MANAGEMENT

1. MANAGEMENT

2. WHAT IS MANAGEMENT? “Management” or “Manage” is one of those words which is used everyday, which we think we understand until we are asked exactly what it means. The word “manager” takes its root from French “manageur” which means control, organise, direct, and plan. Generally, management may be viewed as a process that enables organisations to achieve their objectives.

3. Definitions of MANAGEMENT I Classical definition by H Fayol “To manage is to forecast and plan, to organise, to command, to co-ordinate and to control.” the emphasis is on (the authoritative role) of management but fails to mention motivation or any special qualities of leadership.

4. II Peter Drucker defines management as making Resources productive, being the organ of society, specifically charged with making resources productive. He points out the need for a sense of social responsibility on managers His analogy with animal world (management:- Tasks, Responsibilities, Practices”) comparing a business operated by an owner-entrepreneur with “helpers” Drucker talks about size of an organisation and its management. The larger the size the need for size of management.

5. III Kast and Rosenweig- relate management to the environment in their book “ The management of Systems.” They see a firm as a system which exists within larger terms (Its environment) and which must adjust to those larger system in order to survive and grow. They define “management” as involving the coordination of human and material resources towards objective accomplishment. It is the primary force within organisation which coordinates the activities of the systems and relates them to the environment.

6. They stress on employment of resources and objectives. The definition also tends to look at that part of management function within an organisation as ensuring that the organisation relates to what the environment covers. Koontz and O’Donnell also define “Management” stressing on environment.

7. IV John Marsh – “Management is an art and science concerned with the proper, systematic and profitable use of resources in all sections of a nation’s economy.” V R. Falk, Rosemary Stewart- They define the term “management” as getting things done through people.” Reference: Study Manual (pp 2 & 3)

8. Organisations and Management Management is an essential ingredient in organisations, because it is the only tool that can create the conducive situation in which an organisation can achieve its objectives. Management is needed in all cooperation and at all levels of organisation in an enterprise. E.F.L Brech:- Management as a process. “Management is a social process entailing responsibility for effective planning and regulation of the operations of an enterprise in fulfillment of a given purpose.”

9. Components of the Process • Planning • Forecasting • Goal setting • Decision making b) Organising and directing • Organising- arranging for the work to be done (allocating of resources) • Directing- ensuring that employees are appropriately engaged in working on activities to meet goals and plans. (Involves motivating and supervising staff for effective performance.

10. c) Controlling • Process of monitoring and regulating performance (measurement and evaluation of activities) • Control also involves taking the appropriate, corrective action to ensure that performance is done according to expectations.

11. Management of Activities • Determining objectives (goal identification/ objectives) • Problem identification for solution • Searching for solutions-(alternatives) considering time and cost • Determining of the best solutions – choosing the best method for resolving problems considering cost effectiveness (effectiveness and efficiency) • Implementation – seeking agreement for funds.

12. Preparation and instructions (effective communication) • Execution of agreed solutions – (meeting organization goals and objectives) utilizing human resource, placing staff at the right place. • Devising and discharge of an auditing process – continuous monitoring and assessment to determine the success of activity.

13. Roles Description____________ Interpersonal Figurehead- formal, representational, and symbolic duties Leader - relationship with subordinates – motivating, communicating, coaching. Liaison - contacts with others outside work unit Informational Monitor - ensuring acquisition of information necessary for work Disseminator - information distribution Spokesperson - formal provision of information on behalf of organization.

14. Roles Description________ Decisional Entrepreneur - initiating, developing and facilitating change and information. Disturbance - trouble shooting problems when they arise. Resource allocation - distributing and arranging use of resources. Negotiator - Representing organization in negotiations within area of responsibility.

15. HUMAN RESOURCE MANAGEMENT

16. HUMAN RESOURCE MANAGEMENT Scope and Definition of Human Resource and its Importance. Definition – HRM is concerned with People: It is a dimension of management in organizations, made up of people, acquiring their services, developing their skills, motivating the high levels of performance and ensuring that they continue to maintain their commitment in order to achieve organisational objectives.

17. David Denzo and Stephen P. Robbins 1998 Robert Math’s and John H. Jackson define HRM as “a key ingredient affecting organizational effectiveness of an organization in product or service that fits”. Customers need is critical to its survival. HRM has recently grown to become a strategic tool in management through the effective use of its employees, which results in competitive advantage to an organization. HRM systems that focus on performance of organizations have shown remarkable financial improvement and higher profitability.

18. It is about the efficient utilization of human talent to achieve organisational goals. HRM – is simply defined as “a strategic and coherent approach to the management of an organisation’s most valuable asset (the people) working there, who individually and collectively contribute to the achievement of its objectives.”

