Business Model Canvas (BMC)- A new venture concept
Hr slide 3
1. Introduction to HRMIntroduction to HRM
Human ResourceHuman Resource
Management - SManagement - Session 1ession 1
Suhel KhanSuhel Khan
2. AimsAims
By the end of the session students will beBy the end of the session students will be
able to:able to:
1) Demonstrate an understanding1) Demonstrate an understanding role ofrole of
HRHR..
2) 2) UnderstandUnderstand the factors influencing thethe factors influencing the
HRM.HRM.
3. What is HR?What is HR?
Human Resources is the part of theHuman Resources is the part of the
organization that deals with peopleorganization that deals with people
Managing the human resourceManaging the human resource
This means acquiring developing andThis means acquiring developing and
supporting staff as well as ensuring theysupporting staff as well as ensuring they
fulfill their role at workfulfill their role at work
4. Define HRMDefine HRM
Torrington et al “ It is a series of activitiesTorrington et al “ It is a series of activities
which; first enables working people andwhich; first enables working people and
the organisation which uses their skills tothe organisation which uses their skills to
agree about the objective and nature ofagree about the objective and nature of
their working relationship and secondly,their working relationship and secondly,
ensure that the agreement is fullfilled.”ensure that the agreement is fullfilled.”
5. HRMHRM
The Policies and practices in carrying out theThe Policies and practices in carrying out the
“people” or human resource aspects of a“people” or human resource aspects of a
management position including, recruiting,management position including, recruiting,
screening, training, rewarding and appraising.screening, training, rewarding and appraising.
(Dessler G)(Dessler G)
The Charted Institute of Personnel ManagementThe Charted Institute of Personnel Management
“ The design, implementation and maintenance“ The design, implementation and maintenance
of strategies to manage people for optimumof strategies to manage people for optimum
business performance including thebusiness performance including the
development of policies and process to supportdevelopment of policies and process to support
these strategies”these strategies”
6. ContinueContinue
So the Human Resource Manager job includes:So the Human Resource Manager job includes:
Conducting Job analysis ( determining the nature ofConducting Job analysis ( determining the nature of
each job)each job)
Planning labour needs and recruiting job candidatedPlanning labour needs and recruiting job candidated
Selecting Job candidatesSelecting Job candidates
Orienting and training new employeesOrienting and training new employees
Managing wages and salaries (compensatingManaging wages and salaries (compensating
employees)employees)
Providing incentives and benefitsProviding incentives and benefits
Appraising performanceAppraising performance
Communicating ( interviewing, counselling, disciplining)Communicating ( interviewing, counselling, disciplining)
Training and developmentTraining and development
7. Cont.Cont.
Training and Developing managersTraining and Developing managers
Building employee commitmentBuilding employee commitment
And what a HRM Manger should knowAnd what a HRM Manger should know
aboutabout
Equal opportunity and affirmative actionEqual opportunity and affirmative action
Employee health and safetyEmployee health and safety
Handling grievances and labour relationsHandling grievances and labour relations
8. Personnel Management V ResourcePersonnel Management V Resource
ManagementManagement
Personnel Management is ‘workforce’ centredPersonnel Management is ‘workforce’ centred
HR is resource centredHR is resource centred
Does not identify with Management interestsDoes not identify with Management interests
Directed at management needs for deploymentDirected at management needs for deployment
People have the right to proper ‘treatment’People have the right to proper ‘treatment’
Focus is on individuals and needs and potentialFocus is on individuals and needs and potential
Intervene between manager - subordinate relationshipsIntervene between manager - subordinate relationships
Planning, monitoring and control rather than mediationPlanning, monitoring and control rather than mediation
9. Introduction to HRIntroduction to HR
The 1980’s and 90’s saw ‘Human ResourceThe 1980’s and 90’s saw ‘Human Resource
Management’(HRM) replace ‘Personnel Management’Management’(HRM) replace ‘Personnel Management’
fashionable termfashionable term
re-organisation of work of personnel departmentre-organisation of work of personnel department
distinctively different with new management approachdistinctively different with new management approach
Long term rather than short term perspectiveLong term rather than short term perspective
Psychological contract of commitmentPsychological contract of commitment
Self-control rather than external controlsSelf-control rather than external controls
Management integrationManagement integration
Maximum utilisation of resourceMaximum utilisation of resource
10. Why is it Important?Why is it Important?
Staff are the largest revenue cost of any organisation.Staff are the largest revenue cost of any organisation.
