The Small Business

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Department of Business Management
Human Resource Management
Ing. Miloš Krejčí
milos.krejci@mail.vsfs.cz
Human Resource Management
1. Introduction to Human Resource Management
2. Strategic Human Resource Management
3. Personnel Planning and Recruiting - Job Analysis,
Descriptions and Specifications
4. Employee / Employer Selection and Interviewing
Process
5. Training and Developing Employees
6. Performance Management and Appraisal
7. Coaching, Careers and Talent Management
8. Compensation planning
9. Financial Incentives and Employee Benefits
10. Ethics, Culture, Organizational Change and Fair
Treatment in HR Management
11. Equal Opportunity and Diversity, Labor Relations,
Employee Safety and Health
12. Managing Human Resources in Global and SME
companies
Human Resource Management [NA_HRM]
2.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
HR and the Internationalization of Business
Coordinating market, product, and production plans on
a worldwide basis
Creating organization structures capable of balancing
centralized headquarters control with adequate local
autonomy
Extending HR policies and systems
to service staffing needs abroad
Human Resource Management [NA_HRM]
3.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
Challenges of International HRM
Deployment
Getting the right skills to where they are needed,
regardless of geographic location
Knowledge and Innovation Dissemination
Spreading state-of-the-art knowledge and
practices throughout the organization regardless
of their origin
Identifying and Developing Talent on a Global Basis
Identifying those who can function effectively in a global
organization and developing their abilities
Human Resource Management [NA_HRM]
4.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
Intercountry Differences Affecting HRM
Cultural factors
and ethics issues
Political/Legal
systems
Human Resource Management [NA_HRM]
International
Human Resource
Management
Economic
systems
Labor
relations
5.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
Global Differences and Similarities
in HR Practices
Personnel
selection
procedures
Use of pay and
other incentives
Human Resource Management [NA_HRM]
International
HRM
Purpose of
performance
appraisal
Training and
development
practices
6.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
Staffing the Global Organization
International staffing: Home or local?
Expatriates (expats)
Home-country nationals
Third-country nationals
Offshoring
Having local employees abroad do jobs that the firm’s
domestic employees previously did in-house
Offshoring Issues
Effective local supervisory/management structure
Screening and required training for locals
Local compensation policies and working conditions
Human Resource Management [NA_HRM]
7.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
Selecting Expatriate Managers
Adaptability Screening
Assessing the assignee’s (and spouse’s)
probable success in handling the foreign transfer.
Overseas Assignment Inventory
A test that identifies the characteristics and attitudes
international assignment candidates should have.
Realistic Previews
Cover problems to expect in the new job, as well as the
cultural benefits, problems, and idiosyncrasies
of the country.
Human Resource Management [NA_HRM]
8.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
Expatriate Managers
Inability of spouse
to adjust
Personality of
expatriate
Personal
intentions
Family
pressures
Human Resource Management [NA_HRM]
Why Expatriate
Assignments
Fail
Inability to cope
with overseas
responsibilities
Lack of cultural
skills
9.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
Making Expatriate Assignments Successful
Realistic previews
Careful screening
Helping
Expatriate Assignments
Succeed
Human Resource Management [NA_HRM]
Improved orientation
Cultural and language
training
Improved benefits package
10.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
Trends in Expatriate Training
Use of returning managers as resources to cultivate
the “global mind-sets” of their home-office staff.
Use of software and the Internet for cross-cultural training.
Rotating assignments that permit professional growth.
Management development centers where executives hone
their overseas skills.
Classroom programs provide overseas executives with
educational opportunities similar to stateside programs.
Continuing, in-country cross-cultural training.
Human Resource Management [NA_HRM]
11.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
Compensating Expatriates
The “Balance Sheet Approach”
Home-country groups of expenses—income taxes,
housing, goods and services, and discretionary
expenses—are the focus of attention.
The employer estimates what each of these four
expenses is in the expatriate’s home country,
and what each will be in the host country.
The employer then pays any differences such
as additional income taxes or housing expenses.
Human Resource Management [NA_HRM]
12.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
Terrorism, Safety, and Global HR
Taking Protective Measures
Crisis management teams
Intelligence services
Kidnapping and Ransom Insurance
Crisis situations
Kidnapping: employee is a hostage
until employer pays a ransom
Extortion: threatening bodily harm
Detention: holding employee without
any ransom demand
Threats to property or products unless
employer makes a payment
Human Resource Management [NA_HRM]
13.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
Repatriation: Problems and Solutions
Problem
Making sure that the expatriate and his or her family
don’t feel that the company has left them adrift.
Solutions
Match the expat and his or her family with
a psychologist trained in repatriation issues.
Make sure the expat always feels “in the loop”
with what’s happening back at the home office.
Provide formal repatriation services when
the expat returns home.
