Human Resource Management
Tehzeeb Sakina Amir
IU – Spring 2011
HRMm - MBA
Start up session
 Welcome & Class introduction
 Course facilitator introduction
 Course Objectives
 Importance of HRM
 Outlines HRM ways for the benefit of the organization and
employees
 Issues in HRM in changing work environment
 Suggests ways of managing human capital
Start up session
 Teaching methodology
Teaching will mainly be done through coaching
the students with interactive sessions.
The key to success is to keep the concept
clear, simple and always look for its
practical application in a working
environment
Start up session
 Class norms - To get the maximum benefit out of
the course students are strongly recommended to:
Arrive and leave in time! No early leaves / late comings
Come Prepared! This is not a lecture-only course!
Planned & surprise class quizzes/activities, be regular!
Assignments and other related work has to be submitted on
time. Late submission will not be acceptable and will be
marked zero!
Do your own work! Copied work will be marked zero!
Cell phones switch off or put on silent please!
No personal, political and religious examples & comments.
Course outline and grading
 Course content (modules) – soft copy email or
copy from temp folder.
 Testing & Grading
Grading will focus on your overall performance rather
than one or two aspects. A mid-term examination & a
final examination will be taken.
Class Participation
Class quizzes, assignments
25%
Mid-term
25%
Term project
10%
Final Exam
40%
TOTAL
100%
Books & Journals
 Resources
 Gary Dessler and Biju Varkkey “Human
Resource Management” eleventh edition
 Snell S. and Bohlander G. “The Handbook of
Human Resource Management” 2007
 Society for Human Resource Management via
www.shrm.org
 HRM research papers and scholarly journals
Selection of CR & Groups formation
 CR nomination
 Groups formation
 Class information (email addresses)
 Term Project
Human Resource Management
Your understanding
Human
Resource
Management
To sum up….
HRM is one function of management process
where policies and practices focus on
carrying out “people” including recruiting,
screening, training, rewarding and appraising.
HRM functions
 To perform the ‘people’
Conducting job analysis
Planning labor needs & recruiting job candidates
Selecting
Orienting and training
Managing wages & salaries
Providing incentives and benefits
Performance appraisals
Communicating – interviewing, counseling, disciplining
Training and developing
Building employee commitment
HRM functions
 A manager must know:
 Employment laws
 Equal opportunity and affirmative action
 Employee health & safety
 Handling grievances & labor relations
 HRM specialties
 Recruiters
 HR development specialists
 Job analysts
 Compensation managers
 Training specialists
 Employment/industrial relations specialists
 Employee welfare officers
Small mistakes = huge loses
 What can go wrong!
Hire the wrong person
High turnover
People not performing
Waste time with useless interviews
Have your company taken to court because of
discriminatory actions
Have your company cited under occupational safety
laws for unsafe practices
Unfair and inequitable salaries
Lack of training
Commit unfair labor practices
Every manager is an HR
manager…
Authority – line and staff
Authority – the right to make decisions,
direct other’s work and give orders.
Line authority – direct activities in own
department and in service areas
Staff authority – to advise other managers
HR manager’s duties
A line function
A coordinative function – to ensure line
managers are implementing organization’s
policies, rules.
Staff functions- assist and advise line
managers
The size of HR department reflects the size of the
company
HR Manager’s Proficiencies
HR proficiencies
Business proficiencies
Leadership proficiencies
Learning proficiencies
Managing within the Law
Managing Ethics
The changing environment
and HRM
Major changes in work
environment
 Globalization trends & implications
 Technological trends
 Nature of work
High-tech jobs
Service jobs
Knowledge work & human capital
 Workforce demographic trends
Availability of ‘Employable Talent’
Labor Legislation and Laws
Labor Laws Pakistan
Labor legislation is the responsibility of
both Federal and Provincial governments
Total labor force in Pakistan
37.15 million people
47% agriculture sector
10.5 % in manufacturing
42.5% in various other professions
(source: labourunity.org)
Labor Laws Pakistan
 Article 11 of the constitution prohibits child labor, forced labor and
slavery
 Article 17 right to exercise freedom of association and unions
 Article 18 right to enter any lawful profession, occupation, business
 Article 25 prohibits discrimination on basis of gender
 Article 37 (e) provision for just and humane work conditions
 Laws of hiring & firing
 Laws of working hours (7hrs/day. 42 hrs/week – factories act)
 Leaves paid
 Child labor (below 14 years)
 Strikes and Lock-outs
Equal Opportunity Employment
 Discrimination on the basis of race, colour, religion, sex or national
origin
 Article 38 aims at achieving equality
 Defenses against discrimination allegations
 Disparate treatment – intentional discrimination
 Disparate impact – neutral employment policy creating an adverse
impact. (college degree requirement). Not intentional.
