BA 25_ Intro to HRM.pdf

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT LESSON OVERVIEW ✓ This unit focuses on the overview of human resource management. This unit discusses why human resource management is important to help companies successfully compete in today’s business environment. ✓ Also, this unit provides an o...

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT LESSON OVERVIEW ✓ This unit focuses on the overview of human resource management. This unit discusses why human resource management is important to help companies successfully compete in today’s business environment. ✓ Also, this unit provides an overview of the human resource management functions, organizational structure and composition of HR department and the qualifications and competencies of HR managers. RECAP ✓What is Management?  MANAGEMENT Management can be defined as the process of planning, organizing, leading, and controlling resources, including human, financial, and information resources, to achieve organizational goals efficiently and effectively (Robbins & Coulter, 2009). Management Functions Planning Organizing Leading Controlling Planning: Setting Organizing: Arranging Leading: Motivating and Controlling: Monitoring objectives and resources and tasks to communicating with team progress, comparing it determining actions to execute the plan. members, and fostering with the plan, and making achieve them. Example: Example: Forming project development. Example: necessary adjustments. Setting a six-month goal teams and assigning tasks Inspiring the team about Example: Bi-weekly check- for a new app feature and with allocated resources. the app's impact and ins to track app feature creating a timeline. encouraging feedback. progress and revising tasks as needed.  Management Roles Interpersonal Roles: Informational Roles: Decisional Roles: Interaction with others inside and Managing and disseminating Making decisions and solving outside the organization. information. problems. Examples: Acting as a figurehead, Examples: Monitoring for Examples: Initiating projects, leader, or liaison. information, sharing with resolving conflicts, allocating subordinates, speaking for the resources, negotiating deals. company.  Managerial Skills Technical Skills: Human Skills: Conceptual Skills: Specific task-related abilities and Ability to work effectively with Thinking about abstract and knowledge. others. complex situations. Example: A restaurant manager Examples: Resolving team conflicts, Example: Developing new understanding culinary practices coaching subordinates. strategies in response to market and management software. changes.  MANAGEMENT IS GETTING THINGS DONE THROUGH PEOPLE Human Resource Management (HRM) skills are essential for all managers in any field or industry. HRM principles are key to effectively managing and leading people, a core aspect of managerial roles and activities QUESTION DO YOU AGREE THAT PEOPLE ARE THE GREATEST ASSET OF AN ORGANIZATION?  Money Products Materials Technology Employees: Active Employees: Employees: Employees: drivers of innovation, Responsible for the Transform raw Manage, upgrade, strategy, and growth. creation, materials into and effectively use improvement, and valuable products technology; provide Money: Passive relevance of products through skills and creativity and capital, requires in the market. knowledge. emotional strategic direction intelligence. from employees for Products: Can Materials: Inert effective utilization. become obsolete without human Technology: Limited without continuous intervention, unable to programmed updates and to add value functions, lacks innovation driven by independently. human decision- employees. making and emotional connectivity, quickly becomes outdated. Inherent Value of People Relationship Building: Learning & Growth: Ability Essential for business growth to adapt and grow, taking on through connections with diverse roles. clients and suppliers. Cultural Bearers: Uphold Problem-solving & and evolve organizational Innovation: Innate ability to culture, boosting morale and think critically and innovate. productivity.  “People can turn valued resources into even more valuable assets” - Don McArthney C. Tugaoen (2023) INTRODUCTION Critical to a corporation's growth and prosperity is gaining and retaining competitive advantage. To stay competitive, companies must ensure that their human resources are well-managed. INTRODUCTION Having an effective human resource management is one of the best ways for the organization to stand out and differentiate themselves on the marketplace (Huselid & Becker, 2011). There are many strategies that can contribute to achieving a competitive advantage, but maximizing your human capital is a major contributor to achieving a competitive edge in the marketplace. All companies now compete with similar goods in virtually the same marketplaces and with equivalent access to finance, technology and information. Human capital (PEOPLE) is still the key differentiator Warren Bennis According to Warren Bennis, Distinguished Professor of Business Administration at USC's Leadership Institute: "It isn't about 'treating people nice;' it's about helping develop people to be at their very best, because that's the only way that companies are going to succeed. It's human capital that is the basis for competitive advantage". More & more companies are believing that their greatest competitive advantage is their people. “Innovation has nothing to do with how many R&D dollars you have.