Strat rect planning spr 2012

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1 STRAT ROLE OF HRM In an era when intellectual capital is mightier than other physical or financial capital, the employee is as powerful as the consumer was in the age of materialism. Diedre Maken ,2000

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Transcript of Strat rect planning spr 2012

Page 1: Strat rect planning  spr 2012

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STRAT ROLE OF HRM

In an era when intellectual capital is mightier than other physical or financial capital, the

employee is as powerful as the consumer was in the age of materialism.

Diedre Maken ,2000

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STRATEGICORIENTATION------- HRM

Committed and competent work force. How?

Adapt to changes in environment. How?Balance between capital and labor. How?Planned HR deployment for the future.

How?Building incentives. How?Safeguarding company interests. How?

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HR Principles

Source of

Value creation Creativity & Autonomy

System Emphasis on Performance

competence based rewards

Foundation Equal Long-term

opportunity Perspective

Philosophy

Creating value for customers through management based on esteem for human dignity.

Policies

5Different fields of HR Policies

Organization

Recruiting

Development

Evaluation

Compensation

We hold the following to be our guidelines for managing human resources.

Creativity & Autonomy

An individual’s creativity is the source of creating value. We respect diversity and autonomy so that each can

exercise his/her own creativity to the full extent.Emphasis on competence

We have adopted competence as the most important criterion for making personnel decisions.

Performance based rewards

Rewards based on performance are essential for human motivation.

Performance results will be fairly evaluated and rewarded accordingly.

Equal opportunity Equal opportunity builds trust between people. We ensure everyone an equal opportunity regardless of gender, race, age, religion or nationality.

Long-term Perspective

Maintaining a long-term perspective is the foundation of our human resource policies. Human resource programs should be designed with a long-term perspective and implemented with dedication and persistence.

HR PRINCIPLES-LG

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WHY HUMAN RESOURCE STRATEGY

• Define opportunities and barriers for achieving business obj.

• Prompts new thinking about issues.• Develop sense of urgency and commitment of

action.• Estb selected long term courses on priority

basis.• Dev strategic focus for managing business and

managing talent.

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External

Analysis

Opportunities

Threats

Mission Goals Strategic

Choice

Human Resource

Needs

Skills

Behaviors

Culture

Firm Performance

Productivity

Quality

Profitability

HR practice

Recruitment Job analysis

Training Job design

Performance Selection

Management Development

Labor Pay structure

Relations Incentives

Employee Benefits

relations

Internal

Analysis

Strengths

Weaknesses

Human resource

Capability

Skills

Abilities

Knowledge

Human resource

Actions

Behaviors

Results

(Productivity,

absenteeism,

turnover)

Strategy formulation

Strategy implementationEmergent strategies

Strategy evaluation

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Roles of HR Manager

• Strategic Partner

• Administrative Expert

• Employee Advocate

• Change Agent

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Roles and competencies

NegotiationsCommunications

OvercomingResistance to

change

CounselingDeveloping

teams

Legal complianceContract

AdministrationE-HRM & HRInformation

systems

Data-based decision-making

Administrative expert

Change agent Strategic

Partner

Employee

advocate

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STRATEGIC ORIENTATION

• Proactive Vs Reactive• Narrow Vs Broad• Informal Vs Formal• Loosely tied Vs Closely Tied• Inflexible Vs Flexible

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STRAT CHOICES- RECRUITING

• Make or Buy?• Degree of Tech sophistication in recruiting?• External recruiting or internal?• Untapped labor utilization?• Degree of Affirmative Action Plan?• Flexibility in HR force?

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Firm Strategy- HR Relationships• Growth/Expansion

• Retrenchment

• Diversification

• Mergers/Acquisition

• Divestiture

• Differentiation

• Low Cost Producer• Luxury/Quality

• Aggressive hiring, promotion

• Layoffs, termination, ,early retirement.

• Staff configuration, promotions

• Corporate Acculturation, layoffs

• Reassignment, layoffs

• Decentralized hiring

• Cost reduction, wage cuts• Hiring specialized personnels,

special compensation pkgs

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CORPORATE STRATEGY

EXAMPLE HUMAN RESOURCE STRATEGIES

Retrenchment (Cost Reduction)

GMLayoffs, Wage Reduction, Productivity, Increases, Job Redesign, Renegotiated, Labor Agreements.

