HRM PROCESS MODEL FIGEN CAKAR, B.Sc., MSc SUPERVISOR Dr.UMIT S. BITITCI

1. HRM PROCESS MODEL FIGEN CAKAR, B.Sc., MSc SUPERVISOR Dr.UMIT S. BITITCI JANUARY 2001

2. CONTENTS • Research Aim • Background • HRM Models from the literature review • Specific Research Objective • From study of HR Literature • Model Development • HRM Business Process Model • 1st Version of HRM Business Process Model • 2nd Version of HRM Business Process Model • HRM Business Process Model on IDEF0 • Comparison of The Models • Investor In People Standard • Contribution • Future Work

3. AIM To study Human Resource Management (HRM) as a business process in the manufacturing environment.

4. Background EFQM EXCELLENCE MODEL Conclusion HR are key assets to the business. HR have a significant impact on the business results. Therefore there is a need to understand HRM as a business process

5. Political forces Cultural forces Economic forces Mission and Strategy Organisation structure Human resource management HR LITERATURE Michigan Model of HRM Strategic management and environmental pressures

6. Rewards Performance Selection Appraisal Development HR LITERATURE Michigan Modelof HRM The human resource cycle

7. Work system Employee influence Human resource flow Rewards HR LITERATURE Harvard Model of HRM Human Resource System

8. HR LITERATURE Stakeholder Interest Stakeholders Management Employee groups Government Community Unions HRM Policy Choices Employee Influence Human resource flow Reward systems Work systems HR Outcomes Commitment Competence Congruence Cost-effectiveness Long-term Consequences Individual well-being Organisational effectiveness Societal well-being Situational Factors Work force characteristics Business strategy and conditions Management philosophy Labour market Unions Task technology Laws and societal values Harvard Model of HRM A map of the HRM territory

9. HR LITERATURE Guest’s Model of HRM Policies Human resource outcomesOrganisational outcomes Organisational and job design High job performance Policy formulation and Strategic planning / High problem - solving implementation/management implementation of change Recruitment, selection and Commitment Successful change socialisation Appraisal, training and Flexibility / adaptability Low turnover development Manpower flows - through, up Low absence and out of the organisation Reward systems Quality Low grievance level Communication systems High cost - effectiveness i.e. full utilisation of human resources

10. HR LITERATURE Socio-economic Technological Political-legal Competitive Inner context Culture Structure Politics/leadership Task-technology Business outputs Business strategy content HRM context Objectives Product-market Strategy & tactics Role Definition Organisation HR outputs HRM context HR flows Work systems Reward systems Employee relations Warwick Model of HRM

11. HRMLITERATURE HRM MODELS GENERIC CLASSIFICATION • According to Legge we can identify 4 HRM models, namely : • Normative Model • Descriptive-functional • Critical-evaluative • Descriptive-behavioral • Tyson has identified 3 HRM Models • Descriptive Model • Analytical Model • Normative model • Storey has also identified 3 HRM models • Conceptual Model • Descriptive Model • Prescriptive or Normative Model

12. SPECIFIC RESEARCH OBJECTIVE To use systems engineering approach to develop and test a business process model for HRM to clarify this confusion.

13. FROM STUDY OF HR LITERATURE HARD AND SOFT SYSTEM APPROACH TO HRM “Hard” HRM emphasises the quantitative, calculative and business-strategy aspects of managing the headcounts resource in as “rational” a way as for any other economic factor.” “Soft” HRM traces its roots to the human relations school and emphasises communication, motivation and leadership.” (Story , London, 1989)

14. Model Development • Developed v1 of the Business Process model for HRM from literature • Validated the model through consultation with: • 14 industrialists - HR specialist / function • 8 HRM academics • Through structured questionnaires • Feed back from the consultation was used to develop v2 of the model.

