HRM1. Class Contents 24.25 PDF

Part I Introduction Chapter 1. Introduction to Human Resource Management HUMAN RESOURCE MANAGEMENT Associate Professor Antonio Reyero Rodríguez When you finish studying this chapter, you should be able to… Explain how a firm’s workforce influence it...

Part I Introduction Chapter 1. Introduction to Human Resource Management HUMAN RESOURCE MANAGEMENT Associate Professor Antonio Reyero Rodríguez When you finish studying this chapter, you should be able to… Explain how a firm’s workforce influence its performance Describe how firms can use HR initiatives to cope with workplace changes and trends Distinguish between the role of the HR department and the role the firm’s managers in utilizing human resources effectively Identify HR strategies that fit corporate and business unit strategies Formulate and implement HR strategies that can help the firm achieve a sustained competitive advantage Academic Year 24.25 Human Resource Management 2 Contents The Changing Environment of Human Resource Management What is Human Resource Management? Why is HRM important to all managers? The Changing Role of Human Resource Management The HR Department and Managers Line-Staff HR Cooperation Human Resource Department New Human Resources Organizations ▪ The transactional HR group ▪ The corporate HR group ▪ The centers of expertise Trends Influencing HRM Strategic Human Resource Management Planning and Implementing Strategic HR Policies Academic Year 24.25 Human Resource Management 3 Contents The Changing Environment of Human Resource Management What is Human Resource Management? Why is HRM important to all managers? The Changing Role of Human Resource Management The HR Department and Managers Line-Staff HR Cooperation Human Resource Department New Human Resources Organizations ▪ The transactional HR group ▪ The corporate HR group ▪ The centers of expertise Trends Influencing HRM Strategic Human Resource Management Planning and Implementing Strategic HR Policies Academic Year 24.25 Human Resource Management 4  What are the tasks a Manager undertakes within the organization? Academic Year 24.25 Human Resource Management 5 The Changing Environment of HRM Five core tasks of any manager STAFFING Recruiting, selecting, training, developing, evaluating, compensating employees ORGANIZING LEADING Tasks, departments, Getting others to get the authority, job done, maintaining communication, morale, motivating coordinating the work subordinates CONTROLLING PLANNING MANAGEMENT Setting standards, actual Goals, standards, rules, performance/standards, procedures, plans, PROCESS taking corrective action forecasts as needed Academic Year 24.25 Human Resource Management 6 The Changing Environment of HRM What is Human Resource Management? Orienting, Recruiting and training, and selecting job developing HRM is the candidates employees or managers process of acquiring, training, Planning labor needs Appraising performance appraising, and compensating employees, and of attending to their Managing wages or labor relations, Conducting job analysis HRM salaries, providing incentives or health and safety, benefits and fairness concerns Academic Year 24.25 Human Resource Management 7  List five personnel mistakes Managers do not want to make when Managing their human resources What would be the “price” they would pay for each one of those five mistakes? Academic Year 24.25 Human Resource Management 8 The Changing Environment of HRM Why is HRM important to all managers? Some of the personnel mistakes you don’t want to make while managing people: ❑ To have your employees or company not performing at peak capacity ❑ To hire the wrong person for the job ❑ To experience high turnover ❑ To allow employees engaging in unsafe practices ❑ To allow a lack of training that undermines your department’s effectiveness ❑ To commit any unfair labor practices ❑ … HRM is part of every line manager’s responsibilities Academic Year 24.25 Human Resource Management 9  So, if Managers do manage their own human resources, Is there a need for a Human Resources Department? Is yes, what would be the reasons for this need? Academic Year 24.25 Human Resource Management 10  The Changing Environment of HRM So, Who does what? Executives Design Company Strategy. Approve Business and Functional Strategies. Design organizational structure and workflows. Managers HR Department Manage their direct reports to Propose the HR Strategy (policies and deliver the work they are procedures) that contribute to responsible for. Company Strategy. Make employee decisions in line Provide support and advice to with HR policies and procedures. Managers and the organization applying HR policies and procedures. Academic Year 24.25 Human Resource Management 11  The Changing Environment of HRM The changing role of HRM PERSONNEL ADMINISTRATION Phases in PERSONNEL MANAGEMENT the Human Resources Movement HUMAN RESOURCE MANAGEMENT STRATEGIC HRM Academic Year 24.25 Human Resource Management 12 Contents The Changing Environment of Human Resource Management What is Human Resource Management? Why is HRM important to all managers? The Changing Role of Human Resource Management The HR Department and Managers Line-Staff HR Cooperation Human Resource Department New Human Resources Organizations ▪ The transactional HR group ▪ The corporate HR group ▪ The centers of expertise Trends Influencing HRM Strategic Human Resource Management Planning and Implementing Strategic HR Policies Academic Year 24.25 Human Resource Management 13  Therefore, Human Resources today is a Function within the organization Is it a Line, or a