Human Resource Management Overview

1
Human Resource ManagementOverview

• Definitions
• Why important
• Key issues
• Good HRM
• Historical development
• HRM activities
• The Irish context

2
A Question of Definition

• Personnel Management
• .is a series of activities which first enables
  working people and the organisation which uses
  their skills to agree about the objectives and
  nature of their working relationship and,
  secondly ensures that the agreement is
  fulfilled. (Torrington Hall, 1995)

3
Human Resource Management

• refers to the practices and policies needed to
  cover the human aspect of management.
• is the part of the management process that
  specializes in the management of people in work
  organisations.

4

• risk of comparing an idealised version of Human
  Resource Management with a worked and problematic
  version of Personnel Management.

5
HRM 3 Differences

• 1. Inclusive of management
• 2. Personnel policies strategic goals
• 3. Culture of commitment rather than
  compliance
• (Legge 1989)

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The Human Resource Approach

• HIGHER GREATER
• Employee motivation Quality quantity
• applied ability of work
• GREATER HIGHER
• Employee rewards organisational
• recognition productivity profit

7
Why is it important?

• Extremely high competition
• More countries with low wages high skilled
  workers
• Rapid technological advances
• Changing legal, political social realities
• Changing values educational levels
• Changing consumer demands

8
Key Issues

• Pivotal?
• Essence-individual differences
• Variation across organisations
• Generalist/Specialist function
• Personnel Vs H.R.M.
• Management Style

9
Successful companies need people who are

• Adaptable
• Committed
• Motivated
• Skilled/re-skilled
• Energetic
• Good team players

10
Core Objectives of HRM

• Staffing
• Performance
• Change management
• Administration

11
Goals of HRM

• General Specific
• Productivity attracting
• QWL retaining
• Legal compliance motivating
• Competitive advantage retraining

12
Good Human Resource Practice

• Recognize peoples needs expectations
• Respect the individual
• Provide justice in treatment
• Provide stable employment
• And

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• Provide good working conditions
• Opportunities for career progression personal
  development
• Function as a democracy
• Observe the law codes of conduct relating to
  employment

14
Hard Vs Soft HRM(Torrington Hall 2002)

• Hard Soft
• Workers are a resource Workers are key
• like any other resource to competitive
  advantage and must be nurtured
  developed
• Not mutually exclusive
• HRM is fundamentally unitarist

15
Who is Responsible?

• Line managers
• ?
• HR professionals
• ?
• Consultants/sub-contractors
• ?
• employees

16
Current Issues in HRM

• Responding to intensified competition
• Managing international operations
• Technological innovation
• Complying with the law
• Managing with/without trade unions
• Ethical concerns
• Best practice Vs Best fit

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Best Practice Vs Best Fit

• Best Practice
• - best way of carrying out HR activities that
  is universally applicable
• - advanced selection methods, serious
  commitment to employee involvement, substantial
  investment in TD etc.
• Best Fit
• - all is contingent on the circumstances of
  each organisation

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Some Ethical Concerns

• Dismissing someone for incapability
• Failing to dismiss a senior manager
• Paying women less than men
• Pressure to change hours or location
• Paying less when you can pay more
• Failing to tell the truth at a tribunal
• Failing to make costly HS alterations

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HRM Activities

• Strategy Formulation
• Human Resource Planning
• Recruitment Selection
• Appraisal Performance Mgt.
• Reward Management
• Training Development
• Employee Relations
• Administration

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Organisation
Resourcing
The Strategic Core
Reward
Performance
Employee Relations
Development
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• The execution of strategy lies in the hands of
  individuals and therefore no matter how good the
  strategy is, if it fails to take account of the
  people element it is doomed to failure at worst
  or to partial success at best.
• (Gunnigle et al 1997)

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Organisational Strategy HR Strategy
OS
HRS
Separation
OS
HRS
Fit
OS
HRS
Dialogue
23
Torrington Hall 2002
OS
HRS
Holistic
OS
HRS
HR Driven
24
Human Resource Planning Process

• EXTERNAL ENVIR. INTERNAL ENVIR.
• DEMAND FOR LABOUR SUPPLY OF LABOUR
• ESTIMATE OF IMBALANCE
• ACTION PLANS
• recruitment training development
• redundancy, dismissals redeployment
• employee relations organisation development
• IMPLEMENT REVIEW

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• Current Future Current Supply
• Demand for labour of labour

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The Recruitment Selection Process

• Human resource planning
• ?
• Job analysis
• ?
• Recruitment
• ?
• Selection
• ?
• Induction

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Performance Management

• Clear objectives are essential for effective
  performance
• Communication is good
• Involvement Commitment
• Everyones work should relate to the
  organisations work
• People need feedback
• Responsibility and autonomy enrich jobs

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• Establish, communicate Evaluate
• agree objectives performance
• Communicate Compare
• Decisions results performance
• with objectives
• Take corrective action Decide on
• Review objectives appropriate
• Continue unchanged action

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Appraisal Systems

• Formalise the review part of the performance
  cycle
• Usually annual/bi-annual
• Form based
• Link to pay?
• One way Vs two way

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The Appraisal Interview

• Tell-and sell
• Tell-and listen
• Joint-problem-solving

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Reward Package

• Pay incentives benefits
• - Pay basic wage
• - Benefits indirect rewards (eg. Car, VHI,
  expenses)
• - Incentives performance beyond expectations
  (eg. Bonus, awards, share options)

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Objectives of Reward Package

• Attract employees
• Retain good employees
• Motivate
• Contribute to H.R. strategy

33
Effective Reward System

• Satisfies basic needs
• Flexible
• Internal equity
• External equity
• Trust (management staff believe in it)

34
Training Development

• - Assessment of need
• - Design delivery
• - Transfer evaluation

35
The Evidence For Change

• Growth of A-typical employment
• Flexibility debate
• Technological revolution
• Quality initiatives
• Management-employee communications

36
Partnership Model

• Employers recognise facilitate worker T.U.
  involvement in strategic decision making
• Workers/T.U.s commit to productivity
  improvements
• Gains shared
• Productivity improvements business expansion

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Cutting Edge of HRM

• Key changes
• Attendance management performance
• Use of management to implement HR strategy
• Emphasis on communication training as tools
• Belief in potential of people to yield
  competitive advantage

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HRM _at_ INTEL

• Quarterly employee lunches
• Employee Resource Centre
• Meetings culture
• Profit sharing
• Flexible working arrangements
• 360 feedback

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Vision based on 5 core principles

• Total quality
• Total involvement
• Management by facts
• Emphasis on HS
• Clear objectives

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Strategic responses to increased competition

• 1. Widespread rationalisation, redundancies,
  contracting-out, de-layering
• 2. Mergers, acquisitions, strategic alliances
• 3. Enterprise level partnership

41
Human resources is not fluffy(Sunday Times Jan
2002)

• 18 of FTSE 100 have board representation for HR
• Need to focus on best fit as well as best
  practice
• Need to quantify communicate contribution
• HR is not touchy-feely often left with
  controversial decisions that no one else will
  deal with

42
A higher status for the people person (Financial
Times 29/01/02)

• HR managers need to understand how their jobs
  have changed
• Need to be involved in looking for talented
  recruits, working on top level succession and
  helping to devise the long-term strategy of the
  organisation
• Dominated by professional rather than
  administration staff
• Report to the CEO sit on the board