19. Main features of HRM • Strategic management of people (the human capital) in the organization which achieves ‘fit’ or integration between the business and Human Resource strategy. • Comprehensive approach to the provision of mutually supporting employment policies and practices. • Gaining commitment to the organizations mission and values – it is commitment –oriented.

20. Treatment of people as assets and not cost and as human capital to be invested in through learning and development opportunities. • Concerns with employee relations, employees sharing the same interest with employers • Delivery of HRM as a line management responsibility.

21. Goals of HRM • Achieving high performance through people • Enhancing motivation, commitment and engagement • Human capital development • Knowledge management • H.R. development • Valuing employees • Employee relations • Bureaucratic administration • Centralization of personnel functions for departmental initiative.

22. Goals of HRM contd • Centralization of personnel functions for departmental initiative • Political dimension of Personnel Management in Public sector e.g. Position of Chief Executive.

23. Evolution from Personnel Management to HRM Personnel Management – traditionally characterized by a technician mentality. Level of authority for personnel-related activities and decision was low because personnel managers operated under the ambit of Finance and Administration Directors. Several organizations had personnel-related activities whose duties were mainly administrative, ie filing, logistics, leave rosters, running errands, providing refreshment, etc.

24. Models of PM • Clerk of works model – routine administrative functions only are allowed or are the only functions to characterize the management of people. It is inadequate and highly inappropriate to the emerging needs of today’s business. • Contract Management Model – Improvement on the clerk of works model. • Architect Model - Best model for HRM. Professionalism and a high level of involvement in corporate decisions characterize HR function.

25. Effective HRM • Day-to-day dimension • Daily production • Administrative • Its aim is to ensure that people are healthy and attend to work in good environment. Effective HRM – implies ability to produce results • Ineffectiveness has consequences • Productivity • Organizational survival • Workers – poor relationship • Stress • Poor commitment and poor motivation

26. Techniques of Strategic HRM 1. People skills • Human Relations – treat people as human beings and not as objects 2. Communication skills • Top-down – Bottom-up • Open door – participatory involvement 3. Supervisory skills • Control • Oversight • Delegation • Task skills • Job planning • Performance Management (Effective) • Leadership (by example)

27. Competencies required of HRM Professionals • Personal drive and effectiveness • People management and leadership • Professional competence (skills) • Adding value through people • Continuing learning • Thinking and applied resourcefulness (application to a systematic approach to situational analysis; convincing business focused action plans, intuitive, creative thinking.) • Customer focus • Strategic capability • Influencing and interpersonal skills

28. Soft HRM (Personnel Administration) Reaction-Service role • Emphasis on communication, motivation and leadership • Implements procedures and policies • Treats employees as valued assets • Employees seen as means rather than objects • Sets commitment of employees through involvement and communication • Builds trust • Common interest between employees and employers but interest of organization overriding those of the individual • Supporting change

29. Hard HRM Proactive/ Innovative • Business –oriented approach • Result- oriented • Seeks competitive advantage • Regards people as human capital for value • Strategic policies for results • Human capital to be invested and not as cost (training and dev.) • Initiates change

30. Activities of HRM • Organizational design • Organizational development • Job and role design • Human resource planning • Talent management • Recruitment and selection • Career development • Salary administration • Health and safety • Welfare service

31. Questions for assignment • Indicate a number of peculiar Human Resource problems or issues confronting your company/organization and suggest professional solutions to three of these problems based on your knowledge of HRM gained from this course. • Give clear definition of HRM and state its scope. Differentiate between ‘soft’ and ‘hard’ HRM

32. References : 1. Human Resource Management (2004) Robert L. Mathis Etal, 10th Edition • 2.Personnel and Human Resource Management (2005), 5th Edition by G. A. Cole • 3. A Handbook of Human Resource Management Practice – Michael Armstrong (2003) 9th Edition • 4. Personnel/Human Resource Management, David A. Deconzo and Stephen P. Robbins 3rd edition • 5. Essential Elements of Human Resource Management – Modular Series 1995, Sally Howe.