…It’s not about money. It’s about the people you have, how you’re led, and how much you get it.” Steve Jobs HENRY HENRY FORD FORD "You can take my factories, burn up my buildings, but give me my people and I'll build the business right back again. Richard Deupree CEO at Proctor & Gamble "If you leave us our buildings and our brands but take away our people, the company will fail." BILL GATES HAVE ALSO REITERATE THE VALUE OF PEOPLE EVEN IF HE/SHE IS LAZY MERALCO’s Chairman, Manuel V. Pangilinan Our people are the true source of power. They have been the key in MERALCO’s unprecedented growth, and our partners in nation-building. They embody our corporate values which reflect the best of the past and what it takes to succeed in the future.  We value our people. Employees are the heart of the company. Having chosen personnel with commitment to the highest standards, through teamwork, we aim to create corporate understanding and loyalty to one another. People are the greatest asset of an organization. It is vital to lead, motivate and manage the human capital strategically.  Remaining competitive and profitable in today's rapidly evolving business climate requires innovative, effective and strategic human resource management initiatives. Human Resource Management is vital for organizations competitiveness. What is Human Resoure Management? ❖ The function performed in organizations that facilitates the most effective use of people (employees) to achieve organizational and individuals goals. ❖ The policies and practices one needs to carry out the “people” or human resources aspects of a management job. ❖ A function of management which is concerned in promoting and enhancing the development of work effectiveness and advancement of human resources in the organization. What is the GOAL OF HRM? Essentially, the purpose of HRM is to maximize the productivity of an organization by optimizing the effectiveness of its employees.  Human Resource Management the basic mission of human resources will always be to acquire, develop, and retain talent; align the workforce with the business; and be an excellent contributor to the business.  HRM IS IMPORTANT TO ALL MANAGERS BECAUSE... As a manager, you don't want to hire the wrong person for the job, avoiding misalignment between skills and job requirements.  As a manager, you don't want to neglect the development and potential of your team, avoiding stagnation and underperformance.  As a manager, you don't want to create a demotivating environment, which can lead to reduced team morale and productivity.  As a manager, you don't want to ignore conflicts and team dynamics, as this can lead to a disruptive and unproductive workplace.  As a manager, you don't want to overlook retaining your best talent, as their loss can significantly impact organizational success.  As a manager, you don't want to provide ineffective feedback, which can hinder team growth and improvement.  As a manager, you don't want to neglect shaping a positive organizational culture, as this can lead to a lack of cohesion and employee dissatisfaction. As a manager, you don't want to disregard labor laws and ethical guidelines, to avoid legal repercussions and moral conflicts.  As a manager, you don't want to overlook training and development opportunities for your team, as it can lead to skill gaps and decreased competitiveness.  As a manager, you don't want to overlook the impact of compensation and benefits on employee satisfaction and retention. FUNCTIONS OF HUMAN RESOURCE MANAGEMENT  Differentiate the strategic and operative functions of HR Explain the importance of strategic human resource management List and identify the operative functions of HRM Classify the strategic and operative task and activities of an HR Manager PAGE 44  Strategic & Operative Functions Two Facets of HR Function Both facets of human resources are fundamental components that can lead the organization to success. PAGE 45  STRATEGIC VS OPERATIVE HR Differentiate the strategic and operative functions of HR STRATEGIC OPERATIVE Strategic HRM concerns itself with predicting outcomes and Operational HR sees to the ensuring that the organization has day-to-day operations enough of the most qualified essential to meeting the needs human capital and has the right and concerns of employees human resource management and organizations in terms of strategies to help reach its overall their human resources vision and mission PAGE 46  STRATEGIC VS OPERATIVE HR Differentiate the strategic and operative functions of HR STRATEGIC OPERATIVE Strategic HR looks ahead to future growth. Strategic human resource management involves a Operational HR focuses future-oriented process of on the immediate and developing and implementing HR programs that address and solve necessary needs of a business problems and directly workforce contribute to major long-term business objectives PAGE 47 Strategic HRM Strategic