Description
This is a presentation explains on the basics of human resource management with focus on human resource planning.
OVER LAST TWO DECADES, THERE HAS BEEN A PROFOUND SHIFT IN THINKING ABOUT THE ROLE THAT PEOPLE PLAY IN THE SUCCESS OF THE BUSSINESS, WITH A GROWING VIEW, THAT MANAGEMENT OF PEOPLE IS A KEY ORGANIZATIONAL CAPABILITY, AND ONE WHICH SHOULD BE HIGHLY INTEGRATED WITH STRATEGIC AIMS OF THE BUSSINESS. 1 CHARLES SCWAB
H.R.M.
FOUR VIEWS ON H.R.M. 1
1. IT IS USED AS SYNONYM OF PERSONNEL MGT., CONSISTING OF “EMPLOYEE RELATIONS”, “PEOPLE MGT” AND THE LIKE.
2
FOUR VIEWS ON H.R.M. 2
2. USING VARIOUS TECHNIQUES OF PER.MGT, EG. SELECTION, APPRAISAL, REWARDS IN A MORE INTEGRATED WAY.
3
FOUR VIEWS ON H.R.M. 3
3. MORE BUSINESS ORIENTED AND BUSINESS INTEGRATED. IT PUTS EMPLOYEES ALONG SIDE OF OTHER RESOURCES. HRM IS FULLY PRESENT WHEN ALL INSTRUMENTS LIKE SELECTION, REWARD AND SO ON ARE PULLED IN AN INTEGRATED WAY AND THE SYSTEM IN IS INTEGRATED WITH WIDER BUSSINESS STRATEGY.
4
FOUR VIEWS ON H.R.M. 4
4. MORE SEVER TEST. IN ADDITION THERE MUST BE A
QUALIFYING FACTOR SUCH AS UNDERLYING LOGIC
AND “COMMITMENT” QUALITATIVELY DIFFERENT
ABOUT THOSE INTERVENTIONS.
5
THE TOTAL H.R.M.PERSPECTIVE. STRONG. A DISTINCTIVE APPROACH TO LABOUR.
STRATEGIC INTERVENTIONS DESIGNED TO ELICIT COMMITMENT AND DEVELOP RESOURCEFUL HUMANS.
STRATEGIC INTERVENTIONS DESIGNED TO SECURE FULL UTILIZATION OF LABOUR RESOURCES.
INTEGRATED WITH BUSINESS STRATEGY
SOFT
INTERNAL INTEGRATION
HARD
JUST ANOTHER WORD FOR PER. MGT WEAK
6
FOUR KEY ELEMENTS OF H.R. 1
1. FUNDAMENTALLY IT IS H.R. WHICH “MAKES THE DIFFERENCE”. THE CAPABILITY AND THE COMMITMENT, WHICH DISTINGUISHES SUCCESSFUL ORG. FROM THE REST. THERE FOR NOT TO VIEW AS A COST BUT AS A VALUD RESOURCE.
7
FOUR KEY ELEMENTS OF H.R. 2
2. SUCH DECISIONS ARE IN CONSEQUENCE OF “STRATEGIC “ IMPORTANCE. THEY OUGHT NOT ONLY TO BE DERIVED FROM CORPORATE PLAN, BUT CONSTITUTE A KEY SET OF CONSIDERATIONS WHICH FEED INTO THAT PLAN.
8
FOUR KEY ELEMENTS OF H.R. 3
3. HRM HAS LONG TERM IMPLICATION AND IS
INTEGRAL TO THE CORE PERFORMANCE OF BUSINESS.
IT MUST BE THE INTIMATE CONCERN OF LINE
MANAGERS, WHO MUST OWN AND UNDERSTAND IT.
9
FOUR KEY ELEMENTS OF H.R. 4
4. THE FINAL FEATURE CONCERNS THE LEVERS USED TO ACTIVATE THE HRM APPROACH. THIS RELATES TO INTEGRATED APPROACH TO MANAGING CRITICAL EVENTS: THE INFLOW INTO ORG. THE CLEAR COMMU. OF OBJECTIVES. THE CALCULATED DEVELOPMENT OF H.R. THE EVALUATING OF ITS PERFORMANCE AND
10
REWARDING ACCORDINGLY.
FOUR KEY ELEMENTS OF H.R.
TOOLS USED NOT ONLY FOR COMPLIANCE BUT
COMMITMENT.
11
THE WHOLE PICTURE
STAFFING RECRUITMENT SELECTION SEPERATIONS DIVERSITY
WORK STRUCTURE JOB ANALYSIS TEAMS PERFORMANCE MGT EMPLOYEE INVOLVEMENT
TRAINING.&DEVL. CAREERS CONTINUOUS LEARN. MENTORING
EMPLOYEE RELATIONS COMMUNICATING GRIEVANCE HANDLING I.R. S.H.E.
COMPENSATION BASIC PAY FOR PERFORMANCE BENEFITS
12
DIFFERENCE BETWEEN & HRM.
PERSONNEL MANAGEMENT is that phase of management, which deals with effective control and use of manpower as distinguished from other sources of power. DALE YODER. HUMAN RESOURCE MANAGEMENT is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic development of a highly committed and capable workforce, using an integrated array of cultural structural and personnel techniques. JOHN STORY 1995
13
DIFFERENCE BETWEEN P.M. AND H.R.M. 2
FUNCTION DISCONNECTED INDEPENDENT &WITHOUT MUCH INTERNAL CONNECTION.
