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The Human Resource Approach

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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Successful companies need people who are


Adaptable - Committed - Motivated - Skilled/re-skilled - Energetic Good team players
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Core Objectives of HRM


Staffing Performance Change management Administration

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Goals of HRM:
General Productivity QWL
Legal compliance Competitive advantage

Specific attracting retaining


motivating retraining
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Good Human Resource Practice


Recognize peoples needs & expectations Respect the individual Provide justice in treatment Provide stable employment And

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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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Hard Vs Soft HRM


(Torrington & Hall 2002) Hard
Workers are a resource like any other resource

Soft
Workers are key to competitive advantage and must be nurtured & developed

Not mutually exclusive HRM is fundamentally unitarist


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Who is Responsible?
Line managers HR professionals Consultants/sub-contractors employees
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Current Issues in HRM


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 Vs Best Fit

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:

Some Ethical Concerns


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

Reward Employee Relations

The Strategic Core

Resourcing
Performance

Development
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Current + Future Demand for labour

Current Supply of labour

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The Recruitment & Selection Process


Human resource planning Job analysis Recruitment Selection Induction
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Performance Management
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2.

3.
4.

5.
6.

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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Establish, communicate & agree objectives

Evaluate performance

Communicate Decisions & results

Compare performance with objectives

Take corrective action Review objectives Continue unchanged


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Decide on appropriate action


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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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The Appraisal Interview


Tell-and sell
Tell-and listen Joint-problem-solving

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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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Objectives of Reward Package


Attract employees Retain good employees Motivate Contribute to H.R. strategy
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Effective Reward System


Satisfies basic needs Flexible Internal equity External equity Trust (management & staff believe in it)

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Training & Development


- Assessment of need

- Design & delivery


- Transfer & evaluation

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Cutting Edge of HRM


Key changes:
Attendance management performance

Use of management to implement HR strategy


Emphasis on communication & training as tools Belief in potential of people to yield competitive advantage
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A higher status for the people person (Financial Times 29/01/02)


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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