Human Resource ManagementStrategic Role

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Human Resource Branding• Firm’s corporate image or culture

• Embodies values and standards that guide peoples’ behavior

• People know what company stands for, people it hires, fit between jobs and people, and results it recognizes and rewards

• Important in getting highest quality applicants to join firm

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Human Resource Management• Utilization of individuals to achieve organizational objectives

• All managers at every level must concern themselves with human resource management

• Five functions

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Human Resource

Management

Human Resource

Development

Com

pens

ation

Staffing

Employee and Labor

Relations

Safety and Health

Human Resource Management Functions

Staffing• Job Analysis• Human Resource Planning• Recruitment

• Selection

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Staffing (Cont.)• Staffing - Process through which

organization ensures it always has proper number of employees with appropriate skills in right jobs at right time to achieve organizational objectives

• Job analysis - Systematic process of determining skills, duties, and knowledge required for performing jobs in organization

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Staffing (Cont.)• Human resource planning - Systematic

process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time .

• Recruitment - Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization

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Staffing (Cont.)• Selection - Process of choosing from a

group of applicants the individual best suited for a particular position and the organization

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Human Resource Development

• Training• Development

• Career Planning• Career Development

• Organizational Development• Performance Management

• Performance Appraisal

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Human Resource Development (Cont.)• Training - Designed to provide

learners with knowledge and skills needed for their present jobs

• Development - Involves learning that goes beyond today's job; it has more long-term focus

• Career planning - Ongoing process whereby individual sets career goals and identifies means to achieve them

Career Planning Flow & StagesCareer Planning Career Goals

Career Paths

CareerFeed Back

Retirement

Needs Safety, Security Physiological

Safety, Security

Achievement esteem, autonomy

Esteem actualization

Self actualization

Age 20 25 30 45 55 65

Career Stages Exploration Establishment Advancement Maintenance

Career stages and Important needs

Scope Of Career Planning

• Human Resource forecasting and planning

• Career Information• Career Counseling• Career Pathing• Skill Assessment training• Succession Planning

CAREER ANCHORS• Technical Competence• Managerial competence• Stability and Security• Creativity and Challenge• Freedom and Autonomy• Dedication to a cause• Lifestyle

Why a career plan could fail !• Efforts are insincere• Look for immediate benefits• Lack of interaction with hired agencies• Impracticability in introduction• No system to evaluate• Bureaucratic model of organization

Importance of career planning• Involvement of the employer and

employee

• Employees need to be aware of the organizational opportunities.

Case Study – Colgate Palmolive• Employees fill the IDP Form• The form is sent to the managers• Employees and managers discuss

• Employees interests • Strengths • Trainings

• HR arrange for the training

Cadbury – Case study• Early Career

• Mid Career

• Senior career

Early Career• First 5 years of employment• Management skills training• Internal- short term placements• Workshops• Mentoring

Aim – Understanding of Business structure.

Mid Career• Team Management trainings• Strategic leadership trainings• International opportunities• Ongoing career dialogues

Aim – Equip with capability to lead teams, develop and deliver business stratergies

Senior Level• Highest level • Approximately 150 members globally• Global leadership conference• Executive development programme• External expert coaching

Aim – Support personal leadership styles to set business strategies.

Steps in Career planning (Employee perspective)

• Make Career Planning an Annual Event

• Map Your Path Since Last Career Planning

• Reflect on Your Likes and Dislikes, Needs and Wants

• Examine Your Pastimes and Hobbies

• Make Note of Your Past Accomplishments

• Look Beyond Your Current Job for Transferable Skills

• Review Career and Job Trends

• Set Career and Job Goals

• Explore New Education/Training Opportunities

• Research Further Career/Job Advancement Opportunities

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Human Resource Development (Cont.)• Career development - Formal

approach used by organization to ensure that people with proper qualifications and experiences are available when needed

• Organization development - Planned process of improving organization by developing its structures, systems, and processes to improve effectiveness and achieving desired goals

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Human Resource Development (Cont.)

• Performance management - Goal-oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization

• Performance appraisal - Formal system of review and evaluation of individual or team task performance

Reasons for Performance Appraisals• Benefits to Employees:

• Provides a chance for employees to ask questions and tell you their sense of what they’ve accomplished

• Lets employee know his/her strengths and areas that need improvement

• Allows employees to take responsibility for their performance

• Lets employees know what’s expected of them; creates mutual understand of job duties

Reasons for Performance Appraisals

• Benefits to Employers:• Helps to improve employee relations

and productivity• Serves as an effective retention tool• Provides a paper trail for addressing

performance or disciplinary problems• Demonstrates organization’s

commitment to employee success• Provides valuable feedback for

managers

Common Problems

• Failure to prepare for the interview• Failure to listen (80-20 ratio)• Failure to maintain objectivity• Failure to provide feedback—positive

and/or corrective• Failure to follow-up• Failure to document performance – both

good and bad

Common Problems

• Misusing the performance evaluation process to address a disciplinary problem

• Element of surprise• Relying on impressions/rumors, rather than

facts• Inconsistent application of performance

evaluation criteria• Interpersonal issues• Holding employees responsible for

events/problems beyond their control

The Personnel-Management Cycle

Job Description

Ongoing Feedback and Training

The Performance Appraisal

How is Your Personnel-Management Cycle?• Do you have accurate and current job descriptions

for all of your employees?• Do your employees have the resources, training and

information they need?• Are you aware of problems that your employees

have right now, for which they need help?• Are you giving regular informal feedback?

