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COM 502: HUMAN RESOURCE MANAGEMENT Overview: Human Resource Management James Romulus M. Buzon, MB( HRM) Topic Outline Human Resource Management Definition HRM Practices Impact of HRM Human Resources & Company Performance Responsibilities of HR Departments...

COM 502: HUMAN RESOURCE MANAGEMENT Overview: Human Resource Management James Romulus M. Buzon, MB( HRM) Topic Outline Human Resource Management Definition HRM Practices Impact of HRM Human Resources & Company Performance Responsibilities of HR Departments Skills and Competencies of HRM Professionals HR Responsibilities of Supervisors Ethics In Human Resource Management Careers in Human Resource Management Human Resource Management (HRM) The policies, practices, and systems that influence employees’ behavior attitudes performance  Companies With Effective HRM Employees and The companies tend to customers be more innovative tend to be have greater productivity more satisfied develop a more favorable reputation in the community when… HRM Practices A Proper Demonstration of Aligned HR Practices  Human capital – an organization’s employees described in terms of their: training experience judgment intelligence relationships Insight Human Resources and Company Performance The concept of HRM implies that employees are resources of the employer. Impact of HRM Human Resources & Company Performance HRM and Sustainable Competitive Advantage An organization can succeed if it has sustainable competitive advantage. HR give organizations advantages because human resources are valuable, cannot be imitated, have no good substitutes and with needed skills and knowledge are sometimes rare.  High-Performance Work System An organization in which Human technology, organizational Resources and structure, people, and processes all work together to Company give an organization a competitive advantage. Performance  HR Product Lines Responsibilities of Human Administrative services Resource and transactions Departments Business partner services Strategic partner  Responsibilities of HR Departments Function Responsibilities Analysis and design of work Work analysis; job design; job descriptions Recruitment and selection Recruiting; job postings; interviewing; testing; coordinating use of temporary labor Training and development Orientation; skills training; career development programs Performance management Performance measures; preparation and administration of performance appraisals; discipline Compensation and benefits Wage and salary administration; incentive pay; insurance; vacation leave administration; retirement plans; profit sharing; stock plans Employee relations Attitude surveys; labor relations; employee handbooks; company publications; labor law compliance; relocation and outplacement services Personnel policies Policy creation; policy communication Employee data and Record keeping; HR information systems; workforce analytics information systems Compliance with laws Policies to ensure lawful behavior; reporting; posting information; safety inspections; accessibility accommodations Support for strategy Human resource planning and forecasting; talent management; change management Sources: Bureau of Labor Statistics, “Human Resources Managers,” Occupational Outlook Handbook, 2014–2015, January 8, 2014, http://www.bls.gov/ooh; SHRM-BNA Survey No. 66, “Policy and Practice Forum: Human Resource Activities, Budgets, and Staffs, 2000–2001,” Bulletin to Management, Bureau of National Affairs Policy and Practice Series (Washington, DC: Bureau of National Affairs, June 28, 2001).  Job Analysis Process of getting detailed information about jobs. Responsibilities of Human Resource Departments Job Design Process of defining the way work will be performed and the tasks that a given job requires. Responsibilities of Human Resource Departments Recruitment Selection The process through The process by which which the organization the organization seeks applicants for attempts to identify potential employment. applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the organization achieve its goals. Responsibilities of Human Resource Departments Training Employees Development A planned effort to Acquisition of enable employees to knowledge, skills, and learn job-related behaviors that improve knowledge, skills, and an employee’s ability to meet changes in job behavior. requirements and in customer demands. Responsibilities of Human Resource Departments Performance Management – The process of ensuring that employees’ activities and