HRM PRESENTATION

Part 1 The HRM definition

HR Management is the process by which the guiding members of an organization envision its future and develop the necessary procedures and operations to achieve that future

(Goldstein, Nolan, Pfieffer, 1992)

What is a ‘HUMAN RESOURCE’

‘HUMAN RESOURCE’

In management terms, ‘human resources’ or ‘human capital’ refers to the traits that people bring to the workplace :

Can you name some traits?

‘HUMAN RESOURCE’

Intelligence Aptitude Commitment Knowledge and skills The ability to learn

HUMAN RESOURCE MANAGEMENT IS:

A strategic approach to managing employment relations

The emphasis on leveraging people’s capabilities is critical to achieving the competitive edge and advantages.

HOW IS THIS ACHIEVED?

HOW IS THIS ACHIEVED?

This is achieved through a distinctive set of integrated:

Management structures Development planning

program's Employment policies Workplace practices

The HR Planning Processes

HR Planning has 3 major components 1 Inputs techniques 2 Tools and Techniques 3 Outputs structures

HR Planning 1. InputsStaff Requirements for the project with

the relevant team managersAssess the Company’s Environment

Factors for current and near future work load, staff availability, culture, common languages and relationship processes

Project Management Plan, Resource Requirements, Time Management, WBS Charts, Cost Efficiency, etc

HR Planning2. Tools and TechniquesOrganisation Charts

Chart 1. Showing the relationship between Managers, Team MembersChart 2. Encompassing all elements of the Project internal and outsourced

Company Networking ProceduresOrganisational Processes Theory

Using proven Principals to guide decision making

HR Planning

3. OutputsStaffing Management Plan to inform all

project Managers and Members when they will be required and skills requirements

Roles and Responsibilities are clearly defined in a time table format

Project Organisational Charts displaying Resource Histogram/Timetable and the hierarchy of team management tiers

Staffing Management Plan

The most important document. It carries all the information for building the teams, how to motivate and manage them and processes for conflict management

What are their training needs Recognition and Rewards system Release Criteria

What is required to role off the end of the Project

Acquire Project Team

This is where you negotiate with Functional Managers to acquire the team members

Input Tools; Negotiation / Pre-assignment / Acquisition / Virtual Teams or outsources

Output results;Resource availability - WhenStaffing assignments - RolesStaffing Management Plan Updates

Develop Project Team

This is where you keep the team well motivated and managed, moving toward the goal

MotivationRecognition and Rewards that are clearly explained and fair to all Training makes people feel they are growing in their field and stay more motivated

ManagementOnce the project is rolling the manager becomes more like a coachSoft skills are required to understand what makes the members tick and how to support them with their problems

Leadership Skills

Soft skillsThe 5 Kinds of Power:Reward Power – Fair Bonuses tied to Goals Expert Power – Respect for expertise Referent Power – Standing with a high ranked figurePunishment Power – Sometimes necessary but should occur in private away from the team

Motivation

No matter how good your Soft skills if the work environment is poor the project outcomes can be affected

Motivational theoriesMaslow’s – Hierarchy of employment needsHerzberg’s - Motivation Hygiene TheoryMcGregor's - X and Y TheoryExpectancy Theory – Expectation of a fair reward for motivationMcClelland's Achievement Theory – People need achievement, power and affiliation to be motivatedTheory Z - Key features of Japanese Industrial Organizations

MASLOW’S HIERARCHY OF EMPLOYEE’S NEEDS

Secure salary, work environment

Biological & PhysiologicalBiological & PhysiologicalNeedsNeeds

Safety NeedsSafety Needs

Belongingness& Love Needs

EsteemNeeds

Food, air, water, sleep

Protection, law, freedom

Benefits, stabilityOccupational safety

Coworkers, groups,clients

Recognition, high status

Advancement

Personal /Social Life

OccupationalNeeds

NeedsHierarchy

SelfActualizatio

n

Family, friends,community

Approval,achievement

Personal growth,

fulfillment

Team Performance Assessment

This is the Output component of Develop Project Team

It covers; Competencies / Skills Improvements Team Performance Turnover Rate

Manage Project Team Process

Tools

Conflict Management – Resolving skills

Issue Logs – Records of resolutions

Performance Appraisals – Of Team members

Conflict Management

Causes of conflict Resources – scarcity, e.g., Skilled worker, Busy printer etc

Priorities – one project, group or person is of high importance

Schedules - conflict over time outcomes

Personalities – people don’t always get along. Need managing

Costs – disagreements occur even after agreed contracts are signed

Technical opinions - experts have trouble changing processes

Resolving Conflict Processes

How to resolve conflict Confronting

Most effective resolver if worked out with everyone

Compromise Not best solution, both groups must surrender something

Smoothing Temporary solution, stops tempers flaring

Forcing Putting the foot down, one wins, one loses, finished

Withdrawal Not good, a member is frustrated and withdraws, removes their input to the team, the problem wont get fixed,bad for morale

Part 2 DEVELOPMENT HISTORY

The replacement of Personnel Management to Human Resource Management was not an accident and was implemented over many years after a huge program of research and practices.

