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HR is primarily an administrative function HR has little strategic importance and does not represent a potential source of an organizations competitive advantage HR is a cost centre its activities add to an organizations expenses/costs but not to revenue
HR can and indeed should play a key role in an organizations strategy There is increasing evidence that HR activities are associated with various indicators of organizational performance (e.g., ROI, profitability, stock prices) $ put toward HR systems and activities should be viewed as investment rather than simply cost
HRM
Integration of HRM systems to the overall mission, strategy, and success of the firm, while meeting the needs of employees and other stakeholders The intentional use of HR systems to help an organization gain competitive advantage
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SHRM
Creating a strategy-oriented HR system
The HR Function HR professionals with strategic management competencies The HR System High Performance Work System (HPWS) consisting of strategically aligned HR policies, practices and activities Employee Behaviors Employee competencies, values, motivation, and behaviors required by the companys strategic plan
SHRM
HRM : Shifting Paradigms Traditional HR
-Reactive -Staff function -Production oriented -People as liability investment -Just a resource in the production process advantage -Isolated from companys role in cos
Strategic HR
-Proactive -Strategic function -People oriented -People as
-key player in competitive -Integrated
HR & Productivity
Outsourcing is becoming increasing popular assists in decreasing inputs and increase flexibility decreases no of permanent workers just contract as required
HR & Productivity
Can help increase productivity by ensuring workers are happy involves:
finding better/more efficiency ways to meet objectives working on improving quality of life retraining and outplacement
Technology
Computerization - increased flex., when & where work is done decreases geographical barriers New issues arising:
Concerns over data control Rights to privacy Using technology to monitor employees
Technological Challenges
Computerization increased flexibility Automation some hazardous/repetitive jobs being automated Workers need to possess competencies related to technology Job losses (layoffs, etc.) due to technology Changes in how HR activities get done
E.g., internet recruiting
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HR Implications
Demographic Challenges
Demographic Challenges
Change in the types of work Shift toward knowledge workers Implications: different skill and training needs Educational attainment of workers
Higher education levels coupled with high illiteracy rates Implications: productivity, safety
Demographic Challenges
Aging workforce
Growing % of workforce is in higher age categories Implications: retirement, job design, re-training, benefits, work schedules, etc. Between 2010-2030, India will add 241 mn people to workforce - ILO Part-time and contingent workers accounts for about 45% of all employment Implications: more flexibility for organizations but raises issues of pay
Demographic Challenges
Need for increased accessibility for disabled persons Shift in worker focus and changes in attitudes towards work life balance
Ethnic diversity
Immigration from numerous countries Potential for conflicts of values, etc. but also opportunity to learn, expand
Legal Challenges
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Internal Environment
Organizational culture = values beliefs and assumptions positive culture = retention and recruitment success Organizational Climate = atmosphere of organization
Trends in HRM
Work-life balance
Reduces absenteeism Increases productivity Improves morale and working relationships Decreases stress Attracts new employees Helps retain current employees Implementation: Lots of consultation Flexibility at workplace Develop a plan with trail period
Trends in HRM
Temporary and contract labour Employee leasing
hiring permanent employees of another company on lease basis to meet short term requirements as per the leasing agreement Global sourcing of labour
Trends in HRM
Some considerations: whether trade actions could be used to impose labour standards? developing countries believe that it undermines the comparative advantage of lower wage trading partners the question of the relationship between the International Labour Organizations (ILO) standards and the WTO agreements