SPECIALISED FUNCTION. FUNCTION MEETS THE NEEDS OF BUSINESS AND NOT DISCREET PROCESS. GREATER STRESS ON THE ROLE OF THE LINE MANAGERS IN MANAGING THEIR OWN PEOPLE. MANAGERIAL IN OUTLOOK. CONDUCTING ACTIVITIES IN LINE WITH BUSINESS OBJECTIVES. PROACTIVE. AIMED AT ACHIEVING COMPETITIVE ADVANTAGE.CAREFUL INTEGRATION OF CULTURAL, STRUCTURAL AND PERSONNEL TECHNIQUES. WIDER MEANING.
14
LITTLE POWER OR PRESTIGE.
REACTIVE
ROUTINE WORK
NARROW CLERICAL.
ARCHITECTUAL.
SOFT AND HARD VERSIONS OF H.R.M.
SOFT. HUMAN. 1. ASSOCIATED WITH HUMAN RELS. MOVEMENTS,UTILIZATION OF INDI’S TALENTS. 2. MC’GREGORS Y PERESPECTIVE ON INDI’S DEVELOPMENT. 3. EQUATED WITH “HIGH COMMITMENT WORK SYS” & HIGH LEVEL OF TRUST. 4. COMMITMENT 5. RESTS ON HUMAN NATURE. EXERCISE OF SELF CONTROL & SELF DIRECTION. 6. MORE AUTONOMY. DIRECTION AND LOW TRUST. 7. SELF EXPRESSION. MINIMAL TRAINING AS INDIVIDUALS 15 ARE COST TO BE CONTROLLED. RESTS ON MANAGERIAL CONTROL STRATEGIES. TH X .CLOSE DIRECTION. HARD. RESOURCE. QUANTITATIVE, CALCULATIVE & BUSINESS ASPECTS FOR MANAGING RESOURCES IN A RATIONAL WAY. UTILITERIAN, INSTRUMENTALIST APPROACH. FOCUS ON “STRATEGIC FIT” (BOTH INTERNAL & EXTERNAL). STRATEGIC DIRECTION.
TIGHT CONTROL.
8. GREATER EMPHASIS ON
HUMAN RESOURCE PLANNING
REASONS FOR H.R.P. EMPLOYMENT / UNEMPLOYMENT SITUATIONS TECHNOLOGICAL CHANGES. ORGANIZATIONAL CHANGES. DEMOGRAPHIC CHANGES. SKILL SHORTAGES. LEGISLATIVE CONTROLS. IMPACT OF PRESSURE GROUPS.
16
LEAD TIME.
HRP
• A CORNER STONE OF STRATEGIC H.R.M IS THE LINKAGE OF OVERALL STRATEGIC AIMS OF THE BUSINESS AND HRM STRATEGT AND IMPLEMENTATION. • STRATEGIC APPROACH TO HRM EMPHASIS, THE DELIVERY OF BUSINESS STRATEGY AND IMPACT ON THE “BOTTOM LINE” PERFORMANCE, THROUGH THE WAY PEOPLE ARE MANAGED.
17
HOW HRP FITS THE BROADER PLANNING PROCESS
Goals Type of Typical decisions planning activity External screenin g Should we lobby to influence laws? How much should we diversify Should we form alliance with other stake holders?
Level of Analysis
Environme Financial (stock prices, debt ntal rating unions) Community, attitudes
Organizat Hierarchy structures’ Norms, Business What business should we be ional Culture, Market share, Quality planning in? of product What market Process technology? Org. Design, does this imply? HR Qualities of employees. quality Assignment to job. deployme Labor costs levels nt Employ What is future HR-demand ment supply? planning What gaps should we try to 18 reconcile?
HOW HRP FITS THE BROADER PLANNING PROCESS
Goals Type of Typical decisions planning activity HR How does HRM contribute to Strategic the business? planning How many resources should we use? What broad directions should we emphasize? What specific activities should we implement? How extensive should each activity be
Level of Analysis
HR Dept Functions Client opinions
Budget activities
Specific HRM activities
Quality of affected employees. HR action Activity costs. plans Activity results Pay off / utilities
19
HRM STRATEGIES
MILES AND SNOW HAVE CLASSIFIED ORGANIZATIONS AS DEFENDERS: ORGANIZATIONS OPERATING IN A FEW STABLE PRODUCT MARKET. ORGANIZATIONS THAT CONTINUALLY SEARCH FOR NEW PRODUCTS AND MARKET OPPORTUNITIES AND REGULARLY TAKE RISKS.
PROSPECTORS:
ANALYZERS:
ORGANIZATIONS THAT OPERATE IN MANY PRODUCT MARKETS, SOME RELATIVELY STABLE, OTHERS CHANGING.
20
HRM STRATEGIES
PROPOSED STRATEGIES SHOULD COMPLEMENT EACH OF THESE BUSINESS STRATEGIES. DEFENDERS: PRODUCT MARKET STABILITY ENJOYED ALLOWS THEM TIME TO DO FORMAL & EXTENSIVE PLANNING TO DEVELOP PEOPLE INTERNALLY.
PROSPECTORS:MUST BE MORE ADAPTABLE, & ARE MORE LIKELY TO RECRUIT PEOPLE WITH SKILLS THEY NEED FROM OUTSIDE. THE UNCERTAINTIES THEY FACE MAY MAKE HR PLANNING LESS USEFUL. ANALYZERS: MAY RESEMBLE EITHER DEPENDING ON THE CONDITIONS OF A SPECIFIC PRODUCT.
