Download - Strat rect planning spr 2012
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STRAT ROLE OF HRM
In an era when intellectual capital is mightier than other physical or financial capital, the
employee is as powerful as the consumer was in the age of materialism.
Diedre Maken ,2000
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STRATEGICORIENTATION------- HRM
Committed and competent work force. How?
Adapt to changes in environment. How?Balance between capital and labor. How?Planned HR deployment for the future.
How?Building incentives. How?Safeguarding company interests. How?
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HR Principles
Source of
Value creation Creativity & Autonomy
System Emphasis on Performance
competence based rewards
Foundation Equal Long-term
opportunity Perspective
Philosophy
Creating value for customers through management based on esteem for human dignity.
Policies
5Different fields of HR Policies
Organization
Recruiting
Development
Evaluation
Compensation
We hold the following to be our guidelines for managing human resources.
Creativity & Autonomy
An individual’s creativity is the source of creating value. We respect diversity and autonomy so that each can
exercise his/her own creativity to the full extent.Emphasis on competence
We have adopted competence as the most important criterion for making personnel decisions.
Performance based rewards
Rewards based on performance are essential for human motivation.
Performance results will be fairly evaluated and rewarded accordingly.
Equal opportunity Equal opportunity builds trust between people. We ensure everyone an equal opportunity regardless of gender, race, age, religion or nationality.
Long-term Perspective
Maintaining a long-term perspective is the foundation of our human resource policies. Human resource programs should be designed with a long-term perspective and implemented with dedication and persistence.
HR PRINCIPLES-LG
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WHY HUMAN RESOURCE STRATEGY
• Define opportunities and barriers for achieving business obj.
• Prompts new thinking about issues.• Develop sense of urgency and commitment of
action.• Estb selected long term courses on priority
basis.• Dev strategic focus for managing business and
managing talent.
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External
Analysis
Opportunities
Threats
Mission Goals Strategic
Choice
Human Resource
Needs
Skills
Behaviors
Culture
Firm Performance
Productivity
Quality
Profitability
HR practice
Recruitment Job analysis
Training Job design
Performance Selection
Management Development
Labor Pay structure
Relations Incentives
Employee Benefits
relations
Internal
Analysis
Strengths
Weaknesses
Human resource
Capability
Skills
Abilities
Knowledge
Human resource
Actions
Behaviors
Results
(Productivity,
absenteeism,
turnover)
Strategy formulation
Strategy implementationEmergent strategies
Strategy evaluation
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Roles of HR Manager
• Strategic Partner
• Administrative Expert
• Employee Advocate
• Change Agent
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Roles and competencies
NegotiationsCommunications
OvercomingResistance to
change
CounselingDeveloping
teams
Legal complianceContract
AdministrationE-HRM & HRInformation
systems
Data-based decision-making
Administrative expert
Change agent Strategic
Partner
Employee
advocate
STRATEGIC ORIENTATION
• Proactive Vs Reactive• Narrow Vs Broad• Informal Vs Formal• Loosely tied Vs Closely Tied• Inflexible Vs Flexible
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STRAT CHOICES- RECRUITING
• Make or Buy?• Degree of Tech sophistication in recruiting?• External recruiting or internal?• Untapped labor utilization?• Degree of Affirmative Action Plan?• Flexibility in HR force?
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Firm Strategy- HR Relationships• Growth/Expansion
• Retrenchment
• Diversification
• Mergers/Acquisition
• Divestiture
• Differentiation
• Low Cost Producer• Luxury/Quality
• Aggressive hiring, promotion
• Layoffs, termination, ,early retirement.
• Staff configuration, promotions
• Corporate Acculturation, layoffs
• Reassignment, layoffs
• Decentralized hiring
• Cost reduction, wage cuts• Hiring specialized personnels,
special compensation pkgs
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CORPORATE STRATEGY
EXAMPLE HUMAN RESOURCE STRATEGIES
Retrenchment (Cost Reduction)
GMLayoffs, Wage Reduction, Productivity, Increases, Job Redesign, Renegotiated, Labor Agreements.