Growth IntelAggressive Recruiting and Hiring, Rapidly Rising Wages, Job Creation, Expanding Training and Development.

Renewal ChryslerManaged Turnover, Selective Layoff, Organizational Development, Transfer/Replacement, Productivity, Increases, Employee Involvement.

Niche FocusKentucky

Fried Chicken

Specialized Job Creation, Elimination of other Jobs, Specialized Training and Development.

Acquisition GESelective Layoffs, Transfers/Placement Job Combinations, Orientation and Training, Managing Cultural Transitions.

Examples of Organizational Strategies and Associated Human Examples of Organizational Strategies and Associated Human Resource StrategiesResource Strategies

Examples of Organizational Strategies and Associated Human Examples of Organizational Strategies and Associated Human Resource StrategiesResource Strategies

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SOURCE:PAKISTAN ECONOMICAL SURVEY 2005-06 12

TAHA WAHABSYED SHIRAZ RAZA NAQVI

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13SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 13

FORECASTED POPULATION & LABOR FORCE

FOR PAKISTAN

INTERNATIONAL POPULATION RANK: 06TH

POPULATION : 171 MILLION

GROWTH RATE : 1.51%

LABOR FORCE : 54.92 MILLION

EMPLOYED LABOR : 51.87 MILLION

UNEMPLOYED LABOR : 3.05 MILLION

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14SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 14

LABOR FORCE BREAK DOWN

YEAR TOTAL RURAL URBAN

2004 45.76 31.07 14.69

2005 46.82 31.79 15.03

2006 47.67 32.37 15.3

2009 50.79 35.54 15.25

(MILLION)

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15SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 15

FORECASTED POPULATION & LABOR FORCE

PROVINCIAL DISTR OF WORKFORCE/ GENDER

(IN MILLION)

AREA TOTAL MALE FEMALE5.05

PAKISTAN 54.92 42.44 12.48

PUNJAB 33.04 24.18 8.86

SINDH 13.46 11.31 2.15

BLN 2.17 1.90 .27

KP 6.25 5.05 1.20

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16SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 16

FORECASTED POPULATION & LABOR FORCE

FOR PAKISTAN

(AREAWISE POPULATION)

(% SHARE)

YEAR TOTAL RURAL URBAN

2004 100 67.90 32.10

2005 100 67.90 32.10

2006 100 67.90 32.10

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17SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 17

FORECASTED LABOR FORCE PROJECTIONS

(MILLION)

(INCREASING 0.94 MILLION PER YEAR)

YEAR TOTAL

2006 47.67

2010 51.46

2015 56.18

2020 60.89

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18SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 18

FORECASTED POPULATION & LABOR FORCE

FOR PAKISTAN

UNEMPLOYED LABOR FORCE

YEAR TOTAL

2006 3.66

2010 4.29

2015 5.08

2020 5.87

(MILLION)

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19SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 19

FORECASTED POPULATION & LABOR FORCE

FOR PAKISTAN

UNEMPLOYED LABOR FORCE

YEAR TOTAL

2006 07.68

2010 08.34

2015 09.04

2020 09.63

(IN % OF LABOR FORCE)

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20SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 20

FORECASTED POPULATION & LABOR FORCE

FOR PAKISTAN

OTHER SECTOR (EMPLOYED LABOR FORCE)(% OF employed LABOR

FORCE)YEARS AGRICULTURE MINING &

MANUFACTURINGCONSTRUCTION

2006

2010 44% 13% 6.3%

2015

2020

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21SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 21

FORECASTED POPULATION & LABOR FORCE

FOR PAKISTAN

OTHER SECTOR (EMPLOYED LABOR FORCE)(% OF employed LABOR

FORCE)YEARS TRANSPORT SERVICES OTHERS

2006

2010 5.5% 13.7% 2.3%

2015

2020

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22SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 22

