People/Personnel Aspects
of Management Job
HRM is the process of
ACQUIRING,
TRAINING,
APPRAISING,
COMPENSATING
EMPLOYEES;
ATTENDING to their
LABOR RELATIONS,
HEALTH and SAFETY
and FAIRNESS
CONCERNS
Planning:
Organizing: Specifying Tasks, Establishing Depts.,
Est. Channels of Authorities, Delegation of
Authorities, Coordination of Subordinates Activities
Staffing:
Leading: Getting others to get the Job done,
Motivating Subordinates
Controlling: Setting Standards- Actual
performance is compared with them, Taking
Corrective Actions
Why is HR Management
Important to All Managers?
Hiring Wrong person for the job
Experience High Turnover
Employees not doing their best
Wastage of time in useless interviews
Company taken to court- due to Discriminatory Action
Govt. Action against company on Unsafe practices
Uncomfortable employees- due to Unfair and inequitable
Salaries
Potential Losses due to Lack of Training
Unfair Labor Practices
Line and Staff Aspects of
HRM
AUTHORITY
LINE MANAGERS
STAFF MANAGERS
HR Manager’s Main
Functions
LINE FUNCTION
Directs the Activities of his/her people
COORDINATIVE FUNCTION
-to Ensure that Line Managers are
Implementing HR Policies and
Procedures
Functional Control- Right Arm of
STAFF FUNCTION
Assisting and Advising Line Managers
STAFF FUNCTION
Assisting and Advising Line Managers
CEO:
Assists in Strategy Design and Execution.
Better understand the Personnel Aspect of
strategic options.
Line Managers:
Assists in Hiring, Training, Evaluating,
Rewarding, Counseling, Firing employees.
-Benefits programs- Health,
Insurance, Retirement
-Comply with the Equal
Employment Laws, Occupational
Safety Laws,
-Handling Grievances in Labor
Relations
-Employee Advocacy Role:
--How Mangers should be Treating
Employees
--Represents Employees Interests
HR JOB DUTIES
RECRUITERS
EEO COORDINATORS
JOB ANALYSTS
COMPENSATION MANAGERS
TRAINING SPECIALISTS
LABOR RELATIONS SPECIALISTS
STRATEGIC HRM
The central challenge- to provide a set of
services that make sense in terms of the
company’s strategic plan.
STRATEGIC PLAN/ STRATEGY:
How a company will match its Internal
Strengths and Weaknesses with External
Opportunities and Threats in order to
Maintain a Competitive Advantage.
STRATEGIC HRM
The Basic Strategic Process starts;
Where are we NOW as a
Business?
Where do we want to BE?
The managers then Formulate
Strategies to take the company
from where it is now to where it
wants to be.
Strategies are the Courses of
Action.
STRATEGIC HRM
Companies various strategies e.g., ….
Must confirm to and support its
Strategic Plan
Strategic Plan may calls for the
Improvement of the Products of the
company
Then, One of the HR strategy may be to
provide Specialized Training and
Specific Screening of Employees
The Changing Environment
of HR Management
HR’s Changing Role:
First took over HIRING and FIRING from
Supervisors Payroll dept., Benefit Plans
Expanded Role in Employee Selection
Training and Promotion
Emergence of Union Legislation in 1930s
Equal Employment Legislation
The Changing Environment
of HR Management
Following Trends are creating Changes
in How Companies Organize, Manage,
and Use their HR Departments:
CHANGING ENVIROMMENT
1. GLOBALIZATION
2. TECHNOLOGICAL ADVANCES
3. EXPORTING JOBS
4. NATURE OF WORK
5. WORKFORCE DEMOGRAPHICS
MEASURING HR’s
CONTRIBUTIONS: STRATEGY
HR’s Central task is to provide services that make SENSE in terms of
the Company’s Strategy.
STRATEGY:
A company’s plan for how it will balance its
Internal Strengths and weaknesses with Extern anal
Opportunities and Threats in order to Maintain a Competitive
Advantage.
Globalization and Increased Competition have placed HR in
front in most firm’s strategic planning efforts.
Thus HR Managers are more involved in Partnering with their
top managers in both Designing and Implementing their
company's Strategies.
