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HIGHER
Employee motivation & applied ability
GREATER
Quality & quantity of work
GREATER
Employee rewards & recognition
HIGHER
organisational productivity & profit
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Why is it important?
Extremely high competition More countries with low wages & high skilled workers Rapid technological advances Changing legal, political & social realities Changing values & educational levels Changing consumer demands
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Key Issues
Pivotal? Essence-individual differences Variation across organisations Generalist/Specialist function Personnel Vs H.R.M. Management Style
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Goals of HRM:
General Productivity QWL
Legal compliance Competitive advantage
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Provide good working conditions Opportunities for career progression & personal development Function as a democracy Observe the law & codes of conduct relating to employment
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Soft
Workers are key to competitive advantage and must be nurtured & developed
Who is Responsible?
Line managers HR professionals Consultants/sub-contractors employees
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Responding to intensified competition Managing international operations Technological innovation Complying with the law Managing with/without trade unions Ethical concerns** Best practice Vs Best fit
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Best Practice:
best way of carrying out HR activities that is universally applicable advanced selection methods, serious commitment to employee involvement, substantial investment in T&D etc. all is contingent on the circumstances of each organisation
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Best Fit:
Dismissing someone for incapability Failing to dismiss a senior manager Paying women less than men Pressure to change hours or location Paying less when you can pay more Failing to tell the truth at a tribunal Failing to make costly H&S alterations
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HRM Activities
Strategy Formulation 2. Human Resource Planning 3. Recruitment & Selection 4. Appraisal & Performance Mgt. 5. Reward Management 6. Training & Development 7. Employee Relations 8. Administration
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Organisation
Resourcing
Performance
Development
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Performance Management
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Clear objectives are essential for effective performance Communication is good Involvement Commitment Everyones work should relate to the organisations work People need feedback Responsibility and autonomy enrich jobs
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Evaluate performance
Appraisal Systems
Formalise the review part of the performance cycle Usually annual/bi-annual Form based Link to pay? One way Vs two way
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Reward Package =
Pay + incentives + benefits
- Pay = basic wage - Benefits = indirect rewards (eg. Car, VHI, expenses) - Incentives = performance beyond expectations (eg. Bonus, awards, share options)
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HR managers need to understand how their jobs have changed Need to be involved in looking for talented recruits, working on top level succession and helping to devise the long-term strategy of the organisation Dominated by professional rather than administration staff Report to the CEO & sit on the board
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