Professional Documents
Culture Documents
Lesson 1
1
Course Overview
Objectives
• To achieve the ability to:
– Gain an understanding of the dynamic role of human
resource management (HRM) policies and practices in
contemporary organizations and their contribution to
organization goals
– Define and examine critically, major philosophies,
policies, procedures, and practices related to HRM
– Gain an understanding of the influence of different
internal and external environments on current
practices
ti and
dddevelopments
l t iin HRM
– Demonstrate the ability to apply knowledge of HRM in
the analysis, diagnosis, as well as solution of
management situations and problems
2
Programme Content &
Learning Objectives (1)
• The student should be able to:
– 1. Explain the nature of the HRM process; show how features of
the organization (including leadership & managerial style,
g
organizational culture,, organizational
g climate),
), and its
environment (including social, economic, technological, regulatory,
and political factors) may influence HRM
– 2. Identify the needs & methods for bringing about organizational
change; understand the obstacles to change & possible
approaches to overcome these obstacles
– 3. Demonstrate an understanding of the purposes, main stages,
techniques, and information sources of HR planning; identify the
main factors influencing demand and supply; evaluate policies
and practices adopted to achieve HR plans
– 4. Describe and evaluate policies and practices associated with
employee resourcing including labor market issues, job analysis,
recruitment, selection, transfer, termination, labor turnover, and
absenteeism; explain changes in working patterns & forms of
employment; shift working, part-timer work, flexible working hours,
distance working, and job sharing
5 B2002 HRM Lecture 1
3
Weighting of Learning
Experience
Nature – features & influences on HRM 10%
Needs – methods – obstacles – approaches to 10%
orgnaisational change
HR Planning 10%
Employee Resourcing – changes in working patterns 20%
HR Development 15%
Employee Compensation 15%
Utilization of human resources – employee performance 15%
g
Union/Management relationships
p 5%
%
Method of assessment: 3 hour written examination
Examination Requirement:
Answer any 4 of 7 questions. All questions carry equal marks.
7 B2002 HRM Lecture 1
4
Discussion –
Globalisation & HRM
Globalisation (1)
• Definition
– The phenomenon & process of increasing the connectivity &
interdependence of the world’s markets & businesses
– The phenomenon of globalisation is the process by which the
experience of everyday life,
life marked by the diffusion of commodities and
ideas, can foster a standardization of cultural expressions around the
world. (Source: Encyclopedia Britannica
http://www.britannica.com/eb/article-9344667/globalization)
• 2 Major Driving Forces of Globalisation
– Advances in infrastructure of telecommunications
– Rise of the Internet
• Consequences of Globalisation
– Economies become much more dependent on one another
– Increased:
• Opportunities
• Competition
– Improved productivity
– Relocation of production sites
– Promotion of market economies
– Triggering of more mergers, acquisitions, restructuring, reengineering, and
downsizing
10 B2002 HRM Lecture 1
5
Globalisation (2)
VS
6
Discussion – PM vs HRM
7
Personnel Management (2)
• PM is concerned with the development & application of
policies governing:
– HR planning, recruitment, selection, placement, and termination
– Education & training
– Career development
– Terms of employment, methods & standards of remuneration
– Working conditions
– Employee services
– Formal & informal communication & consultation both through the
representatives of employers & employees at all levels throughout the
enterprise
– Negotiation & application of agreements on wages & working conditions,
procedures
d ffor the
th avoidance,
id and
d settlement
ttl t off di
disputes
t
• PM is also concerned with:
– Human & social implications of change in internal organization &
methods of working
– Economic & social changes in the community
8
Application of Industrial
Psychology in PM
• PM is a range of policies, institutions, and procedures which enable the
principles of industrial psychology to be put into practice.
