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Master Workshop. Human Resource Management: A Strategic Approach. Why is HRM important to all Managers?. Why is HRM important to all Managers. HRM is a function of every manager’s job, Not just those who work in HRM!!!. Definition of HRM. HRM Basic Functions. 1) Staffing

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master workshop


Human Resource Management:

A Strategic Approach

why is hrm important to all managers1
Why is HRM important to all Managers

HRM is a function of every manager’s job,

Not just those who work in HRM!!!

hrm basic functions
HRM Basic Functions
  • 1) Staffing
  • 2) Training and Development
  • 3) Motivation
  • 4) Maintenance
hrm basic activities
HRM Basic Activities
  • 1) Hiring People
  • 2) Preparing them
  • 3) Stimulating them
  • 4) Keeping them
hrm goals and functions
HRM Goals and Functions





strategic human resource management
Strategic Human Resource Management
  • Definition:
  • “Strategic HRM mobilises human capital through the HRM process to best implement organisational strategies.”
  • “Strategic HRM is the formulation and execution of HR policies and practices that produce competent employees with the behaviors needed to achieve the company’s strategic goals.”
strategic human resource management1
Strategic Human Resource Management
  • Strategic nature of HRM
  • Significant Role in today’s organisation
  • HRM must take lead in assisting management with the “people component” of the organisation.
  • It has to support the business strategy!
  • HR has to work with line managers to analyse the organisational designs, culture, performance systems and recommend and implement changes when necessary.
strategic human resource management2
Strategic Human Resource Management
  • When an organisation plans strategically, it determines its goals and objectives for a given period of time.
  • These can lead sometimes to structual changes in the organisation.
  • This means changes in job requirements, reporting relationships, how individuals are grouped, etc…
  • HR has to be ready to implement these changes and fill new jobs, update existing ones, etc…
strategic hrm
Strategic HRM
  • HRM department has to be part of the strategic planning process.
    • It has to be able to determine the feasibility and cost of the different scenarios.
  • How can this process take place?
strategic hrm cont
Strategic HRM, cont.
  • Based on mission and strategy of the organisation, the HR managers can begin determining HR needs.
  • This can take place when an organisation is newly established.
  • Also, when an organisation is planning strategically periodically, it determines and re-shapes goals and objectives for a given period of time. This can lead to various changes in the organisation.
strategic hrm cont1
Strategic HRM, cont.
  • Human Resource Planning

“is the process of analysing an organisation’s human resource needs and determining how to best fill them.”

  • Analyse needs.
  • Determine how to best fill them

The foundations for human resource planning are set by the job analysis.

(i.e. to determine what is done, when, where, how, why and by whom in existing or potential new jobs in an organisation.

linking organisational strategy to hr planning
Linking Organisational Strategy to HR Planning
  • Based on the strategy of the company, HR should determine what jobs need to be done and by whom.
  • This is employment planning.
    • ?????
what does an hr plan include
What does an HR plan include?

1. Clear assessment of the organisation’s current skill sets.

  • Identify and evaluate gaps.
  • What gaps can be filled internally through training?
  • What gaps have to be filled externally through recruiting or outsourcing?
  • Examine organisational design/structure.
  • Map out training strategies for the organisation.
what does an hr plan include1
What does an HR plan include?
  • Identify motivational strategies (including employee benefits).
  • Put together the succession planning strategy.

Keep in mind:

“Make sure you are being strategic with your investment in people!”

Monitor and evaluate the progress of the plan.

remember organisational structures
Remember Organisational Structures?
  • First, we evaluate the structure and make sure it is relevant to the strategy and vision and goals.
  • We need to conduct job analysis of each job on the organisational structure.
  • Once we do this we can construct a succession chart.
  • Succession chart enables “Talent Management”.
  • The succession chart helps identify training needs.
strategic hrm cont2
Strategic HRM, cont.
  • The organizational chart
    • What kind of structure
    • Key positions
    • Potential Succession chart
job analysis part of the hrm strategic planning activities staffing activities of hrm
Job analysisPart of the HRM Strategic Planning Activities(Staffing Activities of HRM)
job analysis
Job Analysis
  • Very important aspect, as it determines much of the success of HRM.
  • Though the job analysis process, HRM identifies the essential qualifications for a particular job.
  • “Almost all activities of the HRM revolve around an accurate analysis of the job.
  • Main goal: search and secure best possible candidates.
methods of collecting job analysis information
Methods of Collecting Job Analysis Information
  • Interviews
  • Questionnaires
  • Observation
  • Participant Diary/Logs
  • Using the Internet
obtaining the job analysis information
Obtaining the Job Analysis Information
  • Greet participants and conduct brief introductions
  • Briefly explain the job analysis process and the participant’s role in the process
  • Spend about 15 minutes determining the scope of the job you’re about to analyze by getting agreement on the job’s basic summary
obtaining the job analysis information cont
Obtaining the Job Analysis Information, cont.
  • Identify the job’s broad functional or duty areas, such as “administrative” and “supervisory”
  • Identify tasks within each duty area using a flip chart or collaboration software
  • Print the task list and get the group to sign off on it
job description cont
Job Description, cont.
  • Relationshipsstatement may show the jobholder’s relationships with others inside and outside the organization and may include the following sections:
      • Reports to
      • Supervises
      • Works with
      • Outside the company
job description cont1
Job Description, cont.
  • Responsibilities and Duties is the heart of the job description and presents a detailed list of the job’s responsibilities and duties
  • Authority defines the limits of the jobholder’s authority, i.e. may approve purchases up to $5,000 or grant time off or leaves of absence
  • Standards of Performance lists the standards the employee is to achieve in each of the job description’s main duties and responsibilities
job description cont2
Job Description, cont.
  • Working Conditions and Physical Environment lists the general working conditions of the job and may include noise level, any hazardous conditions, heat, cold, etc.
  • Internet-based job descriptions
    • Simplified process, easily searchable
    • Content can be customized
job analysis1
Job Analysis
  • A thorough job analysis leads to:
  • Accurate “Job Specifications”.
    • These are the qualifications and necessary skills for each job in the organisation.
    • This in turn helps determining training needs.
  • Reliable “Job Evaluation”:
    • This determines the level of that job in the organisation.
    • The value of the job in the organisation.
training and developing employees
Training and Developing Employees

