2 Strategic Role Approach Human Resource Management Management

2 Strategic Role – Approach Human Resource Management

Management Process p Planning n n n p Goals and standards Rules and procedures Plans and forecasting. Organizing n n n Tasks Departments Delegating Authority and communication Coordinating

Management Process p Staffing n n n n Hiring Recruiting Selecting Performance standards Compensation Evaluating performance Counseling Training and developing

Management Process p Leading n n n p Getting the job done Morale Motivation Controlling n n n Setting standards Comparing actual performance to standards Corrective action

HRM Function Human Resource Management is the process of: p p acquiring, training, appraising, and compensating employees and attending to their p labor relations, p health and safety, and p fairness concerns.

HRM People Functions Include: p p p p Job analyses Labor needs Recruit Select candidates Orient and train Wages and salaries Incentives and benefits p p p p Performance Communicate Train and develop Employee commitment Equal opportunity Health and safety Grievances/labor relations

HRM is Important to all Managers. Don’t Let These Happen to You! p The wrong person p High turnover p Poor results p Useless interviews p Court actions p Safety citations p Salaries appear unfair p Poor training p Unfair labor practices

Line & Staff Aspects of HRM p Authority distinguishes line from staff as in n p Line Managers n p Making decisions Directing work Giving orders Accomplishing goals Staff Managers n Assisting and advising line managers

Line Manager’s HRM Jobs p p p The right person Orientation Training Performance Creativity Working relationships p p p Policies and procedures Labor costs Development Morale Protecting

HR Department Organizational Chart

Strategy, Policy & Administration p Strategy is: n the company’s long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage. n establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent but also support the achievement of business goals

Strategy, Policy & Administration p Policy: the development and implementation of detailed procedures, and systems which reflect the strategic framework. p Administration: day to day administration of operational activities such as records, payrolls, and benefits programmes

Levels of strategies Corporate Strategy Business Strategy Functional Strategies Business Strategy

Strategic Planning Process p SWOT analysis - Strengths, Weaknesses, Opportunities, and Threats p Best strategic plans balance a company’s Strengths and Weaknesses with the Opportunities and Threats the firm faces p Basic strategic plans address trends n Globalization n Technological advances n The nature of work n The workforce

HR’s evolving role Protector and Screener Change Agent Strategic Partner

Strategic HRM p Strategic human resource management: linking HRM with strategic goals and objectives to improve business performance and develop organizational cultures, design, people and systems that fosters innovation and flexibility.

Strategic approach to HRM Shape & Structure of org. & ind. role Valuing the contribution of individual roles Remuneration strategy Selection development and training Managing Individual performance

Clarify the business strategy Realign the HR functions and key people practices HR STRATEGY Create needed competencies and behaviors Realization of business strategies and results Evaluate and refine

HR STRATEGY PWC Approach Corporate Strategy Organisation Analysis HR Mission Environmental analysis HR Planning Generation of Strategic choices/options Culture Organisation People Objectives HR action plan Implementation Review & evaluate Systems

HR Strategy planning The structure, jobs, roles and reporting lines of the organisation Organisation The beliefs, values, norms and style of organisation Culture HR policies & objectives People Systems The process by which things get done in the organisation The skill levels, staff potential and mgmt capability of the organisation

How HR helps strategy execution p p Functional strategies should support competitive strategies Value chain analysis Outsourcing Strategy Formulation

How HR helps form strategy p Formation of a company’s strategy = identifying, analyzing and balancing external opportunities and threats with internal strengths and weaknesses p Environmental scanning

HR and technology p Basic HR systems demand paperwork n 70% of HR’s employees time = paperwork n Off the shelf forms from Office Depot/Officemax n Online forms p Human Resource Information Systems (HRIS) p HR on the Internet

HR means performance p Can HR have a measurable impact on a company’s bottom line? p Better HRM translates into improved employee attitudes and motivation (e. g. , working at home) p Well run HR programs drive employee commitment