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    HUMAN RESOURCEMANAGEMENT

    HUMAN RESOURCEMANAGEMENT

    CHAPTER NO. 1

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    AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO:

    Understand the term HRM and importanceof HRM.

     Comprehend four functions of HRM .

    Describe evolution of HRM.

    Identify key roles played by HR managers.

    Eplain challenges faced by HR managers.

    Di!erentiate bet"een HRM andinternational HRM.

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    HUMAN

    &

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    RESOURCE

    Means debt# e$uity#retain earnings and

    selected matters.

    Means building#machinery# vehicle

    and other material.

    FINANCIALRESOURCES

    PHYSICALRESOURCES

    Include the history ofgroups in theorgani%ation#

    relationship# level of

    trust etc.

    Includes skills# abilities#eperience and other

    "ork relatedcharacteristics of people

    associated "ith the

    organi%ation.

    ORGANIZATIONAL

    RESOURCES

    HUMAN

    RESOURCE

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    MANAGEMENT

    Management is the universal processof getting activities completed "ithand through other people to achieve

    organi%ational goals.

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    HUMAN RESOURCE MANAGEMENT

     &he design of formal systems in anorgani%ation to ensure e!ective ande'cient use of talent to accomplish

    organi%ational goals.

    Human Resource Management helps in

    maimi%ing productivity ( reducingcost by )utting Right )erson *t Right

    )lace.

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    E'OLUTION OF HRM

    ?

    &

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    E'OLUTION OF HRM C%n . . .

    1. The CraftSystem

    (1600s-1700s)

     +mall level of production Industrial Revolution

    2. ScientificManagement(Early 1900s)

     ,ne best "ay to accomplish the task )utting the right person on the -ob "ith the

    correct tools and e$uipment Having a standardi%ed method of doingthe -ob )roviding an economic incentive to the"orker

    3. HumanRelations(Late 1920s –Early 1930s)

     Ha"thorne studies Employee participation program

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    E'OLUTION OF HRM C%n . . .

    4. BehavioralSciences

     &he study of the actions of people at"ork people are the most important

    asset of an organi%ation.

    5. Personnel

    Management

    Involve in operational planning and

    decision making ( do not incorporateall HR activities.

    6. HumanResource

    Management

    Involve in operational as "ell as strategicplanning and decision making (

    incorporate all HR activities/training#career development# EE, etc.0

    7. IntellectualCapital

    Management

    ,rgani%ations need to be dynamic both inthe contet of the management of

    individual capabilities and themanagement of organi%ational structure.

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    FUNCTIONS OF HRM

    STAFFING

    MAINTENANCE TRAINING

    &

    DEVELOPMENT

    MOTIVATION

    H R M

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    FUNCTIONS OF HRM C%n . . .

    STAFFING•Strategic Human Resource Planning•Recruitment

    •Selection

    Maintenance  Training &Development

    Motivation

    H R M

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    1. STAFFING

     &he activities in HRM concerned "ithseeking and hiring $uali1ed

    employees are called +ta'ng.

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    1. STAFFING

     &he basic ob-ective of the sta'ngfunction is to locate ( secure

    competent employee.

    COMPONENTS OFSTAFFING

    a. Strategic HumanResource Planning

     b. Recruitment

    c. Selection

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    a. STRATEGIC HUMAN RESOURCEPLANNING

    +trategic Human Resource )lanning isthe process by "hich an organi%ationensures that it has right number and

    kind of people capable of e!ectively ande'ciently completing those task that arein direct support of company2s mission

    and strategic goals.

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    (. RECRUITMENT

     &he process by "hich a -ob vacancy is identi1edand potential employees are noti1ed.

     &o obtain an ade$uate pool of applicantsthere by more choice to the organi%ation.

    )roviding enough information about the -obsuch that those "ho are un$uali1ed "ill notapply.

    OBJECTIVES

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    c. SELECTION

    +election is the process by "hich anorgani%ation chooses from list of applicantsthe person or persons "ho meet the

    selection criteria for the position availableconsidering current environmental

    conditions.

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    c. SELECTION

    •  &he primary ob-ective of selection activities is to

    predict "hich -ob applicant "ill be suitable if hired#

    during the selection process# candidate are also

    informed about the -ob and organi%ation

    • )roper selection can minimi%e the cost of replacement

    and training resulting in more productive "orkforce

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    FUNCTIONS OF HRM C%n . . .