• Purpose
– To make effective use of people at work
– To
T develop
d l satisfactory
ti f t relationships
l ti hi among people l
– To motivate people by:
• providing them with jobs which are satisfying in themselves, and
• offering them financial & other rewards
• To emphasize the psychological bias of PM, it may be re-defined as that
part of management which deals with people at work as regards:
– Utilization
• recruitment, selection, transfer, promotion, separation, appraisal, training &
development
– Motivation
• job design, remuneration, fringe benefits, consultation, participation,
negotiation, and justice
– Protection
• working conditions, welfare services, safety, implementing appropriate
legislation
• Utilization, motivation, and protection are:
– Related
17 – not self-contained B2002 HRM Lecture 1
Human Resource
Management (HRM)
• Definition
– The utilization of a firm’s human resources to achieve
organizational objectives (Mondy & Noe, 2005)
• Features
– Involve activities related to the recruitment, hiring, training,
promotion, retention, separation, and support of staff
– HRM processes attempt to ensure that employees perform
efficiently and in line with jobs and performance standards
assigned
– In the process, HRM aims to achieve the goals &
objectives of the organization
– Also deals with performance issues
– Ensure personnel & management practices conform to
various statutes and regulations
– Activities would also include managing the approach taken
for employee benefits and compensation, employee records,
and personnel polices
18 B2002 HRM Lecture 1
9
PM VS HRM (1)
• Personnel Management
– Mostly concerned with administration & implementation of HR &
personnel policies
• HRM
– Has strategic (long-term & holistic) dimensions involving total
deployment of HR within a firm
• Personnel Management
– Tends to be reactive & diagnostic in its approach
• HRM
– Tends to be proactive, seeking new attitudes & acceptance of new
methods
– Provides major inputs in organization development
– These
Th iinputs
t would
ld mainly
i l b
be iin th
the areas off iinformation
f ti regarding
di
the employees of the organization
• Personnel Management
– Tend to take a short-term view
• HRM
– Tend to take a long-term view
19 B2002 HRM Lecture 1
PM VS HRM (2)
Personnel Management HR Management
Time & planning • Short-term • Long-term
perspective • Reactive • Pro-active
• Ad hoc • Strategic
• Marginal • Integrated
Psychological Compliance Commitment
contact
Control systems External control Self-control
Employee relations • Pluralistic • Unitarist
Perspective • Collective • Individual
• Low trust • High trust
Preferred • Bureaucratic/mechanical • Organic
structures/systems • Centralized • Devolved
• Format defined roles • Flexible roles
Roles Specialist/professional Largely integrated into line
management
Evaluation criteria Cost minimization Maximum utilization
20 B2002 HRM Lecture 1 (human asset accounting)
10
HR as a
Strategic Partner
Discussion – Roles of HR
Manager
• It has been argued that the Human
Resource Manager has four key roles.
They are:
– Strategic partner
– Administrative expert
– Employee champion
– Change agent
Explain these roles
roles. Give examples to
support your answer. [25]
11
Importance of HRM
• HRM provides competitive edge to an organization
(John Naisbitt, “MegaTrends Asia” book)
• HRM sharpens the quality of competitive edge by
education training
education, training, and management development (John
Naisbitt, “MegaTrends Asia” book)
• HRM is related to training for both managers &
employees. Both individuals & organization learn how to
“doing more with less” (Tom Peters)
• HRM is closely related to a company’s overall corporate
planning processes & systems
• HRM helps getting the right people
people, making sure that
they are active, and keeping them in the organization
• HRM is an integral part of management & affects a
company’s performance
(Source: Managing Human Resources in Hong Kong (3rd ed.), Chan, A. W., Mak,
W. M., and Bannister, B. J., 2002, Sweet & Maxwell Asia, P. 6-7.)
23 B2002 HRM Lecture 1
Managing human
Increase Increase
resources to gain
innovation & responsiveness to
a competitive
creativity customers
advantage
(Source: Understanding
and Managing
Organizational Behavior
Increase quality (2nd Ed.), 1999, George, J.
M. and Jones, G. R.,
Addison Wesley, P. 16.)
24 B2002 HRM Lecture 1
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Desirable Tasks of HR: a
CEO Perspective
• As a Strategic Partner
– Make workforce strategies integral to company strategies & goals
– Earn the right to a seat at the corporate table
• As a Change
g Agent
g
– Leverage HR’s role in major change initiatives such as:
• Strategic planning
• Mergers & acquisitions
• Systems implementation
• Reorganizing/downsizing
• As an Administrative Expert
– Develop awareness and/or an understanding of the business
– Understand finance & profits
• As an Employee Champion
– Help line managers achieve their goals
(Source: Human Resource Management (9th ed.) , Mondy & Noe, 2005, Pearson/Prentice
Hall, P. 13.)
13
HRM Model
(Unit 1)
14
HRM Model (1) – Schematic Diagram
Organization’s Objectives Environment’s influences
15
HRM Model (3) – Organizational
Objectives & Environmental
Influences
• Organizational Objectives
– Organizations exist in an environment to achieve its own goals & purposes
– Organizations’ goals & objectives are influenced by the following
environmental influences:
• E i
Environmental
t l IInfluences
fl
– Changes in government regulations (e.g. changes in Labor Laws,
Employment Act & labor regulations)
– Changes in labor regulations which affect how wages are paid (e.g. these
changes may affect how many days leave a year an employee would be
entitled)
– Competition - actions by competitors (e.g. a competitor who reduces the
selling prices of its product/services may cause its competitors to revise
their sales plans & sales objectives)
– Changes in labor or trade union forces. If the labor atmosphere is militant,
it may fforce an organization
i ti tto rethink
thi k it
its objectives
bj ti or constrain
t i d decision-
i i
making of managers
• The 2 forces have a major impact on HRM by constraining the decision-
making discretion of managers in:
– Compensation (payment of wages, etc.)
– Benefits (annual leave, sick leave, etc.)
– Recruitment (who to be employed)
31 B2002 HRM Lecture 1
Organizational Objectives
16
Organizational Objectives (1)-
Vision, Mission, Objectives, and
Strategies Vision
Highest Broadest
Mission Level Scope
Objectives
Corporate Strategies
Functional Strategies
Lowest Narrowest
Level Scope
33 B2002 HRM Lecture 1
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Organizational Objectives (3)
- Mission
• Definition
– The purpose of existence of an organization
– Whyy does the organization
g exist?
