Human Resource Management HRM Notes PDF

PRELIMS Human Resource Management: Gaining a Strategic Role of the HRM Function Competitive Advantage / HRM Role: Time spent on administrative tasks is decreasing. Introduction...

PRELIMS Human Resource Management: Gaining a Strategic Role of the HRM Function Competitive Advantage / HRM Role: Time spent on administrative tasks is decreasing. Introduction Roles as a strategic business partner, change agent, Human Resource Management (H R M): and employee advocate are increasing. Plays a role in company’s survival, effectiveness, and Shared service model: competitiveness. Central place for administrative and Refers to the policies, practices, and systems that transactional tasks. influence employees’ behavior, attitudes, and Includes centers of expertise or excellence, performance. service centers, and business partners. /Role of Technology: Reducing HRM role in administrative tasks, maintaining records, and providing self-service to employees. Shift to self-service gives employees access to many HR functions. HR managers have more time to work with managers on employee issues. /Outsourcing: Most commonly outsourced activities: What Responsibilities and Roles Do HR Departments Benefits administration. Perform? Relocation. High-Impact HR Functions: Payroll. More integrated with the business. Most common reasons for outsourcing: Skilled at attracting and retaining employees. Cost savings. Can adapt quickly. Increased ability to recruit and manage talent. Identify and promote talent from within. Improved HR service quality. Identify what motivates employees. Protection of the company from potential Continuously building talent and skills. lawsuits by standardizing processes such as HR Department Responsibilities. selection and recruitment. Outplacement. /Strategic Role: Labor law compliance. Lead efforts focused on talent management and Record keeping. performance Testing. management. Unemployment compensation. Use and analyze data to make a business case for Some aspects of benefits administration. ideas and problem solutions. Use people management skills across the business. Structure and responsibilities changing to ensure strategic role. Demonstrating the Strategic Value of HRM: HR Analytics and Evidenced-Based HR. HR can engage in evidence-based HR. Requires use of HR or workforce analytics. Big data: Information merged from HR databases, corporate financial statements, employee surveys, and other data sources. Results in evidence-based HR decisions. Show that HR practices influence the organization’s bottom line, including profits and costs. /Nine Competencies: 1. HR Technical Expertise and Practice. Apply principles of HRM to contribute to success of the business. 2. Business Acumen. Understand business functions and metrics within the organization and industry. 3. Critical Evaluation. Interpret information to determine return on investment and organizational impact in making recommendations and business decisions. 4. Ethical Practice. Integrate core values, integrity, and HR as a Business with Three Product Lines accountability throughout all organizational and business practices. 5. Global and Cultural Effectiveness. 1  Manage HR both within and across /Adapt to Change: boundaries. Inevitable. 6. Communications. Employees expected to take more responsibility for Effectively exchange and create free flow of own careers. information with and among various Challenge is how to build a committed, productive stakeholders at all levels of the organization to workforce. produce meaningful outcomes. Employees manage change through agility. 7. Organizational Leadership and Navigation. Changes in the employment relationship. Direct initiatives and processes within the organization and gain buy- /Maximize Employee Engagement: in from stakeholders. Passionate about their work. 8. Consultation. Committed to the company and its mission. Provide guidance to stakeholders such as Work hard to contribute. employees and leaders Measured with attitude or opinion surveys. seeking expert advice on a variety of Focus on employee experience. circumstances and situations. Employee value proposition (EVP). 9. Relationship Management. Manage Talent: Manage interactions with and between others Acquiring and assessing employees. with specific goal of Learning and development. providing service and organizational success. Performance management. Compensation. Competitive Challenges Influencing Human Resource Management Meet the Needs of Stakeholders, Shareholders, Competing Through Environment, Social, and Customers, Employees, and Community. Governance (ESG) Practices. Demonstrate performance to stakeholders: the Sustainability: balanced scorecard. Company’s ability to meet its needs without Being customer-focused. sacrificing the ability of Improving quality. future generations to meet their needs. Emphasizing teamwork. Company must meet stakeholders’ needs. Reducing new product and service ESG practices must be part of company’s development times. business model to gain Managing for the long term competitive advantage and reduce legal risks. Balanced Scorecard Competitive Challenges Influencing Human Resource Management Competitive Challenges Influencing Human Demonstrate Social Responsibility. Resource Management Helps boost company’s image with customers. Understand and Enhance the Value Placed on Helps gain access to new markets. Intangible Assets and Human Capital. Helps attract and retain talented employees. Knowledge workers. Contribute specialized knowledge. Emphasize Customer Service and Quality. Training Options: Total quality management (TQM) five core values: Upskilling or reskilling current employees. 