DEVELOPMENT HISTORY cont’

HRM merged many concepts taken from many other fields related to managing human capital:

Public Relations Economics Sociology Social Sciences – Political Science

DEVELOPMENT OF THE HR PERSPECTIVE

The Human Resource perspective to management suggested that;Jobs should be designed to meet higher level needs by allowing workers to use their full potential.

HISTORY OF HRM APPROACH cont’

Human Resource Approach includes the following three theories and their contributors:

The Hawthorne Studies by Elton Mayo

The Maslow Theories of Human’s Need

McGregor’s Theory (x y theory)

“The Hawthorne Studies” CONCLUSIONS FROM MAYO’S INVESTIGATIONS;

Work is a group activity. The social world of an adult is primarily patterned by their

work activity. The need for recognition, security and belonging is more

important than physical conditions of the work environment. A complaint is commonly a symptom manifesting

disturbance of an individual’s current position. An employee is a person whose attitudes and effectiveness

are conditioned by social demands from both outside and

inside work environment.

MASLOW’S HIERARCHY OF EMPLOYEE’S NEEDS

Secure salary, work environment

Biological & PhysiologicalBiological & PhysiologicalNeedsNeeds

Safety NeedsSafety Needs

Belongingness& Love Needs

EsteemNeeds

Food, air, water, sleep

Protection, law, freedom

Benefits, stabilityOccupational safety

Coworkers, groups,clients

Recognition, high status

Advancement

Personal /Social Life

OccupationalNeeds

NeedsHierarchy

SelfActualizatio

n

Family, friends,community

Approval,achievement

Personal growth,

fulfillment

McGregor’s Theory (x y theory)MANAGEMENT COMPARISON

Theory XMotivation style-

Threats and disciplinary actions are used in this situation along with monetary gain.

Leadership- Authoritarian

Power & Authority- Top down – Arrogant, one way communication

Conflict Resolution- Intolerant

Performance Appraisals-Appraisals occur on a regular basis

Theory Y Motivation style- Rewarding

Leadership- Participative

Power & Authority- The manager would take suggestions from workers, but would keep the power to implement the decision

Conflict- Workers might be given the opportunity to exert "Negotiating" strategies to solve their own differences Performance Appraisals- Promotions also occur on a regular basis.

THEORY X-Y CONCLUSIONS

Theory Y suggests that the workers would become very good at their particular tasks, because they are free to improve the processes and make suggestions.

The Theory X worker is said to require force, threats, and possibly even disciplinary action.

MODERN APPROACH TO MANAGEMENT

Elements of various perspectives, mostly the humanistic perspective evolved into what is known as the Modern Approach to management.

Modern Approach has included the following three Concepts and their contributors

Open Systems

Contingency Thinking

Lessons from the Japanese management style

(theory “z” as opposed to “x y" theories)

THEORY Z: JAPANESE MANAGEMENT STYLE

Concerns about the competitiveness of U. S. companies led some to examine Japanese management practices for clues to the success enjoyed by many of the Japanese industries. This led to many articles and books purporting to explain the success of Japanese companies. It was in this atmosphere that Theory Z was introduced into the management lexicon.

THEORY Z KEY FEATURES OF JAPANESE INDUSTRIAL ORGANIZATIONS

Lifetime employment (at least for core workers).

Promote from within.

Insist on mandatory retirement of core workers

at age 55, increasing promotional opportunities.

Employ a large number of temporary

employees mostly women.

A high degree of mutual trust and loyalty

between management and employees.

Part 3HRM - Areas of influence

HRM Systems directly influence: Cost effective ways to recruit, manage and

control the behaviors of the employees. Development of human capital. Employee behaviors and performance to give

satisfactory and continuously improving performance

The organizational structure. The achievement of the organization’s goals.

THE MEANING OF ‘MANAGEMENT’

Who is a manager?

Is it dependant on the tasks people undertake?

