HRM Today,HRM and the Organisation, New Roles

7/29/2019 HRM Today,HRM and the Organisation, New Roles

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Introduction

STRATEGIC HUMAN

RESOURCE MANAGEMENT


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Much of life now looks like [a] doughnut. Organisations

as well as individuals have come to realise that they

have an essential core, a core of necessary jobs and

necessary people, a core which is surrounded by anopen flexible space, which they fill with flexible

workers and flexible supply contracts. The strategic

issue for organisations, nowadays, is to decide what

activities and which people to put in which space. Itis not always obvious (CHARLES HANDY, British

academic, business consultant and author).


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WHAT IS HUMAN RESOURCE

MANAGEMENT?

Managing people within the employer-

employee relationship. It involves the productive use of people in

achieving the organisations strategic

business objectives and the satisfactionof individual employee needs.


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HRM is either a part of the problem or part ofthe solution in gaining the productivecontribution of people.

The HR manager, as with any other functionalmanager in marketing, production or finance, isresponsible for performance.

His or her position exists foremost to helpachieve the strategic business objectives of theorganisation.

The HR function is recognised for contributingto the bottom line (which refers to a final result

such as net profit after taxes).


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HRM AND MANAGEMENT

HRM is management, but management is more

than HRM.

HRM is that part of management dealing directly

with people, whereas management also includes

marketing research and development, and

accounting and finance.

Because the purpose of HRM is to improve the

productive contribution of people, it is intimately

related to all other aspects of management.

Organisations needing to trim overheads or

reduce corporate flab cut HRM.


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Who is responsible for HR?

It should be quite clear that human resource

management functions are not necessarily

executed by a human resource specialist or

department.

Precisely how the human resource management

functions are divided between the human

resource departments specialists and the

organisations other managers varies from

situation to situation and is contingent upon avast number of circumstantial factors.


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Circumstantial Factors

Internal factors:

organisational history,

size,

structure and location, the values, philosophies and management

styles of top management,

the nature of the workforce,

the type of industry.

External factors:

economic conditions,

legislative requirements,

industrial relations.


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Myths that keep HR from being a profession

Old Myths People go into HR

because they like people.

Anyone can do HR.

New Realities

HR departments are notdesigned to provide corporatetherapy or to act as social or

health-and-happiness retreats.HR professionals must createthe practices that makeemployees more competitive,not more comfortable.

HR activities are based ontheory and research. HRprofessionals must master boththeory and practice.


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Old Myths HR deals with the soft

side of business andtherefore is not

accountable.

HR focuses on costs,

which must becontrolled.

New Realities

The impact of HR practices on

business results can and must be

measured. HR professionals

must learn to translate their workinto financial performance.

HR practices must create value by

increasing the intellectual capital

within the firm. HR professionalsmust add value, not only reduce

costs.


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Old Myths HRs job is to be the policy police

and the health-and-happiness

patrol.

HR is full of fads.

New Realities

The HR function does not owncompliance.

HR practices have evolvedover time. HR professionalsmust see their current work aspart of an evolutionary chain

and explain their work withless jargon and moreauthority.


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Old Myths

HR is staffed by nice

people.

HR is HRs job.

New RealitiesAt times, HR practices should force

vigorous debates. HR professionals

should be confrontative and

challenging as well as supportive.

HR work is as important to line

managers as are finance, strategy,

and other business domains. HR

professionals should join withmanagers in championing HR

issues.


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APPROACHES TO HRM Instrumental HRM (hard approach): stresses the

rational, quantitative and strategic aspects of

managing human resources.

Humanistic HRM (soft approach): whileemphasising the integration of HR practices with

strategic objectives, it stresses competitive

advantage is achieved by employees with superior

know-how, commitment, job satisfaction,adaptability and motivation.


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The New Role of HR ManagersSTRATEGIC PARTNER

HR professionals play a strategic role when they have the ability totranslate business strategy into action. This facilitating role allows the

HR manager to become part of the business team.

ADMINISTRATIVE EXPERT

To become administrative experts HR professionals must be able to re-

engineer HR activities through the use of technology, process

engineering and total quality management.

EMPLOYEE CHAMPION

The HR professional must be able to relate to and meet the needs of

employeesCHANGE AGENT

The HR manager needs to serve as a catalyst for change within the

organisation. This can be achieved by leading change in the HR

function and by developing problem-solving communication and

influence skills. In short, the HR manager must know how to managechange.


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HRM ACTIVITIES

Job analysis defines a job in terms of specific tasks andresponsibilities and identifies the abilities, skills and qualifications

needed to perform it successfully.

