Human Resource Management HRMT 3401 Learner Outcomes: At the end of the unit, students should be able to: Review five (5) of the major functions of HRM in an organization Give four (4) reasons of the importance of HRM to an employee/organization and to the employees Assess how four (4) changes in the global economy are impacting the HRM functions Review four (4) laws , regulations or policies that affect the work environment, employees and employer’s relationship Research five (5) new and emerging trends in HRM in the work environment. History of Personnel Management Its predecessor was Personnel Management/Personnel Administration. Personnel administration emerged from the 1920’s largely concerned with the technical aspects of hiring, evaluating, training and compensation in the organization. Personnel administration lacked the relationship building between the employee and the organization. There was nothing unifying or bonding the employee to the organization. DEFINITIONS OF PERSONEL ADMINSTRATION Personnel management is the planning, organizing, compensation, integration and maintenance of people for the purpose of contributing to organizational, individual and societal goals. These may include recruitment, job evaluation, payroll administration, performance appraisals, training and related tasks, labour law compliance. DEFINITIONS OF HUMAN RESOURCE MANAGEMENT HRM includes the traditional personnel functions mentioned before but also incorporates activities such as leadership, motivation, development of organization culture, communications, values. HRM is the process of managing the people of an organization in a structured way. MAJOR FUNCTIONS OF HRM HR plays an integral role in the success of an organization. The major functions of Human Resources are: (a) Human Resource Planning, Recognition rewards Talent Management, Career Development Job Analysis and Design Recruitment and Selection Performance appraisal Occupational Health and Safety Human Resource Planning refers to all the activities associated with scanning and assessing the environment, also specifying the objectives to be achieved by Human Resources activities, along with measures to be used to assess the achievement of those objectives, and developing specific plans, policies and practices along with a timetable for implementing these plans. Human resource planning aims at fulfilling the objectives of manpower requirement. It helps to mobilize the recruited resources for the productive activities. The human resource planning is an important process aiming to link business strategy and its operation. DEFINING TALENT ‘ Talent consists of those individuals who can make a difference to organisational performance, either through their immediate contribution or in the longer term by demonstrating the highest levels of potential’ According to McKinsey, talent is the sum of a person’s abilities, his or her intrinsic gifts, skills, knowledge, experience , intelligence, judgment, attitude, character,drive, his or her ability to learn and grow TALENT MANAGEMENT A conscious, deliberate approach undertaken to attract, develop and retain people with the aptitude and abilities to meet current and future organisational needs. TALENT=COMPETENCE+COMMITMENT+CONTRIBUTION PURPOSE OF Talent Management To compete effectively in a complex and dynamic environment to achieve sustainable growth To develop leaders for tomorrow from within an organization To maximize employee performance as a unique source of competitive advantage To empower employees: Cut down on high turnover rates Reduce the cost of constantly hiring new people to train BENEFITS OF TM Right Person in the right Job: Through a proper ascertainment of people skills and strengths, people decisions become more important.The skill or competency mapping allows you to take stock of skill inventories lying with the organization.This is especially important both from the perspective of the organization as well as the employee because the right person is deployed in the right position and employee productivity is increased. Also since there is a better alignment between an individual’s interests and his job profile the job satisfaction is increased. Retaining the top talent: Despite changes in the global economy, attrition remains a major concern of organizations. Retaining top talent is important to leadership and growth in the marketplace. Organisations that fail to retain their top talent are at the risk of losing out to competitors. The focus is now on charting employee retention programs and strategies to recruit, develop, retain and engage quality people. Contd.. Better Hiring: The quality of an organization is the quality of workforce it possesses.The best way to have talent at the top is have talent at the bottom. No wonder then talent management programs and trainings, hiring assessments have become an integral aspect of HR processes nowadays. Understanding Employees Better: Employee assessments give deep insights to the management about their employees.Their development needs, career aspirations, strengths and weaknesses, abilities, likes and dislikes. It is easier therefore to determine what motivates whom and this helps a lot Job enrichment process. Better professional development decisions: When an organization gets to know who its high potential is, it becomes easier to invest in their professional development. Since development calls for investment decisions towards learning, training and development of the individual either for growth, succession planning, performance management etc, an organization remains bothered where to make this investment and talent management just make this easier for them. TM - A PROCESS RECRUITMENT RECRUITMENT is a process of searching for prospective employees and stimulating them to apply for jobs of in an organization.-EDWIN B. FLIPPO Recruitment forms the first stage in the process which continues with selection and ceases with the placement of the candidates. -Kempner 6 RECRUITMENT GOALS 1 Attract the Qualified Applicants. 