outputs match the organization’s goals. – HR may be responsible for developing or obtaining questionnaires and other devices for measuring performance. Responsibilities of Human Resource Departments Planning Pay & Administering Pay & Benefits Benefits ▪ How much salary, wages ▪ Systems for keeping track bonuses, commissions, of employees’ earnings and other performance- and benefits are needed. related pay to offer ▪ Employees need ▪ Which benefits to offer information about their and how much of the cost benefits plan. will be shared by ▪ Extensive record keeping employees and reporting is needed. Responsibilities of Human Resource Department Maintaining Positive Employee Relations Preparing and distributing employee handbooks and company publications Dealing with and responding to communications from employees’ questions Negotiating union contracts and maintaining communication with union representatives Responsibilities of Human Resource Departments Establishing and hiring Administering discipline Personnel promotions Policies benefits HR personnel communicate through a variety of channels.  Responsibilities of Human Resource Departments Managing and Using Human Resource Data – Workforce Analytics - use of quantitative tools and scientific methods to analyze data from human resource databases and other sources to make evidence-based decisions that support business goals. Responsibilities of Human Resource Departments Ensuring Compliance with Labor Laws Government requirements include: filing reports and displaying posters avoiding unlawful behavior Managers depend on HR professionals to help them keep track of these requirements. Lawsuits will continue to influence HRM practices concerning job security. Employment at will, age discrimination, etc. Responsibilities of Human Resource Departments Supporting the Organization’s Strategy HR planning – identifying the numbers and types of employees the organization will require to meet its objectives. Talent Management- a systematic, planned effort to attract, retain, develop, and motivate highly skilled employees and managers. Evidence-based HR– Collecting and using data to show that human resource practices have a positive influence on the company’s bottom line or key stakeholders. Responsibilities of Human Resource Departments Supporting the Organization’s Strategy Corporate Social Responsibility A company’s commitment to meeting the needs of its stakeholders. Corporate Social Responsibility The parties with an interest in the company’s success (typically, shareholders, the community, customers, and employees.) Sustainability An organization’s ability to profit without depleting its resources, incl. employees, natural resources, and support of surrounding community.  Skills of HRM Professionals SHRM Success Categories Define knowledge and skills associated with success in HRM Four clusters of categories – technical – interpersonal – business – leadership Competencies for HR Professionals Skills of HRM Professionals In an organization, who should be concerned with HRM? A. Only HR B. Only managers C. Managers, supervisors and HR HR Responsibilities of Supervisors Company’s founders – First supervisors Supervisors have many HR responsibilities Supervisors’ Involvement In HRM Ethics In Human Resource Management Ethics – fundamental principles of right and wrong. Ethical behavior – behavior that is consistent with those principles. – Many ethical issues in the workplace involve HRM. Ethics In Human Resource Management Employee Rights Free consent Privacy Freedom of conscience Freedom of speech Due process Ethics In Human Resource Management Ethical companies act according to four principles: In their relationships with customers, vendors, and clients, ethical companies emphasize mutual benefits. Employees assume responsibility for the actions of the company. The company has a sense of purpose or vision that employees value and use in their day-to-day work. They emphasize fairness. Standards for Identifying Ethical Practices Careers in Human Resource Management Salaries vary depending on Some positions are generalists, Most positions require a education and experience. some are specialized. college degree. Strategy and HR Planning COM502 Topic Outline Strategic Planning and HR Planning Linking Strategic Planning and Human Resources - Mission, Vision, Core Values - External Analysis - Internal Analysis - Strategy Formulation - Strategy Execution - Evaluation Strategic Planning and Human Resources Planning Strategic planning – Procedures for making decisions about