Basics Of Human Resource Management CIEM Module 1 PDF

BASICS OF HUMAN RESOURCE MANAGEMENT CIEM MODULE 1 Hon. Prof. (FH) Mag.(FH) Regina Rastbichler, MA  ASSESSMENT SCHEME The assessment comprehends 100 points in total It is based on the submission of 1. Case Study from the 6 topics of the lecture max. 60 points (group work)...

BASICS OF HUMAN RESOURCE MANAGEMENT CIEM MODULE 1 Hon. Prof. (FH) Mag.(FH) Regina Rastbichler, MA  ASSESSMENT SCHEME The assessment comprehends 100 points in total It is based on the submission of 1. Case Study from the 6 topics of the lecture max. 60 points (group work) 2. Final multiple-choice online test (Moodle Quiz) max. 40 points on January 13th, 2025 Assessment Criterias for Case Work:  No copy & paste from the presentation slides  Answers have to be related to the questions / task  Own and realistic ideas / proposals for the given task 3  Correct form in terms of spelling and grammar  THE HRM LANDSCAPE HR- Strategy & Planning Talent Competen Mgmt.& cy Mgmt. Developmen Employ Change t er Manageme Brandin nt Diversi g Talent ty Acquisiti Wor Retenti on k on Candida Compensati te on & Selectio Benefits HR n Socia HR HR-IT 5 Organization l Controlli Medi ng CONTENT FOR OUR LECTURE 1. Introduction to HRM: Development of HR ,Definition and targets of HRM, HR Strategy, HR-Organisation 2. Workforce Planning / Talent Aquisition /Employer Branding 3. Candidate Selection 4. Diversity Management 5. Talent-Management 6. Talent Development and Retention 6 „WARMING UP“ ► What comes to your mind when you hear HR? ► What topics are related to HR? From the perspective of: 1. Managers 2. Employees ► What are your expectations from HR? 1. As a manager 2. As an employee 7  DEFINITION HR MANAGEMENT All planned and controlled activities of an organisation to build and maintain the relation between employees and the organization in order to meet both: Business objectives and Employee expectations It includes all HR processes from the defintion of a strategy to the planning, organization and operational roll out including the control of all these responsibilies. Economical Aspects included: Legal Psychologi cal specific to the resource human Sociologica being 6 l  TARGETS OF HR Target duality of the HR function Company targets HR targets Economical / social targets are partically Economic Social conflicting! al targets targets Optimize 7 intersection!  ECONOMICAL TARGETS OF HR Reduction of the people cost Reduction of absence time and fluctuation Application of improvement processes Increase of employee flexibility Optimal combination of all production factors 8  SOCIAL TARGETS OF HR  increase of job satisfaction and commitment by humanization of the work: High income Social contacts Social security Adequate cooperative and Development and self- participative leadership actualizatin at the work style place Social status Good employment Work-life-balance conditions Unity of family and work Agreeable working life atmosphere Employee participation Learning opportunities Flexible working times Career opportunities Social benefits 9 Company pension OPERATIONAL VS. STRATEGIC HRM Operational Strategic HRM (SHRM) HRM abstracted from single related to employees and jobs employees / jobs consequent orientation to the company targets deals with => part of the individual company strategy personnel matters integration of the partial operational HR functions mainly short term (cross functional) oriented 10 planning horizon can be high degree of short-, SUB FUNCTIONS OF HR Main functions of operational HRM HR policies ( => strategy based) Personnel planning Personnel recruitment Employe Personnel e deployment „Life Personnel cycle“ development Personnel Personnel managementlayoff Personnel support Personnel 14 administration Personnel controlling EMPLOYEE LIFE CYCLE 12 THE HR JOURNEY AT A GLANCE 13  DEVELOPMENT OF THE HR ROLE Paternalis State/ Strategi Focus on tic role Trade Trade c improving Care for Busines Union union efficiency injured s partnershi negotiatio & partner and sick ps n effectivene Change employee Manageme Policy ss agent s nt of adherence HR as Employe Protection absence, Regulation of admini- e training & pay strator and of women champi recruitmen functional/ and on t techn.exper children Center t Productivit of HR y Generalist excellen 14 improvem ce FROM TRADITIONAL TO FUTURE HR Strategy Consulting Support Administrati on Traditional Future HR HR 1 Source: Prof. Dr. Armin 7 Trost, 2013  THE CONTEXT FOR HR… Dietmar Dahmen: https:// www.youtube.com/watch?v=0ZPm0Lm-iRs His Topics: DISRUPTION DIGITAL TRANSFORMATION SECURING FUTURE SUCCESS NAVIGATING CHANGE THE DISRUPTION – COMPASS 16  DISCUSSION IN SMALL GROUPS  What are the key changes/challenges in todays business world that HR has to react to?  