Tehzeeb Sakina Amir IU – Spring 2011 HRMm - MBA

1. Human Resource Management Tehzeeb Sakina Amir IU – Spring 2011 HRMm - MBA

2. Start up session • Welcome & Class introduction • Course facilitator introduction • Course Objectives • Importance of HRM • Outlines HRM ways for the benefit of the organization and employees • Issues in HRM in changing work environment • Suggests ways of managing human capital

3. Start up session • Teaching methodology • Teaching will mainly be done through coaching the students with interactive sessions. • The key to success is to keep the concept clear, simple and always look for its practical application in a working environment

4. Start up session • Class norms -To get the maximum benefit out of the course students are strongly recommended to: • Arrive and leave in time! No early leaves / late comings • Come Prepared! This is not a lecture-only course! • Planned & surprise class quizzes/activities, be regular! • Assignments and other related work has to be submitted on time. Late submission will not be acceptable and will be marked zero! • Do your own work! Copied work will be marked zero! • Cell phones switch off or put on silent please! • No personal, political and religious examples & comments.

5. Course outline and grading • Course content (modules) – soft copy email or copy from temp folder. • Testing & Grading • Grading will focus on your overall performance rather than one or two aspects. A mid-term examination & a final examination will be taken. • Class Participation Class quizzes, assignments 25% • Mid-term 25% • Term project 10% • Final Exam 40% • TOTAL 100%

6. Books & Journals • Resources • Gary Dessler and Biju Varkkey “Human Resource Management” eleventh edition • Snell S. and Bohlander G. “The Handbook of Human Resource Management” 2007 • Society for Human Resource Management via www.shrm.org • HRM research papers and scholarly journals

7. Selection of CR & Groups formation • CR nomination • Groups formation • Class information (email addresses) • Term Project

8. Human Resource Management Your understanding Human Resource Management

10. To sum up…. HRM is one function of management process where policies and practices focus on carrying out “people” including recruiting, screening, training, rewarding and appraising.

11. HRM functions • To perform the ‘people’ • Conducting job analysis • Planning labor needs & recruiting job candidates • Selecting • Orienting and training • Managing wages & salaries • Providing incentives and benefits • Performance appraisals • Communicating – interviewing, counseling, disciplining • Training and developing • Building employee commitment

12. HRM functions • A manager must know: • Employment laws • Equal opportunity and affirmative action • Employee health & safety • Handling grievances & labor relations • HRM specialties • Recruiters • HR development specialists • Job analysts • Compensation managers • Training specialists • Employment/industrial relations specialists • Employee welfare officers

13. Small mistakes = huge loses • What can go wrong! • Hire the wrong person • High turnover • People not performing • Waste time with useless interviews • Have your company taken to court because of discriminatory actions • Have your company cited under occupational safety laws for unsafe practices • Unfair and inequitable salaries • Lack of training • Commit unfair labor practices

14. Every manager is an HR manager…

15. Authority – line and staff • Authority – the right to make decisions, direct other’s work and give orders. • Line authority – direct activities in own department and in service areas • Staff authority – to advise other managers

16. HR manager’s duties • A line function • A coordinative function – to ensure line managers are implementing organization’s policies, rules. • Staff functions- assist and advise line managers The size of HR department reflects the size of the company

17. HR Manager’s Proficiencies HR proficiencies Business proficiencies Leadership proficiencies Learning proficiencies Managing within the Law Managing Ethics

18. The changing environment and HRM

19. Major changes in work environment • Globalization trends & implications • Technological trends • Nature of work • High-tech jobs • Service jobs • Knowledge work & human capital • Workforce demographic trends • Availability of ‘Employable Talent’

20. Labor Legislation and Laws

21. Labor Laws Pakistan • Labor legislation is the responsibility of both Federal and Provincial governments • Total labor force in Pakistan • 37.15 million people • 47% agriculture sector • 10.5 % in manufacturing • 42.5% in various other professions (source: labourunity.org)

22. Labor Laws Pakistan • Article 11 of the constitution prohibits child labor, forced labor and slavery • Article 17 right to exercise freedom of association and unions • Article 18 right to enter any lawful profession, occupation, business • Article 25 prohibits discrimination on basis of gender • Article 37 (e) provision for just and humane work conditions • Laws of hiring & firing • Laws of working hours (7hrs/day. 42 hrs/week – factories act) • Leaves paid • Child labor (below 14 years) • Strikes and Lock-outs

