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CHAPTER 1

HRM in a Dynamic
Environment

DeCenzo and Robbins HRM 7th


Noor Ellahi Edition 1
WHAT AFFECTS YOUR
WORK LIFE?
Friends?
Movies?
Technology?
Hobbies?
Family?

Noor Ellahi DeCenzo and Robbins HRM 7th Edition 2


CHAPTER 1 TOPICS:
1: Global village
2: Technology
3: Workforce composition changes
4: Workforce composition
5: Changing skill requirements
6: Quality and continuous improvement
7: Work process engineering
8: Contingent workforce
9: Decentralized work sites
10: Employee involvement

Noor Ellahi DeCenzo and Robbins HRM 7th Edition 3


1: WHAT IS THE GLOBAL
VILLAGE?
Global competition
Business without
national
boundaries
International
Multinational
Transnational
???

Noor Ellahi DeCenzo and Robbins HRM 7th Edition 4


1: HR CHALLENGES FROM
GLOBAL VILLAGE?
Language
Comprehension
Embarrassment
Product names
Marketing strategies
Communications programs
Memos, handbooks, messages,
AND..
DeCenzo and Robbins HRM 7th
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1: CULTURE

Values, morals, customs, laws


Mobile employees
Culture variables (See Exhibit 1-1)
Status differentiation
Societal uncertainty
Assertiveness
AND..

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Exhibit 1-1 : Cultural Similarities

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1: MULTICULTURAL WORK
GROUPS
Employee conflict
management
Team building
Training, recruiting

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2: KNOWLEDGE WORKERS
AND HRM
What is a knowledge
worker?
1/3 of the workforce
Third wave employee
Demand
Supply
Workforce transition
Where does HRM fit?

Noor Ellahi DeCenzo and Robbins HRM 7th Edition 9


2: HOW DO KNOWLEDGE
WORKERS AFFECT HRM?
Recruiting
Websites
(Company and job
search)
Esumes
(Scannable
keywords)

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2: AND.

Employee selection
Technical skills
Plus
Adaptable, flexible
Team player
Pressurized (24X7
on schedule)

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2: MORE KNOWLEDGE
WORKER IMPACT ON HRM
Training and development
Career development
Remote and decentralized courses
Timeliness
Ethics and employee rights
Surveillance
Software monitoring

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2: AND....

Paying employees
market value
Rs. Rs. Rs. Rs.
Options
Cars, cell phones,
juice bars, health
club
STOCK MARKET

Noor Ellahi DeCenzo and Robbins HRM 7th Edition 13


2: AND.

Communications
Electronic grapevines
No longer chain of command channels
Legal concerns
Work-life balance
What about 24X7?

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2: AND.

MOTIVATING

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3: HOW DO YOU MEASURE
WORKFORCE DIVERSITY?
Lifestyles
Work styles
Family styles
Cultural values -
ethnicity
Gender, race, age,
sexual orientation

Noor Ellahi DeCenzo and Robbins HRM 7th Edition 16


4: WHAT CHANGES CAN
WE EXPECT?
White males
Hispanic
Black
Asian non-Hispanic
Women
Immigrant
See Exhibit 1-2

Noor Ellahi DeCenzo and Robbins HRM 7th Edition 17


Exhibit 1-2 : Work-Force Diversity

Noor Ellahi DeCenzo and Robbins HRM 7th Edition 18


4: HOW TO DEAL WITH
DIVERSITY?
FAMILY-FRIENDLY
BENEFITS
They are flexible
benefits that are
supportive of caring
for ones family

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4: WANT TO FACILITATE
DIVERSITY?
Leadership
Identify -
Goals
Barriers
Obstacles

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5: NEW SKILL
REQUIREMENTS
Deficiency areas
High tech jobs (read,
write, math,
computers)
Remedial education
because
Rs.Rs.Rs.Rs.
Quality
Customer complaints
Productivity
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6: BETTER AND BETTER
AND.
Total Quality
Management
Continuous process
improvement
Kaizen

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7: ITS THE END OF THE
WORLD AS WE KNOW IT
Radical
Quantum
Disruptive
Work process
engineering

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7: HRM CAN HELP
MANAGE
Fear
Conflict
Relationships
Work patterns
Operations
Stress
Reward systems

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8: CONTINGENT
WORKERS
Part-time
Temporary
Contract
(Definitions are in
Exhibit 1-3)

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Exhibit 1-3 : The Contingent Work Force

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8: WHO IS CORE?