Or on their social position in the

organization’s hierarchy.

THE MEANING OF ‘MANAGEMENT’ cont’

The term management may be applied to either a social group or a process.

A manager is an organizational member who is ‘institutionally empowered’ to determine and/or regulate certain aspects of the actions of others’

(Willmott, 1984, p. 350).

MANAGEMENT PERSPECTIVES

Management as Science, Politics, Control and Practice

Science Successful managers are those who have;

Learned the appropriate body of knowledge,

skills and competencies Politics

Successful managers are those who can; Work out and cope with unwritten laws within the organization

MANAGEMENT PERSPECTIVES cont’

Control Successful managers are those who can exploit and control workers

Practice Successful managers are those who can cope with and work out contradictory demands and pressures

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

HRM focus on 3 main factors which are the key techniques to manage and improve business environments and the competing demands of changing environments in an organization;

Employee Performance

Expanding Human Capital

Cost Effectiveness

Strategic business contributor

HRM as a strategic business contributor is always responsible for making strategies

to calculate the performance of employees according to:

Business objectives Job specification and requirements To improve their performance Increase the quality and profits of a

business.

HUMAN PSYCHOLOGY IN THE WORKPLACE

One set of perspectives, drawing on psychology, suggests that the behaviour of people in the workplace is a function of at least four basic variables.

Have a go at naming these.

HUMAN PSYCHOLOGY IN THE WORKPLACE cont’

Answers: Ability Motivation Role perception Situational contingencies (McShane, 2006).

EMPLOYMENT RELATIONSHIP (ER)

Research into the ER has drawn attention to relations in the workplace oriented towards:

Economic Legal Social Psychological.

THE ‘PSYCHOLOGICAL CONTRACT’

A two-way exchange of perceived promises

and obligations. Unwritten expectations and understandings of

the two parties about their mutual obligations. ‘Individual beliefs, shaped by the organization,

regarding terms of an exchange agreement between individuals and their organization’.

Rousseau (1995, p. 9)

THE ‘PSYCHOLOGICAL CONTRACT’

At the heart of the concept of the psychological contract are levers for:

Individual commitment Motivation Task performance beyond ‘expected

outcomes’.

Part 2

Some key strategies

Some Key strategies implemented by Human Resource Personnel to improve and calculate the performance of employees

Some Key Strategies. cont’ Reminding employees of the organization’s goals and objectives Explaining employee importance to achievement of organization goals. Involving staff in strategies, formulations and their improvements Ensuring and expanding job goals to improve the performance

consistency. Sharing new goals and future action plans with employees to inspire

their achievement. Explaining the expectations for them as individuals and teams. Explaining performance measurement which will review their

performance. Giving examples of best performance and awarding and motivating on

best performance. Giving them opportunities to respond to the evaluations. Being proactive rather than being reactive. Knowing your own strengths and weaknesses being a leader. Constructive criticism on bad performance. Arranging meetings to discuss employee experiences and strategies to

motivate and improve coordination. Giving opportunities to set goals and objectives because of their

experience

Expanding Human Capital The Human Being is the basic resource capital

of any organization Human Resource research has proved that

organizations who train and develop their workers skills for new or current jobs, raising their skills level, can eventually fill their upper vacancies from their own employee pool,

These organizations face less problems and invest less money on hiring while the trained employees give greater efficiency than newly employed staff due to familiarity of the environment with established coordination and communication systems established.

COST EFFECTIVENESS

Human Resource management is basically concerned with Human capital of the organization and sees the human as the basic asset of the organization. Every organization emphasizes cost effectiveness because it has a direct effect on the profit and loss in the organization business.

Some costs are fixed in an organization and may not be reduced; purchase of resources, process costs and utilities, but Human Resource Management is not directly concerned with these costs but it has an influence on their strategy formulations.

COST EFFECTIVENESS

Human Resource Management is mainly concerned to manage, maintain and control the following costs;

Cost on hiring employees Cost on training and development of organization

employees Cost on advertisements like to hire new employees etc Cost on different motivating and collaboration activities Cost on Awards, flexibilities etc Cost on each employee and profits from each employee These are the key costs responsibilities of the HRM

department in the management, maintenance and control of employee behaviors and development of the human capital for the organisation.

Benefits to Strategic Decision Making

HRM influences better strategic decision making to meet competing demands in a fluctuating market, enabling better action plans to produce its required outcomes and benefits.

HRM clarifies employee expectations of their duties, goals and benefits.