Staff are a volatile resource, they can leave you anyStaff are a volatile resource, they can leave you any
time.time.
Staff are a store of corporate knowledge and the meansStaff are a store of corporate knowledge and the means
of service delivery.of service delivery.
Retaining and developing good staff allows you to useRetaining and developing good staff allows you to use
skills and develop as a business.skills and develop as a business.
Individuals should contribute more than they cost.Individuals should contribute more than they cost.
In the industry customer care critical and delivered byIn the industry customer care critical and delivered by
staff as representatives.staff as representatives.
11. Introduction to HRIntroduction to HR
The 1980’s and 90’s saw ‘Human ResourceThe 1980’s and 90’s saw ‘Human Resource
Management’(HRM) replace ‘Personnel Management’Management’(HRM) replace ‘Personnel Management’
fashionable termfashionable term
re-organisation of work of personnel departmentre-organisation of work of personnel department
distinctively different with new management approachdistinctively different with new management approach
Long term rather than short term perspectiveLong term rather than short term perspective
Psychological contract of commitmentPsychological contract of commitment
Self-control rather than external controlsSelf-control rather than external controls
Management integrationManagement integration
Maximum utilisation of resourceMaximum utilisation of resource
12. Hard and Soft HRMHard and Soft HRM
'Storey (1989) has distinguished between hard and soft'Storey (1989) has distinguished between hard and soft
forms of HRM, typified by the Michigan and Harvardforms of HRM, typified by the Michigan and Harvard
models respectively. 'Hard' HRM focuses on themodels respectively. 'Hard' HRM focuses on the
resource side of human resources. It emphasizes costsresource side of human resources. It emphasizes costs
in the form of 'headcounts' and places control firmly inin the form of 'headcounts' and places control firmly in
the hands of management. Their role is to managethe hands of management. Their role is to manage
numbers effectively, keeping the workforce closelynumbers effectively, keeping the workforce closely
matched with requirements in terms of both bodies andmatched with requirements in terms of both bodies and
behaviour. 'Soft' HRM, on the other hand, stresses thebehaviour. 'Soft' HRM, on the other hand, stresses the
'human' aspects of HRM. Its concerns are with'human' aspects of HRM. Its concerns are with
communication and motivation. People are led rathercommunication and motivation. People are led rather
than managed. They are involved in determining andthan managed. They are involved in determining and
realizing strategic objectives.'realizing strategic objectives.'
13. Hard and Soft HRMHard and Soft HRM
Hard HRM: A different view of HRM isHard HRM: A different view of HRM is
associated with the Michigan Business Schoolassociated with the Michigan Business School
(Fombrun, Tichy and Devanna, 1984). There are(Fombrun, Tichy and Devanna, 1984). There are
many similarities with the Harvard 'map' but themany similarities with the Harvard 'map' but the
Michigan model has a harder, less humanisticMichigan model has a harder, less humanistic
edge, holding that employees are resources inedge, holding that employees are resources in
the same way as any other business resource.the same way as any other business resource.
People have to be managed in a similar mannerPeople have to be managed in a similar manner
to equipment and raw materials. Thay must beto equipment and raw materials. Thay must be
obtained as cheaply as possible, used sparingly,obtained as cheaply as possible, used sparingly,
and developed and exploited as much asand developed and exploited as much as
possible.possible.
