Tehzeeb Sakina Amir

IU – Spring 2011

HRMm - MBA

Human Resource Management

Start up session

Welcome & Class introductionCourse facilitator introductionCourse Objectives

Importance of HRMOutlines HRM ways for the benefit of the organization and

employeesIssues in HRM in changing work environmentSuggests ways of managing human capital

Start up session

Teaching methodologyTeaching will mainly be done through coaching

the students with interactive sessions. The key to success is to keep the concept

clear, simple and always look for its practical application in a working environment

Class norms - To get the maximum benefit out of the course students are strongly recommended to:Arrive and leave in time! No early leaves / late comingsCome Prepared! This is not a lecture-only course!Planned & surprise class quizzes/activities, be regular!Assignments and other related work has to be submitted on

time. Late submission will not be acceptable and will be marked zero!

Do your own work! Copied work will be marked zero!Cell phones switch off or put on silent please!No personal, political and religious examples & comments.

Start up session

Course content (modules) – soft copy email or copy from temp folder.

Testing & GradingGrading will focus on your overall performance rather

than one or two aspects. A mid-term examination & a final examination will be taken.

Class ParticipationClass quizzes, assignments 25%

Mid-term 25%Term project 10%Final Exam 40%TOTAL 100%

Course outline and grading

Resources Gary Dessler and Biju Varkkey “Human

Resource Management” eleventh edition Snell S. and Bohlander G. “The Handbook of

Human Resource Management” 2007 Society for Human Resource Management via

www.shrm.org HRM research papers and scholarly journals

Books & Journals

CR nomination Groups formation Class information (email addresses) Term Project

Selection of CR & Groups formation

Your understanding

Human Resource Management

Human

Resource

Management

To sum up….

HRM is one function of management process

where policies and practices focus on

carrying out “people” including recruiting,

screening, training, rewarding and appraising.

HRM functions

To perform the ‘people’Conducting job analysisPlanning labor needs & recruiting job candidatesSelectingOrienting and trainingManaging wages & salariesProviding incentives and benefitsPerformance appraisalsCommunicating – interviewing, counseling, discipliningTraining and developing Building employee commitment

HRM functions

A manager must know: Employment laws Equal opportunity and affirmative action Employee health & safety Handling grievances & labor relations

HRM specialties Recruiters HR development specialists Job analysts Compensation managers Training specialists Employment/industrial relations specialists Employee welfare officers

Small mistakes = huge loses

What can go wrong!Hire the wrong personHigh turnoverPeople not performingWaste time with useless interviewsHave your company taken to court because of

discriminatory actionsHave your company cited under occupational safety

laws for unsafe practicesUnfair and inequitable salariesLack of trainingCommit unfair labor practices

Every manager is an HR manager…

Authority – line and staff

Authority – the right to make decisions, direct other’s work and give orders.Line authority – direct activities in own

department and in service areasStaff authority – to advise other managers

HR manager’s duties

A line functionA coordinative function – to ensure line

managers are implementing organization’s policies, rules.

Staff functions- assist and advise line managers

The size of HR department reflects the size of the company

HR Manager’s Proficiencies

HR proficienciesBusiness proficienciesLeadership proficienciesLearning proficiencies

Managing within the Law

Managing Ethics

The changing environment The changing environment and HRMand HRM

Major changes in work environmentGlobalization trends & implications

Technological trends

Nature of work High-tech jobs

Service jobs

Knowledge work & human capital

Workforce demographic trendsAvailability of ‘Employable Talent’

Labor Legislation and LawsLabor Legislation and Laws

Labor Laws Pakistan

Labor legislation is the responsibility of both Federal and Provincial governments

Total labor force in Pakistan37.15 million people

47% agriculture sector10.5 % in manufacturing42.5% in various other professions

(source: labourunity.org)

Labor Laws Pakistan

Article 11 of the constitution prohibits child labor, forced labor and slavery

Article 17 right to exercise freedom of association and unions Article 18 right to enter any lawful profession, occupation, business Article 25 prohibits discrimination on basis of gender Article 37 (e) provision for just and humane work conditions Laws of hiring & firing Laws of working hours (7hrs/day. 42 hrs/week – factories act) Leaves paid Child labor (below 14 years) Strikes and Lock-outs

Equal Opportunity Employment

Discrimination on the basis of race, colour, religion, sex or national origin

Article 38 aims at achieving equality Defenses against discrimination allegations