Essential job tasks


Essential for the
organization
Full-time
Benefits

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8: YOUR HR ISSUES ARE

JIT advantages
Who chooses the
status
Finding contingent
workers
Training
Benefits
CONFLICT

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9: WHERE DO YOU WORK?

Telecommuting
Face time
24X7
Safety

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10: DELEGATION

Multiple tasks
Multiple projects
Multiple bosses
Multiple peers

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10: HRM ADDS

Empowerment
Commitment
Loyalty
Interpersonal skills
Work teams

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Fundamentals of HRM

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Human
Resource
Management
Jay Hays
Human
Resource
Management

Managers must find ways to get the highest


level of contribution from their workers. And
they will not be able to do that unless they
are aware of the many ways that their under-
standing of diversity relates to how well, or
how poorly, people contribute.
R. Roosevelt Thomas Jr., p 320
Human Resource Management

The process of attracting, developing and


maintaining a talented and energetic
workforce to support organisational mission,
objectives and strategies. p 321
Human Resource Management

A distinctive approach to employment


management which seeks to achieve
competitive advantage through the strategic
deployment of a highly committed and
capable workforce, using an integrated
array of cultural, structural and personnel
techniques.
HRM Includes:

Employment Issues

Discrimination,
Equal Employment Opportunity
Harassment
Affirmative Action
Diversity Management
Occupational Health and Safety
Industrial Relations
HRM Includes:

Employment Issues

Recruitment
Selection
Induction / Orientation
Training and Professional Development
Performance Appraisal and Management
Career Development
Quality of Work Life
Retention and Turnover
PRINCIPLES OF HRM

Strategic integration
Organisational
flexibility
Commitment
Quality
STRATEGIC INTEGRATION

An attempt to treat all labour


management processes from
recruitment and training to
remuneration and retrenchment in
a strategic fashion by integrating
them with the broader business
concerns of the enterprise.
STRATEGIC HRM
People are not just another cost or factor of
production. They are the key to competitive
advantage.
Close fit between human resources, internal
processes and the external environment.
1. Devolution of responsibility for labour
management to line managers.
2. Co-ordination of policies on recruitment, training
& performance management.
FLEXIBILITY
The flexible firm and the global
economy.
Functional flexibility
Numerical flexibility
Financial flexibility
1. Core: Highly skilled knowledge
workers. Full time jobs and job security.
2. Periphery: Casuals and part-time
workers and short-term contractors.
COMMITMENT

From control to commitment


through changing the
organisations culture.
Mission statement: A statement
of core values.
Recruitment: Only recruiting
those prepared to subscribe to
these core values.
Contd

Transformational leadership: CEO


as visionary change agent.
Ensuring employees demonstrate
desired attitudes, competencies
and behaviours.
Culture Management strong
culture
QUALITY
Culture of quality: Quality work,
quality workers, quality products and
services.
Total Quality Management.
Quality assurance and zero defects.
Internal customers.
Empowering workers via team
working.
HRM vs PERSONNEL
MANAGEMENT

Integral part of line management


responsibilities.
Emphasises the management of
organisational culture as the central
activity of senior management.
HRM represents the discovery of
personnel management by chief
executives.
THE PRACTICE OF HRM

Does the rhetoric match the reality?