14. The Michigan model is also known as theThe Michigan model is also known as the
'matching model' or 'best-fit' approach to human'matching model' or 'best-fit' approach to human
resource management. In essence, it requiresresource management. In essence, it requires
that human resource strategies have a tight fit tothat human resource strategies have a tight fit to
the overall strategies of the business. As such, itthe overall strategies of the business. As such, it
limits the role of HR to a reactive, organizationallimits the role of HR to a reactive, organizational
function and under-emphasizes the importancefunction and under-emphasizes the importance
of societal and other external factors. Forof societal and other external factors. For
example, it is difficult to see how the currentexample, it is difficult to see how the current
concern for worklife balance could be integratedconcern for worklife balance could be integrated
into this model.into this model.
15. The Matching Model of HRMThe Matching Model of HRM
Internal Inter-linked components:Internal Inter-linked components:
Mission andMission and
StrategyStrategy
OrganisationOrganisation Human ResourceHuman Resource
StructureStructure managementmanagement
External forces:External forces:
Political forces Economic forces Cultural forcesPolitical forces Economic forces Cultural forces
Devanna et al., 1984Devanna et al., 1984
Emphases the ‘tight fit’ between HR strategy and business strategyEmphases the ‘tight fit’ between HR strategy and business strategy
16. Harvard ModelHarvard Model
A large part of this section is devoted to the Harvard 'map' of HRM.A large part of this section is devoted to the Harvard 'map' of HRM.
This is probably the most seminal model of HRM and has had aThis is probably the most seminal model of HRM and has had a
major influence on academic debate on the subject.major influence on academic debate on the subject.
'We noted that the Harvard Business School generated one of the'We noted that the Harvard Business School generated one of the
most influential models of HRM. The Harvard interpretation seesmost influential models of HRM. The Harvard interpretation sees
employees as resources. However, they are viewed as beingemployees as resources. However, they are viewed as being
fundamentally different from other resources - they cannot befundamentally different from other resources - they cannot be
managed in the same way. The stress is on people asmanaged in the same way. The stress is on people as humanhuman
resources. The Harvard approach recognizes an element ofresources. The Harvard approach recognizes an element of
mutuality in all businesses, a concept with parallels in Japanesemutuality in all businesses, a concept with parallels in Japanese
people management, as we observed earlier. Employees arepeople management, as we observed earlier. Employees are
significant stakeholders in an organization. They have their ownsignificant stakeholders in an organization. They have their own
needs and concerns along with other groups such as shareholdersneeds and concerns along with other groups such as shareholders
and customers.'and customers.'
17. TheThe Harvard MapHarvard Map or model outlinesor model outlines
four HR policy areas:four HR policy areas:
11 Human resource flowsHuman resource flows - recruitment,- recruitment,
selection, placement, promotion, appraisalselection, placement, promotion, appraisal
and assessment, promtion, termination,and assessment, promtion, termination,
etc.etc.
22 Reward systemsReward systems - pay systems,- pay systems,
motivation, etc.motivation, etc.
33 Employee influenceEmployee influence - delegated- delegated
levels of authority, responsibility, powerlevels of authority, responsibility, power
44 Work systemsWork systems - definition/design of- definition/design of
work and alignment of people.work and alignment of people.