21
H.R.P. INVOLVES
FORCASTING AND NEED FOR LABOUR SUPPLY, AND
SUPPLY OF LABOUR, THEN PLANNING THE PROGRAMS
NECESSARY TO ENSURE THAT THE ORGANIZATION WILL
HAVE THE RIGHT MIX OF EMPLOYEES SKILL WHEN AND
WHERE THEY ARE NEEDED.
22
QUESTIONS TO ASK
WE THEREFORE NEED TO ASK: 1 ARE WE DOING THINGS RIGHT? ARE WE CONTROLLING THE LAB. COSTS? ARE WE HIRING THE RIGHT NO: OF PEOPLE? ARE WE HIRING THE PEOPLE WITH RIGHT SKILL?
ARE WE DOING THE THINGS IN TIMELY MANNER?
2. AT ANOTHER LEVEL WE HAVE TO ANSWER
ARE WE DOING THINGS RIGHT?
23
H.R.P.
HUMAN RESOURCE PLANNING IS CONCERNED WITH THE FLOW OF PEOPLE, INTO, THROUGH AND OUT OF THE ORGANIZATION.
24
H.R.P. DEFINED.
H.R.P. MAY BE DEFINED AS A STRATEGY FOR
ACQUISATION,
IMPROVEMENT, &
PRESERVATION OF
AN ORGANIZATION’S HUMAN RESOURCES.
25
JOB ANALYSIS PROCESS AND BENEFITS.
1
COLLECTION OF BACK GROUND
2
SELECTION OF REP JOB
3
COLLECTION J.A. INF.
4
DRAFTING OF J.A.
1.ORGAL CHT. 2.CLASS OF JOBS. 3.EXISTING J. DISCP.
JOB. DISCP.
JOB SPECIF.
EMP. SPEC.
TECH. FOR OBTAINING DATA. 1. INTERVIEWS. 2. DIRECT OBS. 3. PAST RECORDS.
1. ORG.& H.R.P.
2. SELE, INDU, TRA. 3. P.A.S. 4. JOB EVALUATION. 5. COMPENSATION. 6. HEALTH/SAFETY 26
4. QUESTIONNAIRE
5. CRITICAL INC. TECH.
PLANNING
PLANNING WOULD MEAN KNOWING WHERE WE ARE AND DECIDING WHERE WE WANT TO BE.
PLANNING SYNTHESIZES THE GAP BETWEEN THE TWO.
27
THE PLANNING PROCESS
QUESTIONS WHERE WE ARE NOW ? APPROACH. ASSESSING EXT. & ORG.AL. CONDTS. & CHARACTERISTICS.
WHERE DO WE WANT TO BE? SET H.R. OBJECTIVES,BASED ONEFFICIENCY,& EQUITY.
HOW DO WE GET THERE?
CHOOSE HR. ACTIVITIES & EXPAND RESOURCES REQD. EVALUTE RESULTS BY ASSESSING NEW CONDTS ACCORDINGLY
28
HOW DID WE DO?
PLANNING OPTIONS. IF SHORTAGE OF EMPLOYEES
RECRUIT, OFFER INCENTIVES FOR POSPONING RETIREMENT REHIRE RETERIED EMPLOYEES, RECRUIT PART TIME EMPLOYEES, ATTEMPT TO REDUCE TURN OVER, WORK PRESENT STAFF ON O.T. SUB CONTRACT, HIRE TEMPRORY EMPLOYEES. RE ENGINEER TO REDUCE WORK NEEDS.
29
PLANNING OPTIONS. IF SURPLUS EMPLOYEES EXPECTED
DON’T REPLACE EMPLOYEES, OFFER INCENTIVES FOR EARLY RETIREMENTS, TRANSFER OR REASSIGN EMPLOYEES, REDUCE WORKING HOURS, LAY OFF EMPLOPYEES.
30
Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels
A B C
Number Ratio of Employees/ Projected 2003 Labor of Hotels (Calculated Demand for 32 Hotels Employees as Column A ÷25) (Calculated as Column B x 32) Key Positions 25 General Manager 9 Resident Manager Food/Beverage Dir. 23 25 Controller 14 Asst. Controller 24 Chief Engineer 25 Director of Sales 45 Sales Manager 14 Convention Mgr. 19 Catering Director 19 Banquet Manager 15 Personnel Director 49 Restaurant Mgr. 24 Executive Chef 24 Sous Chef Exec. Housekeeper 25 379 Total 1.00 .36 .92 1.00 .56 .96 1.00 1.80 .56 .76 .76 .60 1.96 .96 .96 1.00 32 12 29 32 18 31 32 58 18 24 24 19 63 31 31 32 486
31
Examples of Predicting Labor Supply and Required New Hires for a Hotel Chain Comp. Supply Analysis Supply-Demand
A % Quit Key Positions General Manager Resident Manager Food/Beverage Dir. Controller Asst. Controller Chief Engineer Director of Sales Sales Manager Convention Mgr. Catering Director Banquet Manager Personnel Director Restaurant Mgr. Executive Chef Sous Chef Exec. Housekeeper Total B C # of Proj. Present Turnover Emp. by 2003 25 9 23 25 14 24 25 45 14 19 19 15 49 24 24 25 379 10 7 11 21 9 16 9 30 13 14 12 6 44 17 22 16 257 D Emp. Left by 2003 15 2 12 4 5 8 16 15 1 5 7 9 5 7 2 9 122 E F Proj. Labor Proj. Demand New Hires in 2003 in 2003 32 12 29 32 18 31 32 58 18 24 24 19 63 31 31 32 486 17 10 17 28 13 23 16 43 17 19 17 10 58 24 29 23 32 364
38 77 47 85 66 81 34 68 90 74 60 43 89 70 92 63
Quantitative Methods of Forecasting HR Demand
Method
Moving average
Description
• Averages data about HR demand from recent periods and projects them into the future
Advantages
• Simplicity. • Data easily available.