33. INTERNATIONAL HUMAN RESOURCE MANAGEMENT 33

34. INTERNATIONAL HUMAN RESOURCE MANAGEMENT International HRM – is the process of employing and developing people in international organizations which employ people in Europe and other overseas countries including those of the African continent. It actually concerns itself with working across national boundaries to formulate and implement resourcing, developing, career management and remuneration strategies, policies, strategies, and practices, that can be applied to an international workforce, including:

35. Parent country nationals working for long periods as expatriates or on short-term assignments • Local country nationals • Third country nationals who work for the corporation in a local country but are not parent country nationals (eg German working in West Africa for a British owned company)

36. Challenges I.H.R.M can be more demanding than management within the boundaries of one country for the following reasons: • Problem of managing the complex nature of the workforce. Eg. Wholly owned subsidiary companies may employ both host and parent country people together with third country nationals – problem with employment practices as well as remuneration. A joint venture or complex workforce consisting of expatriates of the joint venture company, host country nationals, third country nationals and experts from any of the partners dealing with special problems or provide consultancy services.

37. According to Kanter (1989) and others, such problems include divided loyalties between the parent company and the joint venture consortium and the difficulties managers may face in trying to be both sensitive to local conditions and aware of the demands made by the consortium of their own parent company.

38. Managing diversity – between cultures, social systems and legal requirements. International personnel managers are not in the business of controlling uniformity – they would fail if they tried. • Communications – Global communication is a major challenge. Even the most sophisticated electronic communication system may not be an adequate substitute for the face-to-face communications. • Resourcing international operations – with people of the right calibre to deal with the much more complex problems that may arise.

39. As Perkins (1997) points out, it is necessary for businesses to remain competitive with their employment offering in the market place for attraction and retention of high quality staff with world-wide capabilities.

40. Characteristics of IHRM Torrington (1994) suggests that “IHRM is not just about copying practices from the Americans, Japanese, Germans, etc, which will not necessarily translate culturally. Neither is it simply a matter of learning the culture of every country and suitably modifying “behavior in each of them which is an impossible ideal because of the robust and subtle nature of national cultures.” His definition of IHRM relates to the following characteristics:

41. 7 C’s • Cosmopolitan – members of high flying multilingual elite or expatriates who may relocate after a long time who will find repatriation difficult. • Cultural diversity – major differences in cultural background. • Compensation – special requirements for the determination of the pay and benefits of expatriates and host country nationals. • Communication – maintaining good communication between all parts of the organisation globally.

42. Consultancy – need to bring in expertise to deal with local needs. • Competence – developing a wider range of competences for people working across political, cultural and organizational boundaries. • Coordination – devising formal and informal methods of getting thee different parts of the international business to work closer together.

43. Forms of Organisation and Governance4 Organisational Models 1. Decentralized federation – traditional multinational corporation. Each national unit managed as a separate entity. 2. Coordinated federation – the centre develops sophisticated management systems enabling it to control. But local management given the opportunity to adopt practices according to local market traditions. 3. Centralized hub – Focus on the global market rather than the local. Japanese practice this hub model.

44. 4. Transnational model – the corporation develops multi strategic capabilities towards global competitive capabilities. Caution: - Perkins and Hendry (1999) sign a note of caution as firms seem polarized along these 2 lines: • Regionalization – where local customer is important • “Global business streams” – involved in setting up centrally controlled business segments dealing with similar products globally.

45. Cultural Diversity – Hofstede (1980) identifies a number of cultural dimensions that affect international operations as follows: • Equality versus inequality. • Certainty versus uncertainty. • Controllability versus uncontrollability. • Individualism versus personalization.

46. Sparrow and Hiltrop (1997) noted the following HR areas affected by national culture: • Definitions of effective manager. • Giving face-to-face communication. • Readiness to accept international assignments. • Expectations of a manager – subordinate relationships. • Pay systems and differential concepts of social justice. • Approaches to organizational structuring and dynamics. Divergence to respect cultural differences may be more appropriate if the full potential of the overseas company is to be realized.

47. International Balancing Act Balancing the needs of coordination, control, and autonomy and maintaining the appropriate balance are critical to the success of the multi-national corporation. 6 Capabilities to achieve this balancing act. • Being able to determine core activities and non-core activities. • Achieving consistency while allowing flexibility. • Building global brand equity while honoring local customs. • Obtaining leverage while achieving focus. • Sharing, learning and creating new knowledge. • Endangering global perspectives while ensuring local accountability.

48. Employment Policies 1. Fill key positions with parent country nationals 2. Appoint home country nationals. 3. Appoint the best people despite nationality. (International image) 4. The third model is more favourable but has to contend with some countries which insist that their own nationals should be used at all cost.

49. Managing Development Strategy Recruitment and selection:- criteria • Technical competence • Previous achievement in the home country • Language skills • Motivation • Stress assistance • Goal – oriented personality • Communication skills • Family circumstances – how well the person and spouse are likely to adapt to working overseas.

50. Career Planning to be designed to suit international perspective. Based on i.e. • Talent and potential • Job rotation • Special assignment training • Attendance of management programmes run by international business schools.