18. Which in turn lead to the 'four C's' orWhich in turn lead to the 'four C's' or
HR policies that have to be achieved:HR policies that have to be achieved:
CommitmentCommitment
CongruenceCongruence
CompetenceCompetence
Cost effectivenessCost effectiveness
19. Factors Affecting HRFactors Affecting HR
LegislationLegislation
The Economic environmentThe Economic environment
The global economyThe global economy
The structure of the labour marketThe structure of the labour market
The Political environmentThe Political environment
Changes in technologyChanges in technology
Need to constantly retrain staffNeed to constantly retrain staff
20. LegislationLegislation
In the EU employment law is highlyIn the EU employment law is highly
complexcomplex
In the UK changes made twice a yearIn the UK changes made twice a year
The contract of employment is key to theThe contract of employment is key to the
employer/employee relationshipemployer/employee relationship
21. The Policy DecisionsThe Policy Decisions
The formalities to bargain withThe formalities to bargain with
Government legislation, trade unions andGovernment legislation, trade unions and
workers council consultationsworkers council consultations
The decision to minimise external powerThe decision to minimise external power
and influenceand influence
Encompass management and employeeEncompass management and employee
group interactiongroup interaction
22. The Role of HR in TourismThe Role of HR in Tourism
Support and advise line managersSupport and advise line managers
Ensure staff available to meet organisational needsEnsure staff available to meet organisational needs
Provide developmental supportProvide developmental support
AppraisalAppraisal
TrainingTraining
PromotionPromotion
Ensure pay and benefits in line with expectations.Ensure pay and benefits in line with expectations.
Deal with problem staffDeal with problem staff
DevelopDevelop
DismissalDismissal
23. The Changing Nature of HotelThe Changing Nature of Hotel
WorkWork
Greater level of overseas travelGreater level of overseas travel
Technology room bookings etcTechnology room bookings etc
Larger number of multinational groupsLarger number of multinational groups
Greater job mobilityGreater job mobility
Higher customer care expectationsHigher customer care expectations
Reduction in seasonal differencesReduction in seasonal differences
Health and SafetyHealth and Safety
Greater need for Multi-skillingGreater need for Multi-skilling
24. Factors Affecting Hotel WorkFactors Affecting Hotel Work
Disposable income levelsDisposable income levels
Customer expectationsCustomer expectations
Travel options consider 911Travel options consider 911
TechnologyTechnology
Staff availabilityStaff availability
Status many hotels are importing labourStatus many hotels are importing labour
Flexibility of supply e.g. Students in summerFlexibility of supply e.g. Students in summer
Career expectationsCareer expectations
25. HRM FunctionHRM Function
The company rather than the state or trade unionThe company rather than the state or trade union
provide employee security and welfareprovide employee security and welfare
HRM focuses on achieving organisational goalsHRM focuses on achieving organisational goals
through individual achievementthrough individual achievement
Providing the right person in the right placeProviding the right person in the right place
Directing positive employee communication andDirecting positive employee communication and
involvementinvolvement
Optimise co-operation and loyaltyOptimise co-operation and loyalty
Imposition of different forms of control to developImposition of different forms of control to develop
managementmanagement
26. Moving with the TimesMoving with the Times
Forces interact in complex ways to move andForces interact in complex ways to move and
change markets, businesses and the economicschange markets, businesses and the economics
of regions.of regions.
The changing expectations of a growingThe changing expectations of a growing
population.population.
a greater sense of self-determinationa greater sense of self-determination
expectation of rewards and recognition forexpectation of rewards and recognition for
efforts expendedefforts expended
a growing appetite for a better life.a growing appetite for a better life.
27. Business ChangesBusiness Changes
HRM equipped with strategy - a new set of toolsHRM equipped with strategy - a new set of tools
and measuresand measures
People issues are now recognised as being centralPeople issues are now recognised as being central
to the success of any organisationto the success of any organisation
as a consequence, human resources has assumedas a consequence, human resources has assumed
a higher profile.a higher profile.
senior management meeting address concernssenior management meeting address concerns
staffing levels,staffing levels,
recruitment,recruitment,
management developmentmanagement development
retention.retention.
28. MutualityMutuality
between Employers and Employeesbetween Employers and Employees
The theory that policy will elicit commitmentThe theory that policy will elicit commitment
which in turn will yield better economicwhich in turn will yield better economic
performance and greater human developmentperformance and greater human development
Mutual goalsMutual goals
mutual influencemutual influence
mutual respectmutual respect
mutual rewardsmutual rewards
mutual responsibilitymutual responsibility
Walton, 1985Walton, 1985