the organization’s long -term goals and strategies Human resources planning (HRP) – The process of anticipat ing and providing for the movement of people into, within, and out of an organization Strategic human resources management – The pattern of human resources deployment s and activities that enable an organizat ion to achieve its strategic goals  Linking Strategic Planning and Human Resources Mission – The basic purpose of the organization as well as its scope of operations Step One: Strategic vision – A statement Mission, about where the company is going and what it can become in the future Vision, and Values Core values – The strong and enduring beliefs and principles that guide a firm’s decisions and are the foundation of its corporate culture Developing a Mission Statement W h a t i s m y o r g a n i z a t i o n’s r e a s o n f o r b e i n g ? What need does the organization need to fulfill t h a t i s n’ t a l r e a d y b e i n g m e t b y a n o t h e r f i r m o r could be better met? Fo r w h o m w i l l t h e f i r m f u l f i l l t h e n e e d ? W h o a r e its customers? W h e r e i s t h e f i r m’s m a r k e t a n d c u s t o m e r s ? W i l l t h e f i r m o p e ra t e l o c a l l y, g e o g ra p h i c a l l y, o r globally? W h a t c o r e va l u e s d o t h e p e o p l e i n t h e f i r m s h a r e a s p a r t o f t h e o r g a n i z a t i o n’s m i s s i o n ? H o w d o t h e s e va l u e s d i f f e r e n t i a t e t h e organization from other companies? HR’s Role in Establishing and Reinforcing a Firm’s Mission, Vision, and Values HR managers embody the f irm’s mission, vision, and values by: Communicating them informally and formally, via verbal and written communications Recruiting and hiring employees whose values are consistent with the organization Translating the mission, vision, and values into job descriptions and behaviors Step Two: External Analysis S WOT a n a l y s i s – A c o m p a r is o n o f s t r e n g t h s , w e a k n e s s es , o p p o r tu nitie s , a n d th r e a ts f o r s tra te g y f o r m u latio n Su m m a r izes th e m a j o r f a cts a n d f o r e ca s ts f r o m e xte r n a l a n d i n te rn al a n a l y s es E nv i r o n men ta l s ca n n i n g – Sy s te m a tic m o n i torin g o f th e m a j o r e xter nal f or ces i n f lu en cing th e o r g a n iz ation In cl u d es f o r ce s i n th e b u s i n es s a n d co m p e titive e nv i r onments Bu s i n e s s e nv i ro n men t – Fa cto r s i n th e e xte r n a l e nv i r on men t th a t a f i r m ca n n o t d i r e ctly co n tr o l b u t a f f e ct s trateg y a n d p e r f o rm an ce The Five Forces Framework Step Three: Internal Analysis In addition to an external analysis, organizations must also analyze their own strengths and weaknesses.  Core Capabilities Core capabilities – Integrated knowledge that distinguishes a f irm from competitors and delivers value Value creation –The benef its added to a product or ser vice when making it, af ter subtracting costs: A combination of three resources: Processes: Routines for how work is done and how to accomplish results System s: information system s, databases , proprietar y technologies People: the knowledge, skills, and abilities of employees who execute the plan to create the most custom er value and whose skills are dif f icult to replicate Sustaining a Competitive Advantage Through People Organizations can achieve a sustained competitive advantage through resources—particularly people. Resources must be: Valuable Rare Difficult to imitate Organized Mapping Human Capital Strategic Knowledge Workers: unique skills directly linked to the company ’s strategy and are dif f icult to replace Core Employees: valuable to a company but not par ticularly unique or dif f icult to replace Suppor ting Workers: skills less central to creating customer value and generally available in the labor market Complementar y (External) Par tners: unique and specialized skills that are not directly related to a company ’s core strategy Corporate Culture Cultural audits – Audits of the culture and quality of work life in an organizat ion To examine : Values Attitudes Beliefs Expectations Conducti ng a Cultural Audit Sur vey employee s about issues: How is business conducted? How do people communicate with one another? How are conf lict s and crises resolved? Model of HR Forecasting  Forecasting Forecasti ng a Firm’s Demand for Employees 1. Quantitati ve Approaches Trend analysis: forecast s labor demand based on a factor like sales Sophist icated planning methods: modeling or multiple predict ive techniques. 