices significantly outperform companies that have less progressive practices on financial indicators (ex. sales and dividend growth)

HRM Key to Implementing the Business Strategy Business Strategy & Processes Reliability Growth in Market Share Safety Asset Utilization Environmental Stewardship Process Improvement HR Strategy Talent Acquisition and Retention Clear Vision and Objectives Teamwork & Communication Accountability Leadership Competitive Advantage Lower Fixed Costs World Class Performance Faster Decision Making Improved Revenues Efficient Operations Profits, Growth, Shareholder Value

HRM HRM is successfully engenders a pool of highly motivated and uniquely capable people who individually and collectively use this drive and talent to build and deploy organizational capabilities for creating an competitive advantage for the company over competitors that they can not easily replicate in the marketplace Definition

HRM HRM: Whose Responsibility? Traditionally: HRM was a functional responsibility Current: Shift to functional manager as HR key player Function builds partnerships with line managers Configuration of function may vary across organizations but clearly there is a move from a transactional orientation to transformational orientation Outsourcing of HRM Administrative tasks - e.g. record keeping, legal, benefits Use of Consultants E-HRM (Web for benefit enrollment, training) Third party provider

HRM Traditional HR Function Model Head of HR Staffing Training Compensation Employee Relations HR Generalists

HRM New HR Model Sr. HR Team Administrati ve Service Center Center of Excellence Business Partners Transactions Focus on efficiency Specialists Expertise and Design Consulting Generalists with responsibility to line managers as consultants and planners

HRM An HR Function That Creates Value…. Knows the business basics Communicates in management language Proposes ideas and develop action plans Helps management implement ideas Follows-through Gets out of the HR department - talk to customers

HRM HR Competencies Strategic Partner Programs that relate to business issues and strategies (e.g, succession planning, recru HRMent, retention) Administrative Expert Use of Technology (self-service) Outsourcing Change Agent Employee Advocate

HRM Evaluating the HR Function Audit of Practices User Reactions Benchmarking Society for Human Resource Management ( National Human Resource Development Network (NHRDN) National Institute of Personnel Management (NIPM) Indian Society for Training and Development ( Metrics (e.g., survey results, turnover rates)