Diagnosis & Benchmarking For Competitiveness class 3
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The document defines human resource management and discusses its key aspects and objectives. It examines the external and organizational conditions that influence human resource management, as well as the employee conditions it aims to address. Some of the main human resource management activities discussed are planning, staffing, development, compensation, and evaluation. Benchmarking is defined as comparing performance metrics within or between organizations to identify best practices. Maintaining pay equity and addressing differentials between jobs, areas, firms and other factors is also examined.
Diagnosis & Benchmarking For Competitiveness class 3
- 1. Module-3
- 2. Definition Human resource management is a series for decisions that affect the relationship between employees and employers; it affects many organizations and is intended to influence the effectiveness of employees and employers
- 3. Assess human resource Set human Choose and apply Evaluate conditions resource human resource results objectives activities EXTERNAL EFFICIENCY Planning Efficiency CONDITIONS Staffing Economic conditions Organization Government regulations Employee Development Equity Unions EQUITY Employee Union ORGANIZATIONAL Organization Relations CONDITIONS Employee Nature of the Compensation organization Nature of the work EMPLOYEE CONDITIONS Abilities Motivation Interests
- 4. EXTERNAL CONDITIONS Economic conditions: It has a direct influence on the operations of the organization, including human resource activities. Government regulations: Human resource laws and regulations have become increasingly important to employers. Union: They are formed to protect the labour rights. They force to adopt sound human resource policies.
- 5. ORGANIZATIONAL CONDITIONS Nature of the organization: it is made up of strategies, objectives, financial situation, technology, and culture. Nature of the work :The difference in the work require designing and choosing different human resource management systems EMPLOYEE CONDITIONS Ability, Motivation and interest
- 6. EFFICIENCY Organization: Efficiency is a comparison between inputs and outputs. Efficient organization maximize output while minimizing input Employee efficiency = labour cost per unit revenue per unit EQUITY Organization: equity refers to the perceived fairness of both the procedures used to make human resource and ultimate decisions themselves. E.g.: Promotions, hiring, layoffs etc.
- 7. Planning: activities focus on how an organization should move from its current human resource condition to achieve its human resource objectives. Staffing: activities determine the composition of an organizations human resources. Development: Employee development and training activities are among the most common and costly methods of achieving human resource objective. Compensation: includes the rewards and returns for employees expertise and services.
- 8. Identifyingthe contributions of sound human resource management requires evaluation of results Evaluation is driven by the objectives established in two phases that is efficiency and equity
- 9. Definition A comparison with selected performance indicators from different organizations, typically in the same industry or with comparable organizations that are considered to be best in class
- 10. Internal benchmarking: occurs when a firm compares practices in one part of the organization against those in other internal units. Competitive benchmarking: is conducted against external competitors in the same market Generic HR benchmarking: involves the comparison of HR process that are the same regardless of industry
- 11. It is a commitment which has to be made by top management as well as employees relating to work/service and compensation. Why it is required? In order to minimize the resistance to change.
- 12. INTER-INDUSTRY INTRA-INDUSTRY 1.COMPETITIVENESS: Comparison with few number of Comparison with large number of employees employees 2.QUALITY: Compared with single quality standard Compared with multi quality standards 3.TRAINING: Training methods vary from Training methods vary from department to department industry to industry 4.COMPENSATION: Quality of work Competitors
- 13. Compensation differential is refers only to differences in pay due to differences in the jobs themselves, for a given worker (or for two identical workers).
- 14. Classifications Reasons •Interpersonal differentials Differentials in sex, skills, age, knowledge, experience. • Inter-occupational differentials Varying requirements of skill, knowledge, demand-supply situation • Inter-area differentials Cost of living, ability of employees’ to pay, demand and supply situation, extent of unionization •Inter-firm differentials Ability of employer to pay, employees’ bargaining power, degree of unionization, skill needs, etc.
- 15. Variations in Productivity Efficiency of management Maximum utilization of human force
- 16. Equal pay for equal work. Varying conditions of Demand and supply. Varied job requirements.
- 17. Internal Equity: It refers to the perceived fairness of the pay structure within a firm. External Equity: It refers to the perceived fairness in pay relative to what other employers are paying for the same type of labor. In considering internal versus external equity , managers can use two basic models: 1.The Distributive Justice Model. 2.The labor market Model.
- 18. The model suggests that the pay equity holds that employees exchange their contribution or input to the firm for the set of outcomes . This social-psychological perspective suggests that employees are constantly: (a) comparing what they bring to the firm to what they receive in return and (b) comparing this input/outcome ratio with that of others employees within the firm
- 19. This model suggests that , the wage rate for any given occupation is set at the point where the supply of labor equal the demand for labor in the market place.