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  2. Introduction to SHRM by Sajid AsgharRana Pak Aims– Pakistan Institute of Management Sciences, Lahore

  3. Personnel Management A traditional way of working with out much involvement of work force in decision making. A short term management approach which is more of a tactical in nature.

  4. Human Resource Management A pro-active way of management with a strategic focus, relying upon variety of communication channels and preparing the individuals to take responsibilities for their own decisions and actions.

  5. Personnel Management Vs HRM A Debate • The personnel management tends to be tactical in its approach; the focus of the HRMis more of strategic. • The personnel approach tends to be short term; the HRM approach is proactive and think long term whilst developing policies on major new initiatives.

  6. Personnel Management Vs HRM A Debate Cont… • While taking issues the personnel approach tends to be rather piecemeal; theHRMapproach to the same issues is to place them within a clearly defined integrated framework which has been worked out to benefit the organization and to which the HR Manager and other staff has contributed.

  7. Personnel Management Vs HRM A Debate Cont… • Personnel Management tends to rely on traditional forms of communication; the HRMtends to use a variety of communication channels.

  8. Personnel Management Vs HRM A Debate Cont… • Personnel management tends to operate in organization where there are traditional ways of working and where there is not much involvement of the work face in decision making; HRMemphasizes on the importance of the involvement of every one in decision making e.g. work teams and quality circles.

  9. Personnel Management Vs HRM A Debate Cont… • Personnel management tends to work in traditionally unionized organizations; HRMtends to encourage single status agreements and de-emphasizes the role of trade unions.

  10. Personnel Management Vs HRM A Debate Cont… • Personnel management tends to use traditional pay systems; HRMemphasizes the needs to manage performance and motivate people by the use of various payment systems which are integrated with the organizations’ objectives.

  11. Personnel Management Vs HRM A Debate Cont… • Personnel management approach tends to operate from a pluralistic point of view; the HRMapproach tends to operate from a unitary perspective emphasizing on the need for every one in the organization to work towards common goals, so unions are not encouraged since they are not seen to be necessary.

  12. Personnel management’sfocus is on getting the same conditions for groups; HR Managersfocus on individual contract, payment and reward system. • Personnel Managersmay some time take coercive measures to tackle individuals with problems; HR Mangersfeel individuals should be prepared to take responsibility for their own decisions and actions. Personnel Management Vs HRM A Debate Cont…

  13. Personnel Management Vs HRM A Debate Cont… • Personnel management is concerned with the operational tasks and hence forth ensure supply of workforce who could physically endure the work patterns; HRMis demand driven and has more emphasizes on forecasting, planning and monitoring. HRMalso ensures the right number of people (Not Necessarily employees), with the right skills and the right attitude, or in the right place at the right time.

  14. Personnel Management Vs HRM A Debate Cont… • Personnel managerswant a system that is unilaterally imposed and rigid rules and procedures are devised to encourage this; HR Managerstend to say that people have a right to proper treatment at work and efficient management with fewer controls will achieve this.

  15. Personnel Management Vs HRM A Debate Cont… • Personnel management tends to regulate activities; HRMtends to devolve activities whereby line managers concentrating mainly on planning, monitoring and evaluating, instead of developing policies. • The personnel management approach tends to reflect the status quo and resist change; HRM tends to encourage change and increase flexibility in ways of working.

  16. The Management Process • Planning • Organizing • Staffing • Leading • Controlling

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

  18. Management Process • Staffing • Hiring • Recruiting • Selecting • Performance standards • Compensation • Evaluating performance • Counseling • Training and developing

  19. Management Process • Leading • Getting the job done • Morale • Motivation • Controlling • Setting standards • Comparing actual performance to standards • Corrective action

  20. What is HR Highly Ridiculous Handi Roti High Risk Hot Rod Human Rights Human Relations Human Resources

  21. HR – History & Evolution

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

  23. Indicators of effective - HRM • Turnover Rate. • Absenteeism / Sick Leaves. • Training Budget. • Occupational Safety, Health & Environment. • No. of Litigation Cases in Labor Courts. • Motivational Level. • No. of Industrial Accidents.