MEASURING HR’s
CONTRIBUTIONS: STRATEGY
That is why Today’s Business world
Emphasizes on Gaining Competitive
Advantage through People.
Competitiveness and Operational
Improvement involve Expertise of all
managers that they must be able to
Express Departmental Plans and
Accomplishments in Measurable Terms
MEASURING HR’s
CONTRIBUTIONS: METRICS
METRICS:
Set of Quantitative Performance
Measures, HR Managers Use to ASSESS
their Operations.
Cost per Hire:
Advertising Agency Fees+ Employee
Referrals + Travel Costs of Applicants
and Staff+ Relocation Costs / Number
of Hires
MEASURING HR’s CONTRIBUTIONS:
HR SCORECARD
HR SCORECARD:
It is a Concise Measurement System, It
shows the Quantitative Standards, or
Metrics the firm uses.
It measures the HR Functions
Effectiveness and Efficiency in
producing Required Employee
Behaviors Needed to Achieve the
Company’s Strategic Goals.
HR Manager’s Proficiencies
Today’s Challenging Business Scenario requires following
Proficiencies in a HR Manager
HR PROFICIENCIES
Traditional knowledge and skills in areas such as employee
Recruitment, Selection, Training, Compensation etc.
BUSINESS PROFICIENCIES
Creating profitable enterprises that serve customers
Effectively.
Thus HR Managers need to be familiar with how company
Operates, e.g., Strategic Planning, Production, Finance,
Marketing, and so on.
HR Manager’s Proficiencies
LEADERSHIP PROFICIENCIES
They need the Ability to work with and
Lead Management Groups and to Drive
the Changes required.
LERARNING PROFICIENCIES
As the new Technologies are being
Introduced continually the HR
Managers must keep themselves
Abreast of and Apply new Technology
affecting the HR field.
HR and TECHNOLOGY
Technology improves HR
Functioning in Four Main Ways:
1. Self-Service
2. Centralized Call Centers
-Answering questions of
employees from remote areas
-no need to establish HR Dept.
at each location
HR and TECHNOLOGY
Improving HR Productivity
Internet, Computer Systems
-HR Information Systems
-New Software's for Managing HR
Activities- Payroll Administration
Outsourcing
Pension Plans, Employee Counseling,
Background Checks, Temporary
Staffing,
STRATEGIC HRM
STRATEGIC MANAGEMENT:
A process of Identifying
and Executing
the organization’s Mission,
by Matching the company’s
Compatibilities with the Demands
of its Environment
STRATEGIC
MANAGEMENT PROCESS
1. DEFINE THE BUSINESS AND ITS
MISSION:
VISION; Broader and more Future-
oriented than the Mission
MISSION; more Specific and Short-
term based than the Vision
-Who we are? What we do?
Where we are headed?
STRATEGIC
MANAGEMENT PROCESS
2. PERFORM EXTERNAL AND
INTERNAL AUDIT
-SWOT Analysis;
Compile and Organize the
process of Identifying Company
Strengths, Weaknesses and
Opportunities and Threats
STRATEGIC
MANAGEMENT PROCESS
3. TRANSLATE THE MISSION INTO
STRATEGIC GOALS
-The Specific Goals are devised
which cover the overall Mission
of the organization
STRATEGIC
MANAGEMENT PROCESS
4. FORMULATE A STRATEGY TO ACHIEVE THE
STRATEGIC GOALS
- Strategy is a Course of Action.
It shows how a company will move
from the business
to the business
it wants to be in - as stated in the
Vision, Mission, and Strategic Goals.
- It describes “How de we get from
here to there”.
STRATEGIC
MANAGEMENT PROCESS
5.IMPLEMENT THE STRATEGY
Translating the Strategies into
ACTIONS and RESULTS
Applying all the Management
Functions
STRATEGIC
MANAGEMENT PROCESS
6. EVALUATE THE STRTATEGY
Strategic Control:
-It keeps the company’s Strategy Up
to date.
-The Assessment of the progress
toward the Strategic Goals and the
Corrective Action is taken.
TYPES OF STRATEGIC
PLANNING
CORPORATE STRATEGY
-Identifies the Portfolios of Businesses and
the Ways in which these Relate to each
other.