FORECASTED POPULATION & LABOR FORCE

EMPLOYMENT STATUS BY CLASS/REGION- 2008-09

(IN MILLION)

STATUS TOTAL URBAN RURAL

EMPLOYERS .47 .34 .13

SELF EMPLOYED

17.06 4.59 12.47

UNPAID FAMILY

HELPERS

14.45 1.75 12.7

EMPLOYEES 17.96 8.18 9.78

TOTAL 49.94 14.86 35.08

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PAKISTANI DIASPORA

• Expand & upgrade skill/job capacity.• “Young workforce” dilemma will last up-to 2050. • Urbanization increased 7 fold. In 2030, 50% pop

ratio will be urban.• 7 million Pak living abroad. Remits $ 8 bill annually.• Expand NAVTEC, SDC & CWA• Close monitoring of Key Indicator for Labor Markets

(KILM).

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RECRUITING TRENDS IN PAKISTAN

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Changes in environment

• 1. Labor force• 2. Social changes• 3. Technology• 4. Competitive forces• 5. Govt Regulations• 6. Globalization

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WHERE DID JOBS OCCUR?DAWN EBR: 21-27 NOV

PAPER AND QTR

i II III IV TOTAL

DAWN 2009 43 43 180 256 519

DAWN 2010 166 63 130 NA -

NEWS 2009 66 127 22 32 247

DIFF - 47%

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JOBS BY LEVEL ???

• ENTRY LEVEL 25%

• MIDDLE LEVEL 33%

• SENIOR LEVEL 44%

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JOBS BY SECTOR???

• BANKING 1%

• PUBLIC SECTOR ON HIGH

• TELECOMM 10%

• MANU 50%

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THE PAKISTANI SCENARIO

COPING WITH BRAIN DRAIN.UNEMP NUMBER PREPONDEROUS EFFECT ON

EACH VACANCYEVERY CANDIDATE NOT A SERIOUS CANDIDATE.

ANCHORED TO THE HOMETOWN.JOB ASSURANCE FOR TECHNOCRATS.

MIDDLE MANAGEMENT GROUP BELIEVES IN HORIZONTAL MOBILITY.

TESTS ARE UNSTRUCTURED AND UN VALIDATED.EVERY VACANCY IS NOT ADVERTISED

A BIRD IN HAND IS WORTH TWO IN THE BUSH.

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PERSONAL QUALITIES & ATTITUDES

EXPERIENCE

EDUCATION

Knowledge & skills

(including potential)

CRITERIA FOR PRE-QUALIFICATION

RELEVANT FOR IMPACT UPON NEXT CRITERIA

CRITERIA FOR REECRUITMENT & SELECTION

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RETENTION

• Employee retention refers to policies and practices companies use to prevent valuable employees from leaving their jobs.

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DUAL CAREER PATH SYSTEM

• A dual-career-path system enables employees to remain in technical career or move into a

management career path.

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Pak Companies Recruiting on the Web

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

(Source: ROZEE.PK)

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Obtaining Greater Employee Commitment and Performance for maximum results

Talat NaseerGlaxoSmithKline

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The reality

• Your company is a short stop• Globalization• Skill shortages• Dynamic work and corporate environments• Mergers and Acquisitions• Outsourcing and off shoring

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Developing a commitment strategy

• Developing Ownership• Communication Programs• Leadership Development

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HUMAN CAPITAL

Represents the human factor of the organization; the combined intelligence, skills and expertise that gives the organization its distinctive character. The human

elements of the organization are those that are capable of learning, changing, innovating and providing the creative thrust which if properly

motivated can ensure the long-term survival of the organization.

Bontis 1999

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HUMAN CAPITAL INDEX

• HR practices can lead to 30% increase in the shareholders value creation.– total reward and accountability 16.5 %– Congenial, flexible work force 9%– Recruiting and retention excellence 7.9 %– Communication integrity 7.1%

Watson Wyatt research in 2001

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AIM OF HRM

• Increase organizational effectiveness.• Manage Human Capital.• Inculcate Knowledge management• Devise reward management.• Harmonize Employee relationships.• Reduce gap between reality and rhetoric.