Growth IntelAggressive Recruiting and Hiring, Rapidly Rising Wages, Job Creation, Expanding Training and Development.
Renewal ChryslerManaged Turnover, Selective Layoff, Organizational Development, Transfer/Replacement, Productivity, Increases, Employee Involvement.
Niche FocusKentucky
Fried Chicken
Specialized Job Creation, Elimination of other Jobs, Specialized Training and Development.
Acquisition GESelective Layoffs, Transfers/Placement Job Combinations, Orientation and Training, Managing Cultural Transitions.
Examples of Organizational Strategies and Associated Human Examples of Organizational Strategies and Associated Human Resource StrategiesResource Strategies
Examples of Organizational Strategies and Associated Human Examples of Organizational Strategies and Associated Human Resource StrategiesResource Strategies
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SOURCE:PAKISTAN ECONOMICAL SURVEY 2005-06 12
TAHA WAHABSYED SHIRAZ RAZA NAQVI
13SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 13
FORECASTED POPULATION & LABOR FORCE
FOR PAKISTAN
INTERNATIONAL POPULATION RANK: 06TH
POPULATION : 171 MILLION
GROWTH RATE : 1.51%
LABOR FORCE : 54.92 MILLION
EMPLOYED LABOR : 51.87 MILLION
UNEMPLOYED LABOR : 3.05 MILLION
14SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 14
LABOR FORCE BREAK DOWN
YEAR TOTAL RURAL URBAN
2004 45.76 31.07 14.69
2005 46.82 31.79 15.03
2006 47.67 32.37 15.3
2009 50.79 35.54 15.25
(MILLION)
15SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 15
FORECASTED POPULATION & LABOR FORCE
PROVINCIAL DISTR OF WORKFORCE/ GENDER
(IN MILLION)
AREA TOTAL MALE FEMALE5.05
PAKISTAN 54.92 42.44 12.48
PUNJAB 33.04 24.18 8.86
SINDH 13.46 11.31 2.15
BLN 2.17 1.90 .27
KP 6.25 5.05 1.20
16SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 16
FORECASTED POPULATION & LABOR FORCE
FOR PAKISTAN
(AREAWISE POPULATION)
(% SHARE)
YEAR TOTAL RURAL URBAN
2004 100 67.90 32.10
2005 100 67.90 32.10
2006 100 67.90 32.10
17SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 17
FORECASTED LABOR FORCE PROJECTIONS
(MILLION)
(INCREASING 0.94 MILLION PER YEAR)
YEAR TOTAL
2006 47.67
2010 51.46
2015 56.18
2020 60.89
18SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 18
FORECASTED POPULATION & LABOR FORCE
FOR PAKISTAN
UNEMPLOYED LABOR FORCE
YEAR TOTAL
2006 3.66
2010 4.29
2015 5.08
2020 5.87
(MILLION)
19SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 19
FORECASTED POPULATION & LABOR FORCE
FOR PAKISTAN
UNEMPLOYED LABOR FORCE
YEAR TOTAL
2006 07.68
2010 08.34
2015 09.04
2020 09.63
(IN % OF LABOR FORCE)
20SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 20
FORECASTED POPULATION & LABOR FORCE
FOR PAKISTAN
OTHER SECTOR (EMPLOYED LABOR FORCE)(% OF employed LABOR
FORCE)YEARS AGRICULTURE MINING &
MANUFACTURINGCONSTRUCTION
2006
2010 44% 13% 6.3%
2015
2020
21SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 21
FORECASTED POPULATION & LABOR FORCE
FOR PAKISTAN
OTHER SECTOR (EMPLOYED LABOR FORCE)(% OF employed LABOR
FORCE)YEARS TRANSPORT SERVICES OTHERS
2006
2010 5.5% 13.7% 2.3%
2015
2020
22SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 22
FORECASTED POPULATION & LABOR FORCE
EMPLOYMENT STATUS BY CLASS/REGION- 2008-09
(IN MILLION)
STATUS TOTAL URBAN RURAL
EMPLOYERS .47 .34 .13
SELF EMPLOYED
17.06 4.59 12.47
UNPAID FAMILY
HELPERS
14.45 1.75 12.7
EMPLOYEES 17.96 8.18 9.78
TOTAL 49.94 14.86 35.08
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PAKISTANI DIASPORA
• Expand & upgrade skill/job capacity.• “Young workforce” dilemma will last up-to 2050. • Urbanization increased 7 fold. In 2030, 50% pop
ratio will be urban.• 7 million Pak living abroad. Remits $ 8 bill annually.• Expand NAVTEC, SDC & CWA• Close monitoring of Key Indicator for Labor Markets
(KILM).