Human Resource Management [NA_HRM]
14.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
How to Implement a Global HR System
Best practices in developing worldwide human resource
policies and practices:
Form global HR networks that make local HR managers
a part of global teams.
Remember that it’s more important to standardize ends
and competencies than specific methods.
Human Resource Management [NA_HRM]
15.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
Making the Global HR System
More Acceptable
Best practices for making a global HR system
more acceptable to local managers:
Remember that global systems are more accepted in
truly global organizations.
Investigate pressures to differentiate and determine
their legitimacy.
Try to work within the context of a strong corporate
culture.
Implementing the global HR system:
Constant contact: “You can’t communicate enough.”
Dedicate adequate resources for a global HR effort.
Human Resource Management [NA_HRM]
16.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
The Small Business (SME) Challenge
Why Entrepreneurship Is Important
Over one-half of the U.S. labor force works
for small firms.
Over 600,000 small businesses are created annually.
Three-fourths of employment growth comes from small
firms.
Why Is HRM Important to Small Businesses?
Growth of any small business depends on effective HR
activities.
Getting and keeping large customers requires
compliance with international quality (HR) standards.
Human Resource Management [NA_HRM]
17.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
SME HRM
How Small Business Human Resource
Management Is Different
Size of
HR staff
Human Resource Management [NA_HRM]
Priority of
HR issues
Informality of
HR practices
Entrepreneur’s
effect on HRM
18.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
SME Risky HR Situation
Underdeveloped HRM creates
competitive disadvantage
Lack of specialized HR expertise
HR Risks in
Small Businesses
Human Resource Management [NA_HRM]
Increased potential for workplace
litigation not addressed
Compliance with compensation
regulations and laws
Lack of HRIS systems creates
inefficiencies and data entry errors
19.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
HRM Importance to Small Businesses
Is a competitive necessity for small firms.
Makes small firms more successful
Helps small firms get and keep large customers.
Is necessary to meet ISO-9000 requirements
for competing internationally.
Human Resource Management [NA_HRM]
20.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
SME HR Advantages
Having flexibility in providing
work-life benefits and rewards
Using simple, informal employee
selection procedures
Leveraging the
Small Firm Size
Advantage
Human Resource Management [NA_HRM]
Providing flexibility in employee
training procedures
Treating nonfamily employees fairly
and equitably
Maintaining effective
communications with employees
21.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
Building Communication
Building Effective Communications
in Small Businesses
Online
reporting
Human Resource Management [NA_HRM]
Newsletters
Online
information
The Huddle
22.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
Managing HR Systems, Procedures,
And Paperwork
Manual HRM
system
Employee records
are compiled on
forms from office
supply companies
and maintained in
physical files
Human Resource Management [NA_HRM]
Computerized HRM
system
HRM Information System
(HRIS)
One or more packaged
systems for
automating individual
HR tasks, such as
applicant tracking and
performance appraisal
Interrelated components
collect, process, store, and
disseminate information to
support decision making,
coordination, control,
analysis, and visualization of
an organization’s HRM
activities
23.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
HRM Information Systems (HRIS)
Levels of Information Systems
Transaction processing systems
Management information systems (MIS)
Executive support systems
Benefits of HRIS
Improved transaction processing
Online self-processing
Improved reporting capability
HR systems integration
HR intranets
Human Resource Management [NA_HRM]
24.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
Human Resource Management
At a very beginning:
• competitive advantage
• people make the difference
• builds the business / builds the organization capacity
Human Resource Management [NA_HRM]
25.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
Fundamentals of Successful Career
Education
Career Start
Placement
Human Resource Management [NA_HRM]
Go
Internationally
26.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
Key Terms
expatriates (expats)
home-country nationals
third-country nationals
adaptability screening
foreign service
Premiums
mobility premiums
Human Resource Management [NA_HRM]
27.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
LEARNING OUTCOMES
1. List the HR challenges of international business.
2. Illustrate with examples how intercountry differences
affect HRM.
3. List and briefly describe the main methods for staffing
global organizations.
4. Discuss some important issues to keep in mind in
training, appraising, and compensating international
employees.
5. Explain with examples how to implement a global
human resource management program.
Human Resource Management [NA_HRM]
28.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
LEARNING OUTCOMES
6. Explain why human resource management in small
companies is different from that in larger companies.
7. Give specific examples of how you would use the
Internet and government tools to support the HR effort
in a small business.
8. Answer the question, “Why are familiarity, flexibility,
and informality important tools that entrepreneurs can
use to improve human resource management practices
in their small businesses?”
9. Describe how HR systems traditionally evolve in a small
business and give examples of how SMEs can use
human resource management information systems.
Human Resource Management [NA_HRM]
29.
Ing. Miloš Krejčí milos.krejci@mail.vsfs.cz
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