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BM 6506BESG Strategic & Human Resource Management Adapted by Sally Low – Trent Global College Singapore. Strategic approach to Human Resource Management What are the responsibilities of HRM in the Organisation Overview and link to management theory. Learning Objectives.
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BM 6506BESG Strategic & Human Resource ManagementAdapted by Sally Low – Trent Global College Singapore Strategic approach to Human Resource Management What are the responsibilities of HRM in the Organisation Overview and link to management theory
Learning Objectives • On completion of this lesson, you should be able to: • Understanding Human Resources Theories • Understanding Human Resources Plan • Understanding Developing and Managing Human Resources
Human Resource Management Human Resource Management is the organisational function that deals with issues related to people such as compensation, hiring, performance management, organisation development, safety, wellness, benefits, employee motivation, communication, administration, and training.
Personnel Management Traditionally HRM function known as personnel management: Specialist management function which determines and implements policiesand procedureswhich affect stages of employment cycle
A model of Strategic HRM is a function of • Capabilities – the skills and aptitudes needed • Motivation – the incentives both intrinsic and extrinsic • Work organisation – the way work is organised • Employment relations – the process of recruitment until development of each individual worker as shown in the diagrams that follows…
A model of HRM Workforce Performance is a function of
Rewards Systems Can you identify what ‘benefits’ are seen as a reward?
HRM Practices • Team working • Training and expertise • Empowerment • Amount of freedom depends on the situation • Employee involvement • Support system • Knowledge and Learning
Is HRM becoming an important part of company strategy? Why?
Changing factors (Sisson, 1994) • Management thinking- moved away from traditional concepts e.g. hierarchy, bureaucracy to flexible structures and innovative roles • Globalisation– increased competition, lower labour costs. More focus on motivating a flexible workforce. • Improvement of employee rights– provisions of the Social Charter – conditions, standards, safety, welfare etc • Technological developments– organisation and communication made easier and faster • Therefore, ways people are recruited, selected, trained, organised, managed, appraised, rewarded, developed, motivated must be aligned with strategic issues
Why is HRM becoming an important part of company strategy?? • Shortage of experienced, qualified, skilled staff • HRM is a source of Competitive Advantage for the firm • HRM Can be the firms Core Competence
Competitive Advantage • Porter (1994) identified that the main aim of competitive strategy is to create and/or enhance a sustainable competitive advantage. • Competitive advantage is simply ‘having the edge over your competitors’ • Products / Technology • Service - people
Core Competences • ‘A bundle of skills and technologies rather than a single discrete skill or technology’ (Hamel & Prahalad, 1994) • ‘New ideas for innovation, new products, etc. come from harnessing this creativity from humans, not via machines or technology’ (Brown et al, 2000) • Human resource management should be a key core competence in any organisation.
Processes to get a selected & effective Project Team (Pg 9 ) • Employment security – plan human resource management to identify the right chain of command • Choosing the right people- acquire the project team • Valuing and rewarding them with adequate compensation so as to develop them into an effective team • Manage team through monitoring and evaluating feedback and managing change for quality delivery of project performance
Current HRM Source: Brown et al, 2000 Shared Purpose Resources Enabling Structures Commitment to People as Strategic Resources Shared Involvement Shared Learning and Development
Shared Purpose • Strategic leadership • Shared planning processes • Policy deployment • Information sharing • Employee ownership
Enabling Structures • Appropriate organisation design • Job and work design • Devolved decision making • Supportive communications
Shared Learning and Development • Commitment to training and development • Embedding a learning cycle • Measurement • Continuous improvement culture
Shared Involvement • Team-working • Cross-boundary working • Participation and involvement mechanisms • Stakeholder focus and involvement
Formats of organisation structures and position descriptions:Hierarchical-type chart The traditional organization chart structure can be used to show positions and relationships in a graphical, top-down format. The organizational breakdown structure (OBS) is arranged according to an organization’s existing departments, units, or teams with the project activities or work packages listed under each department.
Formats of organisation structures and position descriptions:Matrix-based chart A responsibility assignment matrix (RAM) is a grid that shows the project resources assigned to each work package. It is used to illustrate the connections between work packages or activities and project team members. The matrix format shows all activities associated with one person and all people associated with one activity. This also ensures that there is only one person accountable for any one task to avoid confusion of who is ultimately in charge or has authority for the work. One example of a RAM is a RACI (responsible, accountable, consult, and inform) chart.
Formats of organisation structures and position descriptions:Task-oriented formats Team member responsibilities that require detailed descriptions can be specified in text-oriented formats. Usually in outline form, the documents provide information such as responsibilities, authority, competencies, and qualifications.
Theories in HRM • Maslow’s Hierarchy of Needs • Herzberg’s Hygiene and Motivation Factors • Mc Clelland’s Achievement Motivation Theory • Vroom’s Expectancy Model
Session Summary • Construction Industry is a highly labour intensive industry • It needs to ‘look after’ this core competence • Good Communication and a good working relationship are key to success • Identified the HR role in an organisation