2. Qualitati ve Approaches Management forecasts: The opinions of super visors, managers, and exper ts about future employment needs Delphi techniq ue: soliciting and summarizing the judgments of a preselected group Forecasting Fo r eca s ti n g t h e S u p p l y o f E m p l oyees S t a f f i n g Ta bl e s a n d Ma r kov An a l y s es S t a f f i n g t a b l e : s h o w s a f i r m’s j o b s , n u m b e rs o f e m p l oyee s , a n d f u tu r e n e e d s Ma r kov a n a l y s i s : tra ck s th e p a tte r n o f e m p l oyee m ove m en ts th r o u g h a f i r m Quality of fill: measures how well new hires p e r f o rm S k i l l Inve n tori es a n d Ma n a g e m en t Inve n tori es S k i l l i nve n t ori es: p e r s o n n el e d uc a tion , e xp e r i en ce, i n te re s ts , a n d s k i l ls f i l es to m a tch j o b o p e n i ng s w i th e m p l oyee b ack gr ou n ds. M a n a g e me nt i nve ntor ies – D a ta g a th e r ed o n m a n a g e rs Forecasting Fo r e c a s ti n g t h e S u p p l y o f E m p l oye e s ( c o n t ’d ) Re p l a c e me n t C h a r t s a n d S u c c e s s i o n P l a n n i n g Re p l a c e me n t c h a r t s – cu r r e n t j o b h o ld er s a n d p e o p le w h o a r e p o t e n t ia l r e p l a c em en ts i f a n o p e n in g o c c u rs S u c c e s s i o n p l a n n i n g – Th e p r o ce s s o f i d e n tifyin g , d e ve lo pin g, a n d t ra c k in g key in divid ua ls f o r e xe c u t i ve p o s i t ion s S u c c e s s i o n p lan nin g a n d r e p l a c e men t c h a r t s d e ve lo pe d w ith t a l e n t r e v i e ws – Ta l e n t r e v i e ws: S tra te g i c me e ti n g s to s e e i f a f i r m has the necessary human resources An Executive Replacement Chart Step Four: Formulating a Strategy Strategy formulation builds on a SWOT analysis. A SWOT analysis can help a company move from formulating a strategy, to devising a plan, to capitalizing on oppor tunit ies , to counteracting on threats, to alleviating internal weaknesses. Corporate Strategy A firm’s corporate strategy includes the markets in which it will compete, against whom, and how. Growth and diversification Mergers and acquisitions Strategic alliances Joint ventures Business Strategy Business strategy is focused on how the company will compete against rival firms to create value for customers. Companies can increase customer value by: o Decreasing the costs of their goods and services (low -cost strategy) o Increasing the benefits their products provide (differentiation strategy). Step Five: Executing a Firm’s Strategy Execution is the process of combining the elements of human capital (alignment and ability) and organizational capital (agility and architecture). T h e 4 A s F ra m e w o r k o f E x e cu t i o n C a p a b i l i t y  HR’s Role in Strategy Execution Remaining Agile HR agility can be achieved in two ways: Coordination agility: The ability to reallocate resources to new needs Resource agility –Using resources in different ways-- people performing different functions Reconciling Supply and Demand: demand for products with supply of employees Demand: based on forecasted trends in business activity Supply: determined by finding candidates with the qualifications to fill vacancies  Step Six: Evaluation To evaluate per formance, f irms need “desired” objectives and metrics to monitor how well they delivered on those objectives. The objectives can include achieving a cer tain level of: product ion revenue, prof it market share market penetration custom er satisfact ion Evaluating a Firm’s Strategic Alignment H R p ol i cies a nd p ra cti ces n e e d tw o ty p e s o f f i t: Ve r t i ca l f i t / a l i g n m en t : Fo cu s o n th e co n n e ctio n b e tw e e n th e b u s i n es s ’s o b j e ctives a nd the m a j or i ni tiatives u n d e r take n b y H R H o r i zo n t a l f i t / a l i g n m en t: H R p ra cti ces a l i gn ed w i th o n e a n o th e r i n a co n f i gu ratio n th a t i s m u tu a lly r e i n f or cing Ba l a n ce d s co r e ca rd ( BS C ) – A m e a s u r e men t f ra m e w o rk th a t h e l p s m a n a g e rs tra n s l a te s tra te gic g o a l s i n to o p e ra tion al o b j e ctive s  JOB ANALYSIS AND JOB DESIGN COM502 TOPIC OUTLINE Job Analysis Definition Major Part of Job Analysis Sources of Information of Job Analysis Job Analysis Process Job Description Job Design Ergonomics and Enrichment Employee Teams Working Schedules and Conditions  JOB ANALYSIS Workflow analysis – Helps Job – An activity people do a firm determine the best for which they get paid, processes, types, and