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Strategic Role – Approach. 2. Human Resource Management. Management Process. Planning Goals and standards Rules and procedures Plans and forecasting. Organizing Tasks Departments Delegating Authority and communication Coordinating. Management Process. Staffing Hiring Recruiting
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Strategic Role – Approach 2 Human ResourceManagement
Management Process • Planning • Goals and standards • Rules and procedures • Plans and forecasting. • Organizing • Tasks • Departments • Delegating • Authority and communication • Coordinating
Management Process • Staffing • Hiring • Recruiting • Selecting • Performance standards • Compensation • Evaluating performance • Counseling • Training and developing
Management Process • Leading • Getting the job done • Morale • Motivation • Controlling • Setting standards • Comparing actual performance to standards • Corrective action
HRM Function Human Resource Management is the process of: • acquiring, • training, • appraising, and • compensating employees and attending to their • labor relations, • health and safety, and • fairness concerns.
Job analyses Labor needs Recruit Select candidates Orient and train Wages and salaries Incentives and benefits Performance Communicate Train and develop Employee commitment Equal opportunity Health and safety Grievances/labor relations HRM People Functions Include:
Don’t Let These Happen to You! The wrong person High turnover Poor results Useless interviews Court actions Safety citations Salaries appear unfair Poor training Unfair labor practices HRM is Important to all Managers.
Line & Staff Aspects of HRM • Authority distinguishes line from staff as in • Making decisions • Directing work • Giving orders • Line Managers • Accomplishing goals • Staff Managers • Assisting and advising line managers
The right person Orientation Training Performance Creativity Working relationships Policies and procedures Labor costs Development Morale Protecting Line Manager’s HRM Jobs
Strategy, Policy & Administration • Strategy is: • the company’s long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage. • establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent but also support the achievement of business goals
Strategy, Policy & Administration • Policy: the development and implementation of detailed procedures, and systems which reflect the strategic framework. • Administration: day to day administration of operational activities such as records, payrolls, and benefits programmes
Corporate Strategy Business Strategy Business Strategy Business Strategy Business Strategy Functional Strategies Levels of strategies
Strategic Planning Process • SWOT analysis - Strengths, Weaknesses, Opportunities, and Threats • Best strategic plans balance a company’s Strengths and Weaknesses with the Opportunities and Threats the firm faces • Basic strategic plans address trends • Globalization • Technological advances • The nature of work • The workforce
HR’s evolving role Protector and Screener Change Agent Strategic Partner
Strategic HRM • Strategic human resource management: linking HRM with strategic goals and objectives to improve business performance and develop organizational cultures, design, people and systems that fosters innovation and flexibility.
Strategic approach to HRM Shape & Structure of org. & ind. role Selection development and training Valuing the contribution of individual roles Remuneration strategy Managing Individual performance
Clarify the business strategy Realign the HR functions and key people practices Create needed competencies and behaviors Realization of business strategies and results Evaluate and refine HR STRATEGY
Corporate Strategy HR STRATEGY PWC Approach HR Mission Organisation Analysis HR Analysis Environmental analysis HR Planning Generation of Strategic choices/options Objectives Culture Organisation People Systems HR action plan Implementation Review & evaluate
HR Strategy planning The structure, jobs, roles and reporting lines of the organisation Organisation The skill levels, staff potential and mgmt capability of the organisation The beliefs, values, norms and style of organisation People Culture HR policies & objectives Systems The process by which things get done in the organisation
How HR helps strategy execution • Functional strategies should support competitive strategies • Value chain analysis • Outsourcing • Strategy Formulation
How HR helps form strategy • Formation of a company’s strategy = identifying, analyzing and balancing external opportunities and threats with internal strengths and weaknesses • Environmental scanning
HR and technology • Basic HR systems demand paperwork • 70% of HR’s employees time = paperwork • Off the shelf forms from Office Depot/Officemax • Online forms • Human Resource Information Systems (HRIS) • HR on the Internet
HR means performance • Can HR have a measurable impact on a company’s bottom line? • Better HRM translates into improved employee attitudes and motivation (e.g., working at home) • Well run HR programs drive employee commitment