Lecturer Unit 1(a)

8/7/2019 Lecturer Unit 1(a)

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HUMAN RESOURCEMANAGEMENT


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What is HRM ..?

Human resource management is the effective use ofhuman resources in order to enhance organizational

performance.


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Major Activities Conduct by HR

Recruiting

Selecting

Training

Motivation

Evaluation

Compensation


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Model OF HRM


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OB ANALYSISRINGEBENEFITS OB DESIGN

&AGESINCENTIVESAREERPLANNING

PROMOTIONS

JOBTRANSFER

JOBROTATIONMPLOYEETRAINING

OBEVALUATIONANPOWER

PLANNING

RECRUITMENT

SELECTION

PLACEMENTS

INDUCTION

UMANRESOURCEMANAGEMENT


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The Human Resources Management modeldeveloped by the American Society for Training andDevelopment (ASTD) integrates the nine areas or sub-

systems of human resource management. These areasare:-

.i Training and development.ii Organizational Development

.iii /Organizational Job Designs.iv Human Resource Planning.v Selection and Staffing.vi Personnel Research and Information System

.vii /Compensation benefits.viii Employee Assistance.ix / .Union Labour Relations


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Human Resource Areas

Outputs:Quality work lifeProductivityReadiness for change

T & D focus: identifying, assessing &helping develop the key competencieswhich enable individuals to perform

current or future jobs

Organizationaldevelopment focus: assuring

healthy inter and intrarelationships and helping

groups initiate and managechange

Organizational/Job Designfocus: defining how tasks,

authority and system will beorganized and integrated

across organization units and

in individual jobs

H

RPlanningfocus:

determiningthe

organization'sHR

needs,strategiesand

philosophies

Sele

ctio

n&

Staffin

g

focu

s:matching

people

&theirc

areer

needs

andcapabilities

withjobs

andcareer

paths

Comp

ensation

&

Benefits

focu

s:

assurin

gcom

pens

ation

andbene

fitsf

airne

ss

andcons

isten

cy

EmployeeAssistance

focus:providing

personalproblem

solving,counselingto

individualemployees

Union

/Labou

r

Relat

ionsfo

cus:

assuring

healthy

union/

org

relationsh

ips


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Scope of HRM


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ature of HRM

strial Relations

mployee Motivationmployee Maintenance

rospects of HRM

&mployee Executive Re

mployee Hiring

uman Resource Management


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Differences between

Personnel Management&HRM

i i l


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Dimension Personnel Management Human ResourceManagement

Employment contract Careful delineation ofwritten contracts

Aim to go beyondcontract

Rules Importance of devisingclear rules

Can do outlook,impatience with rule

Initiatives Piecemeal Intergrated

Speed of decision Slow Fast

Communication Indirect DirectPay Job evaluation (fixed

grades)Performance related

Job designs Division of labour Team work

Training and

development

Controlled access o

course

Learning companies

Respect for employees Labour is treated as atool which is expendableand replaceable

People are treated asassets to be used for the

benefit of anorganization, itsemployees and societyas a wholeEvolution Precedes HRM Latest in the evolutionof the subject


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Objectives:

Maximize the return on investment from theorganization's human capital and minimizefinancial risk.

To align the capabilities and behaviors ofemployees with the short-term and long-termgoals of the retail firm.


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Functionsand Objectives

of HRM


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HRM bj ti S ti F ti


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HRM objectives Supporting Functions

Societal objectives Legal complianceBenefitsUnion- Managemnet Relations

Organizational Objectives Human Resource PlanningEmployee RelationsSelectionTraining and DevelopmentAppraisalPlacementAssessment

Functional Objectives AppraisalPlacement

Assessment

Personal Objectives Training and DevelopmentAppraisalPlacementCompensation

Assessment


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The Changing

Environment of HumanResource Management


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GlobalizationTrends

TechnologicalTrends

Trends in theNature of Work

WorkforceDemographic

Trends

nd Trends in Human Resource Management


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The Changing Environment of Human ResourceManagement

G l o b a l i z a t i o n ;tendency of firms toextend their sales and manufacturing to

new markets abroad

e c h n o l o g i c a l a d v a n c e s ; technologyhas been forcing and enabling firms to( ,become more competitive skilled employee

)empowerment

h e n a t u r e o f w o r k;

Human( , , ,capital knowledge education training

)skills and expertise of a firm s workerprovides competitive advantage

h e w o r k f o r c e d i v e r s i t y ; increased

Th Ch i R l f H R M


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The Changing Role of Human Resource Management

e w R e s p o n s i b i l i t i e s f o r H R M a n a g e r

Measuring the HRM Team s Performance

with the HR Scorecard Process -Creating High Performance

Strategic Human Resource Management


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Strategic Human Resource

Management


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HRMis concerned with the "people" & keeping thefact in mind that HRM helps in acquiring, developing,

stimulating & retaining the outstanding employees as it

gives both effectiveness & efficiency to the working ofthe organization, it has been started being used

strategically & is now termed asStrategic humanresource management.

fi i S


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Defining SHRM:

Organizational use of employees to gain or keep acompetitive advantage against competitors.