Disadvantages
• Seasonal patterns ignored. • Relies on past data.
Exponential • Forecasters can vary weights for HR demand smoothing assigned to different past time periods used to project future HR demand. Trends projections • Numbers of people hired or requested placed on one axis; time is placed on the other axis. A straight line is plotted from past to future to predict HR demand.
• May be used to take • Mathematical into account factors ignored by the moving complexity average method (for • Choice of weights may example, cyclical be arbitrary. patterns). • Relies on past data • Easily explained to • Rough estimates. managers. • Easily prepared by HR planners. • Relies on past data
33
Quantitative Methods of Forecasting HR Demand (cont.)
Method
Regression
Description
• Mathematical formula used to relate staffing to several variables (for example, output, product mix, per capita productivity).
Advantages
• Can include many variables. • Efficient use of all available data. • Assesses what should be in the future, not what probably will be.
Disadvantages
• Mathematical complexity. • Requires large sample sizes. • Relies on past data. • Managers are skeptical of highly sophisticated methodology. • Numerous assumptions must be made.
• Assesses required Linear programming staffing level that matches desired output levels, subject to certain constraints (for example, budget, cost). • Relate turnover to such factors as age and seniority.
Actuarial models
• Reflect past.
• May not be accurate in individual cases.
34
Quantitative Methods of Forecasting HR Demand (cont.)
Method
Simulations
Description
Advantages
Disadvantages
• Accuracy varies.
Probability matrixes
• Useful for considering • Uses scenarios to test the alternative HR effect of various programs. personnel policies. • Help identify career • Define “states” in the patterns. organization—such as • Help perform turnover strategy levels, analysis. performance ratings. • Adequate for • Identify time period. considering • Multiply number of people alternative effects of various HR strategies. in each job category by the probability of movement between job/position categories. Model assumes that current job/position category is the chief determinant of movement.
• Require some mathematical sophistication. • Accuracy varies. • Not adequate for longterm forecasts. • Requires mathematical sophistication.
First-order Markov model
35
Quantitative Methods of Forecasting HR Demand (cont.)
Method Description Advantages Disadvantages
• Not very useful for considering alternative effects of various HR strategies. • Requires mathematical sophistication. • More inclusive than a Semi-Markov • Same as first-order Markov model except that first-order Markov model probability of movement mode. is determined by (1) job/position category and (2) the individual’s length of stay in the job class.
36
Quantitative Methods of Forecasting--difficulties
• Productivity rise cannot always be attributable to increased human effort. • Difficult to get units of output in the same form for all jobs. • Relationship between output and manpower is not always straight forward. • Effect of factors to improve productivity (eg technology, incentive) may not be consistent over a period of time. • Effect of different factors may not always be linear. • uncertainty about future. • Past data may not always be available.
37
Qualitative Methods of Forecasting HR Demand or Supply
Method
Delphi technique
Description
Advantages
Disadvantages
• Highly subjective. • A group of experts • Can involve key exchanges several rounds decision makers in • Judgments may not of estimates of HR process. efficiently use demand or supply, objective data. • Can focus on what is normally without meeting expected or desired in face to face. Feedback future. from other experts is used by each individual to • Not bound to the past. “fine-tune” his or her independent estimate.
Nominal group technique
• A small group of experts meets face to face. After a procedure that involves open discussion and private assessments, the group reaches a judgment concerning future HR demand or supply.
• Same as for Delphi technique.
• Same as for Delphi technique.
• Group discussions • Group pressure may can facilitate lead to less accurate exchange of ideas and assessments that greater acceptance of could be obtained results by through other means. 38 participants.
How to Forecast Personnel Needs
• Project revenues first then estimate the size of the staff required to achieve it • Staffing plans also must reflect:
– – – – – Projected turnover Quality and skills of your employees Strategic decisions Technological and other changes Financial resources
39
Methods to Predict Employment Needs (slide 33)
• Trend analysis • Ratio analysis • Scatter plot ?Managerial judgment plays a big role
Scatter plot shows projected staff size
1400
Number of nurses
1200 1000 800 600 400 200 0 0 500 1000 1500
Hospital size (# of beds)
40
Using Computers to Forecast Personnel Requirements (slide 35 simulations)
• Computerized forecast
?Determination of future staff needs by projecting sales, volume of production, and personnel required to maintain this volume of output, using software packages
41
Forecasting the Supply of Inside Candidates (used for promotions)
• Qualifications inventories
?Manual or computerized records listing employees’ education, career and development interests, languages, special skills, and so on, to be used in selecting inside candidates for promotion
42
Manual Systems and Replacement Charts (similar to slide 41)
• Personnel inventory & development record help track employee qualifications • Personnel replacement charts are often used for filling a company’s top positions
43
Forecasting the Supply of Inside Candidates
• Personnel replacement charts
?Company records showing present performance and promotability of inside candidates for the most important positions
44
Forecasting the Supply of Inside Candidates
• Position replacement card
?A card prepared for each position in a company to show possible replacement candidates and their qualifications
45
Management Replacement Chart
46
doc_433527597.ppt
This is a presentation explains on the basics of human resource management with focus on human resource planning.
