Human Resource Management Abdullah Al Mamun MBA (HRM), BBA (Management), CSCA (Certified Supply Chain Analyst) Assistant Professor of Human Resource Management Faculty of Business Administration, University of Chittagong, Bangladesh Email: mamun09@cu.ac.bd 1–1 Justification of HRM to be here Human capital theory Human capital is defined as "productive wealth embodied in knowledge, talents, skills, abilities, experience, intelligence, training, judgment, and wisdom" (OECD, 2001). In fact, the investment in people is not only crucial for individuals but it is also the key to the economic growth of a country. As Alfred Marshall (1920) put it, "The most valuable of all capital is that invested in human beings" (p. 564). Human Capital in Transition LET’S ADD VALUE AT HRM 1–4 Human Resource Management at Work • What Is Human Resource Management (HRM)? ⮚ The process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns. • Organization ⮚ People with formally assigned roles who work together to achieve the organization’s goals. • Manager ⮚ The person responsible for accomplishing the organization’s goals, and who does so by managing the efforts of the organization’s people. Copyright © 2011 Pearson Education 1–5 The Management Process Planning Controlling Leading Copyright © 2011 Pearson Education Organizing Staffing 1–6 Human Resource Management Processes Acquisition Training Fairness Human Resource Management (HRM) Appraisal Health and Safety Labor Relations Copyright © 2011 Pearson Education Compensation 1–7 Personnel Aspects of a Manager’s Job • Conducting job analyses • Planning labor needs and recruiting job candidates • Selecting job candidates • Orienting and training new employees • Managing wages and salaries • Providing incentives and benefits • Appraising performance • Communicating • Training and developing managers • Building employee commitment Copyright © 2011 Pearson Education 1–8 Personnel Mistakes • • • • • • Hire the wrong person for the job Experience high turnover Have your people not doing their best Waste time with useless interviews Have your firm in court because of discriminatory actions Have your firm cited by Occupational Safety and Health administration (OSHA) for unsafe practices • Have some employees think their salaries are unfair and inequitable relative to others in the organization • Allow a lack of training to undermine your department’s effectiveness • Commit any unfair labor practices Copyright © 2011 Pearson Education 1–9 Basic HR Concepts • The bottom line of managing: Getting results • HR creates value by engaging in activities that produce the employee behaviors that the organization needs to achieve its strategic goals. • Looking ahead: Using evidence-based HRM to measure the value of HR activities in achieving those goals. Copyright © 2011 Pearson Education 1–10 Line and Staff Aspects of HRM • Line Manager ⮚ Is authorized (has line authority) to direct the work of subordinates and is responsible for accomplishing the organization’s tasks. • Staff Manager ⮚ Assists and advises line managers. ⮚ Has functional authority to coordinate personnel activities and enforce organization policies. Copyright © 2011 Pearson Education 1–11 Line Managers’ HRM Responsibilities 1. Placing the right person on the right job 2. Starting new employees in the organization (orientation) 3. Training employees for jobs that are new to them 4. Improving the job performance of each person 5. Gaining creative cooperation and developing smooth working relationships 6. Interpreting the firm’s policies and procedures 7. Controlling labor costs 8. Developing the abilities of each person 9. Creating and maintaining department morale 10. Protecting employees’ health and physical condition Copyright © 2011 Pearson Education 1–12 Human Resource Managers’ Duties Functions of HR Managers Line Function Line Authority Implied Authority Copyright © 2011 Pearson Education Coordinative Function Functional Authority Staff Functions Staff Authority Innovator/Advocacy 1–13 Why is HRM important? ✔ Selecting, compensating, and retaining the talents ✔ Profitable employees’ satisfaction ✔ Employees’ engagement ✔ Enhancement of morality and spirituality ✔ It makes the job interesting and joyous ✔ Ensuring a sound and healthy workplace ✔ Facilitating team work Human Resource Specialties Recruiter Labor relations specialist EEO coordinator Human Resource Specialties Job analyst Training specialist Compensation manager Copyright © 2011 Pearson Education 1–15 New Approaches to HR HR Shared Services Corporate HR Team Embedded HR Team : Transactional, Discipline issues : Long-term strategic plan on personnel : Relationship managers or business partners assigned in Centers for expertise functional areas for recruitment/selection : HR Consulting firms Copyright © 2011 Pearson Education 1–16 Trends Shaping Human Resource Management Globalization and Competition Trends Indebtedness (“Leverage”) and Deregulation Technological Trends Trends in HR Management Workforce and Demographic Trends Trends in the Nature of Work Economic Challenges and Trends Copyright © 2011 Pearson Education 1–17 Workforce and Demographic Trends White is dropping Asian is rising Younger peopling is dropping Aging are increasing Copyright © 2011 Pearson Education 1–18 Workforce and Demographic Trends Demographic Trends Trends Affecting Human Resources Generation “Y” (1982-2004) Retirees Nontraditional Workers Copyright © 2011 Pearson Education 1–19 Trends in the Nature of Work On Demand Workers Rising service firms (87%) 67% service jobs Rising of freelancers and Ubers Online Shopper: Amazon, Taobao, JD.com Challenges of being a talent broker Essence of Human Capital: Workers’ knowledge, education, training, skills, and expertise Challenges of HRM in the new work settings Copyright © 2011 Pearson Education 1–20 Case Discuss three more specific examples of what you believe this second bank’s HR department could have done to improve the reps’ performance? Trends in the Nature of Work Changes in How We Work High-Tech Jobs Copyright © 2011 Pearson Education Service Jobs Knowledge Work and Human Capital 1–22 Globalization and Competition Trends More globalization meant more competition, and more competition meant more pressure to be “world class”—to lower costs, to make employees more productive, and to do things better and less expensively. NAFTA, SAFTA, GCC, ASEAN, SAARC, BRICS, G8 Globalization causes to expand sales (Apple iPhone), acquire resources (Toyota), sharing risks (Unilever) and extending ownership (Skyline). HR Challenges: Apple in China, Toyota in USA, GE in France, and Dell in India Copyright © 2011 Pearson Education 1–23 Economic Trends Human Resource Challenge: Economic Boom (Labor force trends) Great Depression (Labor force trends) Copyright © 2011 Pearson Education 1–24 Technological Advancements Technology replaces human Adamjee, RMG, KODAK, NOKIA et cetera Automation replaces HR Professional Social media New mobile applications Gaming supports Cloud computing Data analytics Changes of work-processes: Google and Apple Copyright © 2011 Pearson Education 1–25 Trends Shaping Human Resource Management Copyright © 2011 Pearson Education 1–26 Important Trends in HRM The New HR Managers Strategic HRM Human Resource Management Trends Evidence-Based HRM High-Performance Work Systems Managing Ethics HR Certification Copyright © 2011 Pearson Education 1–28 HRM_Backdrop Copyright © 2011 Pearson Education 1–29 The New HR Managers New HRM Strategic HRM EvidenceBased HRM Human Resour ce Manage ment Trends HighPerformanc e Work Systems Managing Ethics HR Certificatio n Social media are doing some basic HR tasks because of distributed HR Copyright © 2011 Pearson Education 1–30 New HR Managers Society for Human Resource Management (SHRM) introduced a new “competency model,” and it itemizes the competencies, skills, and knowledge and expertise human resource managers need. SHRM says today’s HR manager should be able to exhibit: ⌑Leadership & Navigation ⌑Ethical Practice ⌑Business Acumen ⌑Relationship Management ⌑Consultation ⌑Critical Evaluation ⌑Global & Cultural Effectiveness ⌑Communication Copyright © 2011 Pearson Education 1–31 HR and Strategy The New Human Resource Managers Focus more on “big picture” (strategic) issues Copyright © 2011 Pearson Education Find new ways to provide transactional services The New HR Managers Strategic HRM EvidenceBased HRM Human Resour ce Manage ment Trends HighPerformanc e Work Systems Managing Ethics HR Certificatio n Acquire broader business knowledge and new HRM proficiencies 1–32 What would you say are (1) L.L.Bean’s strategic aims, (2) its required employee behaviors and skills to achieve these aims, and (3) HR policies and practices it needs to produce these necessary employee behaviors and skills? Strategic Human Resource Management Formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims. Three steps process to achieve