UNIT -4.pptx grojfdeukv Holbrook ythftujcd
- 1. UNIT -4 HR & SUPPLY CHAIN ANALYTICS
- 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. As a field, HRM has under gone many changes over the last twenty years, giving it an even more important role in today’s organizations.
- 3. • The Roleof HRM Keep in mind that many functions of HRM are also tasks other department managers perform, which is what makes this information important, despite the career path taken. Most experts agree on seven main roles that HRM plays in organizations. These are described in the following sections.
- 4. • Developmentofastaffingplan.This plan allows HRM to see how manypeople theyshould hire based on revenue expectations. • Development of policies to encourage multiculturalism at work. Multi culturalism in the workplace is becoming more and more important, as we have many more people from a variety of backgrounds in the workforce. • Recruitment.This involves finding people to fill the open positions. • Selection. In this stage, people will be interviewed and selected, and a proper compensation package will be negotiated. This step is followed by training, retention, and motivation.
- 5. TrainingandDevelopment • Once we have spent the time to hire new employees, we want to make sure they not only are trained to do the job but also continue to grow and develop new skills in their job. This results in higher productivity for the organization. Training is also a key component in employee motivation. Employees who feel they are developing their skills tend to be happier in their jobs, which results in increased employee retention. Examples of training programs might include the following: ·Jobskillstraining, suchashowtorunaparticularcomputerprogram ·Trainingoncommunication ·Team-building activities ·Policyandlegaltraining, Such as sexual harassment training and ethics training
- 6. • Most companies need a human resource department or a manager with HR skills.The industries and job titles are so varied that it is possible only to list general job titles in human resources: • Recruiter • Compensation analyst • Human resources assistant • Employee relations manager • Benefits manager • Work-life coordinator • Training and development manager • Human resources manager • Vice president for human resources
- 7. PLANNING AND RECRUITMENT • The strategic plan may include long-term goals, while the HR plan may include short-term • objectives that are tied to the overall strategic plan. More recently, however, the personnel department has divided into human resource management and human resource development, as these functions have evolved over the century. • HRM is not only crucial to an organization’s success, but it should be part of the overall company’s strategic plan, because so many businesses today depend on people to earn profits. • Strategic planning plays an important role in how productive the organization is.
- 8. Examples of Differences between Personnel Management andHRM • PersonnelManagementFocus • Administeringofpolicies • Stand-aloneprograms,suchastraining • HRMFocus • Helpingtoachievestrategicgoalsthroughpeople • HRMtrainingprogramsthatareintegratedwithcompany’s mission and values
- 9. • Staffing. Staffing includes the development of a strategic plan to determine how many people you might need to hire. Based on the strategic plan, HRM then performs the hiring process to recruit and select the right people for the right jobs. • Basic workplace policies. Development of policies to help reach the strategic plan’s goals is the job of HRM. • Afterthepolicieshavebeendeveloped,communicationofthesep oliciesonsafety,security, scheduling, vacation times, and flextime schedules should be developed by the HR department. Of • course, the HR managers work closely with supervisors in organizations to develop these policies. • Work place policies will be addressed through out the book.
- 10. • Compensation and benefits. In addition to paychecks, 41(k)plans, health benefits, and other per k sare usually the responsibility of an HR manager. • Retention. Assessmen tof employees and strategizing on how to retain the best employee isa task that HR managers oversee, but other managers in the organization will also provide input. • Training and development. Helping new employees develop skills needed for their jobs and helping current employees grow their skills are also tasks for which the HRM department is responsible. Determination of training needs and development and implementation of training programs are important tasks in any organization. Succession planning includes handling the departure of managers and making current employees ready to take on managerial roles when a manager does leave.