OVER LAST TWO DECADES, THERE HAS BEEN A PROFOUND SHIFT IN THINKING ABOUT THE ROLE THAT PEOPLE PLAY IN THE SUCCESS OF THE BUSSINESS, WITH A GROWING VIEW, THAT MANAGEMENT OF PEOPLE IS A KEY ORGANIZATIONAL CAPABILITY, AND ONE WHICH SHOULD BE HIGHLY INTEGRATED WITH STRATEGIC AIMS OF THE BUSSINESS. 1 CHARLES SCWAB
H.R.M.
FOUR VIEWS ON H.R.M. 1
1. IT IS USED AS SYNONYM OF PERSONNEL MGT., CONSISTING OF “EMPLOYEE RELATIONS”, “PEOPLE MGT” AND THE LIKE.
2
FOUR VIEWS ON H.R.M. 2
2. USING VARIOUS TECHNIQUES OF PER.MGT, EG. SELECTION, APPRAISAL, REWARDS IN A MORE INTEGRATED WAY.
3
FOUR VIEWS ON H.R.M. 3
3. MORE BUSINESS ORIENTED AND BUSINESS INTEGRATED. IT PUTS EMPLOYEES ALONG SIDE OF OTHER RESOURCES. HRM IS FULLY PRESENT WHEN ALL INSTRUMENTS LIKE SELECTION, REWARD AND SO ON ARE PULLED IN AN INTEGRATED WAY AND THE SYSTEM IN IS INTEGRATED WITH WIDER BUSSINESS STRATEGY.
4
FOUR VIEWS ON H.R.M. 4
4. MORE SEVER TEST. IN ADDITION THERE MUST BE A
QUALIFYING FACTOR SUCH AS UNDERLYING LOGIC
AND “COMMITMENT” QUALITATIVELY DIFFERENT
ABOUT THOSE INTERVENTIONS.
5
THE TOTAL H.R.M.PERSPECTIVE. STRONG. A DISTINCTIVE APPROACH TO LABOUR.
STRATEGIC INTERVENTIONS DESIGNED TO ELICIT COMMITMENT AND DEVELOP RESOURCEFUL HUMANS.
STRATEGIC INTERVENTIONS DESIGNED TO SECURE FULL UTILIZATION OF LABOUR RESOURCES.
INTEGRATED WITH BUSINESS STRATEGY
SOFT
INTERNAL INTEGRATION
HARD
JUST ANOTHER WORD FOR PER. MGT WEAK
6
FOUR KEY ELEMENTS OF H.R. 1
1. FUNDAMENTALLY IT IS H.R. WHICH “MAKES THE DIFFERENCE”. THE CAPABILITY AND THE COMMITMENT, WHICH DISTINGUISHES SUCCESSFUL ORG. FROM THE REST. THERE FOR NOT TO VIEW AS A COST BUT AS A VALUD RESOURCE.
7
FOUR KEY ELEMENTS OF H.R. 2
2. SUCH DECISIONS ARE IN CONSEQUENCE OF “STRATEGIC “ IMPORTANCE. THEY OUGHT NOT ONLY TO BE DERIVED FROM CORPORATE PLAN, BUT CONSTITUTE A KEY SET OF CONSIDERATIONS WHICH FEED INTO THAT PLAN.
8
FOUR KEY ELEMENTS OF H.R. 3
3. HRM HAS LONG TERM IMPLICATION AND IS
INTEGRAL TO THE CORE PERFORMANCE OF BUSINESS.
IT MUST BE THE INTIMATE CONCERN OF LINE
MANAGERS, WHO MUST OWN AND UNDERSTAND IT.
9
FOUR KEY ELEMENTS OF H.R. 4
4. THE FINAL FEATURE CONCERNS THE LEVERS USED TO ACTIVATE THE HRM APPROACH. THIS RELATES TO INTEGRATED APPROACH TO MANAGING CRITICAL EVENTS: THE INFLOW INTO ORG. THE CLEAR COMMU. OF OBJECTIVES. THE CALCULATED DEVELOPMENT OF H.R. THE EVALUATING OF ITS PERFORMANCE AND
10
REWARDING ACCORDINGLY.
FOUR KEY ELEMENTS OF H.R.
TOOLS USED NOT ONLY FOR COMPLIANCE BUT
COMMITMENT.
11
THE WHOLE PICTURE
STAFFING RECRUITMENT SELECTION SEPERATIONS DIVERSITY
WORK STRUCTURE JOB ANALYSIS TEAMS PERFORMANCE MGT EMPLOYEE INVOLVEMENT
TRAINING.&DEVL. CAREERS CONTINUOUS LEARN. MENTORING
EMPLOYEE RELATIONS COMMUNICATING GRIEVANCE HANDLING I.R. S.H.E.
COMPENSATION BASIC PAY FOR PERFORMANCE BENEFITS
12
DIFFERENCE BETWEEN & HRM.
PERSONNEL MANAGEMENT is that phase of management, which deals with effective control and use of manpower as distinguished from other sources of power. DALE YODER. HUMAN RESOURCE MANAGEMENT is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic development of a highly committed and capable workforce, using an integrated array of cultural structural and personnel techniques. JOHN STORY 1995
13
DIFFERENCE BETWEEN P.M. AND H.R.M. 2
FUNCTION DISCONNECTED INDEPENDENT &WITHOUT MUCH INTERNAL CONNECTION.