Staff Function? What’s the difference? Academic Year 24.25 Human Resource Management 14 The HR Department and Managers Two key factors ❑ Resourcing needs: Line-Staff HR Cooperation ❑ Roles and responsibilities: ❑ Classic Human Resource Organizations ❑ New Human Resources Organizations PERSONNEL ADMINISTRATION ▪ The corporate HR group PERSONNEL MANAGEMENT ▪ The centers of expertise ▪ The transactional HR group HUMAN RESOURCE MANAGEMENT STRATEGIC HRM Academic Year 24.25 Human Resource Management 15 The HR Department and Managers Line-Staff HR Cooperation HR Department Resourcing Needs Staff HR Line Managers The more HR management tasks line managers undertake, the fewer resources the HR department requires Academic Year 24.25 Human Resource Management 16 The HR Department and Managers Example 1 – Classic structure Academic Year 24.25 Human Resource Management 17 The HR Department and Managers Example 2 – Classic structure Academic Year 24.25 Human Resource Management 18  The HR Department and Managers Example 3 – “New” Human Resource Organizations Centers of Transactional Expertise Businesses Academic Year 24.25 Human Resource Management 19  …. And what about Small and Medium Companies? How do they manage the Human Resource Function? Academic Year 24.25 Human Resource Management 20 Contents The Changing Environment of Human Resource Management What is Human Resource Management? Why is HRM important to all managers? The Changing Role of Human Resource Management The HR Department and Managers Line-Staff HR Cooperation Human Resource Department New Human Resources Organizations ▪ The transactional HR group ▪ The corporate HR group ▪ The centers of expertise Trends Influencing HRM Strategic Human Resource Management Planning and Implementing Strategic HR Policies Academic Year 24.25 Human Resource Management 21  Trends influencing Human Resource Management ENVIRONMENT ORGANIZATION INDIVIDUAL TRENDS EMPLOYEES WILL THEREFORE SO COMPANIES MUST BE EXPECT FROM HRM THAT THEY Rapid change Globalization More competitive Increased competition Faster and more responsive Deregulation and increased indebtedness Take a Total Talent Management approach More cost-effective Digital Transformation Focus more on big picture issues Human-capital oriented Rise of the gig economy Create high-performance work systems Quality conscious More high-tech jobs Help the employer manage challenging times Need to Downsize / Rightsize More service jobs more effectively Flatten the organization More knowledge work Formulate practices based on credible evidence Organized around empowered teams Workforce diversity (an aging workforce) Manage ethically More scientific in how they make decisions 2020 Covid Pandemic and its impact on the Job insecurity Small businesses Global Economy & Businesses … … Slower economic growth in many countries Evolving work and family roles Natural disasters … Academic Year 24.25 Human Resource Management 22 Contents The Changing Environment of Human Resource Management What is Human Resource Management? Why is HRM important to all managers? The Changing Role of Human Resource Management The HR Department and Managers Line-Staff HR Cooperation Human Resource Department New Human Resources Organizations ▪ The transactional HR group ▪ The corporate HR group ▪ The centers of expertise Trends Influencing HRM Strategic Human Resource Management Planning and Implementing Strategic HR Policies Academic Year 24.25 Human Resource Management 23 What is strategy? Why do some organizations succeed, and others fail? What is it that companies such as IBM, Coca Cola and others perform well year after year, whereas some others, like MSN and Chrysler struggled to survive? Strategy has to do with finding ways to best generate revenues, given the opportunities and threats in the environment, and the organization’s own strengths and weaknesses. Academic Year 24.25 Human Resource Management 24 What is Strategy? Key components “The science of planning and directing military operations” Setting long-term goals (Webster New World Dictionary) and objectives “The determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals” (Alfred Chandler, Harvard BS) Establishing courses of “The pattern or plan that integrates an organization’s action and pick one major goals, policies, and action sequences into a cohesive whole” (James B. Quinn, Dartmouth College) Planning “A unified, comprehensive and integrated plan designed to ensure that the basic objectives of the enterprise are achieved”. (William F. Glueck, Author) Assigning resources Academic Year 24.25 Human Resource Management 25  What is Strategy? Strategy is defined by levels of detail CORPORATE- LEVEL STRATEGY What Diversification, Vertical Integration, business are Consolidation, Geographic Expansion, Concentration we in? Human Resource Strategy is a COMPETITIVE STRATEGY Cost Leadership, Differentiation, How will we compete? How will we compete? FUNCTIONAL Focusers strategy FUNCTIONAL STRATEGY Sales Department Production HR Department Basic courses of action that each How do we support How do we support How do we support department will pursue in order to the business’ s the business’ s the business’ s help the business attain its competitive strategy? competitive strategy? competitive strategy? competitive goals Academic Year 24.25 Human Resource Management 26 Strategic Human Resource Management High-level process Company’s competitive environment Economic, political, demographic, competitive, and technological trends Company’s HR strategies Company’s What are the basic courses of action HR will pursue to strategic plan