 Adverse Impact: the overall impact of employer practices that result in
higher percentage of a particular groups members being rejected or not
promoted. Adverse impact can be shown through:




Disparate rejection rates
Restricted policy
Population comparison
Mc-Donnell-Douglas Test
Bona Fide Occupational Qualification
BFOQ - requirement that an employee be
of a certain religion, sex, age or national
origin which is necessary for
organization’s functioning
Business Necessity – proof that there is an
overriding business purpose for the
discriminatory practice and should
therefore be acceptable
Handling discrimination charges
Good intentions are no excuse!!
Can not hide behind collective bargaining
Agreement may be the best option…
Diversity
Some discriminatory practices
 Recruitment
Word of mouth
Misleading information
Help wanted ads
 Selection standards
Educational requirements
Tests
Preference to blood relations
Height, weight and physical characteristics
Criminal records
Application forms
Some discriminatory practices
Existing employees
Promotions
Transfers
Layoffs
Personal appearance
Dress
Hair/beard
Uniforms
THE STRATEGIC HRM
more a partner than a cost centre..
The new HRM face
Traditional
Hiring/firing
Payroll
Benefits plan
Testing & interviewing technology
Union legislation
Equal employment legislation
Strategic HRM
Creating High
Performance Work
systems
Strategic - concepts
 Strategy is ‘The company’s plan for how it will
balance its internal strengths and weaknesses
with its external opportunities and threats and to
maintain a competitive advantage.
 Strategic management is “The process of
identifying and executing the organization’s
mission by matching its capabilities with the
demands of the environment.”
Strategic Plan + Implementation of the Plan
Strategic management - Steps
 Step 1
 Step 2





Step 3
Step 4
Step 5
Step 6
Step 7
Define current business and developing a
mission
SWOT evaluating internal & external
strengths, weaknesses, opportunities and
threats
formulating a new business statement
translating mission into goals
formulate strategies or courses of action
Implement the strategies
Evaluate performance
Strategies - Types
Corporate strategy – one
organization into multi
business but one
corporate strategy
Competitive strategy –
business level strategy
The Competitive
Advantage – the edge,
the differences with
competitors that
organization use to
increase market share.
Functional strategy –
basic courses of action in
departments.
Corporate
Strategy
Business 1
competitive
strategy
Functional
strategies
Business 2
competitive
strategy
Functional
strategy
Strategic Fit
Dilemma of manager – misfit
Two possibilities to overcome:
Fit – the manager should align functional
strategies with and support its corporate and
competitive strategies.
Can result in limited growth
Leveraging – supplementing what you have
and doing more with what you have
Manager must underplay firm’s weaknesses &
capitalize on unique core strength of the company
HRM Role in strategic front
 HRM Strategic Plan is “formulating and
executing HR policies and practices that
produce the employee competencies and
behaviors the company needs to achieve its
strategic aims.”
HRM helps to create the ‘competitive
advantage” for the organization
 The Competitive advantage can take many forms: quality,
research, software systems, diversity of the workforce,
trained employees, HR policies & practices etc.
Linking organization & HR strategies
Company’s competitive
environment
Strategic plan
Company’s strategic
situation
Company’s internal strengths
And weaknesses
Organizational
performance
(expand/cut cost/diversify)
HR strategies
Courses of action
Challenges to HRM
Need to support corporate productivity and
performance improvement efforts
Employees play an expanded role in
employer’s performance improvement
efforts
HR units must be more involved in
designing – not just executing – the
company’s strategic plan
HRM Strategic Roles
The Strategic Roles:
The Execution Role – the doing part
The Formulation Role – expanded role – where
included in working of formulating corporate and
competitive strategies
The Strategic HRM System
The HR
Function
HR
professionals
With strategic
management
competencies
The HR
System
High
Performance
Work system
Employee
Behaviors
Employees
Competencies,
Values,
Motivation, &
Behaviors
required
High Performance Work Systems
 A system which tends to create human resource
with unique support to organizational needs
 Aims to maximize competencies, commitment
and abilities of the employees which produce
superior performance
 Vary from organization to organization
High Performance Work Systems
 Includes practices:
Employment security
Selective hiring
Extensive training
Self managed teams and decentralized decision
making
Reduce status quo
Information sharing
Contingent rewards (pay-for performance)
Transformational leadership
Measurement of management practices
Emphasis on high quality work
Assessing HRM performance
Absence rate
Cost per hire
HR expense factor
Time to fill
Turnover rate
Southwest Airlines
"Our people are our single greatest strength and most enduring
long term competitive advantage."
Gary Kelly, CEO Southwest Airlines
 The Mission of Southwest Airlines
 The mission of Southwest Airlines is dedication to the highest quality
of Customer Service delivered with a sense of warmth, friendliness,
individual pride, and Company Spirit.
 To Our Employees
 We are committed to provide our Employees a stable work
environment with equal opportunity for learning and personal
growth. Creativity and innovation are encouraged for improving the
effectiveness of Southwest Airlines. Above all, Employees will be
provided the same concern, respect, and caring attitude within the
organization that they are expected to share externally with every
Southwest Customer.