SPECIALISED FUNCTION. FUNCTION MEETS THE NEEDS OF BUSINESS AND NOT DISCREET PROCESS. GREATER STRESS ON THE ROLE OF THE LINE MANAGERS IN MANAGING THEIR OWN PEOPLE. MANAGERIAL IN OUTLOOK. CONDUCTING ACTIVITIES IN LINE WITH BUSINESS OBJECTIVES. PROACTIVE. AIMED AT ACHIEVING COMPETITIVE ADVANTAGE.CAREFUL INTEGRATION OF CULTURAL, STRUCTURAL AND PERSONNEL TECHNIQUES. WIDER MEANING.
14
LITTLE POWER OR PRESTIGE.
REACTIVE
ROUTINE WORK
NARROW CLERICAL.
ARCHITECTUAL.
SOFT AND HARD VERSIONS OF H.R.M.
SOFT. HUMAN. 1. ASSOCIATED WITH HUMAN RELS. MOVEMENTS,UTILIZATION OF INDI’S TALENTS. 2. MC’GREGORS Y PERESPECTIVE ON INDI’S DEVELOPMENT. 3. EQUATED WITH “HIGH COMMITMENT WORK SYS” & HIGH LEVEL OF TRUST. 4. COMMITMENT 5. RESTS ON HUMAN NATURE. EXERCISE OF SELF CONTROL & SELF DIRECTION. 6. MORE AUTONOMY. DIRECTION AND LOW TRUST. 7. SELF EXPRESSION. MINIMAL TRAINING AS INDIVIDUALS 15 ARE COST TO BE CONTROLLED. RESTS ON MANAGERIAL CONTROL STRATEGIES. TH X .CLOSE DIRECTION. HARD. RESOURCE. QUANTITATIVE, CALCULATIVE & BUSINESS ASPECTS FOR MANAGING RESOURCES IN A RATIONAL WAY. UTILITERIAN, INSTRUMENTALIST APPROACH. FOCUS ON “STRATEGIC FIT” (BOTH INTERNAL & EXTERNAL). STRATEGIC DIRECTION.
TIGHT CONTROL.
8. GREATER EMPHASIS ON
HUMAN RESOURCE PLANNING
REASONS FOR H.R.P. EMPLOYMENT / UNEMPLOYMENT SITUATIONS TECHNOLOGICAL CHANGES. ORGANIZATIONAL CHANGES. DEMOGRAPHIC CHANGES. SKILL SHORTAGES. LEGISLATIVE CONTROLS. IMPACT OF PRESSURE GROUPS.
16
LEAD TIME.
HRP
• A CORNER STONE OF STRATEGIC H.R.M IS THE LINKAGE OF OVERALL STRATEGIC AIMS OF THE BUSINESS AND HRM STRATEGT AND IMPLEMENTATION. • STRATEGIC APPROACH TO HRM EMPHASIS, THE DELIVERY OF BUSINESS STRATEGY AND IMPACT ON THE “BOTTOM LINE” PERFORMANCE, THROUGH THE WAY PEOPLE ARE MANAGED.
17
HOW HRP FITS THE BROADER PLANNING PROCESS
Goals Type of Typical decisions planning activity External screenin g Should we lobby to influence laws? How much should we diversify Should we form alliance with other stake holders?
Level of Analysis
Environme Financial (stock prices, debt ntal rating unions) Community, attitudes
Organizat Hierarchy structures’ Norms, Business What business should we be ional Culture, Market share, Quality planning in? of product What market Process technology? Org. Design, does this imply? HR Qualities of employees. quality Assignment to job. deployme Labor costs levels nt Employ What is future HR-demand ment supply? planning What gaps should we try to 18 reconcile?
HOW HRP FITS THE BROADER PLANNING PROCESS
Goals Type of Typical decisions planning activity HR How does HRM contribute to Strategic the business? planning How many resources should we use? What broad directions should we emphasize? What specific activities should we implement? How extensive should each activity be
Level of Analysis
HR Dept Functions Client opinions
Budget activities
Specific HRM activities
Quality of affected employees. HR action Activity costs. plans Activity results Pay off / utilities
19
HRM STRATEGIES
MILES AND SNOW HAVE CLASSIFIED ORGANIZATIONS AS DEFENDERS: ORGANIZATIONS OPERATING IN A FEW STABLE PRODUCT MARKET. ORGANIZATIONS THAT CONTINUALLY SEARCH FOR NEW PRODUCTS AND MARKET OPPORTUNITIES AND REGULARLY TAKE RISKS.
PROSPECTORS:
ANALYZERS:
ORGANIZATIONS THAT OPERATE IN MANY PRODUCT MARKETS, SOME RELATIVELY STABLE, OTHERS CHANGING.
20
HRM STRATEGIES
PROPOSED STRATEGIES SHOULD COMPLEMENT EACH OF THESE BUSINESS STRATEGIES. DEFENDERS: PRODUCT MARKET STABILITY ENJOYED ALLOWS THEM TIME TO DO FORMAL & EXTENSIVE PLANNING TO DEVELOP PEOPLE INTERNALLY.
PROSPECTORS:MUST BE MORE ADAPTABLE, & ARE MORE LIKELY TO RECRUIT PEOPLE WITH SKILLS THEY NEED FROM OUTSIDE. THE UNCERTAINTIES THEY FACE MAY MAKE HR PLANNING LESS USEFUL. ANALYZERS: MAY RESEMBLE EITHER DEPENDING ON THE CONDITIONS OF A SPECIFIC PRODUCT.
