01. Introduction to Human Resource Management.ppt
- 1. Introduction to Human Resource Management Chapter 1 Reference Books: Human Resource Management ( Gary Dessler) Human Resource Management (Mondy) Human Resources and Personnel Management ( Keith Davis) Internet Resource Person: Muhammad Faisal
- 4. What is Management? A set of activities (Planning, organizing, leading, and controlling) directed at an organization’s resources (human, financial, physical, and information) with the aim of achieving organizational goals in an efficient and effective manner.
- 6. Management in Organizations Inputs from the environment • Human resources • Financial resources • Physical resources • Information resources Planning and decision making Leading Organizing Controlling Goals attained • Efficiently • Effectively
- 8. Human Resource Management Managerial function that Managerial function that tries to match an tries to match an organization’s needs to the organization’s needs to the skills and abilities of its skills and abilities of its employees. employees. “Assets make things possible, people make things happen”.
- 9. Human Resource Management Human Resource Management (HRM) is the approach of Management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. In simple sense, HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirements to achieve its goals effectively & efficiently.
- 11. Organizational Performance Efficiency: A measure of how well resources are used to achieve a goal “Doing Things Right” Effectiveness: A measure of the appropriateness of the goals chosen (are these the right goals?), and the degree to which they are achieved “Doing the Right Things Right”
- 12. Efficiency versus Effectiveness Efficiency: Operating in such a way that resources are not wasted Effectiveness: Doing the right things in the right way at the right times Successful Successful Management Management
- 13. Functions of HRM Determining the nature, functions of each employee’s job Planning HR needs and recruiting job candidates Selecting job candidates Orienting and training new employees Managing wages and salaries (compensating employees) Providing incentives and benefits Appraising performance Communicating (interviewing, counseling, disciplining) Training and developing managers Building employee commitment
- 14. Some Common Consequences Caused by Poor HRM Practices Hire the wrong person for the job Experience high turnover/dissatisfaction Have your people not doing their best Employees will not know that what to do & how to do Have your company in court because of discriminatory/unlawful actions Have some employees think their salaries are unfair and inequitable internally & externally Allow a lack of training to undermine your department’s effectiveness Commit any unfair labor practices Why Is HRM Important to All Managers?
- 16. Competitive Advantage Competitive advantage means “any factors that allow an organization to differentiate its product or service from those of its competitors to increase market share” There is greater recognition that distinctive competencies are obtained through highly developed employee skills, distinctive organizational cultures, management processes, and systems. Competitive Advantage HR as
- 18. Functions of HRM 1.Staffing Functions Functions of HRM of HRM 5.Employee & Labor Relations 4.Safety & Health 3.Compensation & Benefits 2.Human Resource Development
- 19. 1. Staffing Process through which an organization ensures that it always has the proper number of employees with the appropriate skills in the right jobs at the right time to achieve the organization’s objectives. It includes • Personnel planning • Job Analysis • Recruitment • Selection
- 20. 2.Human Resource Development Major Personnel function that consist not only of T&D but also individual career planning, developing activities and performance appraisal. HRD is composed of • Training • Development • Career planning • Career Development • Performance Appraisal
- 21. 3.Compensation & Benefits Consist of all direct, indirect, financial & non financial rewards given to employees in return of their services. • Pay - Money that a person receives for performing a job • Benefits – Additional Financial rewards in addition to base pay including paid vocations, sick leave, insurance etc. • Non financial Rewards The Job The Environment
- 22. 4. Safety & Health Safety involves protecting employees from injuries caused by work related accidents. Health refers to employee’s freedom from physical or emotional illness. 5. Employee & Labor Relation Deals with employee employer relationship & dealing with labor unions
- 23. Managing Human Resources Purpose of HRM is; To attract To Develop To Motivate and To Keep talented people To achieve goals Challenges?
- 24. EXTERNAL ENVIRONMENT INTERNAL ENVIRONMENT Staffing Employee & Labor Relations Safety & Health Compensation & Benefits Human Resource Development HR Management Functions Legal consideration Labor Force Society The Economy technology Customer Competition Share holder Unions OPS Mkt Fin. O F A Environment (Challenges) of HRM Brain drain Turn over Budget downsizing
- 25. The External Environment Components Labor Force legislation Society ( Social Responsibility) Unions Stakeholders Competition Customers Technology Economy Brain-drain Rapid change Open System- An open system is one that is effected by environments Firm has little control over external factors
- 26. •Labor Force- it’s the pool of individuals who are willing to work for a company. This map shows the global distribution of labor force in 2006 as a percentage of the top market (China - 795,300,000).
- 27. Legislation • The Government regulation related to HR & labor force • Employment laws Laws and Regulations • for safety • Minimum wage rate • EEO • Working hours • Immigrants • Child Labor • Women
- 28. International Dimension/ Globalization The extent to which an organization is involved in or affected by business with other countries. The internationalization of products and services of a firm heavily influence organizational HR decisions.
- 29. Economic Environment The overall strength & vitality of the economic system in which organization operates. Factors that affect buying power and spending patterns of organization & its customers/suppliers. Trends of interest: Inflation Interest Rates (12.5 %) Employment ratios (estimated: 15.20 % in 2010) Per Capital Income Purchasing power of customers Stage of Business/Economic Cycle (prosperity, recession, depression and recovery)
- 30. The Internal Environment Limited budgets Trends of Downsizing Workforce Diversity High Turn over- is the rate at which an employer gains and loses employees or the rate of traffic through the revolving door." Restructuring-the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs. Internal Unions
- 31. Proactive Versus Reactive Reactive Response: Action taken in response to change Proactive Response: Action taken in anticipation of change
Editor's Notes
- #11: Managers are key components to organizational performance. It is a managers responsibility to choose the correct output goals and then try to minimize the input of resources to attain the same output goal. Efficiency and Effectiveness are key terms to understand when talking about organizational performance. Efficiency – doing things right! (produce 1000 z widgets (when the customer wanted x) at a low cost) Effectiveness –doing the right things right. (produce X widgets at a low cost) Refer to figure 1-1 pg. 6 Organizations are more effective when managers choose the correct goals and then achieve them.