- 11. HRMvs.Personnel Management • Human resource strategy is an elaborate and systematic plan of action developed by a human resource department. This definition tells us that an HR strategy includes detailed pathways to implement HRM strategic plans and HR plans. Think of the HRM strategic plan as the major objectives the organization wants to achieve, and the HR plan as the specific activities carried out to achieve the strategic plan
- 12. • 1. Strategic partner. Partnership with the entire organization to ensure alignment of the HR function with the needs of the organization. • 2. Change agent. The skill to anticipate and respond to change within the HR function, but as a company as a whole. • 3. Administrative expert and functional expert. The ability to understand and implement policies, procedures, and processes that relate to the HR strategic plan. • 4. Human capital developer. Means to develop talent that is projected to be needed in the future. • 5. Employee advocate. Works for employees currently within the organization
- 14. • HRM strategic plan: • 1. Make it applicable. Often people spend an inordinate amount of time developing plans, but the plans sit in a file somewhere and are never actually used • 2. Be a strategic partner. Alignment of corporate values in the HRM strategic plan should be a major objective of the plan. In addition, the HRM strategic plan should be aligned with the mission and objectives of the organization as a whole. • 3. Involve people. An HRM strategic plan cannot be written alone. The plan should involve everyone in the organization.
- 15. • 4. Understand how technology can be used. Organizations oftentimes do not have the money or the inclination to research software and find budget-friendly options for implementation. People are sometimes nervous about new technology. However, the best organizations are those that embrace technology and find the right technology uses for their businesses.
- 16. Training and Development • Once we have planned our staffing, recruited people, selected employees, and then compensated them, we want to make sure our new employees are successful. One way we can ensure success is by training our employees in three main areas: • 1. Company culture. A company culture is the organization’s way of doing things. Every company does things a bit differently, and by understanding the corporate culture, the employee will be set up for success. Usually this type of training is performed at an orientation, when an employee is first hired. Topics might include how to request time off, dress codes, and processes. • 2. Skills needed for the job. If you work for a retail store, your employees need to know how to use the register. If you have sales staff, they need to have product knowledge to do the job. If your company uses particular software, training is needed in this area. • 3. Human relations skills. These are non-job-specific skills your employees need not only to do their jobs but also to make them all-around successful employees. Skills needed include communication skills and interviewing potential employees
- 17. Perform a Performance Appraisal • The last thing an HR manager should plan is the performance appraisal. It is definitely worth a mention here, since it is part of the strategic plan. A performance appraisal is a method by which job performance is measured. The performance appraisal can be called many different things, such as the following: • 1. Employee appraisal • 2. Performance review • 3. 360 review • 4. Career development review
- 18. RECRUITMENT • The recruitment process is an important part of human resource management (HRM). It isn’t done without proper strategic planning. Recruitment is defined as a process that provides the organization with a pool of qualified job candidates from which to choose. Before company’s recruit, they must implement proper staffing plans and forecasting to determine how many people they will need.
- 19. • 1. Budget constraints • 2. Expected or trend of employee separations 3. Production levels • 4. Sales increases or decreases • 5. Global expansion plans • External factors might include the following: • 1. Changes in technology • 2. Changes in Laws • 3. Unemployment rates • 4. Shifts in population • 5. Shifts in urban, suburban, and rural areas • 6. Competition
- 20. Recruitment Strategy • 1. Refer to a staffing plan. • 2. Confirm the job analysis is correct through questionnaires. • 3. Write the job description and job specifications. • 4. Have a bidding system to recruit and review internal candidate qualifications for possible promotions. • 5. Determine the best recruitment strategies for the position. • 6. Implement a recruiting strategy
- 21. Job Analysis and Job Descriptions
- 22. • With task job analysis, the specific tasks are listed and it is clear. With competency based, it is less clear and more objective. However, competency-based analysis might be more appropriate for specific, high-level positions. For example, a competency-based analysis might include the following:
- 23. • 1. Able to utilize data analysis tools • 2. Able to work within teams • 3. Adaptable • 4. Innovative
- 24. Training Program Framework Development
- 25. SUPPLY CHAIN NETWORK • Supply Chain is a connection of all the parties, resources, businesses and activities involved in the marketing or distribution through which a product reaches the end user. It creates a link between the channel partners like suppliers, manufacturers, wholesalers, distributors, retailers, and the customer. To put simply, it encompasses the flow and storage of the raw material; semi-finished goods and the finished goods from point of origin to its final destination i.e. consumption
- 27. • Material flow: • Is the movement of goods from raw primary goods (such as Wool, Trees and Coal etc.) to complete goods (TV’s, Radios and Computers) that are to be delivered to the final customer. • Information flow: Is the demand from the end-customer to preceding organisations in the network.