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RECRUITING TRENDS IN PAKISTAN
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Changes in environment
• 1. Labor force• 2. Social changes• 3. Technology• 4. Competitive forces• 5. Govt Regulations• 6. Globalization
WHERE DID JOBS OCCUR?DAWN EBR: 21-27 NOV
PAPER AND QTR
i II III IV TOTAL
DAWN 2009 43 43 180 256 519
DAWN 2010 166 63 130 NA -
NEWS 2009 66 127 22 32 247
DIFF - 47%
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JOBS BY LEVEL ???
• ENTRY LEVEL 25%
• MIDDLE LEVEL 33%
• SENIOR LEVEL 44%
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JOBS BY SECTOR???
• BANKING 1%
• PUBLIC SECTOR ON HIGH
• TELECOMM 10%
• MANU 50%
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THE PAKISTANI SCENARIO
COPING WITH BRAIN DRAIN.UNEMP NUMBER PREPONDEROUS EFFECT ON
EACH VACANCYEVERY CANDIDATE NOT A SERIOUS CANDIDATE.
ANCHORED TO THE HOMETOWN.JOB ASSURANCE FOR TECHNOCRATS.
MIDDLE MANAGEMENT GROUP BELIEVES IN HORIZONTAL MOBILITY.
TESTS ARE UNSTRUCTURED AND UN VALIDATED.EVERY VACANCY IS NOT ADVERTISED
A BIRD IN HAND IS WORTH TWO IN THE BUSH.
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PERSONAL QUALITIES & ATTITUDES
EXPERIENCE
EDUCATION
Knowledge & skills
(including potential)
CRITERIA FOR PRE-QUALIFICATION
RELEVANT FOR IMPACT UPON NEXT CRITERIA
CRITERIA FOR REECRUITMENT & SELECTION
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RETENTION
• Employee retention refers to policies and practices companies use to prevent valuable employees from leaving their jobs.
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DUAL CAREER PATH SYSTEM
• A dual-career-path system enables employees to remain in technical career or move into a
management career path.
Pak Companies Recruiting on the Web
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
(Source: ROZEE.PK)
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Obtaining Greater Employee Commitment and Performance for maximum results
Talat NaseerGlaxoSmithKline
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The reality
• Your company is a short stop• Globalization• Skill shortages• Dynamic work and corporate environments• Mergers and Acquisitions• Outsourcing and off shoring
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Developing a commitment strategy
• Developing Ownership• Communication Programs• Leadership Development
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HUMAN CAPITAL
Represents the human factor of the organization; the combined intelligence, skills and expertise that gives the organization its distinctive character. The human
elements of the organization are those that are capable of learning, changing, innovating and providing the creative thrust which if properly
motivated can ensure the long-term survival of the organization.
Bontis 1999
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HUMAN CAPITAL INDEX
• HR practices can lead to 30% increase in the shareholders value creation.– total reward and accountability 16.5 %– Congenial, flexible work force 9%– Recruiting and retention excellence 7.9 %– Communication integrity 7.1%
Watson Wyatt research in 2001
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AIM OF HRM
• Increase organizational effectiveness.• Manage Human Capital.• Inculcate Knowledge management• Devise reward management.• Harmonize Employee relationships.• Reduce gap between reality and rhetoric.