2 Encourage Unqualified Applicants to selfselect themselves out. SELECTION 1 • The Process of making a “Hire” or “No Hire” decision regarding each applicant for a job. Or 2 • Selection is the process of choosing qualified individuals who are available to fill the positions in organization. A performance evaluation system is a systematic way to examine how well an employee is performing in his or her job over a particular period of time. If you notice, the word systematic implies the performance evaluation process should be a planned system that allows feedback to be given in a formal— as opposed to informal—sense. 1. The evaluation process should encourage positive performance and behavior. 2. Second, it is a way to it is a way to satisfy employee curiosity as to how well they are performing in their job. 3. It can also be used as a tool to develop employees 4. It can provide a basis for pay raises, promotions, and legal disciplinary actions. 5. Administrative actions – dismissal from work, promotions, transfers, demotions 6. Development actions – career progression, training opportunities, coaching, mentoring, strengths and weaknesses Policy Formulation Human Resources keeps new hires and current employees abreast of the policies and procedures of the organization. This function also helps to draft company policies in keeping with legal requirements • A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. • It tries to make a systematic comparison between jobs to access their relative worth for the purpose of establishing a rational pay structure. Compensation and Benefits A company can attain its goals and objectives if it can find new ways of providing benefits to the employees. The HR team is responsible for acquiring and administering an attractive compensation and benefits package for new hires. This might include: a competitive salary range, medical and dental insurance, life insurance, tuition reimbursement, and more. Compensation and Benefits HR should promote and offer an attractive rewards package to those candidates who meet the selection criteria. A competitive reward package will attract top talent and hopefully retain them once hired Compensation and Benefits Working hour flexibility Dental/Medical Insurance Maternal/Paternal Leave Education Reimbursement Salary Maternity Leave Vacation Leave & extended vacation Sick Leave Compassionate Leave Ensuring Legal Compliance To protect the organization and the employee, this function plays a crucial role. The HR department of every organization should be aware of all the laws and policies that relate to employment, working conditions, working hours, overtime, minimum wage, tax allowances etc. Compliance with such laws is very much required for the existence of an organization. Occupational Health and Safety Human resources professionals are assuming health, safety, and security responsibilities within organizations. Such responsibilities include the identification of hazardous conditions and practices, exposure control and mitigation strategies, legal compliance, development of a safety culture, and measurement of health, safety and security program. Job Analysis and Design Job Analysis is a primary tool to collect job-related data. The process results in collecting and recording two data sets including job description and job specification. Any job vacancy can not be filled until and unless HR manager has these two sets of data. It is necessary to define them accurately in order to fit the right person at the right place and at the right time. This helps both employer and employee understand what exactly needs to be delivered and how. It has two components: Job description and Job Specification. Job Description Job description includes basic job-related data that is useful to advertise a specific job and attract a pool of talent. It includes information such as job title, job location, reporting to and of employees, job summary, nature and objectives of a job, tasks and duties to be performed, working conditions, machines, tools and equipments to be used by a prospective worker and hazards involved in it. Job Specification This is also known as employee specifications, a job specification is a written statement of educational qualifications, specific qualities, level of experience, physical, emotional, technical and communication skills required to perform a job, responsibilities involved in a job and other unusual sensory demands. It also includes general health, mental health, intelligence, aptitude, memory, judgment, leadership skills, emotional ability, adaptability, flexibility, values and ethics, manners and creativity, etc. Importance of HRM Function What is the importance of the HRM Function to the employer and employee Employer (a) Strategic Management – knowing how to deploy human capital, staffing and future workforce requirements (b) Budget Control – knowing how to trim costs associated with the workforce, negotiating better health insurance rates etc, Importance of HRM Function Improving corporate image – Companies want to be known as the ‘employer of choice’ based on how they treat their employees and with whom people want to work, human resources is key in how matters are handled and ensuring the right people are selected Employee performance improvement – without HR to measure employees performance, employees whose performance falls below standard continue on payroll, creating waste of money on low performing employees Importance of HRM Function What is the importance of the HRM Function to the employer and employee Employee (a) Resolution of employee conflicts - given the diversity of personalities, culture, socio-economic backgrounds and levels of experience among employees, conflicts are bound to arise. (b) The HR Function educates employees on the do’s and don'ts of the company , benefits, rights and responsibilities. (c) Promotion of health and safety – The HR team is responsible for ensuring the company complies with health and safety regulations to reduce accidents on the job. Importance of HRM Function Promotion of health and safety – The HR team is responsible for ensuring the company complies with health and safety regulations to reduce accidents on the job. Globalization and HRM What is Globalization Globalization describes