21
H.R.P. INVOLVES
FORCASTING AND NEED FOR LABOUR SUPPLY, AND
SUPPLY OF LABOUR, THEN PLANNING THE PROGRAMS
NECESSARY TO ENSURE THAT THE ORGANIZATION WILL
HAVE THE RIGHT MIX OF EMPLOYEES SKILL WHEN AND
WHERE THEY ARE NEEDED.
22
QUESTIONS TO ASK
WE THEREFORE NEED TO ASK: 1 ARE WE DOING THINGS RIGHT? ARE WE CONTROLLING THE LAB. COSTS? ARE WE HIRING THE RIGHT NO: OF PEOPLE? ARE WE HIRING THE PEOPLE WITH RIGHT SKILL?
ARE WE DOING THE THINGS IN TIMELY MANNER?
2. AT ANOTHER LEVEL WE HAVE TO ANSWER
ARE WE DOING THINGS RIGHT?
23
H.R.P.
HUMAN RESOURCE PLANNING IS CONCERNED WITH THE FLOW OF PEOPLE, INTO, THROUGH AND OUT OF THE ORGANIZATION.
24
H.R.P. DEFINED.
H.R.P. MAY BE DEFINED AS A STRATEGY FOR
ACQUISATION,
IMPROVEMENT, &
PRESERVATION OF
AN ORGANIZATION’S HUMAN RESOURCES.
25
JOB ANALYSIS PROCESS AND BENEFITS.
1
COLLECTION OF BACK GROUND
2
SELECTION OF REP JOB
3
COLLECTION J.A. INF.
4
DRAFTING OF J.A.
1.ORGAL CHT. 2.CLASS OF JOBS. 3.EXISTING J. DISCP.
JOB. DISCP.
JOB SPECIF.
EMP. SPEC.
TECH. FOR OBTAINING DATA. 1. INTERVIEWS. 2. DIRECT OBS. 3. PAST RECORDS.
1. ORG.& H.R.P.
2. SELE, INDU, TRA. 3. P.A.S. 4. JOB EVALUATION. 5. COMPENSATION. 6. HEALTH/SAFETY 26
4. QUESTIONNAIRE
5. CRITICAL INC. TECH.
PLANNING
PLANNING WOULD MEAN KNOWING WHERE WE ARE AND DECIDING WHERE WE WANT TO BE.
PLANNING SYNTHESIZES THE GAP BETWEEN THE TWO.
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THE PLANNING PROCESS
QUESTIONS WHERE WE ARE NOW ? APPROACH. ASSESSING EXT. & ORG.AL. CONDTS. & CHARACTERISTICS.
WHERE DO WE WANT TO BE? SET H.R. OBJECTIVES,BASED ONEFFICIENCY,& EQUITY.
HOW DO WE GET THERE?
CHOOSE HR. ACTIVITIES & EXPAND RESOURCES REQD. EVALUTE RESULTS BY ASSESSING NEW CONDTS ACCORDINGLY
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HOW DID WE DO?
PLANNING OPTIONS. IF SHORTAGE OF EMPLOYEES
RECRUIT, OFFER INCENTIVES FOR POSPONING RETIREMENT REHIRE RETERIED EMPLOYEES, RECRUIT PART TIME EMPLOYEES, ATTEMPT TO REDUCE TURN OVER, WORK PRESENT STAFF ON O.T. SUB CONTRACT, HIRE TEMPRORY EMPLOYEES. RE ENGINEER TO REDUCE WORK NEEDS.
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PLANNING OPTIONS. IF SURPLUS EMPLOYEES EXPECTED
DON’T REPLACE EMPLOYEES, OFFER INCENTIVES FOR EARLY RETIREMENTS, TRANSFER OR REASSIGN EMPLOYEES, REDUCE WORKING HOURS, LAY OFF EMPLOPYEES.
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Examples of Predicting Labor Demand for a Hotel Chain with 25 Hotels
A B C
Number Ratio of Employees/ Projected 2003 Labor of Hotels (Calculated Demand for 32 Hotels Employees as Column A ÷25) (Calculated as Column B x 32) Key Positions 25 General Manager 9 Resident Manager Food/Beverage Dir. 23 25 Controller 14 Asst. Controller 24 Chief Engineer 25 Director of Sales 45 Sales Manager 14 Convention Mgr. 19 Catering Director 19 Banquet Manager 15 Personnel Director 49 Restaurant Mgr. 24 Executive Chef 24 Sous Chef Exec. Housekeeper 25 379 Total 1.00 .36 .92 1.00 .56 .96 1.00 1.80 .56 .76 .76 .60 1.96 .96 .96 1.00 32 12 29 32 18 31 32 58 18 24 24 19 63 31 31 32 486
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Examples of Predicting Labor Supply and Required New Hires for a Hotel Chain Comp. Supply Analysis Supply-Demand
A % Quit Key Positions General Manager Resident Manager Food/Beverage Dir. Controller Asst. Controller Chief Engineer Director of Sales Sales Manager Convention Mgr. Catering Director Banquet Manager Personnel Director Restaurant Mgr. Executive Chef Sous Chef Exec. Housekeeper Total B C # of Proj. Present Turnover Emp. by 2003 25 9 23 25 14 24 25 45 14 19 19 15 49 24 24 25 379 10 7 11 21 9 16 9 30 13 14 12 6 44 17 22 16 257 D Emp. Left by 2003 15 2 12 4 5 8 16 15 1 5 7 9 5 7 2 9 122 E F Proj. Labor Proj. Demand New Hires in 2003 in 2003 32 12 29 32 18 31 32 58 18 24 24 19 63 31 31 32 486 17 10 17 28 13 23 16 43 17 19 17 10 58 24 29 23 32 364
38 77 47 85 66 81 34 68 90 74 60 43 89 70 92 63
Quantitative Methods of Forecasting HR Demand
Method
Moving average
Description
• Averages data about HR demand from recent periods and projects them into the future
Advantages
• Simplicity. • Data easily available.