  24. Strategic Human Resource Management

  25. Strategic Human Resource Management • Objectives at National level • Create Opportunities. • Cure Diseases. • Curb Inflation. • Feed the Hungry. • Compete Internationally.

  26. Strategic Human Resource Management • Objectives at National level • Lower Unemployment • Revive The Economics of living • Establish Good Governance • Develop Visionary Leadership • Build a Nation With a Meaningful Prospects & Positive State of Mind

  27. Strategic Human Resource Management • Objectives at Organization Level • Organizational Design • Competency based Capacity Building • Act as an Enabler of Change Catalyst • Build High Performance work Culture • Manage Work Force Diversity • Mange People and Organization’s Productivity • Empower the power • Create Acuity, Groups and Teams

  28. Strategic Human Resource Management • A vertical as well as horizontal function, staff as well as line. • Development of HR strategies out of the organizational vision, mission staying in line with the ultimate business strategies. • Development of smart goals / objectives. • Maintaining the requisite level of HRD, by staying in line with the organizational growth and development.

  29. Functions Of Human Resource Management • Strategic Human Resource Management • Selection and Recruitment System • Performance Appraisal System • Training and Development • Compensation Management • Labor Laws & Industrial Relations • Environment , Occupational Health &Safety • Human Resource Information System

  30. HR’s Evolving Role Protector and Screener Change Agent Strategic Partner

  31. HR is all about managing peopleORIts about managing the people side of a BUSINESS “If you want to manage people effectively, help them by making sure the org chart leaves as little as possible to the imagination. It should paint a crystal-clear picture of reporting relationships and make it patently obvious who is responsible for what results.” – Jack Welch, Winning, Pg 115

  32. HRM – It’s All About Results “ For many years it has been said that capital is the bottleneck for a developing industry. I don’t think this any longer holds true. I think it’s the work force and a company’s inability to recruit and maintain a good work force that does constitute the bottleneck….” F. K. Foulkes.


  34. Who Are Managers Manager Someone who coordinates and oversees the work of other people so that organizational goals can be accomplished.

  35. Classifying Managers • First-line Managers Individuals who manage the work of non-managerial employees. • Middle Managers Individuals who manage the work of first-line managers. • Top Managers Individuals who are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization.

  36. Exhibit 1–1 Managerial Levels

  37. Management Concerns • Managerial Concerns Efficiency • “Doing things right” • Getting the most output for the least inputs Effectiveness • “Doing the right things” • Attaining organizational goals

  38. Exhibit 1–2 Effectiveness and Efficiency in Management

  39. What Do Managers Do • Management Roles Approach (Mintzberg) • Interpersonal roles • Figurehead, leader, liaison • Informational roles • Monitor, disseminator, spokesperson • Decisional roles • Disturbance handler, resource allocator, negotiator

  40. What Managers Actually Do • Interaction • with others • with the organization • with the external context of the organization • Reflection • thoughtful thinking • Action • practical doing

  41. What Do Managers Do • Skills Approach • Technical skills • Knowledge and proficiency in a specific field • Human skills • The ability to work well with other people • Conceptual skills • The ability to think and conceptualize about abstract and complex situations concerning the organization

  42. Exhibit 1–5 Skills Needed at Different Management Levels

  43. What Is An Organization • An Organization Defined A deliberate arrangement of people to accomplish some specific purpose (that individuals independently could not accomplish alone). • Characteristics of Organizations • Have a distinct purpose (goal) • Composed of people • Have a deliberate structure

  44. Exhibit 1–9 Characteristics of Organizations

  45. Exhibit 1–10 The Changing Organization

  46. Exhibit 1–11 Universal Need for Management