Professional Documents
Culture Documents
HUMAN RESOURCES
MANAGEMENT
Prateek Goel
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HUMAN RESOURCES
MANAGEMENT
Human Resources Management
(HRM)
The process of managing human
resources (human capital and
intellectual assets) to achieve an
organization’s objectives.
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NEED FOR HRM
Staffing the organization
Designing jobs and teams
Developing skillful employees
Identifying approaches for
improving their performance
Rewarding employee success
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Challenges and Human
Resources Management
The most pressing competitive
issues facing firms:
1. Going global
2. Embracing new technology
3. Managing change
4. Managing talent, or human capital
5. Responding to the market
6. Containing costs
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CHALLENGE 1: GOING
GLOBAL
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Challenge 1: Going Global
Globalization
◦ The trend toward opening up foreign
markets to international trade and
investment
Impact of globalization
◦ “Anything, anywhere, anytime”
markets
◦ Partnerships with foreign firms
◦ Lower trade and tariff barriers
NAFTA, EU, APEC trade agreements
WTO and GATT
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Challenge 1: Going Global
(cont’d)
Outsourcing work
Corporate Social Responsibility
◦ The responsibility of the firm to act in
the best interests of the people and
communities affected by its activities
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Challenge 1: Going Global
(cont’d)
Impact on HRM
◦ Issues:
Identifying capable managers and workers
Developing foreign culture and work
practice training programs.
Adjusting compensation plans for overseas
work
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Challenge 1: Going Global
(cont’d)
Workforce diversity
◦ Different geographies, cultures, laws,
and business practices
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Challenge 2: Embracing New
Technology
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Challenge 2: Embracing New
Technology
Knowledge Workers
Knowledge-Based Training
Online instruction
“Just-in-time” learning via the Internet
on company intranets
Influence of Technology in
HRM
Human Resources Information
System (HRIS)
◦ Benefits:
Store data.
reconfigure data
organizational knowledge.
Easier communications.
administrative costs
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Most Common HR
Information Systems
Applications
Payroll
Benefits administration
Benefits enrollment
Recruiting—applicant tracking
Personnel administration
Training and development
Employee self-service
Manager self-service
HRM IT Investment Factors
Ability to upgrade Time required to
implement and train
Compatibility
staff members to use
with
HRIS
current systems
Initial
and annual
Availabilityof
maintenance costs
technical support
Trainingtime
required for HR and
payroll
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Coping up with IT
EfficientIT Department
Proper training
Upgrading OAS
Tracking new developments
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Challenge 3: Managing
Change
Mergers and acquisition
Diversification of an organization
Organization design
Changes in strategy
Change in management team
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Reactive response
Response that occurs after external
forces have already affected the
performance.
Proactive response
Response initiated to take advantage
of targeted opportunities
Copyright © 2007 Thomson South-
Western. All rights reserved. 1–18
Challenge 3: Managing
Change (cont’d)
Why Change Efforts Fail:
◦ Not establishing a sense of urgency.
◦ Not creating a powerful coalition to
guide the effort.
◦ Lacking leaders who have a vision.
◦ Lacking leaders who communicate
the vision.
◦ Not removing obstacles to the new
vision.
◦ Declaring victory too soon.
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Challenge 4: Managing Talent,
or Human Capital
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Challenge 4: Managing Talent,
or Human Capital
Human Capital
◦ The knowledge, skills, and capabilities
of individuals that have economic
value to an organization.
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Challenge 4: Managing Talent,
or Human Capital(cont’d)
Importance of Human Capital or
Talent
◦ Based on company specific skills.
◦ Can be expanded through
development.
◦ There is a demonstrated relationship
between better talent and better
business performance.
◦ Talent is rapidly increasing the source
of value creation.
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Challenge 4: Managing Talent,
or Human Capital(cont’d)
Human Capital, if not retained
◦ High attrition rate.
◦ Loss of valuable human asset.
◦ Loss of secret information.
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Challenge 4: Managing Talent,
or Human Capital
Managing Human Talent through-
◦ Putting right people in right job.
◦ Employee Reward program.
◦ Career development program.
◦ Performance based bonus.
◦ Loyalty bonus.
◦ Giving voice to knowledge Bank.
◦ Employee recreation.
◦ Gifts at some occasion.
◦ Regular survey or feedback.
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Challenge 5: Responding to
the Market
MARKE
T
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Challenge 5: Responding to
the Market
Total Quality Management (TQM)
◦ set of principles
◦ understanding customer needs
◦ doing things right
◦ continuous improvement.
Six Sigma
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Challenge 5: Responding to
the Market (cont’d)
Reengineering and HRM
Requires that managers create an
environment for change.
Depends on effective leadership and
communication processes.
Requires that administrative systems be
reviewed and modified.
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Challenge 6: Containing
Costs
Challenge 6: Containing
Costs
Downsizing
◦ The planned elimination of jobs
(“head count”).
◦ Layoffs
Outsourcing
◦ Contracting outside the organization
to have work done that formerly was
done by internal employees.
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Challenge 6: Containing Costs
(cont’d)
Employee Leasing
◦ The process of dismissing employees
who are then hired by a leasing
company
Off shoring
◦ The business practice of sending jobs
to other countries.
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Challenge 6: Containing Costs
(cont’d)
Hidden Costs of Layoff
◦ Severance and rehiring costs
◦ Accrued vacation and sick day
payouts
◦ Pension and benefit payoffs
◦ Potential lawsuits from aggrieved
workers
◦ Loss of institutional memory and trust
in management
◦ Lack of staffers when the economy
rebounds
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THANK YOU
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