mix of particularly as part of the jobs, and how they should trade or occupation they ideally be organized to occupy execute the firm’s mission  JOB ANALYSIS Job analysis : A job analysis should also Obtaining information about outline: a job through its duties, tasks, The tools needed to do the job or activities The environment and times at which it needs Its basic responsibilities to be done The behaviors of the people who do it With whom it needs to be done The skills of the people who do it The outcome or performance level it should produce The physical and mental requirements of the people who do it  MAJOR PART S OF THE JOB ANALYSIS Job description – A statement of the tasks, duties, and responsibilities of a job to be performed Job specifications – A Knowledge – What you know statement of the specific Skills – Things you have learned to do knowledge, skills, and abilities Abilities – Your innate aptitudes of a person who is to perform a Other attributes – Your personality, values job needs SOURCES OF JOB ANALYSIS INFORM ATION Interviews Questionnaires Observation Diaries  JOB ANALYSIS PROCESS  C O N T RO L L I N G T H E AC C U R AC Y O F T H E J O B DATA C O L L E C T E D When interviewing employees or reviewing questionnaires, job analysts should look for responses that contradict other facts or impressions about the job. Job analysts should collect information from a representative sample of individuals doing the same job, not just one or two jobholders. Once a job analysis is done, it should be checked for accuracy by the jobholders and their managers  O T H E R S O U RC E S O F J O B A N A LY S I S I N FO R M AT I O N Functional Job Analysis System Functional job analysis (FJA): utilizes an inventory of work activities that can constitute any job The Position Analysis Questionnaire System Position analysis questionnaire (PAQ): identifies approximately 300 tasks to determine the degree to which each is involved in doing a job The Critical Incident Method Critical incident method: used to identify both desirable and undesirable behaviors that resulted in a very good or vary bad outcome  OTHER SOURCES OF JOB A NA LYSIS INFORM ATION Competency-Based Approach – A job analysis method that relies on Task inventory analysis – An building job profiles that look at not organization-specific list of tasks and only the responsibilities and activities their descriptions used as a basis to of jobs a worker does currently but identify components of jobs the competencies or capabilities he or she needs to do them well and to adapt to new job challenges  PART S OF A Provides status to the employee Provides an indication of the duties the job Job title JOB entails Indicates the level of the job in the organization DESCRIPTION Job identification section Contains information such Contains a “Purpose” as a job code, reporting, statement which and wage information distinguishes the job Job duties section Arranged in order of importance and indicates time devoted to each duty  PART S OF A JOB If the job specification is not prepared as a DESCRIPTION separate document, it is stated in the job description. Covers two areas of qualifications: o The skills required to perform the job o Include the education, experience, and specialized training, and the personal traits or abilities and manual dexterities required The Job’s Physical Demands o Refer to how much walking, standing, reaching, lifting, bending, or talking must be done WRITING CLEAR AND SPECIFIC JOB DESCRIPTIONS Problems associated with job descriptions. If they are poorly written, using vague terms, they provide little guidance to the jobholder. They are not updated as job specifications change. They may violate the law or union agreements and lead to employee grievances. They limit the scope of activities of the jobholder, reducing flexibility. When writing a job description, managers should: Keep wording direct and simple Eliminate unnecessary words State that the jobholder will perform “other duties” to keep employees from claiming, “that’s not my job”  JOB DESIGN Job design – An outgrowth of job analysis that improves jobs through technological and human considerations in order to enhance organization efficiency and employee job satisfaction This Photo by Unknown Author is licensed under CC BY  JOB DESIGN Industrial engineering: A field of study concerned with analyzing work methods and establishing time standards Determines which elements of work can be modified, combined, rearranged, or eliminated to reduce the time needed to complete the work cycle Time standards are established by recording the time required to This Photo by Unknown Author is licensed under CC BY complete each element in the work cycle, using a stopwatch or work- sampling technique.  