Involves aligning initiatives involving how people aremanaged with organizational mission and objectives.In today's flattened, downsized & high-performingorganizations, highly trained & committed employees not

machines are often the firm's competitive key.Perhaps the most drastic change in HR's role today is itsgrowing involvement in developing & implementing thecompany's strategy.

In order to understand the modern aspect of HR i e SHRM lets discuss the terms which would


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In order to understand the modern aspect of HR i.e. SHRM, lets discuss the terms which wouldhelp us in understanding the concept:

vCore Competencycan be defined as - A unique capability in the organization that creates highvalue and that differentiates the organization from its competition.

vMissionStatement explains purpose and reason for existence; it is usually very broad, but notmore than a couple of sentences & it serves as foundation for everything organization does.

vStrategy: the company's plan of how it will balance its internal strengths & weaknesses withexternal opportunities & threats in order to maintain a competitive advantage, earlier this rolewas performed by the line managers, but now it is carried by the HR manager.

Strategies increasingly depend on strengthening organizational competitiveness & on buildingcommitted work teams, & these put HR in a central role. In the fast changing, globally

competitive & quality oriented industrial environment, it's often the firm's employees its humanresources who provide the competitive key. And so now it is a demand of the time to involve HRin the earlier stages of development & implementing the firm's strategic plan, rather than to let

HR react to it. That means now the role of HR is not just to implement the things out but also toplan out in such a manner that the employees can be strategically used to get edge over the

competitors, keeping in mind the fact that this is the only resource (HUMANS), which cannot beduplicated by the competitors.

Th St t i M t P i l d


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The Strategic Management Process includes:

vDetermining what needs to be done to achieve corporate

objectives, often over 3 - 5 yearsvvExamining organization and competitive environmentvvEstablishing optimal fit between organization and its

environmentvvReviewing and revising strategic plan

St t i M t P M d l


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-rganization Self AssessmentR e s o u r c e sFinancialPhysicalHumanTechnologiesCapital a n a g e m e n t S y s t e mCulture

Structure /Power dynamic Policies -Decision Making Process &Past Strategies Performance Work System

vironment Analysis/Competition Industry Structure

RegulationsTechnology

Market trendsEconomic TrendsMissioStatement&

Goalsobjectives

Strategy

Strategic Management Process Model

B fit f St t i A h t HR


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Benefits of a Strategic Approach to HR:

i. Facilitates development of high-quality workforce through focus on types of peopleand skills neededii. Facilitates cost-effective utilization of labour, particularly in service industries wherelabour is generally greatest cost

iii. Facilitates planning and assessment of environmental uncertainty, and adaptation oforganization to external forces

iv. Successful SHRM efforts begin with identification of strategic needs

v. Employee participation is critical to linking strategy and HR practices

vi. Strategic HR depends on systematic and analytical mindset

vii. Corporate HR departments can have impact on organization's efforts to launchstrategic initiatives

Human Resource Life Cycle:


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Human Resource Life Cycle:-

.9 Separation Management

.8 Labour Relation

.7 Employee Relation

. &6 Employee Development Performance Management

.5 Benefits Management

.4 Compensation Management. &3 Organisational Position Management

.2 Start AcquisitionStrategic

Plan

Acquire

Sustain

Separate

HR Strategy

ht job at the right time

Right Person

&performing well appropriat

Timely Retirement Process

Factors Determining HR Plans and Strategies


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Factors Determining HR Plans and Strategies

egy of the OrganizationCulture of the Organization

:esource &Quality Skills Levels& :-HR Plans Policies for

RecruitingSelectionHR DepartmentCompensationPerformance ManagementStaffing Adjustment

vailable financial resour

Competitive/Financial Environment

Current Organizational Situati


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Kaizen TQM and

Six Sigma

Kai en is


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Kaizen ...is... a system of continuous

,improvement in quality, ,technology processes,company culture

, productivity safety and.leadershipKaizen was created in Japan

.following World War II Theword Kaizen means" ".continuous improvement It

comes from the Chinese K i (C ti I t)


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Kaizen (Continuous Improvement)

Focus on gradual and continuousimprovement

A whole business philosophy

Importance of EVERYONE buying into

the concept and the vision


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E l ti f Si Si


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Evolution of Six Sigma Japan has been credited with the evolvement of Quality

, , , .Systems like TQM Kanban Kaizen etc . . ;Pioneered in the U S by Bill Smith at Motorola in 1986

originally used as a metric for measuring defects for;improving quality a methodology to reduce defect levels

< . ( ).3 4 Defects Per Million Opportunities DPMO Motorola> .has reported US$17b savings as of 2006