What will be requirements of future employees?  What are the implications for the HR function? 10 min. discussion and presentation of 3-4 key findings 17  MEGATRENDS DETERMINE FUTURE CHALLENGES IN HRM  Acquire the right Innovation talents  Give the right rewards Demography  Leverage employee potential Competitive  Support lifelong Advantage – to  learning Support diversity be better than Globalization  Build successors the rest in order to exist  Retain and share knowledge Web 2.0  Shape attractive working conditions Value  Manage strategic changes Change  Use latest technologies 20  Retain the best According to Armin Trost,  Exkurs: Generational Changes in Values, Expectations and Goals 21 MEGATRENDS IN HRM DEMOGRAPHICAL CONSEQUENCES Generation development: Organization of the know- how transfer between senior and young employees Qualification in all life cycles / life long learning Secure employability Extension of career models despite age Integration of immigrants Talent management Adaptation of working conditions in all life phases / health management Work-life-balance Offensive recruitment / employer branding 20 Retention management HRM LANDSCAPE HR- Strategy & Planning Talent Developme nt Change Manageme Talent nt Acquisiti Wor L on k e Retentio a n Candidat r Compensati e on n Selection i & Benefits n HR Socia g HR HR- Organizati l Controlli IT on Medi ng a 21 MAIN QUESTIONS ► How are company strategy and HR strategy related? ► As part of an HR strategy which company functions should be of the highest priority? 24 DEFINITION OF HR STRATEGY ► A company’s HR strategy refers to all people-related approaches Busines that address both strategic s business challenges and purpose Competiti in order to strengthen a ve Advantag company’s competitive Contex e Approache ► advantage. t s Moreover, the HR strategy defines how all critical approaches are aligned to the structural and cultural context 23 According to A. Trost, New HR Strategies between stabilty and agility (2018) COMPANY DEVELOPMENT WITHIN TWO HEMISPHERES Strategic management systems Hierarchy und Stability Roles & Responsibility is bundled at top Structures management level Culture Institutionalization Attitude Agility und Networks Responsibility is shared in decentralized networks 24 According to A. Trost, New HR Strategies between stabilty and agility (2018) TYPES OF HR WITHIN THE HR PLAYING FIELD (HR TRIANGLE) Central planning and control Hierarchy Hire and Institutionalizati stability & on Network pay s and agility People- centered Attitude Rules & enablement of Cultur structur Strategic management the e es systems founder 27 According to A. Trost, New HR Strategies between stabilty and GROUP DISCUSSION – 5 MIN. Imagine you are the newly appointed HR Executive. You are supposed to build an HR Strategy and present it to the Executive Management in two weeks How will you start and approach this task? 26 STRATEGY MODELS Fundamental strategic questions for a company: In which business segments do we want to operate in the future? 