Strategic integration.
Line managers and devolution.
Empowered or merely over
burdened?
Delayering, re-engineering and the
elimination of the jobs of middle
management.
HR MANAGERS AND
STRATEGIC DECISION-
MAKING
Downsizing of personnel
departments.
Strategic HR planning.
Consulting firms.
Devolution of administrative
functions.
Contracting-out of HR functions.
HRM ACTIVITIES
Job analysis defines a job in terms of specific tasks and
responsibilities and identifies the abilities, skills and qualifications
needed to perform it successfully.
Human resource planning or employment planning is the
process by which an organisation attempts to ensure that it has the
right number of qualified people in the right jobs at the right time.
Employee recruitment is the process of seeking and attracting a
pool of applicants from which qualified candidates for job vacancies
within an organisation can be selected.
Employee selection involves choosing from the available
candidates the individual predicted to be most likely to perform
successfully in the job.
HRM ACTIVITIES (cont)
Performance appraisal is concerned with determining how
well employees are doing their jobs, communicating that
information to the employees and establishing a plan for
performance improvement.
Training and development activities help employees learn
how to perform their jobs, improve their performance and
prepare themselves for more senior positions.
Career planning and development activities benefit both
employees (by identifying employee career goals, possible
future job opportunities and personal improvement
requirements) and the organisation (by ensuring that qualified
employees are available when needed).
Employee motivation is vital to the success of any
organisation. Highly motivated employees tend to be more
productive and have lower rates of absenteeism and turnover.
Organisational Planning Process

Strategic Plan (5 yrs) Human Resource


Development Challenges

Succession
Business Plan (2-3 yrs) Planning

Individual Review
Branch Plan (1 yr) Professional (Ideal Case)
Development
And Training
Everybody Individual
Team Plan (1 yr) Needs Needs

Induction /
Review Orientation Organisational Job-Related
Individual Plan (1 yr) Key Tasks and Cultural Skills and
Development Plan Behaviours Knowledge
Review

Recruitment
Branch Team and Selection
Needs Needs

Organisational and Assessment


Cultural Definitions (Survey?)
Lecturer / Tutor Selection and Rating Criteria
Selection Criteria Rating Narrative
(Specific, Behavioural Examples)

1. 1. 1.

2. 2. 2.

3. 3. 3.

4. 4. 4.

5. 5. 5.

6. 6. 6.

7. 7. 7.

8. 8. 8.

9. 9. 9.

10. 10. 10.


Lecturer / Tutor Selection and Rating Criteria
Exceptional Often exceeds expectations; goes above and beyond the
call of duty; the benchmark for excellence; cant miss
lectures or tutorials with this person; an HD.

High-Performer Sometimes exceeds expectations; generally performs bet-


ter than many; relatively interesting and informative. Tries
hard; shows honest interest in students. A high D.

Satisfactory Pretty much average; not bad, but seldom excellent.


Does what is expected. Shows up on time, and is
prepared. A low D.

Somewhat Below Occasionally fails to meet expectations; not always pre-


pared. Seems to lack energy and commitment. Does not
Expectations
seem willing to do more than necessary. Pass / Credit.

Does not show up and is unprepared. Does not seem willing


Fails to Meet
or able to perform the job. Consistently fails to meet
Minimum obligations and promises, e.g., misses appointments, fails to
Requirements deliver on agreements. Does not seem to care about
students.
WHAT DO YOU KNOW
ABOUT HRM?
WHO?
WHAT?
WHERE?
WHEN?
WHY?

Noor Ellahi DeCenzo and Robbins HRM 7th Edition 54


TOPICS:
1: Management functions
2: HRM importance
3: HRM definition
4: Environmental influences
5: Management affects HRM
6: Labor unions
7: Staffing, training, development functions
8: Motivation, maintenance functions
9: HR department activities
10: Effects of company size and location
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1: MANAGEMENT
ESSENTIAL FUNCTIONS
Plan
Organize
Lead
Control

Noor Ellahi DeCenzo and Robbins HRM 7th Edition 56


2: IMPORTANCE OF HRM

Complexity
Change
Strategy vs.
Representation
Certification

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2: CHANGE AND
COMPLEXITY
Complicated laws
Complex jobs
Skills, boundaries,
project teams
Global work sites
HR specialists
Psychology,
sociology, law,
organization and job
design

Noor Ellahi DeCenzo and Robbins HRM 7th Edition 58


2: STRATEGY AND
REPRESENTATION
Competitive
advantage
Proactive
Culture
Performance
systems
Recruiting
Training
Retention
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2: HRM CERTIFICATION

Society for Human


Resource
Management
Human Resource
Certification
Institute

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3: HRM DEFINITION

Staff or support
function
Part of every
managerial job

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3: HRM ACTIVITIES
GETTING PEOPLE
PREPARING PEOPLE
STIMULATING PEOPLE
KEEPING PEOPLE

(Any questions about that


part of your job as a
manager?)