Ergonomics: The process of studying and designing easy-to-use equipment and systems so the physical well- being of employees isn’t compromised and work is done more efficiently This Photo by Unknown Author is licensed under CC BY-SA  Job enrichment : Enhancing a job by adding more meaningful tasks and duties to make the work more rewarding or satisfying Goal: To enrich a job so that it is intrinsically motivating to employees versus extrinsically motivating This Photo by Unknown Author is licensed under CC BY-SA Extrinsic motivators are external rewards such as money and bonuses.  Job characteristics model: A job design theory that purports that three psychological states: experiencing meaningfulness of the work performed, responsibility for work outcomes knowing the results of the work performed) Result in a jobholder’s: improved work performance internal motivation lower absenteeism and turnover Five core job dimensions produce the three psychological states: 1. Skill variety: The degree to which a job includes a variety of activities, which use different skills and talents 2. Task identity: The degree to which a jobholder can do a job from beginning to end with a visible outcome 3. Task significance: The degree to which a job has an impact on the lives or work of others 4. Autonomy: The degree to which the job provides the freedom to schedule work and determine how to do it 5. Feedback: The degree to which a person is given direct and clear information about the effectiveness of job performance  Other techniques to enrich jobs include job enlargement and job rotation. Job enlargement: The process of adding a greater variety of tasks to a job Job rotation: The process whereby employees rotate in and out of different jobs  JOB ROTATION  Employee empowerment: giving employees the power to initiate change, encouraging them to take charge of their jobs o Succeeds when organization’s culture is open and receptive to change o Must have the support of senior managers Workplace democracy: democratic principles such as voting and debate to give employees more say on how to run the organization Job crafting: employees mold their tasks to fit their strengths, passions, and motives Employee engagement: workers are enthusiastic and immersed in their work to the degree that it improves the performance of their companies E M P L OY E E T E A M S A N D F L E X I B L E WO R K S C H E D U L E S  Increasingly, teams are used to get work done in organizations.  Companies see advantages of redesigning work schedules to make them more flexible  Companies have added flexibility as to where employees can work.  E M P L OY E E T E A M S A N D F L E X I B L E WO R K S C H E D U L E S Employee team: A group of employees working together toward a common purpose, in which members have complementary skills, members’ work is mutually dependent, and the group has discretion over tasks performed Employees are closest to the work that’s done. o Thus, they are in a better position to see how work can be done better. Teamwork can result in synergy. o Synergy: when the interaction and outcome of team members is greater than the sum of their individual efforts. EMPLOYEE TEAMS Typical team functions: Setting work schedules Dealing directly with external customers Training team members Setting performance targets Budgeting Inventory management Purchasing equipment or services Dejobbing: structuring organizations not around jobs but around projects that are constantly changing  FACILITATING TEAMS Characteristics of successful teams:  A commitment to shared goals and objectives  Motivated and energetic team members  Open and honest communication  Shared leadership  Clear role assignments  A climate of cooperation, collaboration, trust, and accountability  The recognition of conflict and its positive resolution FLEXIBLE WORK SCHED ULES Flextime: Flexible working hours that give employees the option of choosing daily starting and quitting times, provided that they work a set number of hours A compressed workweek: the number of days in the workweek is shortened by lengthening the number of hours worked per day Job sharing: Two part-time employees do a job held by one full-time employee Telecommuting: Using computers to do work at home, not the office This Photo by Unknown Author is licensed under CC BY KEYS FOR SUCCESSFUL REMOTE WORKING