    Staffing

    Maintenance

    Motivation

     TRAINING &DEVELOPMENT

    •Orientation•Employee Training•Employee Development•Organization Development•Career DevelopmentH R M

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    ). TRAINING * DE'ELOPMENT

     &raining is the systematic process of altering the behaviorof employees in a direction that "ill achieve organi%ationalgoals.

    Development can be de1ned as 3E!orts to improveemployees2 ability to handle a variety of assignments are.4

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    ). TRAINING * DE'ELOPMENT

     &he basic ob-ective of &raining ( Development function isto take competent "orkforce# adapt them to the

    organi%ation# and help them to obtain up5to5date skills#kno"ledge# and abilities for their -ob responsibilities

    COMPONENTS OF

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    COMPONENTS OFTRAINING * DE'ELOPMENT

    Orientation

    Employee Training

    Employee

    Development

    Organization

    Development

    CareerDevelopment

    COMPONENTS OF

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    COMPONENTS OFTRAINING * DE'ELOPMENT C%n . . .

        • I  t  c  o  v  e  r  s  t  h  e  a  c  t i  v i  t i  e  s i  n  v  o l  v  e i  n  t  h  e i  n  t  r  o  d  u  c i  n  g  a  n  e   "  e   m  p l  o  y  e  e

      t  o  o  r  g  a  n i  %  a  t i  o  n  a  n  d  t  o  h i  s  o  r  h  e  r   "  o  r  k  u  n i  t .

    a. Orientation

        •  E   m  p l  o  y  e  e  t  r  a i  n i  n  g i  s  d  e  s i  g  n  e  d  t  o  a  s  s i  s  t  e   m  p l  o  y  e  e  a  c  $  u i  r i  n  g  b  e  t  t  e  r  s  k i l l  f  o  r  t  h  e  c  u  r  r  e  n  t -  o  b .

     b. Employee Training

        •  &  h  e  f  o  c  u  s  o  f  e   m  p l  o  y  e  e  d  e  v  e l  o  p   m  e  n  t i  s  o  n  a  f  u  t  u  r  e  p  o  s i  t i  o  n   " i  t  h i  n  t  h  e

      o  r  g  a  n i  %  a  t i  o  n  f  o  r  t  h  e   "  h i  c  h  e   m  p l  o  y  e  e  r  e  $  u i  r  e  a  d  d i  t i  o  n  a l

      c  o   m  p  e  t  e  n  c i  e  s .

    c. EmployeeDevelopment

    d. CareerDevelopment

    e.Organizational 

    Development

     &he focus of career developmentis to provide the necessaryinformation and assignment inhelping employees reali%e their

    career goals.

    • ,rgani%ational Development isthe part of HRM that deals "ith

    facilitating system "ide changein the organi%ation.

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    FUNCTIONS OF HRM C%n . . .

     Training&

    Development

    Staffing

    Maintenance

    Motivation Motivation and Job Design Performance management Reward & Compensation Employee Benefits

    H R M

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    +. MOTI'ATION

    *n inner force that impels human

    beings to behave in a variety of "ays.

    MOTIVATION

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    +. MOTI'ATION

     &he basic ob-ective of motivationfunction is to retain good sta! andto encourage them to give of their

    best.

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    COMPONENTS OF MOTI'ATION  * -ob should be designed in a such a "ay

    that itshould facilitate the achievement of the

    organi%ational ob-ective# stimulate

    performanceand recogni%e the capacity and needs

    of those"ho are to perform it.

    1.

     JobDesign

      )rocess "hich is used to identify#encourage#

    measure# evaluate and improveemployees through

    performance appraisal.

    2.

    PerformanceManagement  Compensation is "hat employee

    receives inechange for their contribution to theorgani%ation.Compensation management help the

    organi%ationto obtain# maintain and retain aproductive

    6orkforce.

    3.Compensation

    Management

      Employees bene1t are generallymembership

    based #non 1nancial re"ard o!ered toattract and

    keep the employees# regardlesstheir

    4.Employee

    Benefit

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    FUNCTIONS OF HRM C%n . . .

    Motivation

    Staffing

    Maintenance•Health & safety•Communication

    •Employee relations

     Training &DevelopmentH R M

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    ,. MAINTENANCE FUNCTION

    *ctivities in HRM concerned "ith maintainingemployees commitment and loyalty to the

    organi%ation.