Human resource planning oremployment 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 candidatesthe individual predicted to be most likely to perform successfully in the

job.


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HRM ACTIVITIES (cont)

Performance appraisal is concerned with determining how wellemployees are doing their jobs, communicating that information tothe employees and establishing a plan for performanceimprovement.

Training and development activities help employees learn how to

perform their jobs, improve their performance and preparethemselves for more senior positions.

Career planning and development activities benefit bothemployees - by identifying employee career goals, possible futurejob opportunities and personal improvement requirements - and

the organisation - by ensuring that qualified employees areavailable when needed.

Employee motivation is vital to the success of any organisation.Highly motivated employees tend to be more productive and havelower rates of absenteeism, turnover and lateness.


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HRM ACTIVITIES (cont)

Compensation refers to the cash rewards, such as the basesalary, bonus, incentive payments and allowances whichemployees receive for working in an organisation.

Benefits are sometimes referred to as indirect or non-cashcompensation.

Industrial relations is concerned with the relationship betweenan organisation and its employees.

Effective health and safety programs help guarantee thephysical and mental wellbeing of employees.

Management of diversity and successfully integrating

Australias multi-cultural population into the work forcemaximises the contribution of all employees.


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WHAT IS STRATEGY

Defines the direction in which an

organisation intends to move andestablishes the framework for action

by which it intends to get there.


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STRATEGIC INTENT Companies that have achieved global

leadership, have created a sustained

obsession to achieve a challenging long-

term objective. This obsession is calledstrategic intent.

Achieve this requires organisations to move

from their traditional conscript mindset

(externally motivated) to a volunteermindset internally motivated).


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Establish a mission and key objectives

Analyse the environment

Analyse and select business strategies

Implement the strategies

Monitor and evaluate performance

F

E

E

D

BA

C

K

Strategic Intent


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BHP

Charter

To survive and prosper, we must create a

high performance organisation in which

every individual accepts responsibility

and is rewarded for results.

Business

strategy

We have adopted a portfolio business

asset model to compete in a clearly

defined and targeted approach.

People

strategyWe are committed to providing a great

company to work for, with great jobs and

attractive rewards.

Remunera-tion

strategy

Our executives will be able to see the linkbetween the results they produce and the

level of reward they achieve through a

flexible remuneration delivery model.

Link between organisation and HRM objectives and strategies

Source: BHP, Coming out of a tight corner;Report to Shareholders, 2000, p. 31.


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TYPES OF STRATEGIES

Growth

Retrenchment

Stability

Combination


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HRM STRATEGY AIMS TO ENABLE

ORGANISATION TO ACHIEVE STRATEGIC

OBJECTIVES BY:

Ensuring all business processes recognise the value ofpeople

Seeing that all concerned appreciate the HR implications oftheir proposals

Achieving a close match between corporate businessobjectives and objectives of the HR function

Designing a culture, climate and organisational processesconducive to optimal performance of staff

Identifying the firms distinctive competencies and the typesof people that match these competencies.

Assessing the performance requirements

Reviewing levels of commitment throughout the organisation


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STRATEGIC HRM OBJECTIVES CAN BE

LINKED TO STRATEGIC OBJCTIVES

SUCH AS:

Cost containment

Customer service

Social responsibility

Organisational effectiveness


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ASSESSMENT OF

INFLUENCES

Where are we now?

Where do we want to be in the future?

What path is best for us?

How and when can we implement it?


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EXTERNAL INFLUENCES

Political

Legal

Environmental

Technological

Cultural

Demographic

Social

Business Economic

Industrial relations


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INTERNAL INFLUENCES

Organisational mission and purpose

Objectives and strategies

Organisational culture

Organisational structure


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OUTCOMES IN EVALUATING HRM

STRATEGIES AND POLICIES

Commitment

Competence

Cost-effectiveness

Congruence

Adaptability

Performance

Job satisfaction Employee motivation

Trust


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THE HRM CHALLENGE

Strategic HRM demands HR

professionals who have competencies

at a general management level andwho are willing to accept responsibility

for organisational performance outside

HRM Davidson

S


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Summary

In the current turbulent environment HR managersneed to adopt a strategic approach, be part of thetop management team, be involved in corporate

planning and develop a vision for HRM. HRM activities must be part of a coordinated effort

to improve the productive contribution of people inmeeting the organisations strategic business

objectives. Inability to do so means that the organisation will

ultimately stagnate and fail.

HRM Today,HRM and the Organisation, New Roles

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