23. Equal Opportunity Employment • Discrimination on the basis of race, colour, religion, sex or national origin • Article 38 aims at achieving equality • Defenses against discrimination allegations • Disparate treatment – intentional discrimination • Disparate impact – neutral employment policy creating an adverse impact. (college degree requirement). Not intentional. • Adverse Impact: the overall impact of employer practices that result in higher percentage of a particular groups members being rejected or not promoted. Adverse impact can be shown through: • Disparate rejection rates • Restricted policy • Population comparison • Mc-Donnell-Douglas Test

24. Bona Fide Occupational Qualification • BFOQ - requirement that an employee be of a certain religion, sex, age or national origin which is necessary for organization’s functioning • Business Necessity – proof that there is an overriding business purpose for the discriminatory practice and should therefore be acceptable

25. Handling discrimination charges • Good intentions are no excuse!! • Can not hide behind collective bargaining • Agreement may be the best option… Diversity

26. Some discriminatory practices • Recruitment • Word of mouth • Misleading information • Help wanted ads • Selectionstandards • Educational requirements • Tests • Preference to blood relations • Height, weight and physical characteristics • Criminal records • Application forms

27. Some discriminatory practices • Existing employees • Promotions • Transfers • Layoffs • Personal appearance • Dress • Hair/beard • Uniforms

28. THE STRATEGIC HRMmore a partner than a cost centre..

29. The new HRM face Traditional Hiring/firing Payroll Benefits plan Strategic HRM Testing & interviewing technology Union legislation Equal employment legislation Creating High Performance Work systems

30. Strategic - concepts • Strategy is ‘The company’s plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats and to maintain a competitive advantage. • Strategic management is “The process of identifying and executing the organization’s mission by matching its capabilities with the demands of the environment.” • Strategic Plan + Implementation of the Plan

31. Strategic management - Steps • Step 1 Define current business and developing a mission • Step 2 SWOT evaluating internal & external strengths, weaknesses, opportunities and threats • Step 3 formulating a new business statement • Step 4 translating mission into goals • Step 5 formulate strategies or courses of action • Step 6 Implement the strategies • Step 7 Evaluate performance

32. Strategies - Types Corporate strategy – one organization into multi business but one corporate strategy Competitive strategy –business level strategy The Competitive Advantage – the edge, the differences with competitors that organization use to increase market share. Functional strategy –basic courses of action in departments.

33. Strategic Fit • Dilemma of manager – misfit • Two possibilities to overcome: • Fit – the manager should align functional strategies with and support its corporate and competitive strategies. • Can result in limited growth • Leveraging – supplementing what you have and doing more with what you have • Manager must underplay firm’s weaknesses & capitalize on unique core strength of the company

34. HRM Role in strategic front • HRMStrategicPlan is “formulating and executing HR policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims.” • HRM helps to create the ‘competitive advantage” for the organization • The Competitive advantage can take many forms: quality, research, software systems, diversity of the workforce, trained employees, HR policies & practices etc.

35. Linking organization & HR strategies Company’s competitive environment Strategic plan (expand/cut cost/diversify) Company’s strategic situation HR strategies Courses of action Company’s internal strengths And weaknesses Organizational performance

36. Challenges to HRM • Need to support corporate productivity and performance improvement efforts • Employees play an expanded role in employer’s performance improvement efforts • HR units must be more involved in designing – not just executing – the company’s strategic plan

37. HRM Strategic Roles • The Strategic Roles: • The Execution Role – the doing part • The Formulation Role – expanded role – where included in working of formulating corporate and competitive strategies

38. The Strategic HRM System The HR Function HR professionals With strategic management competencies The HR System High Performance Work system Employee Behaviors Employees Competencies, Values, Motivation, & Behaviors required

39. High Performance Work Systems • A system which tends to create human resource with unique support to organizational needs • Aims to maximize competencies, commitment and abilities of the employees which produce superior performance • Vary from organization to organization

40. Includes practices: Employment security Selective hiring Extensive training Self managed teams and decentralized decision making Reduce status quo Information sharing Contingent rewards (pay-for performance) Transformational leadership Measurement of management practices Emphasis on high quality work High Performance Work Systems

41. Assessing HRM performance • Absence rate • Cost per hire • HR expense factor • Time to fill • Turnover rate

42. Southwest Airlines "Our people are our single greatest strength and most enduring long term competitive advantage." Gary Kelly, CEO Southwest Airlines • The Mission of Southwest Airlines • The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. • To Our Employees • We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.