HRM lays the foundation for the different HR operative functions. Strategic HRM ensures that the operative functions are linked and vertically integrated to the business of the organization PAGE 48 David Ulrich (Father of Modern HR) HR is not just about HR. HR is about delivering business value It is about helping organizations WIN in the marketplace. PAGE 49 Strategic HRM formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims(Dessler, 2013). Figure 1. Linking Company Wide and HR Strategies Source: © Gary Dessler (2010) PAGE 51 Figure 2. The practices Behaviors Strategy Pyramid Source: © Gary Dessler (2013) PAGE 52  1. Job Organization and Information 8 Key areas of HR Operative 2. People Resourcing Function 3. Performance Management 4. Learning and Development PAGE 53  5. Reward Management 8 Key areas of HR Operative 6. Employee Relations Function 7.Health, Safety and Welfare 8.HR Services PAGE 54 8 Key areas of HR Operative Function 1. Job Organization and Information Organization Organization Job Analysis Design Development HRM is also involved in planning Job analysis is the systematic The HRM function is also and implementing interventions in process of determining the skills, involved in the design of the organization’s social processes duties, and knowledge required organizational structure by to improve effectiveness through for performing jobs in an helping in grouping activities, techniques such as structural organization. With job analysis, assigning accountabilities, and change, teambuilding, process the tasks needed to perform the establishing communication and consultancy, interpersonal skills job are identified authority development, and role negotiation PAGE 55 2. People Resourcing Human Resource Forecasting the organization’s future resource requirements for labor, skills, Planning and competence and to meet them through subsidiary plans for recruitment, deployment, resourcing development, retention, and talent management attracting employment applications from the number, type and Recruitment caliber of people required by the HR plan Selection Assessing and selecting suitable employees from applicants A plan of action to help new employees quickly assimilate company Onboarding policies and workflow while getting fully acquainted with the organization's culture. Planning rewards and incentives to control labor turnover and retain high Retention quality staff. This also include monitoring levels of employee motivation, satisfaction, commitment, engagement, and overall employee experience Managing the termination of contracts, retirements, resignations, dismissals, Exit Management and redundancies, in such a way as to comply with legal requirements and minimize human and financial costs PAGE 56 3. Performance Performance Discipline Management Appraisal Handling managing informal and on-going monitoring and formal process to confront periodic assessment of employee behaviours or performance with agreed requirements performance which falls below organizational rules and standards Grievance Identifying learning Handling and development managing informal and needs formal processes to address individual employee grievances or complaints PAGE 57 Learning Organization creating culture and systems to support individual 4. Learning and and organizational learning, information gathering and sharing Development Education and Training Career Management planning, implementing, and evaluating on- and off- identifying potential and planning career the-job learning opportunities and programs to meet development opportunities; succession and identified gaps in the skills required by the HR Plan promotion planning; guiding and mentoring individuals in career planning Personal Development Managerial Development facilitating individual learning plans and providing education, training, and opportunities to opportunities, beyond the immediate job develop managerial competencies and support enhanced contribution PAGE 58  Pay Systems developing and managing salary structures, systems and scales that are equitable, fair and compliant with equal pay legislations 5.Reward Performance Pay Systems Management developing and managing ways of relating pay progression or bonuses to results, attainments, effort, and other measures of performance Benefit Schemes developing and managing employee entitlements such as pensions, maternity and sick pay, annual leave and fringe benefits such as allowances and services Non-financial Rewards building non-monetary rewards such as recognition, challenge, personal development into job design and management style as part of a total reward package 6. Employee Relation managing informal and formal relationships with employee representatives; collective bargaining on INDUSTRIAL terms and conditions of work, resolving collective RELATIONS disputes, implementing consultative committees and partnership agreements informing employees about the matters EMPLOYEE COMMUNICATION relevant to their work or of interest or concern to them creating consultation opportunities for EMPLOYEE VOICE employees to contribute to decision-making in matters affecting them and their work 7. Health, Occupational health and safety monitoring and managing work