Disadvantages
• Seasonal patterns ignored. • Relies on past data.
Exponential • Forecasters can vary weights for HR demand smoothing assigned to different past time periods used to project future HR demand. Trends projections • Numbers of people hired or requested placed on one axis; time is placed on the other axis. A straight line is plotted from past to future to predict HR demand.
• May be used to take • Mathematical into account factors ignored by the moving complexity average method (for • Choice of weights may example, cyclical be arbitrary. patterns). • Relies on past data • Easily explained to • Rough estimates. managers. • Easily prepared by HR planners. • Relies on past data
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Quantitative Methods of Forecasting HR Demand (cont.)
Method
Regression
Description
• Mathematical formula used to relate staffing to several variables (for example, output, product mix, per capita productivity).
Advantages
• Can include many variables. • Efficient use of all available data. • Assesses what should be in the future, not what probably will be.
Disadvantages
• Mathematical complexity. • Requires large sample sizes. • Relies on past data. • Managers are skeptical of highly sophisticated methodology. • Numerous assumptions must be made.
• Assesses required Linear programming staffing level that matches desired output levels, subject to certain constraints (for example, budget, cost). • Relate turnover to such factors as age and seniority.
Actuarial models
• Reflect past.
• May not be accurate in individual cases.
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Quantitative Methods of Forecasting HR Demand (cont.)
Method
Simulations
Description
Advantages
Disadvantages
• Accuracy varies.
Probability matrixes
• Useful for considering • Uses scenarios to test the alternative HR effect of various programs. personnel policies. • Help identify career • Define “states” in the patterns. organization—such as • Help perform turnover strategy levels, analysis. performance ratings. • Adequate for • Identify time period. considering • Multiply number of people alternative effects of various HR strategies. in each job category by the probability of movement between job/position categories. Model assumes that current job/position category is the chief determinant of movement.
• Require some mathematical sophistication. • Accuracy varies. • Not adequate for longterm forecasts. • Requires mathematical sophistication.
First-order Markov model
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Quantitative Methods of Forecasting HR Demand (cont.)
Method Description Advantages Disadvantages
• Not very useful for considering alternative effects of various HR strategies. • Requires mathematical sophistication. • More inclusive than a Semi-Markov • Same as first-order Markov model except that first-order Markov model probability of movement mode. is determined by (1) job/position category and (2) the individual’s length of stay in the job class.
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Quantitative Methods of Forecasting--difficulties
• Productivity rise cannot always be attributable to increased human effort. • Difficult to get units of output in the same form for all jobs. • Relationship between output and manpower is not always straight forward. • Effect of factors to improve productivity (eg technology, incentive) may not be consistent over a period of time. • Effect of different factors may not always be linear. • uncertainty about future. • Past data may not always be available.
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Qualitative Methods of Forecasting HR Demand or Supply
Method
Delphi technique
Description
Advantages
Disadvantages
• Highly subjective. • A group of experts • Can involve key exchanges several rounds decision makers in • Judgments may not of estimates of HR process. efficiently use demand or supply, objective data. • Can focus on what is normally without meeting expected or desired in face to face. Feedback future. from other experts is used by each individual to • Not bound to the past. “fine-tune” his or her independent estimate.
Nominal group technique
• A small group of experts meets face to face. After a procedure that involves open discussion and private assessments, the group reaches a judgment concerning future HR demand or supply.
• Same as for Delphi technique.
• Same as for Delphi technique.
• Group discussions • Group pressure may can facilitate lead to less accurate exchange of ideas and assessments that greater acceptance of could be obtained results by through other means. 38 participants.
How to Forecast Personnel Needs
• Project revenues first then estimate the size of the staff required to achieve it • Staffing plans also must reflect:
– – – – – Projected turnover Quality and skills of your employees Strategic decisions Technological and other changes Financial resources
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Methods to Predict Employment Needs (slide 33)
• Trend analysis • Ratio analysis • Scatter plot ?Managerial judgment plays a big role
Scatter plot shows projected staff size
1400
Number of nurses
1200 1000 800 600 400 200 0 0 500 1000 1500
Hospital size (# of beds)
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Using Computers to Forecast Personnel Requirements (slide 35 simulations)
• Computerized forecast
?Determination of future staff needs by projecting sales, volume of production, and personnel required to maintain this volume of output, using software packages
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Forecasting the Supply of Inside Candidates (used for promotions)
• Qualifications inventories
?Manual or computerized records listing employees’ education, career and development interests, languages, special skills, and so on, to be used in selecting inside candidates for promotion
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Manual Systems and Replacement Charts (similar to slide 41)
• Personnel inventory & development record help track employee qualifications • Personnel replacement charts are often used for filling a company’s top positions
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Forecasting the Supply of Inside Candidates
• Personnel replacement charts
?Company records showing present performance and promotability of inside candidates for the most important positions
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Forecasting the Supply of Inside Candidates
• Position replacement card
?A card prepared for each position in a company to show possible replacement candidates and their qualifications
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Management Replacement Chart
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