1. How do we want to win the challenge in these business segments? - Profiling towards competition in the defined business segments 2. What is our long term compentence in this area? - strategic definition of the own ressource and their potential 27 to ensure a  BUILDING A HR STRATEGY People- Strategic Compa related HR topics ny challenges and Strateg and critical approache y functions Strategic s Structural & alignment cultural of topics context, role and of HR approache s Building blocks of an HR strategy Strategic structural and cultural basis 28 According to A. Trost, New HR Strategies between stabilty and  CRITICAL BUSINESS CHALLENGES- WHAT KEEPS A CEO AWAKE AT NIGHT? Decreasing Purchase Digitizati Power Changing Consumer on Changing consumer segments Disruptive Preferences Cost Pressure through Low- Cost-Suppliers Technologies Public regulation Shifting Consumer Decreasing Willingness Behavior to Growing Resource invest Scarcity Emerging New Business Models aggressive Global Competition Political Players Uncertainty 29 According to A. Trost, New HR Strategies between stabilty and  COMPETITIVE ADVANTAGE In the future we will be more successful than our competitors because... our products and we can offer our we are services are products at a technologically more lower price more advanced innovative our products and we communicate our products services are of our promise have a better higher quality more effectively design (brand) we have a more we have the effective and largest market … faster access to share in the markets world.  You have to make a choice… 32 According to A. Trost, New HR Strategies between stabilty and agility (2018)  (SOME) POTENTIAL KEY PEOPLE- RELATED CHALLENGES Allowing a Filling key and Filling Valid Being fair balance expert bottlenec selection on of work position k of the right compensati and s functions candidates on family Sharing Shaping Identify Open long- Retaining relevant producti and term best and knowledg ve leverage developme high- e across working people‘s nt potential the firm condition potential opportuniti employees s es Ensuring Building Keeping level Allowing Dealing broad- relevant of and competencies high with diversi based skills and engageme building various ty workforce employabil  based on solid ground,ntnot just generation ity s 33 guessing… POTENTIAL HR TOPICS AND APPROACHES Talent acquisition Learning Engagem and selection and ent and Employer knowledge loyality Branding Vocational Working conditions Candidate training and employer sourcing and Executive attractivenes relation education Employee survey Selection and Continuous Employee retention Performance, fit Development learning Compensation feedback and Onboarding and and Knowledge appraisal careers reward management Objective Talent Reward setting identification strategy Feedback Base pay Talent Formal review Variable pay 34 development According to A. Trost, New HR Strategies between stabilty and agility (2018) Expert career STRATEGIC PRIORITIES Innovatio Brand Price Design Quality n 35  WHICH FUNCTION IS OF THE HIGHEST IMPORTANCE? Manageme nt Core Functions Sales/ Produ Prod.- Productio Key Servic R&D Design n/ Marketin Accou ct Plannin e/ g nt Mgmt g Engineeri Suppor ng Mgmt t Supportive Functions Human Publi Quali Controllin Facilit IT Resour Rc elations Purchas Logistics ty g/ Accounti y/ ce /Com e Mgmt ng Securi Mgmt m. ty 36 COMPANY STRATEGY – HR STRATEGY Company Employees HR Strategy Strategy Strategic Competenci Key Challenges es Functions Strategic Motivatio Recruiting Priorities n Developme Competiti Values Communicati Business ve Commitme nt on Advantag Availabil Objectives Company es nt ty Layoffs Vision 37 CRITICAL KEY AND BOTTLENECK FUNCTIONS lo w Bottleneck Function Big demand (volume) hard to be filled and replaced (low Talen availability) t Key Function Availability High strategic relevance Demand sma hig bi ll h g lo Strategic hig w Relevance h BOTTLENECK FUNCTIONS A function is a bottleneck function, if its demand is of high volume and hard to be met due to labour market conditions There are less candidates searching for jobs actively than new hires needed Bottleneck functions often are not of high strategic relevance, but they could be - Then a function is both, a bottleneck and a key function Often bottleneck functions refer to a common pain (need) across different decentral entities (e.g. divisions, locations, subsidiaries) For bottleneck functions very often homogeneous target groups with comparable profiles are supposed to be addressed (e.g. graduates of mechanical engineering) KEY FUNCTIONS A function is a KEY-Function , if… the future competitiveness of the company directly depends on it high performance in the function makes a significant or dramatic difference to the company’s success you need to hire and develop the best – not