    MAINTENANCE

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    ,. MAINTENANCE FUNCTION

     &he last phase of HRM process is calledmaintenance function. &he main ob-ective of this

    function is to do such HRM activities that maintainemployees commitment and loyalty "ith the

    organi%ation.

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     +erving as an intermediarybet"een the organi%ation and itsunion.

     Designing discipline andgrievance handling systems.

    Designing andimplementing employee

    communication system.

    Designing and

    implementing programs toensure employee healthand safety.

    COMPONENTS OF MAINTENANCE

    Health andSafety

    CommunicationEmployees/

    Labor Relation

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    ROLES OF HR MANAGER

     Administrative

    Role

    Employee Advocate

    Role

    Operational

    Role

    Strategic

    Role

    +erve as

    3Morale,'cer4

    Clerical

    *dministration

    7usinessContributo

    r

    HR*ctivities

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    ROLES OF HR MANAGER C%n . . .

        •   C l  e  r i  c  a l  a  n  d  a  d   m i  n i  s  t  r  a  t i  v  e  s  u  p  p  o  r  t  o  p  e  r  a  t i  o  n  s /  e .  g . #  p  a  y  r  o l l  a  n  d  b  e  n  e  1  t  s   "  o  r  k 0 .

    1. Administrative

    Role

        •  3   C  h  a   m  p i  o  n  4  f  o  r  e   m  p l  o  y  e  e  c  o  n  c  e  r  n  s    •  E   m  p l  o  y  e  e  c  r i  s i  s   m  a  n  a  g  e   m  e  n  t    •   R  e  s  p  o  n  d i  n  g  t  o  e   m  p l  o  y  e  e   c  o   m  p l  a i  n  t  s2.

    Employee Advocate Role

        • I  d  e  n  t i  1  c  a  t i  o  n  a  n  d i   m  p l  e   m  e  n  t  a  t i  o  n  o  f   H   R  p  r  o  g  r  a   m  s  a  n  d  p  o l i  c i  e  s   8  h i  r i  n  g #  t  r  a i  n i  n  g #  c  o   m  p  e  n  s  a  t i  n  g  a  n  d  o  t  h  e  r   a  c  t i  v i  t i  e  s  t  h  a  t  s  u  p  p  o  r  t  t  h  e

      o  r  g  a  n i  %  a  t i  o  n .

    3.OperationalRole

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    ROLES OF HR MANAGER C%n . . .

    4.Strategic Role

     9ocusing on developing HR

    activities that enhanceorgani%ational

    performance.  Involvement in strategic planning.  )articipating in decision making on

    mergers# ac$uisitions# anddo"nsi%ing.  *ccounting and documenting the

    1nancial results of HR activities.

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    HR MANAGEMENT CHALLENGES

    Economic and &echnologicalChanges

    6orkforce *vailability and:uality

    ;ro"th in Contingent6orkforce

    Demographics and DiversityIssues

    7alancing 6ork and 9amily

    ,rgani%ational Restructuring#

    Mergers# and *c$uisitions

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    R MANAGEMENT CHALLENGES C%n . .

     +hift in -obs for manufacturing and agricultureto service industries and telecommunications. )ressures of global competition causing 1rms toadapt by lo"ering costs and increasingproductivity. ;ro"th of information technology.

    1. Economic & TechnologicalChanges

    Inade$uate supply of "orkers "ith needed skillsfor 3kno"ledge -obs4Education of "orkers in basic skills

    2. Workforce Availability and

    Quality

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    R MANAGEMENT CHALLENGES C%n . .

      Increases in temporary "orkers# independentcontractors# leased employees# and part5timers causedby<  =eed for >eibility in sta'ng decisions  Increased di'culty in 1ring regular employees.

    3. Growth in Contingent Workforce

    3Right5si%ing48eliminating of layers of management#closing facilities# merging "ith other organi%ations# andout placing "orkers.  Intended results are >atter organi%ations# increases in

    productivity# $uality# service and lo"er costs.  HR managers must "ork to"ard ensuring culturalcompatibility in mergers.

    4. Organizational Restructuring,Mergers, and Acquisitions

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    R MANAGEMENT CHALLENGES C%n . .

     Dual5career couples +ingle5parent households Decline in the 3traditional family4

     6orking mothers and family?childcare  +ingle employee 3backlash4 against family5oriented programs.

    5. Balancing Work & Family

     More diversity of race# gender# age etc.