the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information. Globalization and HRM Companies have to equip the workforce to become more customer focused and responsive to market needs due to changing market Helping employees overcome resistance to change by convincing them about the bigger picture. Globalization and HRM When a business expands its operation into other countries, the impact of globalization on human resource development and management is significant. Companies need to consider a diverse range of practical adjustments to be able to hire, train, retain and support a workforce that's often spread throughout several countries, which often have varying cultural identities. Globalization and HRM Human Resources departments must adapt their thinking and practices to include cultural differences, foreign regulations and technological developments. Globalization and HRM Globalization of Human Capital The greatest resource available to any company is the workforce it acquires and retains. As a company extends its base to foreign shores, the impact of that globalization on HR procedures will extend to current workers and also to new employees. The HR department will need to increase support of its current staff, as they transfer/transition overseas to new positions. Globalization and HRM Managing Outsourcing Availability of Low Cost Labor from Emerging Countries The spread of globalization combined with technological developments has made possible outsourcing, both at the global and domestic levels. Firms now turn to outsourcing as a means to cut costs as well as to avail the services of top-quality talent from a wider pool. Globalization and HR Corporate and Cultural Differences Another significant impact of globalization on human resource development is the necessity to consider cultural differences, both in and out of the workplace. Businesses tend to have their own corporate cultures or ways of operating, but there are societal and cultural differences between people as well. Globalization and HR Corporate and Cultural Differences Cultural norms within a society can affect the workforce and how workers view their jobs, especially in relation to time spent with their family and ideas about employment expectations. Some cultures may also have varying ideas about gender roles, particularly concerning the role of women in leadership. While a female in a managerial position is not uncommon in the Jamaican culture, the same many not hold true elsewhere. Globalization and HR Reliance on technology such as email or conference calling to relay information, thereby eliminating some of the more direct human elements of interaction Globalization and HR Employment and Tax Laws Global expansion is also affected by varying tax and labor laws. HR departments need to be prepared to deal with different tax rates, benefit requirements or labor and environmental regulations. These requirements may be in addition to or even in conflict with current corporate policies, so adjustments to maintain compliance with local governments are necessary. HR managers must become experts in issues that not only pertain to their industry, but keep current with issues and government policies within the countries in which their company now operates. Globalization and HR Compensation Practices & Benefits The process of globalization makes it easier for individuals to look for better paid jobs in other countries. Companies also have the possibility to hire employees from other countries that work for smaller salaries, or to relocate their production to countries where workers require smaller salaries. Globalization Changes in HRM Diversity Equal Employment Opportunity - What does it mean to say you are an equal opportunity employer? “An employer that pledges to not discriminate against employees based on race, color, religion, sex, national origin, age, disability or genetic information. Equal Pay for men and women Act 1975 (Jamaica) refer to the act “equal pay” means a rate or a scale of remuneration for work, in which rate or scale there is no element of differentiation between male employees and female employees based on the sex of the employees; Globalization Changes in HRM Payment of equal pay for equal work. 3. 1) From and after the 1st day of January, 1976, no employer shall, by failing to pay equal pay for equal work, discriminate between male and female employees employed by him in the same establishment in Jamaica / Job Evaluation Economic cost of compensation and benefits Economic Recession – business are not able to employee persons as much as they would like to Globalization Changes in HRM Cost of training and employee’s development Outsourcing Legal/Regulatory Policies in HRM Pension Unemployment Insurance – Unemployment insurance (UI), also called unemployment benefits, is a type of state-provided insurance that pays money to individuals on a weekly basis when they lose their job and meet certain eligibility requirements. If you were fired or voluntarily resign , you don’t qualify Jamaica – Best Cash/ Covid-19 Pandemic Legal/Regulatory Policies in HRM Occupational Health and safety Act came into being in 2017 Main objectives of the act is to prevent accidents and injury to health arising out of the course of employment Aims to protect workers and others persons from discrimination or harm to their safety, health and welfare through the elimination or minimization of hazards or serious injury arising from plant, substance or structure. Trends in HRM HRIS Strategic HRM -Strategic HRM, or ‘people strategy’, is about creating a coherent planned framework for employees to be hired, managed and developed in ways that supports an organization's long-term goals. It helps ensure that the various aspects of people management work together to drive the behaviour and climate needed to create value and meet performance targets. It focuses on longer-term people issues, matching resources to future needs, and large-scale concerns about structure, quality, culture, values and commitment. Trends in HRM Safety and Wellness – Creating work/life balance References https://smallbusiness.chron.com/effects-globalization-human-resourcesmanagement-61611.html