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Exhibit 2-1: Human Resource Management: Primary Activities

Noor Ellahi DeCenzo and Robbins HRM 7th Edition 63


3: STAFFING (GET)

Strategic human
resource planning
Recruiting
Selection

See Exhibit 2-1

Noor Ellahi DeCenzo and Robbins HRM 7th Edition 64


3: TRAINING AND
DEVELOPMENT (PREPARE)
Orientation
Training
Development
Employee
Career
Organization

Noor Ellahi DeCenzo and Robbins HRM 7th Edition 65


3: MOTIVATION
(STIMULATE)
Job design
Performance
appraisals
Rewards and
compensation
Employee benefits

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3: MAINTENANCE (KEEP)

Health and safety


Communications
Employee relations

Noor Ellahi DeCenzo and Robbins HRM 7th Edition 67


4: MAJOR EXTERNAL
INFLUENCES ON HRM
Dynamic
environment
Government
legislation
Labor unions
Current
management
practices

Noor Ellahi DeCenzo and Robbins HRM 7th Edition 68


4: CHAPTER 1 TOPICS
WERE.
Globalization
Diversity
Changing skill
requirements
Continuous
improvement
Work process
engineering
Decentralized work
sites
Employee involvement
(Did I leave any out?)

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4: LEGISLATION

How have
employment laws
affected
Your work life?
Your family life?
Your parents?

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5: MANAGEMENT
THOUGHT
Frederick Taylor
Hugo Munsterberg
Elton Mayo
W. Edward Demming
Peter Drucker
Dave DeCenzo
Tom Peters
Mary Parker Follett

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6: LABOR UNIONS

Exist to assist
workers
Constrain
managers
Affect non
unionized
workforce

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7: STAFFING ACTIVITIES
Employment planning
Strategic goals and
objectives
Job requirements
change
Job analysis
Job description
Job skills
Recruiting
Selection
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7: TRAINING AND
DEVELOPMENT GOALS
Adapt to new
surroundings
Cope with change
Meet
organizational
needs

Noor Ellahi DeCenzo and Robbins HRM 7th Edition 74


7: TRAINING AND
DEVELOPMENT DOES
FOCUS TIME
Employee training YOU NOW
Employee development ? ?
Career development ? ?
Organization development ? ?

See Exhibit 2-3

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Exhibit 2-3: Training and Development Activities

Noor Ellahi DeCenzo and Robbins HRM 7th Edition 76


8: MOTIVATION

Implications
Individual
Managerial
Organizational
Performance
Willingness
Ability
Respect

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8: MOTIVATION GOAL

Competent and
adapted
employees
With up-to-date
skills, knowledge,
abilities
Exerting high
energy levels

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8: MAJOR MOTIVATORS

Maslow
McGregregor
Herzberg
McClelland
Adams
Vroom
Me (dont laugh)

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8: MAINTENANCE

Health
Safety
Communications
Employee
assistance
programs
Environment where
employee voices
are heard
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9: HR DEPARTMENTS

H R D IV IS IO N

VP H R

EM PLO YM EN T M ANAG ER C O M P E N S A T IO N A N D B E N E F IT S T R A IN IN G M A N A G E R
M AN AG ER

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9: MATCH UP ROLES AND
DEPARTMENTS
ROLES DEPARTMENTS

Trainer EMPLOYMENT
HRIS analysis TRAINING
Recruiter COMP&BENEFITS
Safety EMPLOYEE
ER RELATIONS
Newsletter

Noor Ellahi DeCenzo and Robbins HRM 7th Edition 82


10: VARIATIONS

Shared services
Outsourced
services
Generalists-
specialists
Globalized

Noor Ellahi DeCenzo and Robbins HRM 7th Edition 83


BACK TO SQUARE ONE

Major HR functions are...


Training
Maintenance
Motivation
Staffing

Which one interests you most?

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FORTUNATE US..

We study them ALL


in this course!

Noor Ellahi DeCenzo and Robbins HRM 7th Edition 85


Exhibit 2-2: Relevant Laws Affecting HRM Practices

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Exhibit 2-4: Key Elements of Classic Motivation Theories

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Exhibit 2-5: Sample HRM Organizational Chart, Sample,
Activities, and Selected Salaries

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