1. Methods and processes are designed to meet Hire and train employees who lack the internal and external customers’ needs. complete skill set. 2. Every employee receives training in quality. Partner with local, federal and state sponsored 3. Managers measure progress with feedback and funded organizations. based on data. Train hard-to-employ individuals 4. Promote cooperation with vendors, suppliers and customers. /Emphasize Empowerment and Continuous Learning: 5. Quality is designed into a product or service Give employees responsibility and authority. so that errors are prevented rather than being Hold them accountable. detected and corrected. Employees share in the rewards and losses. Learning organization. 2 / Malcolm Baldrige National Quality Award. Competition that promotes quality. / ISO (International Organization for Standardization) 9000 Standards. International standards of quality /Six Sigma: Process of measuring, analyzing, improving, and controlling processes. / Lean Thinking and Process Improvement. Competitive Challenges Influencing Human Do more with less effort, equipment space, and time. Resource Management Improve quality of employees’ work experiences. Legal Issues: Employment laws and regulations. Recognize and Capitalize on the Demographics and Eliminating discrimination and harassment. Diversity of the Workforce. Health care coverage. Internal labor force. Immigration. External labor market. Data security practices and protecting intellectual Average age of workforce will increase. property. Increased workforce diversity. Immigration will affect size and diversity. Aging of the Workforce: Labor force participation of those 55 years and older expected to grow. HRM issues such as career plateauing, retirement planning, and retraining older workers. The Multigenerational Workforce: Five generations. Competitive Challenges Influencing Human Resource Management Ethical Issues. HR managers must satisfy these standards for their practices to be considered ethical: 1. HRM practices must result in greatest good for largest number of people. 2. Employment practices must respect basic human rights of privacy, due process, consent, and free speech. 3. Managers must treat employees and customers equitably and fairly. Competing through Globalization. U.S. businesses must: Develop global markets. Use their practices to improve global competitiveness. Better prepare employees for global Competitive Challenges Influencing Human assignments Resource Management A Workforce of Mixed Gender, Race, and Nationality. Competing through Globalization. Diversity of workforce increasing. Entering International Markets. Immigration is contributing. Exporting products overseas. Percentage of highly skilled immigrants now Building manufacturing facilities or service exceeds percentage of low-skilled immigrants. centers in other countries. Legal versus illegal immigration. Entering into alliances with other companies. Engaging in e-commerce. Offshoring and reshoring. Competing through Technology. Social networking: 3  Facilitates communication, decentralized Module 2 : The Analysis and Design of Work decision making, and collaboration. Work-Flow Analysis and Organization Structure Artificial intelligence and robotics: Work-Flow Design: Provide skills that are difficult to find. Important in understanding how to bundle Perform some job tasks previously completed tasks into discrete jobs. by employees. Organization Structure: May eliminate some jobs Need to understand how jobs at different levels relate Competing through Technology. High-performance work systems. Work-Flow Analysis: Maximize the fit between employees and ​ A means to understand all tasks required to technology. produce high-quality products, and the skills necessary Employees, managers, vendors, customers, to perform those tasks and suppliers work together. Virtual teams: Formed within one company or via partnerships with suppliers or competitors. Competing through Technology. Use HRIS, mobile devices, cloud computing, and HR dashboards: HRIS stores large quantities of employee data. Mobile devices increasingly used to provide employees with anytime, anywhere access to HR applications. Cloud computing allows companies to lease software and hardware. HR dashboard provides access to important HR metrics for workforce analytics. Meeting Competitive Challenges through HRM Practices Work-Flow Analysis Three Challenges: Analyzing work outputs: 1. Globalization. Can be a product or service. 