15. 1ST VERSION OF HRM PROCESS MODEL” MAKE HRM STRATEGY IMPLEMENT HRM STRATEGY MONITOR IMPACT ON BUSINESS RESULT S U B - P R O C E S S E S c o n t a i n s c o n t a i n s c o n t a i n s Set Objective Control HR Inc.Planning, Monitor,Utilization Monitor Impact on Business Strategy A C T I V I T I E S Establish Current Capabilities Recruit Assess Select Monitor Impact on People Satisfaction Plan Train Educate Develop Monitor Impact on Manage Processes Negotiate Budget Manage HR Performance Inc.review,appraisal Monitor Impact on Operate Processes Manage Redeployment Monitor Impact on Support Processes Figen Cakar, Center for Strategic Manufacturing, 1998

16. Monitor Impact on Business Strategy Monitor Impact on People Satisfaction Monitor Impact on Manage Processes Monitor Impact on Operate Processes Monitor Impact on Support Processes S U B - P R O C E S S E S 2ND VERSION OF HRM PROCESS MODEL” MAKE HRM STRATEGY IMPLEMENT HRM STRATEGY MONITOR IMPACT ON BUSINESS RESULT c o n t a i n s c o n t a i n s c o n t a i n s Set Objective Control HR Inc.Planning, Monitor,Utilization A C T I V I T I E S Recruit Assess Select Establish Current Capabilities Train Educate Develop Plan Manage HR Performance Inc.review,appraisal Negotiate Budget Manage Redeployment Set HR Policies Negotiations for Working Condition Figen Cakar, Center for Strategic Manufacturing, 2000

17. HRM PROCESS MODEL ON IDEF0

18. HRM PROCESS MODEL ON IDEF0

19. HRM PROCESS MODEL ON IDEF0

20. HRM PROCESS MODEL ON IDEF0

21. HRM PROCESS MODEL ON IDEF0

22. HRM PROCESS MODEL ON IDEF0

23. COMPARISON OF THE MODELS • Harvard Model • Soft HRM • Focus on people • Based on Individual influence, Work system, Rewards, Human resource flow • Concentrates on outcomes for people • Analytical & Normative • Output focus • not clear • HRM Business Process Model • Hard • Focus on Business process and results • Based on developing business objectives to the HRM process and monitoring business results • Concentrates on business processes and outcomes for business • Normative • Process focus • Systems engineering approach • Michigan Model • Hard HRM • Focus on individual and organisational Performance • Based on strategic control, organisational structure systems for managing people • Concentrates on managing human assets to achieve strategic goals • Normative • Output focus • not clear

24. “The Investor in People Standard COMMITMENT PLANNING ACTION EVALUATION P R I N C I P L E S c o n t a i n s c o n t a i n s c o n t a i n s c o n t a i n s The organisation is committed to supporting the development of its people The organisation has a plan with clear aims and objectives which are understood by everyone Managers are effective in supporting the development of people The development of people improves the performance of the organisation, teams and individuals I N D I C A T O R S People are encouraged to improve their own and other people’s performance The development of people is in line with the organisation’s aims and objectives People learn and develop effectively People understand the impact of the development of people on the performance of the organisation, teams and individuals People believe their contribution to the organisation is recognised People understand how they contribute to achieving the organisation’s aims and objectives The organisation is committed to ensuring equality of opportunity in the development of its people Figen Cakar, Center for Strategic Manufacturing, 2000

25. Monitor Impact on Business Strategy Monitor Impact on People Satisfaction Monitor Impact on Manage Processes Monitor Impact on Operate Processes Monitor Impact on Support Processes S U B - P R O C E S S E S 2ND VERSION OF HRM PROCESS MODEL” MAKE HRM STRATEGY IMPLEMENT HRM STRATEGY MONITOR IMPACT ON BUSINESS RESULT c o n t a i n s c o n t a i n s c o n t a i n s Set Objective Control HR Inc.Planning, Monitor,Utilization A C T I V I T I E S Recruit Assess Select Establish Current Capabilities Train, Educate, Develop IIP - Comprehensive Plan IIP _Some coverage Manage HR Performance IIP_Some coverage Negotiate Budget Manage Redeployment IIP-Limited coverage Set HR Policies Negotiations for Working Condition Figen Cakar, Center for Strategic Manufacturing, 2000

26. Contribution • Clarify Confusion • Introduce system thinking approach in to the field • Introduce HRM as a Business Process • A generic Business Process model for HRM • Lessons learned the validation and testing

27. FUTURE WORK • Finalise detailed process • Finalise audit workbook • Test with collaboration companies • Analyse test results and learn from experience

28. Thank you