- 29. DEMAND PLANNING • What is Demand Planning? Demand planning is a supply chain management process of forecasting, or predicting, the demand for products to ensure they can be delivered and satisfy customers. The goal is to strike a balance between having sufficient inventory levels to meet customer needs without having a surplus. A wide variety of factors can influence demand, including labor force changes, economic shifts, severe weather , natural disasters or global crisis events .
- 30. • (1) Product Portfolio Management Product portfolio management oversees the overall product lifecycle, beginning with the introduction of a new product through to its end-of-life planning. In many cases, product lines are interdependent, and understanding how new products may influence demand for other products is important to understanding the overall product mix required to maximize market share.
- 31. • (2) Statistical Forecasting Using historical data, statistical forecasting creates supply chain forecasts with advanced statistical algorithms. In this area, it is important to determine the accuracy of each model, identify outliers and exclusions and understand assumptions. Seasonal shifts (think the spurt of holiday shopping that occurs between October and December for retailers, or the boost in yard equipment sales in spring months) can also be assessed with statistical forecasting
- 32. • (3) Trade Promotion Management Trade promotion or marketing events can influence demand, especially in the retail industry. The goal of a trade promotion is to help a brand connect with a customer, often through an in- store giveaway, discount, or promotion, and these events can impact the demand for a product.
- 33. INVENTORY AND SUPPLY CHAIN MANAGEMENT INVENTORY MANAGEMENT • Retail inventory is the stocking of products that you sell to consumers. Use the system to set profitable prices and ensure you have the right amount of stock to meet demand
- 34. • Manufacturing Inventory Management Manufacturing inventory management is the practice of keeping enough stock on hand so production lines can fulfill orders. The process helps managers see stock levels at a glance and tracks raw materials, parts, work-in-progress and finished goods. • What Is Multi-Location Inventory Management? Multi- location inventory management is the process of managing stock across multiple locations, warehouses, and retail stores or across multiple selling channels. With multi-location management, you can watch stock levels in all locations and optimize your inventory to fulfill orders
- 35. • What Is an Inventory Management System? An inventory management system combines varying software packages to track stock levels and stock movements. The solution can integrate with multichannel sales systems or shipping systems. • How to Choose an Inventory Management System? Choosing an inventory management system is a matter of identifying the features your business needs. Do you need to track stock movements and location within a warehouse, or plan inventory and track trends, or both?
- 36. LOGISTICS • What is Logistics and Supply Chain Management? "Logistics typically refers to activities that occur within the boundaries of a single organization and Supply Chain refers to networks of companies that work together and coordinate their actions to deliver a product to market. Also, traditional logistics focuses its attention on activities such as procurement, distribution, maintenance, and inventory management. Supply Chain Management (SCM) acknowledges all of traditional logistics and also includes activities such as marketing, new product development, finance, and customer service" - Michael Hugos
- 38. • What is Logistics? "Logistics is about getting the right product, to the right customer, in the right quantity, in the right condition, at the right place, at the right time, and at the right cost (the 7 Rs)" - John J. Coyle et al In the past, various tasks were under different departments, but now they are under the same department and report to the same head as below
- 40. • What is Logistics Management? "Logistics Management deals with the efficient and effective management of day-to-day activity in producing the company's finished goods and services" - Paul Schönsleben
- 41. • What is Supply Chain? "Supply Chain is the network of organizations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate consumer" - Martin Christopher • What is Supply Chain Management? Each researcher defines supply chain management differently. However, we would like to provide the simple definition as below, "Supply Chain Management (SCM) refers to the coordination of production, inventory, location, and transportation among the participants in a supply chain to achieve the best mix of responsiveness and efficiency for the market being served" -Michael Hugo
- 42. ANALYTICS APPLICATIONS IN HR & SUPPLY CHAIN • Advanced analytics can be leveraged by HR teams to positively impact both talent and business decisions in the organization. HR can evolve from being just a people-management function to playing a more transformational role in human capital management and being a strategic business partner in the company.