Company’s strategic situation Should we expand (…) ensure that the recruiting, selecting, training, geographically?, Cut costs?, appraising, and Diversify? compensation systems support the company’s strategic plan? Company’s internal strenghts and weaknesses Academic Year 24.25 Human Resource Management 27 Strategic Human Resource Management High-level process ( … ) Formulate business strategy What are the strategic goals of the business? (The plan that integrates major objectives) Identify workforce requirements What employee competencies and behaviors must HR deliver to enable the business to reach its goals? Formulate HR strategies, policies and practices Which HR strategies, policies and practices will produce these employee competencies and behaviors? (Plan, goals that are specific and measurable, guides to decision making, specific directions for decision making) Develop detailed HR scorecard measures How can HR measure whether it is executing well for the business, in terms of producing the required workforce competencies and behaviors? Academic Year 24.25 Human Resource Management 28 Strategic Human Resource Management High-level process ( … ): Example Double sales revenue to $16 PRESIDENT million in fiscal year 2012 The Hierarchy of Goals VICE PRESIDENT OF VICE PRESIDENT OF VICE PRESIDENT OF SALES PRODUCTION HR Double sales Add one new production Add and train 6 salespeople line at plant SALES RECRUITING MANAGER MANAGER SOUTH REGION Hire 4 new salespeople, add 18 customers Identify and attract 20 good sales candidates SALES TRAINING MANAGER MANAGER EAST REGION Triple sales to government agencies Train 6 new salespeople and retrain all others within 4 months SALES MANAGER WEST REGION Move 6 Nevada salespeople to California market Academic Year 24.25 Human Resource Management 29 Strategic Human Resource Management Some key Human Resources alternatives Focus on Efficiency Focus on innovation & flexibility Designing Workflows Bureaucratic Organic Internal - Unstructured External - Formal Staffing Line Manager decides Line Manager/Team decides Long term relationship Transactional relationship Employee relations & separations Focus on commitment Hire & fire as needed Focus on Development Focus on control Performance appraisal Investment in people Productivity Focus on the individual Focus on the team Training & Development “Buy” skills “Make” skills Based on the competencies Based on the job Compensation & Benefits Focus on the individual, variable Focus on base salary pay Academic Year 24.25 Human Resource Management 30 Strategic Human Resource Management... And don’t forget to define your plan with time frames … LEVEL SELECTION REWARDS APPRAISAL DEVELOPMENT STRATEGIC Specify the characteristics Establish reward program Determine the level and type Plan development Long term of people needed to run that will be competitive with of performance that are experiences for staff business over long term domestic and international crucial for the growth of the Plan development program Examine labor force trends competitors firm with flexibility necessary to Analyze immigration flows Establish reward system Develop equitable adjust to change into the country that is linked to strategic performance criteria goals Link appraisal to accomplishment of long- term services MANAGERIAL Make longitudinal validation Set up five-year Validate systems that relate Establish general Medium term of selection criteria compensation progression current conditions and management development Develop recruitment plans for individuals future needs program marketing plan Set up cafeteria-type Establish assessment Provide for organizational Develop approach to build benefitrs menu centers for development development labor resource pool Set up retirement packages Use annual or more Encourage self- Prepare staffing plans frequent appraisal system development OPERATIONAL Prepare recruitment plans Administer wage and salary Use day-to-day performance Use specific job-skill Short term Review performance of program review systems training workers daily Administer benefits Use on-the-job training packages Use Web-based training on a 24/7 basis Academic Year 24.25 Human Resource Management 31 Strategic Human Resource Management If HR wants to become a strategic function, it must… Ensure constant fit to reinforce corporate and Proactively assess gaps between the company’s business strategy. current situation and future vision. Contribute to sustain competitive advantage. Proactively identify HR constraints and Translate the HR Strategic into a clear plan and opportunities related to strategy execution. actions that reflect the choices made by HR. Proactively stimulate critical thinking and Find the right balance between the operational ongoing examination of strategic assumptions. day-to-day tasks and the focus in the medium- Proactively encourage management long term actions. involvement in all HR strategy discussions. Secure constant management alignment and commitment. Proactively contribute to shape and foster the right company culture. Cope flexibly with the ever-changing environment. Proactively communicate in line with strategic imperatives and company goals. Academic Year 24.25 Human Resource Management 32  QUESTIONS TO REFLECT ❑Give examples of how the HR manager’s duties today are different from 30 years ago ❑ In your opinion, which of the environmental, organizational, and individual challenges identified in this chapter will be most important for HRM in the twenty-first century? Which will be least important? Academic Year 24.25 Human Resource Management 33