Orientation of Employees (mainly new)

  • Employee orientation provides new employees with basic background information needed to perform their jobs satisfactorily
  • Socialization is the continuing process of instilling in all employees the attitudes, standards, values and behavior patterns expected by the company
  • Training (intense) should take place after they are more comfortable with their surroundings.
training and developing employees1
Training and Developing Employees
  • 4 areas of training and development for each job in the org.:
  • Employee training (for current job) – by org.
  • Employee development (for future job) – by org.
  • Career development (to enhance career) – by individual.
  • Organisational development (to achieve systematic change in the organisation) – by org.
training employees
Training Employees
  • Training refers to methods employers use to give new or present employees the knowledge and skills needed to perform their jobs
  • Training today is characterized by three things:
    • Increasingly technology-based
    • Trainers focus more explicitly on improving organizational performance
    • Training includes more than technical skills and usually includes team-building, decision-making and communication skills training
evaluating training and development efforts
Evaluating Training and Development Efforts
  • Design the evaluation study and identify training effect to measure.
  • Reactions to training program
  • Determine whether trainees learned the principles, skills and facts they were supposed to learn
  • Determine if the trainee’s behavior on the job changed due to training
  • Evaluate results achieved in terms of training objectives
  • Factors affecting motivation:
    • Appropriate technology and office automation as well as supply and furniture.
    • Level of respect between management and employees.
    • Empowerment of employees.
    • Motivational theories implications.
    • Performance standards for each employee should be set.
  • A performance evaluation system is designed to provide feedback to employees regarding their past performance, while addressing any performance weakness the employee may have.
  • There has to be a link between employee compensation and performance.
  • A transparent performance appraisal system ensures procedural justice in doing that.
  • Outcome: compensations and benefits program based on a pay-for-performance plan.
  • Performance Appraisal
  • Appraisals provide important input used by supervisors to make promotion and salary raise decisions
  • The appraisal lets the boss and subordinate develop a plan for correcting deficiencies and reinforce what the subordinate does right
  • Appraisals serve as a useful career-planning tool providing opportunity to review the employee’s plans
motivation appraisals
Motivation - Appraisals
  • Who should do the performance appraisals?
motivation appraisals1
Motivation - Appraisals
  • The importance of an appraisal interview:
    • Give the subordinate at least a week’s notice
    • Study his or her job description, compare performance to standards and review files of previous appraisals
    • Chose a private place where you will not be interrupted and schedule enough time to complete the interview
motivation appraisals2
Motivation - Appraisals
  • Performance management avoids issues with strategic planning by encouraging employees to set goals that make sense and are provided with continuous feedback with corrective action taken as needed
motivation employee compensation
Motivation – Employee Compensation
  • Employee compensation refers to all forms of pay or rewards going to employees arising from employment
    • Direct financial payments: Wages, salaries, incentives, commissions and bonuses
    • Indirect payments: Benefits like employer-paid insurance and vacations
motivation employee compensation1
Motivation – Employee Compensation

How to establish pay rates:

motivation employee compensation2
Motivation – Employee Compensation
  • Salary (or compensation) surveys are formal or informal surveys of what other employers pay for similar jobs that are used as benchmarks
  • Data is accumulated through a variety of sources
  • Job evaluation is a formal and systematic comparison of jobs to determine relative worth of one to another (based on job analysis)
    • Compares content, effort, responsibility and skills
    • Increases equity
motivation employee compensation3
Motivation – Employee Compensation
  • Incentive plans pay for performance
    • Individual incentive programs are based on an individual’s performance, i.e. piecework plan for laborers, stock options for executives, or commission for salespeople
    • Variable pay plans are based on group productivity
motivation employee compensation5
Motivation – Employee Compensation

Other incentives

  • Merit pay, or a merit raise, is any salary increase awarded to an employee based on his or her individual performance
  • Profit-sharing plans share the company’s annual profits with employees meeting the requirements
  • Employee stock ownership plans (ESOP) are company-wide plans in which the corporation contributes shares of its own stock – or cash to be used to purchase stock – to a trust established to purchase shares for employees
motivation employee compensation6
Motivation – Employee Compensation
  • Benefits are indirect monetary and nonmonetary payments an employee receives for continuing to work for the company, i.e. health insurance
    • Pay for time not worked or supplemental pay benefits includes holidays, vacation days, bereavement leave, sick leave, military leave, etc.
    • Severance pay
  • This includes various activities from the Motivation function like fringe benefits, incentives, career development, ethical and fair treatment.
  • It also includes effective communication programs that emphasise and highlight:
    • Top management communication
    • Effective upward communication
    • Transparency
    • Allowing feedback
    • Accurate information