just the suitable related costs for hiring, development and retention do not matter it is on the radar screen of the CEO EXAMPLE: ADIDAS 39 EXAMPLE: ADIDAS 40 EXAMPLE: ADIDAS 41  STRATEGY MODELS Integration of company strategy and HR strategy: 1. HARD 2. SOFT HRM HRM (most common perspective today) Michigan Harvard Approach Approach 42  STRATEGY MODELS HARD APPROACH- ALWAYS IN THE NEWS.. 43 STRATEGY MODELS - HARD AND SOFT APPROACH: ESSENTIAL DIFFERENCES HARD Focus: identify workforce needs of APPROACH the business and recruit and manage Treats employees accordingly (hire, move, fire) simply as just another Key features: ressource Minimal communication, from top of the business down Motivation – focus on financial What ressources rewards (linked to Taylor‘s scientific approach) do we need? how do we get Little empowerment or delegation them? Often taller organisatonal structures how much will they Suits autocratic leadership style cost? How do we use 44 them most STRATEGY MODELS - HARD AND SOFT APPROACH: ESSENTIAL DIFFERENCES SOFT Focus: concentrate on the needs of APPROACH employees – their roles, rewards, Treats employees motivation.. as the most Key features: important Strong and regular 2-way ressource communication of the business Competitive pay with performance and a source related rewards of competitive Motivation – greater use of non- financial methods, including advantage empowerment, delegation Focus on job design, job satisfaction How do we get the best out of our Often flatter organisatonal structures 45 employees? Suits democratic leadership style How they help give STRATEGY MODELS: WHICH IS BETTER? HARD APPROACH SOFT APPROACH More cost-effective Higher employee costs workforce (possibly), may leave business at particularly if labour is competitive used efficiently disadvantage Quicker decision Higher levels of making by senior motivation & managers productivity Higher absenteeism, turn- Lower absenteeism, lower over, difficulties with turn- over, higher employee retention employee retention Potential damage to Benefit to business of 46 business reputation higher reputation (employer (employer attractiveness HR ORGANIZATION THE HR BUSINESS PARTNER 47  THE DAVE ULRICH HR ROLE MODEL Strate gy Strategic Partner Change Agent Defining and Creating a executing strategy renewed organization Process People „HR must es Administrative Employee Champion become a Expert Business partner Increasing of top Building an employee management - efficient commitment and and contribute to infrastructure capability adding value“ D. Ulrich 1997 Operation 50 Source: Ulrich, D (1997(: Human Resource Champions. Harvard Business School Press. DAVE ULRICH HR ROLES 51 THREE PILLAR MODEL OF MODERN HR- ORGANIZATION (THREE LEGGED-STOOL MODEL) Central Coordination HR Business Partner Center of Expertise Customers near to business company wide Individual support of Dealing with complex Managers managers on HR- HR- related Issues related topics Shared Service Center IT company wide Employees Hotlin e Delivery of standardized and Applicants ES regularly demanded services to all S employees with high volume (e.g. MS payroll) S 52 Partner-/Supplier  HR BUSINESS PARTNER RESPONSIBILITIES  Provide HR consultation, policy interpretation, and strategic planning to all levels of client organization.  Manage HR projects and program implementation for Public Policy, Law, & Security and Strategy, Development, & * Planning organizations.  Responsible for providing Human Resources support in the areas of ethics, compliance, EEO, compensation planning, performance management, talent management, headcount management, leadership development, staffing, absence management, employee relations, and labor relations.  Ability to influence without direct authority.  Provide analysis of data and monitor HR results through key metrics. Develop and 53 communicate status of key initiatives with HR SELECTING TASKS TO BE HANDLED BY A SHARED SERVICE CENTER clos e Assessme Introduction nt Job Offer Negotiati on Job Offer Close Preparati Preselecti to on on Applica nt Application Definition managem HR of Target ent Marketi Profile ng fa r hig Standardizati lo h on w 54 With friendly permission of Prof. Dr. Armin