, ,Early adopters include Bank of America Caterpillar

(Honeywell International previously known as Allied), , .Signal Raytheon Merrill Lynch and General Electric

Six Sigma was originally centered around manufacturing.improvements The reason for this was knowledge of the

statistical tools in the manufacturing functions and the.ease with which we can quantify the benefits

Si Si l l d P


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Six Sigma levels and Process

, ,The Greek letter for Sigma represents one

.standard deviation from the normal or average The

higher the sigma level the better the quality.level

Levels of Sigma Performance

:Three levels of Six Sigma


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:Three levels of Six Sigma As a M etric As a M ethodology As a M anagement system

,Essentially Six Sigma is all.three at the same time

is a registered service

,mark and trademark of Motorola.Inc

1 A M t i
http://en.wikipedia.org/wiki/Six_Sigma


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1.As a Metric

The term Sigma is oftenused as a scale for levels

" " .of goodness or quality

.Equates to 3 4 defectsper one million( ).opportunities DPMO

Six Sigma started as adefect reduction effortin manufacturing and was

then applied to other 2 A M th d l


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2.As a Methodology A u s i n e s s i m p r o v e m e n t

methodology that focuses an:organization on

Understanding and managing

customer requirements

Aligning key business processesto achieve those requirements

Utilizing rigorous data analysisto minimize variation in those

processes Driving rapid and sustainable

improvement to business processes

The DMAIC model


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The DMAIC model Motorola developed a five phase approach

to the Six Sigma Process called DMAICwhich is a continuous process as the

diagram shows until the highest level in, . ., .the Six Sigma is achieved i e 3 4 defects

.per million

qAt the heart of the


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q At the heart of themethodology is the DMAIC

model for processimprovementD efine opportunityM easure performanceA nalyze opportunityI mprove performanceC ontrol performance


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3 As a Management system


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3.As a Management systemv -A top down solution to help

:organizations

Align their business strategy tocritical improvement efforts

Mobilize teams to attack highimpact projects

Accelerate improved businessresults

Govern efforts to ensureimprovements are sustained

v ramework to prioritizeresources for projects that will

Levels of Six Sigma Implementation


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Levels of Six Sigma Implementation) ix Sigma Champion : Champions undergo

five days of training and are taught howto manage projects and act as advisors to

.various project teams)2 ) :reen Belts They undergo two weeks of

-training that includes project oriented.tasks They act as team members to the Six

.Sigma project team Their cooperation andinvolvement is necessary for projects.success

)4 ) lack belts: They receive four weeks oftrainings and are directly involved in .the implementation of Six Sigma Projects

They are the project leaders and go-through in depth training on Six Sigma

approach and tools and work full time on

.the project

)6


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Six Sigma Tools

Quality Function Deployment


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QFD helps Six Sigma Black Belts drive-customer focused development across

.the design process

QFD is a system and set of procedures, ,to identify communicate and.prioritize customer requirements

, With QFD Six Sigma teams can moreeffectively focus on the activities

,that mean the most to the customer,beat the competition and align with

.the mission of the organization

Quality Function Deployment

Cause and Effect Matrix


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Cause and Effect Matrix &The C E Matrix helps Six Sigma

project leaders facilitate team- .decision making

&The C E Matrix is a tool that helps

, ,Six Sigma teams select prioritizeand analyze the data they collectover the course of a project to

.identify problems in that process

Six Sigma teams typically use the&C E Matrix in the Measure phase of.the DMAIC methodology

&The C E Matrix is particularly great

Failure Modes Effects Analysis


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Failure Modes Effects Analysis

FMEA helps Six Sigma teams toidentify and address weaknesses

,in a product or process before.they occur

,Before implementing new products, ,processes or services Six Sigmateams use FMEA to identify waystheir new introductions might

,fail and then to developpreventative measures targeted at.the failure scenarios

An effective FMEA identifies

t t t


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t-test -The t test helps Six Sigma teams

validate test results using small.sample sizes -The t test is used to determine

the statistical difference

,between two groups not just a .difference due to random chanceSix Sigma teams might use it to

determine if a plan for acomparative analysis of patient

,blood pressures before and after,they receive a drug is likely to.provide reliable results

Guinness Brewery is the work. .environment that led to W S'

Control Charts


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Control Charts

Six Sigma teams use Control

Charts to assess process.stability Control Charts are a simple but

highly effective tool formonitoring and improving processperformance over time because

they help Six Sigma teams to.observe and analyze variation

The three basic components ofany control chart are a

,centerline upper and lower

D i f E i t


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Design of Experiments

DOE helps Six Sigma Black Belts

make the most of valuable.resources DOE is a statistical technique

,that encompasses the planning, ,design data collection analysisand interpretation strategy used

.by Six Sigma professionals Six Sigma teams use DOE to

determine the relationship( )between factors Xs affecting a

Lecturer Unit 1(a)

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