1. Strategic Performance Management

2. Human Resource Management is the organizational function that deals with issues related to people such as: compensation hiring performance management organization development safety benefits employee motivation communication administration training. Human Resource Management

3. Human Resource Management System Responsibilities Of HRM Human Resource Planning Recruitment & Selection Orientation, Training & Development Performance Appraisal And Management Compensation & Benefits Management

4. Knowledge Economy Increasing Importance of HRM HR Challenges Environmental Challenges Rapid Changes Internet / Technological Changes Workforce Diversity Globalization Skill Shortages Organizational Challenges Cost, Quality, SCA Decentralization Downsizing Flatter Organizations Organizational Culture Technology

5. HR Challenges Individual Challenges Matching People & Organization CSR Initiatives Productivity Empowerment Brain Drain Job Insecurity

6. Abstract From A Survey Based on APFHRM Members Responses CHALLENGE`RESPONSE % Change Management52% Leadership Development36% Succession Planning32% Learning & Development20% Employee Rewards20% HR Effectiveness Measurement20% Compensation16% Staffing: Recruitment16% Staffing: Retention16%

7. Organizational Effectiveness Succession Planning Recruitment: Staffing & Retention But Remember, the biggest challenges in the near future will be:

8. Decline in the sudden Surge of HRM function in recent years. The overall salary and benefits package decline Cut in training & development budgets Retrenchment initiatives Motivational & Retention Challenges Supportive Role of HR department Motivational & Retention Challenges A Snapshot of HR Scenario In Pakistan

9. Alignment of HR strategies and programs with environmental opportunities, business strategies, organization’s unique characteristics, and distinctive competence. Strategic Human Resource Management

10. Encouragement of Proactive Behavior Strategic Objectives Focus Critical Thinking of Assumptions Identifying the Gap Encouragement of Line Manager’s Participation Identification of HR Constraints/opportunities Benefits of Strategic Human Resource Management

11. Human Resource Management System Responsibilities Of HRM Human Resource Planning Recruitment & Selection Orientation, Training & Development Performance Appraisal And Management Compensation & Benefits Management

12. Strategy & Human Behavior COMPANY MISSION 1.An Investment Perspective of Human Resource Management 2. Environmental Scanning: Human Resource Environment 3. Environmental Scanning: Human Resource Legal Environment 4. Strategy Formulation 5. Human Resource Planning 6. Strategy Implementation: Workforce Utilization & Employment Practices 7. Strategy Implementation: Reward & Development System 8.Performance Impact of Human Resource Practices 9. Human Resource Evaluation

13. Human resources should be viewed from investment perspective. In some cases employees are taken as variable costs of production while physical assets are taken as investments. Shift in skills from manual to cerebral HR has to contribute to the bottom-line The future employability: - Training - OJT - Management Development - Skills Obsolescence Prevention - Reduction in Career Plateauing An Investment Perspective of Human Resources

14. Management Values - Values & Philosophies of Management while implementing strategies - Values should reflect the investment perspective of employees Risk & Return on Investment - Major risk in employees’ investment is ownership - Return has to be greater to overcome the risks - Layoffs risks? An Investment Perspective of Human Resources HR Investment Considerations

15. Economic Rationale For Investment in Training - Difference between specific and general training - Specific Training has to be shared - Employees with prerequisite skills should be hired? - On-the-job or tuition reimbursement - Lay off decision in case of specific training - Few skills that are not transferable to other employers Utility Theory - Financial attractiveness of hiring and development of employees - Economic value of HR programs, activities and procedures - Validity of selection test for predictive ability - Relationship with increased production, contribution to profitability, cost of testing An Investment Perspective of Human Resources HR Investment Considerations

16. Outsourcing as an alternative to investment in human resources - Capabilities and strategic advantage can not be developed - More resources required internally for any kind of services - Excessive dependency on suppliers can be avoided Head hunting Payroll functions HRIS Benefits administration Employee assistance program An Investment Perspective of Human Resources HR Investment Considerations

17. Investment in Employability - Decline in prevalence of employment security policies - Investment in the development of employees for better employability (Telenor) - Growth opportunities, learning environment, training and retraining - GE case of Jack Welch (The building was still standing but people were gone) - Future employability is dependent on valuable learning experience and challenging assignments - Security no longer comes from employed but being employable An Investment Perspective of Human Resources Investment In Training & Development