• Characteristics
– Describes the organization’s works clearly, concisely, and
concretely
– Customer-oriented, focusing on products & services
– Provides a direction and purpose for all
• Example
p
– Microsoft
• At Microsoft, we work to help people and businesses throughout
the world realize their full potential. This is our mission. Everything
we do reflects this mission and the values that make it possible
(URL:http://www.microsoft.com/mscorp/mission/)
35 B2002 HRM Lecture 1
18
Environmental Influences
on an Organization
Discussion –
Environmental Influences
19
Environment Influence (1)
20
Environment Influence (3) -
PESTEL
• Political • Sociocultural
– Government stability – Population
– Taxation ppolicy
y
demographics
– Foreign trade
regulations – Income distribution
– Social welfare policies – Social mobility
• Economic
– Business cycles
– Lifestyle changes
– GNP trends – Attitudes to work
– I
Interest rates andd lleisure
i
– Money supply – Consumerism
– Inflation
– Unemployment – Levels of education
– Disposable income
41 B2002 HRM Lecture 1
21
Environment Influence (5) –
Internal Environment
• Definition
– The factors that affect a firm’s human resources from
inside the organization’s
organization s boundaries (from a
stakeholder perspective)
• Examples of Contributors of Internal Forces
– Employees
– Groups within an organization
– Customers
– Suppliers
– Competitors
– Trade unions
– Shareholders
43 B2002 HRM Lecture 1
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Exercise: Scanning External
Environment of Hongkong Electric
Political Forces
Societal Environment Technological Forces
__________________ __________________
__________________ __________________
__________________ Task Environment __________________
__________________ __________________
(Industry)
Stockholders Suppliers
Economic Forces Environmental Forces
_________________ Government Employees/ __________________
_________________ Special-interest Internal Labor unions __________________
_________________ Groups Environment __________________
_________________ __________________
Customers Competitors
Socio-cultural Forces Legal Forces
__________________ Creditors Trade Associations __________________
__________________ __________________
__________________ Communities __________________
__________________ __________________
45 B2002 HRM Lecture 1
Acquisition of HR (1)
• Acquisition of HR
– Manpower Planning (HR Planning)
– Recruitment
– Selection
– Socialization
• Manpower Planning (HR Planning)
– The mgt. ensures that
• It has the right number & kinds of people,
• At the right places,
• At the right time
time,
• Capable of effectively & efficiently completing the work that is
required for the organization to achieve its overall objective
– HR plans evolve out of overall objectives & strategies
of an organization
46 B2002 HRM Lecture 1
23
Acquisition of HR (2)
• Recruitment
– If HR planning revels that demand of HR
> supplyl off HR,
HR an organization
i ti needs
d tto
hire additional employees (Recruitment)
– Questions to ask:
• Who to hire & in what numbers?
• When to hire?
• Where to deploy these new recruits?
• Which branch?
• Which factory?
• Which country?
47 B2002 HRM Lecture 1
Acquisition of HR (3)
• Selection
– Potential applicants must be screened to identify
jjob applicants
pp who are likely
y to be successful if
hired (Selection)
• Socialization
– Selected employees are placed in an
organization and have adapted to the culture of
the organization & work environment
– Organizational culture conveys how things are
done & what matters
• When employees have adapted to an
organization’s culture, they have “learned the
ropes”
48 B2002 HRM Lecture 1
24
Development of HR (1)
• Development of HR
– Training & Development
– Career Development
• Training
T i i &D Development
l t
– Competent employees will NOT remain in one state forever
– Some employees are minimally competent on entering an
organization
• They require additional training or education
– Some employees entering an organization are capable of
performing at an optimum level but
• They face obsolescence in skills over time
– An organization’s needs change over time
– Management must ensure that there is an appropriate
match of individual abilities with organizational needs for
many years into the future
49 B2002 HRM Lecture 1
Development of HR (2)
• Training & Development (…continued)
– Questions to ask:
• Is there a training need?
• If so,
so who to train & why do you we need to train?
• Training is necessary sometimes because of changing
organization needs
• Skills of workers may become obsolete
• Training may be needed to meet employees needs &
aspirations - career development
• Or training is needed because new recruits are minimally
competent
• Career Development
p
– Employees have different needs & aspirations
– Managers need to match the career needs of employees with the
requirements of an organization
• When HR have been developed effectively, an organization gets
competent employees with up-to-date skills & knowledge
25
Motivation of HR (1)
• Motivation of HR
– Motivation
– Performance Appraisal
– Rewards & Punishment
• Motivation
– Managers must pay attention to the motivation of their staff
– Competence ≠ Satisfatory performance
– High Performance depends on:
• Ability
• Motivation
• Performance Appraisal (PA)
– The PA process & its outcome will affect an employee’s
motivation
– People expect their work to be objectively evaluated
– If employees think that their efforts is unfairly appraised
(judged), their motivation will decrease
51 B2002 HRM Lecture 1
Motivation of HR (2)
26
Maintenance of HR
27
English – Chinese Glossary
28