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Human Resource Management

Ata Ur Rehman

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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 organization’s 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 New RealitiesPeople go into HR because they like people.

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.

Anyone can do HR. HR activates are based on theory and research. HR professionals must master both theory and practice.

HR deals with the soft side of a business and therefore is not accountable.

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 focuses on costs, which must be controlled.

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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HR’s job is to be the policy police and the health and-happiness patrol.

The HR function does not own compliance-mangers 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 is full of fads. 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.

HR is staffed by nice people.

At times, HR practices should force vigorous debates. HR professionals should be confrontative [sic] and challenging as well as supportive.

HR is HR’s job. 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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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 Expert3. 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

StrategicHR

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 The Challenges

of Strategicof Strategic

HR PlanningHR 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

Evolving Work and Family Roles

Skill Shortages and the rise of the Service Sector

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?

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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 firm’s 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 firm’s 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

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-for-performance 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 firm’s 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 firm’s 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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Organizational Strategies

HRStrategies

Improved Firm Performance

Environment

Organizational Characteristics

Organizational Capabilities

Consistency

Consistency

Consi

stency

Consiste

ncy

FITFIT

FIT FIT

Effective HR Strategy Formulation & Implementation

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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 today’s leaner--------

Organizations. How Career

Development activities can

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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