    6. Demographics andDiversity Issues

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     I n  e # n a

      i % n a -  H . $ a

     n

     R e " % . # c e  M

     a n a / e $ e n

     

    INTERNATIONAL

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    INTERNATIONALHRM 0IHRM

    International HRM /IHRM0 is the process of

    procuring# allocating # and e!ectively utili%inghuman resources in a multinational corporation.

     Encompasses more functions. Has more heterogeneous functions. Involves constantly changing perspectives.

      Re$uires more involvement in employees2personal lives. In>uenced by more eternal sources. Involves greater level of risk than typical domesticHRM.

    HRM vs. IHRM

    THE CONCEPT OF

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    THE CONCEPT OFTRANSNATIONALITY 

    Each of these de1nitions# depending upon ho" theorgani%ation perceives itself # has implications forthe role of international HRM.

    M-inai%na- C%$2anie"

    Refers to companies that have developed astrategic posture and organi%ational capabilitythat allo" them to be very sensitive andresponsive to di!erences in nationalenvironments around the "orld.

    G-%(a-C%$2anie"

    Refers to companies that have developedinternational operations that are much moredriven by the need for global e'ciency andcentrali%ed in strategic and operationaldecisions.

    Ine#nai%n

    a-

    7ased on &ransferring and adapting the parent

    company2s kno"ledge or epertise to foreign

    FUNCTION OF

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    FUNCTION OFINTERNATIONAL HRM

    @. &he &hree broad Human Resource activities<

    A. &he &hree ma-or Country categories involved inInternational HRM activities<

    B. &he &hree type of Employee of an International 9irm<

    Host countryNationals(HCNs)

    Parent CountryNationals(PCNs)

     Third CountryNational(TCNs)

    Procurement Allocation Utilization

    Host country Home Country Other Country

    Highlighting the broad functions of HRM#

    Morgan /@0 has presented a modelthat consist of three dimensions "hichare<

    APPROACHES TO IHRM

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    APPROACHES TO IHRM

     APPROACHES DEFINITIONS

    ETHNOCENTRIC

    M=C simply eports HR practices and policiesused in the home country to the foreignsubsidiaries. It Emphasi%es consistency and

    integration across all subsidiaries.POLYCENTRIC

    HR policies are adapted to meet thecircumstances in each foreign location.

    REGIOCENTRIC

    Represents a regional grouping ofsubsidiaries. HR policies are coordinated and

    integrated "ithin the region.

    GEOCENTRIC

    HR policies are developed to meet the goalsof the global net"ork of home countrylocations and foreign subsidiaries.

    Ev%-i%n3

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    Human Resource

    Management

    %3 HRM

    Craft+ystem

    +cienti1cManageme

    nt

    HumanRelations

    7ehavioral+ciences

    )ersonnelManageme

    ntHRM

    IntellectualCapital

    Management

    +cienti1c

    Management+&*99I=;

    +cienti1c

    Management

     &R*I=I=;

    (DEFEG,)ME=&

    +cienti1c

    ManagementM,&IF*&I,=

    +cienti1c

    ManagementM*I=&*I=CE

    G%a-" %3 HRM

    Enhancing)roductivity (

    :uality

    )romotingIndividual;ro"th (

    Development

    Complying "ithGegal ( +ocial

    ,bligations

    9acilitating,rgani%ationalE!ectiveness

    Fnci%n"%3 

    HRM

    R%-e" %3 HRMana/e#

    *dministrativeEmployee*dvocate

    ,perational +trategic

    HRMana/e$enC!a--en/e"

    Economic ( &echnological Changes

    6orkforce*vailability( :uality

    ;ro"th inContingent6orkforce

    Demographics (

    DiversityIssues

    7alancing6ork (9amily

    Mergers (*c$uisition

    Ine#nai%na-

    HRM

    CHAPTER : 1

    HRM Fs. IHRM

     &he Concept

    ,f  &ransnationality

    9unction ,f 

    InternationalHRM

    *pproaches toIHRM

    • Strategic HumanResource planning

    • Recruitment• Selection

    • Orientation• Employee Training• EmployeeDevelopment• Organizational

    Development• CareerDevelopment

    • Motivation & JobDesign• Perormance

    Management• Re!ar" &Compensation• #ene$ts

    • Healt% & Saety• Communication• EmployeeRelations

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    THOUGHT OF THE DAY 

    People are defnitely a company’s realest asset. Itdoesn't make any dierence whether the productis cars or cosmetics. A company is only as good

    as the people it keeps.

      “Mary Kay Ash”