2. Sustainability. Must also specify standards for quantity or 3. Technology quality of outputs: Can create challenges for how to efficiently process inputs to generate outputs. Must decided whether to produce whole output or just parts. Work-Flow Analysis Analyzing work processes: Determine how output is generated (operating procedures). Team-based job design. Efficiency experts can improve work-flow processes. Lean production. Analyzing work inputs: Raw materials. Just-in-time inventory. Equipment. Technology improves human operators. Human skills. Organization Structure Dimensions of structure: Centralization. Departmentalization. Examples of How HRM Practices Can Help Organization Structure Companies Meet Competitive Challenges Structural configurations: Functional structure. High levels of centralization. Very efficient with little redundancy. Divisional structure. Low levels of centralization. 4  More flexible and innovative. Career planning. Not efficient. Job evaluation. The Importance of Job Analysis to Line Managers: Must have detailed information about all jobs in work group to understand work-flow process. Need to understand the job requirements to make intelligent hiring decisions. Are responsible for ensuring each individual is performing satisfactorily. Must ensure work is being done safely. Job Analysis Information: Nature of information. Job descriptions. Tasks, duties, and responsibilities (TDRs). Need effective balance between breadth and specificity. Job specifications. Knowledge, skills, abilities, and other characteristics (KSAOs). Not directly observable. Sources of job analysis information. Subject-matter experts. Job incumbent. Supervisors. Social networks. Other sources may be customers, external job analysts. Job Analysis Methods: Position Analysis Questionnaire (PAQ). Information input. Mental processes. Work output. Relationships with other persons. Job context Other characteristics. Table 4.2 Overall Dimensions of the Position Analysis Questionnaire Work-Flow Analysis and Organization Structure Dimensions of Position Analysis Questionnaire: Organization Structure 1.​ Decision/communication/general responsibilities. Variations in an organization’s structure: 2.​ Clerical/related activities. Keep subunits small. 3.​ Technical/related activities. Divisional structures more flexible and 4.​ Service/related activities. innovative but not very efficient. 5.​ Regular day schedule versus other work May not make decisions in best schedules. interests of the company. 6.​ Routine/repetitive work activities. In functional structures, there can be a 7.​ Environmental awareness. disconnect between perceived 8.​ General physical activities. needs of front-line workers and management. 9.​ Supervising/coordinating other personnel. Little opportunity for 10.​ Public/customer/related contact activities. self-cannibalization or rogue units. 11.​ Unpleasant/hazardous/demanding environment. Most appropriate in stable, predictable 12.​ Nontypical work schedules. environments. “Middle-of-the-road” approach Job Analysis Dynamic Elements of Job Analysis: Job Analysis Jobs change and evolve over time. The Importance of Job Analysis: Job analysis process must also detect Work redesign. changes in nature of jobs. Human resource planning. “Jobs” being replaced by “gigs.” Selection. Workers act as private contractors. Training and development. Performance appraisal. 5 Job Design It is the process of defining how work will be performed and tasks required in a given job. Job redesign. Changing tasks or way work is performed in existing job. Four basic approaches: 1. Mechanistic. 2. Motivational. 3. Biological. 4. Perceptual-motor. Job Design Mechanistic Approach: Identify simplest way to structure work to maximize efficiency. Scientific management. Workers are trained in the “one best way” to do job, then selected on their ability to do the job. Monetary incentives. Reduces need for high-ability individuals Motivational Approach: Focuses on psychological and motivational potential of a job. Attitudinal variables are most important. Job Characteristics Model. Skill variety. Task identity. Autonomy. Feedback. Task significance. Job gentrification. Biological Approach: Goal is to minimize physical strain by structuring the physical work environment around how the body works. Also called ergonomics. Applied to redesigning equipment for jobs that are physically demanding. Sitting or standing for long periods can be damaging. Has positive psychological effects by providing climate that values safety and health. Perceptual-Motor Approach: Design jobs that don’t exceed people’s mental capabilities and limitations. Information overload can detract from performance. 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