Disparate treatment – intentional discrimination Disparate impact – neutral employment policy creating an adverse

impact. (college degree requirement). Not intentional. Adverse Impact: the overall impact of employer practices that result in

higher percentage of a particular groups members being rejected or not promoted. Adverse impact can be shown through:

Disparate rejection rates Restricted policy Population comparison Mc-Donnell-Douglas Test

Bona Fide Occupational Qualification

BFOQ - requirement that an employee be of a certain religion, sex, age or national origin which is necessary for organization’s functioning

Business Necessity – proof that there is an overriding business purpose for the discriminatory practice and should therefore be acceptable

Handling discrimination charges

Good intentions are no excuse!!Can not hide behind collective bargainingAgreement may be the best option…

Diversity

Some discriminatory practices

RecruitmentWord of mouthMisleading informationHelp wanted ads

Selection standardsEducational requirementsTestsPreference to blood relationsHeight, weight and physical characteristicsCriminal recordsApplication forms

Some discriminatory practices

Existing employeesPromotionsTransfersLayoffs

Personal appearanceDressHair/beardUniforms

THE STRATEGIC HRMmore a partner than a cost centre..

The new HRM face

Traditional

Strategic HRM

Creating High Performance Work

systems

Hiring/firingPayroll

Benefits plan

Testing & interviewing technologyUnion legislation

Equal employment legislation

Strategic - concepts

Strategy is ‘The company’s plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats and to maintain a competitive advantage.

Strategic management is “The process of identifying and executing the organization’s mission by matching its capabilities with the demands of the environment.”Strategic Plan + Implementation of the Plan

Strategic management - Steps

Step 1 Define current business and developing a mission

Step 2 SWOT evaluating internal & external strengths, weaknesses, opportunities and threats

Step 3 formulating a new business statementStep 4 translating mission into goalsStep 5 formulate strategies or courses of actionStep 6 Implement the strategiesStep 7 Evaluate performance

Strategies - TypesCorporate strategy – one organization into multi business but one corporate strategy

Competitive strategy – business level strategy

The Competitive Advantage – the edge, the differences with competitors that organization use to increase market share.

Functional strategy – basic courses of action in departments.

Strategic Fit

Dilemma of manager – misfit Two possibilities to overcome:

Fit – the manager should align functional strategies with and support its corporate and competitive strategies. Can result in limited growth

Leveraging – supplementing what you have and doing more with what you haveManager must underplay firm’s weaknesses &

capitalize on unique core strength of the company

HRM Role in strategic front

HRM Strategic Plan is “formulating and executing HR policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims.”HRM helps to create the ‘competitive

advantage” for the organizationThe Competitive advantage can take many forms: quality,

research, software systems, diversity of the workforce, trained employees, HR policies & practices etc.

Linking organization & HR strategies

Company’s competitive environment

Company’s strategicsituation

Company’s internal strengthsAnd weaknesses

Strategic plan(expand/cut cost/diversify)

Organizationalperformance

HR strategiesCourses of action

Challenges to HRM

Need to support corporate productivity and performance improvement efforts

Employees play an expanded role in employer’s performance improvement efforts

HR units must be more involved in designing – not just executing – the company’s strategic plan

HRM Strategic Roles

The Strategic Roles:The Execution Role – the doing part

The Formulation Role – expanded role – where

included in working of formulating corporate and

competitive strategies

The Strategic HRM System

The HR Function

HR professionalsWith strategic managementcompetencies

EmployeeBehaviorsEmployees

Competencies,Values,

Motivation, &Behaviors required

The HR System

High PerformanceWork system

High Performance Work Systems

A system which tends to create human resource with unique support to organizational needs

Aims to maximize competencies, commitment and abilities of the employees which produce superior performance

Vary from organization to organization

High Performance Work SystemsIncludes practices:

Employment securitySelective hiringExtensive trainingSelf managed teams and decentralized decision makingReduce status quoInformation sharingContingent rewards (pay-for performance)Transformational leadershipMeasurement of management practicesEmphasis on high quality work

Assessing HRM performance

Absence rateCost per hireHR expense factorTime to fillTurnover rate

Southwest Airlines

"Our people are our single greatest strength and most enduring long term competitive advantage."

Gary Kelly, CEO Southwest Airlines The Mission of Southwest Airlines The mission of Southwest Airlines is dedication to the highest

quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.

To Our Employees We are committed to provide our Employees a stable work

environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.