strategic goal: → Set the firm’s strategic aims → Pinpoint the employee behaviors and skills we need to achieve these strategic aims → Decide what HR policies and practices will enable us to produce these necessary employee behaviors and skills. Copyright © 2011 Pearson Education 1–35 HR and Performance Employers also expect their human resource manager/“people experts” to spearhead employee performance-improvement efforts. Here they can apply three levers: The HR department lever: delivering HR services efficiently The employee costs lever: controlling the firm’s compensation, incentives, and benefits policies The strategic results lever: Developing employee competencies and skills Copyright © 2011 Pearson Education 1–36 Evidence-Based HRM The New HR Managers Strategic HRM EvidenceBased HRM Copyright © 2011 Pearson Education Existing data HighPerformanc e Work Systems Managing Ethics HR Certificatio n Providing Evidence for HRM Decision Making Actual measurements Human Resour ce Manage ment Trends Research studies 1–37 High-Performance Work Systems HPWS sets of human resource management practices that together produce superior employee performance The New HR Managers Strategic HRM EvidenceBased HRM HighPerformanc e Work Systems Human Resour ce Manage ment Trends Managing Ethics HR Certificatio n • Increase productivity and performance by: ⮚ Recruiting, screening and hiring more effectively ⮚ Providing more and better training ⮚ Paying higher wages ⮚ Providing a safer work environment ⮚ Linking pay to performance Copyright © 2011 Pearson Education 1–38 HR and Performance and Sustainability Copyright © 2011 Pearson Education 1–39 HR and Performance and Sustainability Businesses can’t just measure “performance” in terms of maximizing profits. Companies’ efforts should be “sustainable,” by which they mean judged not just on profits, but on their environmental and social performance as well. PepsiCo has a goal to deliver “Performance with Purpose.” PepsiCo wants to achieve business and financial success while leaving a positive imprint on society. Copyright © 2011 Pearson Education 1–40 HR and Employees Engagement The extent to which an organization’s employees are psychologically involved in, connected to, and committed to getting their jobs done. The problem for employers is that, depending on the study, only about 21–30% of today’s employees nationally are engaged. In one survey, about 30% were engaged, 50% were not engaged, and 20% were actively disengaged (anti-management). Copyright © 2011 Pearson Education 1–41 The New HR Managers Managing Ethics • Ethics Strategic HRM EvidenceBased HRM ⮚ Standards that someone uses to decide what his or her conduct should be HighPerformanc e Work Systems Human Resour ce Manage ment Trends Managing Ethics HR Certificatio n ⮚ Ethics refers to fundamental principles of right and wrong; ethical behavior is behavior that is consistent with those principles. Business decisions, including HRM decisions, should be ethical, but the evidence suggests that is not always what happens. • HRM-related Ethical Issues ⮚ Workplace safety ⮚ Security of employee records ⮚ Employee theft ⮚ Affirmative action ⮚ Comparable work ⮚ Employee privacy rights Copyright © 2011 Pearson Education 1–43 Ethical Standards Employees’ Rights Right of free consent Right of privacy Right of freedom of conscience Right of freedom of speech Right to due process Ethical Standards: Successful companies act according to four principles. First, in their relationships with customers, vendors, and clients, ethical and successful companies emphasize mutual benefits. Second, employees assume responsibility for the actions of the company. Third, such companies have a sense of purpose or vision that employees value and use in their day-to-day work. Finally, they emphasize fairness; that is, another person’s interests count as much as their own. The New HR Managers HR Certification/Career • HR is becoming more professionalized. Strategic HRM EvidenceBased HRM • Bangladesh Society for HRM (BSHRM) • Federation of Bangladesh Human Resource Organizations (FBHRO) HighPerformanc e Work Systems Human Resour ce Manage ment Trends Managing Ethics HR Certificatio n • Society for Human Resource Management (SHRM) ⮚ SHRM’s Human Resource Certification Institute (HRCI) ❖ SPHR (Senior Professional in HR) certificate ❖ GPHR (Global Professional in HR) certificate ❖ PHR (Professional in HR) certificate Copyright © 2011 Pearson Education 1–47
