HRM and Organizational Effectiveness
- 2. What is HRM? -Human resource management (HRM) is the process of employing people, training them, compensating them, developing policies relating to them, and developing strategies to retain them. -Human resource management (HRM) is the practice of recruiting, hiring, deploying and managing an organization's employees. HRM is often referred to simply as human resources (HR). Presentation title 2
- 3. What is the importance of Human resource?
- 4. Importance of HRM Presentation title 4 Behind production of every product or service there is an human mind, effort and man hours (working hours). No product or service can be produced without help of human being. Human being is fundamental resource for making or construction of anything. Every organisation desire is to have skilled and competent people to make their organisation competent and best.
- 5. Importance of HRM Presentation title 5 Among the five Ms of Management, i.e., men, money, machines, materials, and methods, HRM deals about the first M, which is men. It is believed that in the five Ms, "men" is not so easy to manage. "every man is different from other" and they are totally different from the other Ms in the sense that men possess the power to manipulate the other Ms. Whereas, the other Ms are either lifeless or abstract and as such, do not have the power to think and decide what is good for them.
- 6. Why do we call it as Human Resource Management? “ ”
- 7. Human: refers to the skilled workforce in an organization. Resource: refers to limited availability or scarce. Management: refers how to optimize and make best use of such limited or scarce resource so as to meet the organization goals and objectives.
- 8. Within the unit of each organization, the objectives of HRM are to: -Help the organization achieve its goals by providing and maintaining productive employees. -Efficiently make use of the skills and abilities of each employee. -Make sure employees have or receive the proper training. -Build and maintain a positive employee experience with high satisfaction and quality of life, so that employees can contribute their best efforts to their work. -Effectively communicate relevant company policies, procedures, rules and regulations to employees. -Maintaining ethical, legal and socially responsible policies and behaviors in the workplace. -Effectively manage change to external factors that may affect employees within the organization. Presentation title 8
- 9. HRM and Organizational Effective •HRM and Organizational effectiveness measures how successful organizations are in reaching their goals. An effective organization runs smoothly and functions well. Presentation title 9
- 10. HRM and Organizational Effective • Organizational effectiveness refers to how an organization has achieved full self-awareness due in part to: • Leaders setting well-defined goals for employees and outlining ways to efficiently execute those goals • Management implementing clear decision-making processes and communication pipelines • Engaged employees—who are carefully selected and fairly compensated—producing work that prioritizes results Presentation title 10
- 11. 7 HRM Organizational Effectiveness Models Effectiveness models Organizational effectiveness means… Goal model …accomplishing its goals Internal process model …high-quality internal processes Resource-based model …obtaining resources needed for high performance Strategic constituency model …satisfying strategic constituencies that hold sway over the organization Stakeholder model …satisfying stakeholders of the organization Competing values model …the presence of simultaneous opposites Abundance model …flourishing and virtuousness Presentation title 11
- 12. Measuring organizational effectiveness is complex. Different models offer different viewpoints to assess effectiveness. For example, the resource-based model measures input, the internal process model measures process effectiveness, and the goal-based model measures organizational output. Presentation title 12
- 13. How do you measure organizational effectiveness? • Measuring organizational effectiveness is about taking multiple perspectives and seeing if the organization is reaching the goals it set out to achieve, as well as its full potential. Creating a detailed scorecard based on your goals and KPIs (Key Performance Indicator) creates a systematic approach that can be used regularly to re- evaluate and track progress on how effective the organization really is and where we can make improvements. Presentation title 13
- 14. How HRM can contribute to organizational effectiveness? • First, organizational effectiveness is the main focus of the organizational development unit, which is often part of HR. The organizational development team runs organizational transformations and comes up with more specific interventions for workforce and organizational issues. For example, high turnover may result in interventions aimed to reduce turnover, ensure continuity of business, and drive efficiencies. Presentation title 14
- 15. Second, HRM can contribute to organizational effectiveness through people processes and building workforce capabilities. This is displayed in the figure below. Presentation title 15
- 16. How HRM can contribute to organizational effectiveness? • People practices. These are all the core HR practices, including recruitment & selection, learning and development, rewards & recognition, performance management, and workforce planning. All of these practices aim to create workforce capabilities. • Workforce capabilities. These are the capabilities that HR is building in the workforce. Examples include employee engagement, employee experience, general competency levels, superior performance, leadership, and inclusion. Presentation title 16
- 17. How HRM can contribute to organizational effectiveness? • Key performance drivers. You will recognize the key performance drivers as part of organizational effectiveness. • Organizational objectives. This is the area where HR has the least direct input. However, HR can still provide an invaluable contribution to these objectives by acing its HR practices, building workforce capabilities, and adding to the organization’s key performance drivers. Presentation title 17
- 18. HRM and organizational effectiveness HRM take primary responsibility for providing input, advice, direction, and execution with respect to organization effectiveness. Increasingly, what makes organizations effectiveness is how they organize staff and manage their human capital. So the role of HRM is very important to have an organizational effectiveness that leads to successfull firms. Presentation title 18
- 19. References: • Cappelli, P., “HR Implications of Healthcare Reform,” Human Resource Executive Online, March 29, 2010, accessed August 18, 2011, http://www.hreonline.com/HRE/story.jsp?storyId=379096509. • Frasch, K. B., David Shadovitz, and Jared Shelly, “There’s No Whining in HR,” Human Resource Executive Online, June 30, 2009, accessed September 24, 2010, http://www.hreonline.com/HRE/story.jsp?storyId=227738167. • Rivenbark, L., “The 7 Hidden Reasons Why Employees Leave,” HR Magazine, May 2005, accessed October 10, 2010, http://findarticles.com/p/articles/mi_m3495/is_5_50/ai_n13721406. Presentation title 19
- 20. Thank you DOUGLAS C. CLAVERIA