environments, practices and culture to ensure that employees are Safety and protected from health hazards and accidents; complying with relevant legislation; actively promoting health, fitness, and work-life balance to Welfare improve well-being and performance of staff Welfare Services providing services such as catering or recreational facilities, individual counseling and support for illness, forthcoming redundancy or retirement, personal health problems)  HR Policies and Procedures developing and administering guidelines and systems for all the above functions, to guide the line managers and employees HR Information System & Analytics 8. HR Services developing and operating integrated systems for preparation of employee record-keeping, management reporting and statistical reports. Collecting and analyzing Huma Resource (HR) data to improve an organizations workforce performance Compliance to labor law, regulation and codes of practice ensuring that all HR policies and practices are compliant with relevant law, regulation and codes of practice in areas such as employment protection, health and safety, equal opportunity, inclusion and diversity, harassment data protection and so on HR DEPARTMENT PERFORMS BOTH LINE AND STAFF AUTHORITY.  LINE MANAGERS A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks. Line managers manage operational functions that are crucial for the company’s survival. STAFF MANAGERS A manager who assists and advises line managers. Staff managers run departments that are advisory or supportive, like purchasing, HRM, and quality control. Human resource managers are usually staff managers. They assist and advise line managers with recruiting, hiring, and compensation. However, line managers still have human resource duties. Human Resource Managers’ Duties Functions of HR Managers Line Function Coordinative Staff Functions Line Authority Function Staff Authority Implied Authority Functional Authority Innovator/Advocacy A line function – The human resource manager directs the activities of the people in his or her own department, and perhaps in related areas (like the plant cafeteria). A coordinative function – The human resource manager also coordinates personnel activities, a duty often referred to as functional authority (or functional control). Here he or she ensures that line managers are implementing the firms human resource policies and practices (for example, adhering to its sexual harassment policies). Staff(assist and advise) functions- Assisting and advising line managers is the heart of the human resource manager s job. He or she advises the CEO so the CEO can better understand the personnel aspects of the company strategic options. Composition and Structure of HR Department COMPOSITION AND STRUCTURE OF HR DEPARTMENT  Composition and Structure of HR Department Organization in this section refers to the structure created as a result of the grouping of function segments like departments, divisions, sections and units that work into a harmonious relationship so that all the different processes within the system can operate efficiently and effectively. Composition and Structure of HR Department Organizational structure of Human Resources Management varies from one company to another, primarily because every company has unique requirements in terms of human resources.  THE HUMAN RESOURCE FUNCTION Manager/ Owner Sales Production Finance Figure 1. The Human Resource Function in a Small Business Composition and Structure of HR Department  President Sales Production Finance Human Resource Manager Manager Manager Manager Figure 2. The Human Resource Function in Medium-Sized Firm Composition and Structure of HR Department  President Sales Production Finance Human Manager Manager Manager Resource Manager Human Compensati Recruitmen Safety Labor Resource on & t& Development & Relations Benefits Selection Health Figure 3. The Human Resource Function in Medium-Large- Sized Firm Composition and Structure of HR Department  Vice-President Vice-President GENERALISTS Human Human EXECUTIVES Resources Resources Manager, Manager, Compensation Training & Manager, & Benefits Development Employment SPECIALISTS Benefits Analyst Composition and Structure of HR Department Qualifications of Human Resource Managers 1.Personal Qualifications Aside from having a healthy attitude towards people in general, the Human Resources manager should possess a pleasant personality. He should be honest, fair, just and courageous so that he will earn their respect. Integrity, above average intelligence and industry are also his important qualities. 2. Professional Qualifications Human resource manager should have taken some courses in human behavior aside from having at least a college degree. As the human resource manager’s job becomes more demanding, human resource managers are becoming more professional 3.Work Experience The Human Resources Department manager who has worked in any section or unit of this department or who has had related work experience is armed with better insights into the nature, scope and functions of human resources management than one who either comes straight from the accounting department or may not have had any work experience at all.