-Following are few of the Corporate Strategy
Possibilities:
a. Diversification Corporate Strategy;
The Firm will Expand by Adding new
Product Lines.
B. Vertical Integration Strategy;
The Firm Expands by Producing its own
Raw Materials, or Selling its Products
Direct.
TYPES OF STRATEGIC
PLANNING
C.Consolidation;
Reducing the company’s
Size
d. Geographic Expansion;
Taking the company
Abroad
TYPES OF STRATEGIC
PLANNING
BUSINESS LEVEL/COMPETITIVE
STRATEGY:
-How to Build and Strengthen the
business’s Long-term competitive
position in the Marketplace.
-How Telenor will compete with Ufone
-Companies try to Achieve Competitive
Advantage for each Business they are
in.
TYPES OF STRATEGIC
PLANNING
-Competitive Advantage;
Companies use several Competitive
Strategies to Achieve Competitive
Advantage.
-Cost Leadership;
The company wants to Become
Low-Cost leader in the industry.
For Example; Wal-mart
TYPES OF STRATEGIC
PLANNING
-Differentiation (Competitive Strategy);
A firm seeks to be Unique in its industry
For example;
Volvo stresses the Safety of its cars
Target for Upscale Brands than
Wal-Mart
-Focusers;
They find out/ develop a Market
Niche and compete by providing a
product or service customers can get
in no other way.
TYPES OF STRATEGIC
PLANNING
FUNCTIONAL STRATEGIES
Individual Business is composed of
Departments.
-Functional Strategies Identify the basic
Courses of Actions that each
department will pursue in order to help the
business Attain its Competitive Goals.
-It should make sense in terms of business’s
competitive strategy.
-DELL’s HR Strategy of putting its Activities
on the Web to support parent firm’s LOW-
Cost Competitive Strategy.
CH.3- Strategic HRM:
Achieving Strategic Fit
Should a firm simply Fit
Capabilities to the Opportunities
and Threats that they see,
or
Should they Stretch well beyond
their Capabilities to take
Advantage of an Opportunity
CH.3- Strategic HRM:
Achieving Strategic Fit
1. Micheal Porter;
Fit point of view.
All of the firm’s Activities must
be tailored to or Fit its over all
Corporate Strategy.
2. Gary Hamel and C.K. Prahald
Argue that being preoccupied with Fit can
Limit Growth.
They say that by Leveraging-
Supplementing what you have done and
doing more with what you have-
can be more important then just Fitting the
Strategic Plans to current resources
CH.3- Strategic HRM:
HR and Competitive Advantage
Every successful company has one or
more Competitive Advantage around
which it builds its Competitive
Strategy.
Technology and other differentiating
elements rarely differentiate any firm
from others.
It is the Human Resource and the
Management Systems that make the
difference.
CH.3- Strategic HRM:
The specific HRM courses of action the
company pursues to achieve its aims.
SHRM is Formulating and Executing HR
Systems- HR Policies and Activities-
that produce the employee
Competencies and Behaviors the
company needs to Achieve its Strategic
Aim.
CH.3- Strategic HRM:
HR’s Strategic Role
HR Managers should be part of the
firm’s strategic planning executive
team. They Identify the Human Issues
that are vital to business strategy and
help establish and execute strategy.
HR Managers need to have in-depth
understanding of the Value creating
Proposition of the firm.
CH.3- Strategic HRM:
HR’s Strategy Execution Role:
-Top Management Formulates the
company’s Corporate and Competitive
Strategies….
HR’s Strategy Formulating Role:
CH.3- Strategic HRM:
Creating a Strategy-oriented HR
System
HR Process; Three Components-
1. HR Professionals
2. HR Policies and Activities
3. Employee Behavior and
Competencies
Translating Strategy into HR
Policy and Practice
CH.3- Strategic HRM:
Creating a Strategy-oriented HR
System
Translating Strategy into HR Policy and
Practice
-Management Formulates a Strategic Plan.
-Any Strategic Plan implies certain
workforce
Requirements in terms of Employee Skills,
Attributes and Behavior.
-HR dept. must deliver those Employee
Skills, Attributes and Behavior in order to
Enable the firm to Achieve its Strategic
Goals.