These competing demands change with the passage of time and with the requirements of: new markets – continuous competition – and the challenge of future trends.

COMPETING DEMANDS ON HRM

Human Resource Management as a handler and motivator of the changing behavior of human capital has to manage many competing demands to fulfill its duties, such as assisting the organization to enter new markets and sustain current markets while managing the behavior of employees.

Competencies and competing demands.

HRM itself must work to achieve some competencies and competing demands. These competencies can be divided into three main levels as given below:

Core Competencies Level Specific Competencies

Role Specific Competencies

Core Competencies

Competencies make expectations from different levels of organization employees as follows;

Personal Attributes: Single employee attributes.

Leadership Competencies: HR professional Management Competencies: HR

professional’s ability to plan, organize, manage and control the work place outputs.

Functional Competencies: To enable a HR professional to enhance his skills, knowledge and capabilities.

Level Specific Competencies First Level Manager Competencies: Leaders are the

key personnel of an organization structure that are responsible for strategies formulation and focus on individual and team effectiveness within a short period of time.

Mid Level Manager Competencies: Mid level managers or integrators -focuses on the competing demands of organizational processes, practices, implementation of strategies, action plans and changes in processes and operations, cross team collaboration, internal and external focus on action plans and manage them over long time frames.

Executive Level Competencies: Executive level demands - emphasis on environment and culture effectiveness, focus on external environments and market requirements, generating new ideas and directions, overall organization overall long term basis objectives and policies.

Role Specific Competencies HR Product/Service specialist Competencies: These

competencies focus on the development, delivery, resources selection, managing strategies, and application of developed techniques in products and services to meet competencies and challenges of markets.

HR Generalist Competencies: These competencies mainly focuses on the internal customer of the organization to fulfill their requirements like appointment of new workers on requirements, providing better workplace environments, trainings and development of their skills etc by the use of Human Resource techniques, products and services and working like internal consultants.

HR Strategic Competencies: These are the basic competing demands of an organization for a Human Resource professional to make strategies and provide better strategic direction to the organization goals on the basis of organization capabilities, possible strengths and opportunities keeping weaknesses and threats in sight.

Techniques to Calculate and Examine HRM Performance

“Unless you know how you are doing as you move along, you will never know when you’re there, or if you have succeeded.” (Crosby, 1979)

Human resource techniques used to calculate these competing demands needed to analyze and improve competencies as required by the organization’s objectives, are mainly dependant on the competency drivers.

Human Resource Scorecard The HR scorecard was introduced by

Robert Kaplan, a Harvard business school professor and David Norton in 1992.

Kaplan and Norton’s scorecard ranks the competencies, its drivers and strategy implementation.

This scorecard is a protocol developed for CEOs and top level managers to incorporate financial and nonfinancial measures in organization action plans with measureable results of business strategy.

Human Resource Scorecard. cont’

This scorecard places emphasis on four main perspectives;

1. Financial Perspective: This perspectives measures that what is my strategy for the satisfaction of stakeholders?

2. Customer Perspective: What does the customer want? To achieve my goals, how must I look to my customer needs?

3. Internal Perspective: How will I satisfy my customers? What are the critical dimensions of my approach to business processes and how do I re-engineer them, focusing them to be consistent with my customer objectives?

4. Organization Learning: To achieve my vision, how must my organization have learnt and improved?

Human Resource Scorecard. cont’

Within each category there are goals, measures and the competencies required to achieve them.

These competencies are graphically distributed for better understanding of each perspective and their measurable goals.

“What we are looking at is balancing outcomes, like financial success and customer success, with their drivers.

The drivers are the internal processes, the people, the organization, the learning, and the growth profile.”

( Norton explained, 1992)

CONCLUSION Human Resource Management is a key technique of managing the

behaviors of organization employees, their training and development to enhance their skills and make them able to compete in new market trends and dynamic business environment.

With the use of HR professional skills an organization can boost its business and can make itself able to sustain in current markets and also to enter in new markets to be able to increase its business and compete with global innovative markets. Also Human Resource Management helps the organizations to build a better and competitive structure which enables it to make and implement its strategies to have best possible benefits.

Human Resource Management enables organization to measure its assets, costs and performances of each individual and as well performance of teams. HRM uses its techniques to train and develop employee performances to make them able to attain organization goals and objectives and to improve their performance to achieve future trend and sustain in dynamic business environment.

Human Resource scorecard measures the performance of HR professionals and their techniques that how much they contribute in strategy development of the organization and how they can improve their strategies.