Performance Appraisal Process

Step 1: Prepare for the

Meeting

Step 2: Conduct the Meeting

Step 3: Follow-up

Compensation All rewards that individuals receive as a result of their employment

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Compensation• Direct Financial Compensation - Pay

that person receives in form of wages, salaries, bonuses, and commissions.

• Indirect Financial Compensation (Benefits) - All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance.

• Nonfinancial Compensation - Satisfaction that person receives from job itself or from psychological and/or physical environment in which person works.

Safety and Health

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Employees who work in safe environment and enjoy good health are more likely to be productive and yield long-term benefits to organization.

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Safety and Health• Safety - Involves protecting employees

from injuries caused by work-related accidents

• Health - Refers to employees' freedom from illness and their general physical and mental well being

Human Resource Research

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• Human resource research is not separate function.

• It pervades all HR functional areas.

Interrelationships of HRM Functions

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• All HRM functions are interrelated

• Each function affects other areas

Powerful Forces Drive Human Capital Pressures

Human CapitalGlobally DeployedWork Force

More TransientLabor Pool

Shortening TechnologyLife Cycles

Acute Shortage of Skilled Workers

Movement to Knowledge Economy

Human Capital Drives Corporate

The Changing Individual Work Paradigm

The Workplace in next few years• Employee will go to the place of employment -

some days they will work at home.• The employee wont have a permanent desk.• The employee will work collaboratively with a

team.• Each team will have a project manager.• The employees team mates will all be

professionals in a variety of fields.• Some of the team will be focused on delivery and

customer services.• Others in the team are customers.

• Some are permanent employees, some will be contractors.

• No one has a job or a job description.

• The team will have a sponsor who won’t manage in the way of the nineties.

• Each team will have a developmental adviser.

The Changing Individual Work Paradigm

• The roles in the team will include technical expertise, some team facilitation, budgeting, purchasing, training, customer relations etc

• The individual is accountable for results and for their contribution to the team. Compensation will be variable.

• Based on: Is the employee achieving their goals, the teams contributions to the organisation profitability.

The Changing Individual Work Paradigm

The individual will be measured on whether they are growing!

Several feedback mechanisms

The Changing Individual Work Paradigm

The employee will be expected to manage his or her career continuously.

Career progress will not be measured by promotions or moving up.

Career will take new shapes and will rarely be linear.

The Changing Individual Work Paradigm

The Changing Individual Paradigm

Old ParadigmPaternalistic• Development owned by

managers• Defined career paths• Secretive plans for top

employees• Organisation

information not shared• Compensation rewards

upward moves

New ParadigmEmpowering • A partnership for

employee development• Multiple ways to move,

or grow in place• All employees involved

in own development• Open information about

company goals, needs and HR systems.

• Compensation rewards ones contribution

The Labour Market – Skills and Competencies

• Common traits are:• Savvy• Self confidence• Mobility• Flexibility• Willingness to take a risk• Achievement/ outcome oriented• Self sufficiency• Ability to constantly reinvent oneself

Job AnalysisSystematic Review of Jobs Within a Firm

Job DescriptionResponsibilities and working conditions, plus tools, materials and equipment to perform the job

Job SpecificationSkills, abilities, and credentials needed to perform the job

Managing a Projected Shortfall

• Hire new employees• Consider hiring temporary workers• Retrain and transfer current employees

into understaffed areas• Convince older workers not to retire

The creative solution: Develop and install productivity enhancing systems

External RecruitingAttracting outside candidates to apply for jobs

RecruitingAttracting Qualified Candidates to Apply for a Job

Internal RecruitingConsidering current employees for new positions

What are the strengths and weaknesses

of each approach?

Selecting Human Resources

• Application Forms

• Tests• Interviews

ValidityThe predictive value of a selection technique

Developing the Workforce

Training• On-the-job

training• Off-the-job

training• Vestibule

trainingPerformance Appraisal

Evaluating job performance

Incentive ProgramsMoney linked specifically to high performance Bonuses

Incentives

Compensation and Benefits

WagesMoney paid for time worked

SalaryMoney paid for accomplishing a specific job

BenefitsCompensation Other Than Wages and Salaries

Optional Benefits• Retirement plans• Health, life, & disability

insurance• Vacations & holidays• Counseling services

Mandatory BenefitsSocial securityWorkers’ compensation

Equal Opportunity Employment