- 43. • 1. Hiring The Right Talent With Competency Acquisition Analytics Hiring the right talent is instrumental to a company’s success with employees amounting to one of the biggest costs and greatest opportunities in most businesses. Hence, in order to study whether or not you are acquiring the right talent for your business, competency acquisition analytics can be used
- 44. • 2. Recruitment Channel Analytics Just as important as hiring the right talent, is understanding where the best talent is coming from. Recruitment channel analytics is a process that helps determine where an organization’s best employees have been recruited from, and what recruitment channels have been most effective in hiring the right resources for the company
- 45. • 3. Classification Analysis To Determine The Success Rate Of Teams Classification analysis is the process of analyzing historical data to identify patterns that help us predict which category a particular observation or data entity belongs to. In HR, this analytical method can be used to study the composition of a team, and other context variables in order to determine how successful the team will be.
- 46. • 4. Attrition Analysis High attrition is a huge challenge for HR teams and cost intensive for companies. Job postings, recruiting, onboarding and training are some significant expenses of losing employees and replacing them. This is a bigger problem if you’re in a customer-facing business as customers prefer to work with a particular set of people they’re habituated with. One way to reduce attrition is by using advanced analytics and NLP to harness the employee reviews data from employment websites like Glassdoor, Indeed, Comparably etc. This analysis helps you measure the employee satisfaction towards the brand and understand the common factors that lead to attrition
- 47. • 5. Personalizing Training Programmes Instead of applying run-of-the-mill training methods and general programs for all employees, the HR team can instead personalize courses to suit the learner’s preference.
- 48. • 6. Capacity Analytics And Utilization One of the major business benefits of advanced analytics in HR is in cutting down costs. HR teams can use Capacity Analytics to determine • What the team capacity is and how much of it is actually being utilized. • What activities the team is engaged in when they are working. • What processes, tools, and applications are being used to complete the work and how much they cost the company. • How operationally efficient the team is – helps determine if the team is either overworked or underutilized. • The capacity for growth.
- 49. APPLYING HR Analytics to make a prediction of the demand for hourly employees for a year • UPS Improves Employee Performance And Productivity An example of a company using HR analytics to improve employee performance can be seen in the logistics giant, UPS. UPS has provided its drivers with intelligent handheld computers that help drivers make better decisions, such as determining which order to deliver parcels in for the most efficient route. Additionally, the company collects crucial data on the behavior of the driver with the help of more than 200 sensors that are fitted onto the trucks. These sensors record data on everything the driver does, such as whether or not they wore a seatbelt or how many times they reversed the vehicle. This data is then used to provide feedback to the drivers and suggest improvements or training wherever needed. Another major impact the insights have had is on the revenue of the company. • UPS has achieved a reduction of 8.5 million gallons of fuel and 85 million miles per year. Drivers are now making more deliveries per day with an average of 120 stops a day as opposed to less than 100 in the past
- 50. • Bank Of America Saves $15 Million With Retention Analytics Turnover rates in US-based call centres are generally high – about 40%. And Bank of America was experiencing a similar problem with its call centres as well. This in turn led to poor customer experience and customer frustration. After collecting data from all its call centers, the company leveraged analytics to understand the root cause for such high turnover rates. The company found that the call centers which promoted inter-office collaboration have higher retention compared to the ones that did not. Using this insight, the bank optimized its business policies and allowed everyone to take breaks together. After just a few weeks of this change, Bank of America witnessed that the call handling time was 23% faster and cohesiveness was up by 18%. This led to the company saving $15 million with the increased productivity and decreased employee turnover