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Human Resource Management

  1. 1. Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Fundamentals of Strategic HRM
  2. 2. Introduction People, not buildings, make a company successful.
  3. 3. Introduction • It is important to note that achieving organizational goals cannot be done without human resources. • What is Google without its employees? • A lot of buildings, expensive equipment, and some impressive bank balances. • Similarly, if you removed the employees from such varied organizations as the Google, Microsoft, Hallmark, what would you have left? Not much. • People—not buildings, equipment, or brand names—make a company.
  4. 4. Why Is HRM Important to an Organization? • New requirements on employers concerning hiring and employment practices. • Jobs have changed. They have become more technical and require employees with greater skills. • Global competition has increased the importance of improving workforce productivity and looking globally for the best-qualified workers.
  5. 5. What is strategic planning?
  6. 6. The Strategic Nature • Strategic planning is a process used by an organization to determine its long-term vision and goals and how to accomplish them. • Many companies today recognize the importance of people in meeting their goals. • HRM must therefore balance two primary responsibilities: 1. assisting the organization in its strategic direction 2. representing and advocating for the organization’s employees. • HR professionals must align HR practices and plans with the overall organizational strategy.
  7. 7. Importance of HRM HRM has a dual nature: . Strategic HRM provides a clear connection between the organization’s goals and the activities of employees. supports the organization’s strategy represents and advocates for the employees
  8. 8. Strategic human resource management • SHRM is aligning HR policies and decisions with the organizational strategy and mission. • Strategic human resource management creates a clear connection between the goals of the organization and the activities of the people who work there. • All employees should see the link between their daily tasks and achievement of a purpose or goal.
  9. 9. Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
  10. 10. The HRM Functions The HR functions of staffing, training, and development are important to supporting organization strategy through human capital. In other words, hiring people, preparing them, stimulating them, and keeping them. staffing training and development motivation maintenance
  11. 11. Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
  12. 12. The HRM Functions Staffing has fostered the most change in HR departments during the past 30 years. staffing  strategic human resource planning: match peoples’ skills to the company’s strategy needs  recruiting: use accurate job descriptions to obtain an appropriate pool of applicants. Focus is on KSAs.  selection: thin out pool of applicants to find the best choice Google example
  13. 13. The HRM Functions The goal is to have competent, adapted employees. training and development  orientation: teach the rules, regulations, goals, and culture of the company  employee training: help employees acquire better skills for the job  employee development: prepare employee for future position(s) in the company  organizational development: help employees adapt to the company’s changing strategic directions  career development: provide necessary information and assessment in helping employees realize career goals
  14. 14. Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
  15. 15. The HRM Functions motivation  theories and job design: environment and well-constructed jobs factor heavily in employee performance  performance appraisals: standards for each employee; must provide feedback  rewards and compensation: must be link between compensation and performance  employee benefits: should coordinate with a pay-for-performance plan
  16. 16. The HRM Functions Job loyalty has declined over the past decade. Why? maintenance  safety and health: caring for employees’ well-being has a big effect on their commitment  communications and employee relations: keep employees well-informed of company doings, and provide a means of voicing frustrations
  17. 17. HRM from Islamic perspective 1. Staffing The Qur’an states, (28:26): “said one of the (damsels): ‘O my (dear) father! Engage him on wages; truly the best of men for you to employ is the (man) who is strong and trust worthy.” 2. Training and development Allah said (39:9) “are those who know equal to those who know not? But only they who are endowed with understanding keep this in mind.” The Prophet Muhammad (S.A.W) also declared it compulsory for Muslims to acquire knowledge when he said “Seeking knowledge is a duty on every Muslim man and woman”.
  18. 18. And prepare against them whatever you are able of power and of steeds of war by which you may terrify the enemy of Allah and your enemy and others besides them whom you do not know [but] whom Allah knows. And whatever you spend in the cause of Allah will be fully repaid to you, and you will not be wronged (Anfal:60). 3. Motivation & maintenance And for all there are degrees [of reward and punishment] for what they have done, and [it is] so that He may fully compensate them for their deeds, and they will not be wronged (46:19). The employees should be rewarded as soon as their work done and completed (Sunan Ibn Majah)
  19. 19. "As for one who wrongs, we will punish him. Then he will be returned to his Lord, and He will punish him with a terrible punishment”. (Surat Al-Kahf ) “No soul shall have a burden laid on it greater than it can bear.” (Surat Al- Baqarah ) .
  20. 20. External Influences on HRM management thought labor unions laws and regulationsHRM dynamic environment External influences affect HRM functions.
  21. 21. External Influences on HRM dynamic environment “The only constant in life is change.” globalization decentralized work sites technology teams workforce diversity employee involvement ethicschanging skill requirements continuous improvement
  22. 22. External Influences on HRM laws and regulations  legislation has an enormous effect on HRM  laws protect employee rights to union representation, fair wages, family medical leave, and freedom from discrimination based on conditions unrelated to job performance
  23. 23. External Influences on HRM labor unions assist workers in dealing with company management negotiate wages, hours, and other terms of employment promote and foster a grievance procedure between workers and management When a union is present, employers can not fire workers for unjustified reasons.
  24. 24. What are the benefits of strategic HR planning? • ENCOURAGEMENT OF PROACTIVE RATHER THAN REACTIVE BEHAVIOR • Being proactive means looking ahead and developing a vision of where the company wants to be and how it can use human resources to get there. • In contrast, being reactive means responding to problems as they come up. • Companies that are reactive may lose sight of the long- term direction of their business; proactive companies are better prepared for the future.
  25. 25. What are the benefits of strategic HR planning? • EXPLICIT COMMUNICATION OF COMPANY GOALS • Strategic HR planning can help a firm develop a focused set of strategic objectives that capitalizes on its special talents and know- how. • STIMULATION OF CRITICAL THINKING AND ONGOING EXAMINATION OF ASSUMPTIONS • Managers often depend on their personal views and experiences to solve problems and make business decisions. The assumptions on which they make their decisions can lead to success if they are appropriate to the environment in which the business operates. Strategic HR planning can stimulate critical thinking and the development of new initiatives only if it is a continuing and flexible process rather than a rigid procedure with a discrete beginning and a specific deadline for completion.
  26. 26. What are the benefits of strategic HR planning? • IDENTIFICATION OF GAPS BETWEEN CURRENT SITUATION AND FUTURE VISION • Strategic HR planning can help a firm identify the difference between “where we are today” and “where we want to be.” • IDENTIFICATION OF HR CONSTRAINTS AND OPPORTUNITIES • When overall business strategy planning is done in combination with HR strategic planning, firms can identify the potential problems and opportunities with respect to the people expected to implement the business strategy.
  27. 27. What are the benefits of strategic HR planning? • CREATION OF COMMON BONDS • A substantial amount of research shows that, in the long run, organizations that have a strong sense of “who we are” tend to outperform those that do not. • A strategic HR plan that reinforces, adjusts, or redirects the organization’s present culture can foster values such as a customer focus, innovation, fast growth, and cooperation. • ENCOURAGEMENT OF LINE MANAGERS’ PARTICIPATION • For HR strategy to be effective, line managers at all levels must buy into it. If they do not, it is likely to fail.
  28. 28. Task for next class • What are the challenges of strategic HR planning?