Human Resource Management

HRM

Ata Ur Rehman

Ata Ur Rehman

WHAT IS HUMAN RESOURCE MANAGEMENT? The focus of human resource management (HRM) is on managing people within the employer-employee relationship. Specifically, it involves the productive use of people in achieving the organizations strategic business objectives and the satisfaction of individual employee needs.
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WHAT IS HUMAN RESOURCE MANAGEMENT?

HRM can be a major contributor to the success of an enterprise because it is a key position to affect customer, business results and ultimately shareholders values. Likewise, ineffective HRM can be a major barrier to employee satisfaction and organization success. HRM is thus either a part of the problem or part of the solution in gaining the productive contribution of people.
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WHAT IS HUMAN RESOURCE MANAGEMENT?

The HR Manager, as with any other functional manager in marketing, production or finance, is responsible for performance. His or her position exists basically to achieve the strategic business objectives of the organization. If it does not, the position will become redundant.
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Old myths People go into HR because they like people.

Anyone can do HR.

HR deals with the soft side of a business and therefore is not accountable. HR focuses on costs, which must be controlled.
HRM

New Realities HR departments are not designed to provide corporate therapy or asocial or health-and happiness retreats. HR professionals must create the practices make employers more competitive, not more comfortable. HR activates are based on theory and research. HR professionals must master both theory and practice. The impact of HR practices on business results can and must be measured. HR Professionals must learn how to translate their work into financial performance.
HR practices must create value by increasing the intellectual capital within the firm. HR professionals must add value, not reduce costs.
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HRs job is to be the policy police and the health and-happiness patrol. HR is full of fads.

The HR function does not own compliancemangers do. HR practice do not exist to make employees happy but to help them become committed. HR professionals must help mangers commit employees and administer policies. HR practices have evolved over time. HR professionals must see their current work as part of an evolutionary chain and explain their work with less jargon and more authority. At times, HR practices should force vigorous debates. HR professionals should be confrontative [sic] and challenging as well as supportive.
HR work is as important to lines managers as are finance, strategy, and other business domains. HR professionals should join with managers in championing HR issues.
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HR is staffed by nice people.

HR is HRs job.

HRM

The new role of HR mangers

As HRM becomes more business oriented and strategically focused, four key roles for HR managers can be identified. 1. Strategic Partner 2. Administrative Expert 3. Employee Champion 4. Change Agent
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Strategic Human Resource Planning

The process of formulating HR strategies and establishing programs or tactics to implement them.
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The Benefits of Strategic HR Planning

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Encouragement of Proactive Rather than Reactive Behavior Explicit Communication of Company Goals Stimulation of Critical Thinking and Ongoing Examination of Assumption Identification of Gaps Between Current Situation and future Vision Encouragement of line Managers Participation Identification of HR Constraints and Opportunities Creation of Common Bonds
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The Challenges of Strategic HR Planning

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Maintaining a Competitive Advantage Reinforcing Overall Business Strategy Avoiding Excessive Concentration on Day-to-Day Problems Developing HR strategies Suited to Unique Organizational Features Coping with the Environment Securing Management Commitment Translating the Strategic Plan into Action Combining Intended and Emergent Strategies Accommodating Change
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Challenges to Human Resource Manager

Environmental Organizational Individual
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Environmental
Rapid Change Work Force Diversity Globalization Legislation

How much responsibility does an organization have to shields its employees from the effect of rapid change in the environment? What risks does this type of Shock Absorber approach to Management entail?

Evolving Work and Family Roles

Skill Shortages and the rise of the Service Sector

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Organizational
Competitive Position; Cost, Quality, Distinctive Capabilities. Decentralization Downsizing Organizational Restructuring Self-managed Work Teams Organizational Culture Technology Outsourcing
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Individual
Matching People and Organization Ethical Dilemmas & Social Responsibility Productivity Empowerment Brain Drain Job Insecurity
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Strategic HR Choices
The Options Available to a Firm in Designing its Human Resources System
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A firms Strategic HR Choices are the options it has available in designing its Human Resources System. Choices are strategic to the extent that they affect the firms performance either favorably or unfavorably in the long run.

Work Flows Staffing Employee Separations Performance Appraisal Training and Development Compensations Employee Relations Employee Rights Internal Management
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Does an Employer have an Ethical Duty to Help Employees Prepare for the Change that is Certain to come?

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HR Audit
A periodic review of the effectiveness with which a company uses its resources. Frequently includes an evaluation of the HR department itself.

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The audit, which is typically conducted by the HR department, deals with a broad set of questions, including;

Is the turn over rate exceptionally low or high? Are the people quitting good employees who are frustrated in their present job, or are they marginal performers? Is the firm receiving a high return on the money it spends on recruitment, training and pay-forperformance plans? Is the firm complying with government regulation? How well is the company managing employee diversity? Is the HR department providing the services that the line managers need? Are HRM policies and procedures helping the firm accomplish its long-term goals?
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Building Managerial Skills

Selecting HR Strategies to increase firms Performance
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Ethical Issue? The dark side of strategic planning is that workers are sometimes thought of as numbers on a page or dollars in a budget rather than as flesh-and-blood human beings. When divisions are spun off or merged, individual employees are dramatically affected. What responsibility does the employer have toward its employees in situation like these?
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The key factors that firm should consider in determining which HR strategies will have a positive impact on firm performance:
The greater the match between HR strategy and the firms overall organizational strategies. The greater the extant to which the HR strategy is attuned to the environment in which the firm is operating. The more the HR strategy is molded to unique organizational features. The more the HR strategy enables the firm to capitalize on its distinctive competencies. The more the HR strategies are mutually consistent or reinforce one an other.
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Effective HR Strategy Formulation & Implementation

Organizational Strategies
FIT Consistency Consistency

Environment
FIT Consistency

HR Strategies
FIT FIT

Improved Firm Performance

Organizational Characteristics
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Consistency

Organizational Capabilities
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Ata Ur Rehman

HRM POLICIES
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HRM policies are general statements, which serve to guide decision making. As such, they direct the actions of the HRM function towards achieving its strategic objectives. HRM policies are generally put in writing and communicated to all employees. They typically serve three major purposes: To reassure employees that they will be treated fairly and objectively To help managers make quick and consistent decisions To give managers the confidence to resolve problems and to defend their decisions.
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Subjects covered by HRM policies include transfers, promotions, terminations and pay increases. The statement for example, It is the policy of this organization whenever feasible to promote from within, gives a clear guideline to managers and employees about how promotional opportunities will be handled.
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An Issue!
Retention of Top Talent is a critical element in the strategy of todays leaner-------Career Organizations. activities How can

Development

contribute to Retention?
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An Issue!
Many believe that top managers care little about Human Resources. Compared to such areas as Finance, Production, Marketing and Engineering. What might account for this perception and what would you do to change it?
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An Issue!
Many countries have Government regulations that make it very difficult to lay-off employees unless the lay-off can be justified business reasons. Do you think that Pakistan should develop a similar policy? Why or why not?
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