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  1. 1. Human Resource Management
  2. 2. <ul><li>Why Human Resources Is Important: The HRM Process </li></ul><ul><ul><li>Explain how an organization’s human resources can be a significant source of competitive advantage. </li></ul></ul><ul><ul><li>List eight activities necessary for staffing the organization and sustaining high employee performance. </li></ul></ul><ul><ul><li>Discuss the environmental factors that most directly affect the HRM process. </li></ul></ul>
  3. 3. <ul><ul><li>Contrast job analysis, job description, and job specification. </li></ul></ul><ul><ul><li>Discuss the major sources of potential job candidates. </li></ul></ul><ul><ul><li>Describe the different selection devices and which work best for different jobs. </li></ul></ul><ul><ul><li>Tell what a realistic job preview is and why it’s important. </li></ul></ul><ul><ul><li>Explain why orientation is so important. </li></ul></ul><ul><ul><li>Describe the different types of training and how that training can be provided. </li></ul></ul>
  4. 4. <ul><li>Employee Performance Management; Compensation/Benefits; Career Development </li></ul><ul><ul><li>Describe the different performance appraisal methods. </li></ul></ul><ul><ul><li>Discuss the factors that influence employee compensation and benefits. </li></ul></ul><ul><ul><li>Describe skill-based and variable pay systems. </li></ul></ul><ul><ul><li>Describe career development for today’s employees. </li></ul></ul><ul><li>Current Issues in Human Resource Management </li></ul><ul><ul><li>Explain how managers can manage downsizing. </li></ul></ul><ul><ul><li>Discuss how managers can manage workforce </li></ul></ul>
  5. 5. <ul><li>Current Issues in Human Resource Management (cont’d) </li></ul><ul><ul><li>Explain what sexual harassment is and what managers need to know about it. </li></ul></ul><ul><ul><li>Describe how organizations are dealing with work-life balances. </li></ul></ul>
  6. 6. <ul><li>Introduction of Current Business Realities. </li></ul><ul><li>Globalization, liberalization and privatization, together with rapid strides made by information technology, have brought intense competition in every field of activity. Indian industry at present is dazed, confused and apprehensive. The marketing complexities have increased, product life cycles have shortened and the market is more turbulent than ever before. Indian industry is desperately looking for strategy and action plans that would ensure its survival and growth. In the fast changing socio-economic environment the consumer is truly a moving target today. </li></ul>
  7. 7. <ul><li>In the current business environment in India, where the market forces have started playing a dominant role and the economy is opening up, every company needs to gear up itself to be able to survive and compete well with its competitors. An ambience has to be created to be proactive to be competitive in business on sustainable basis. Also, the benchmarks and standards have to be of global dimensions to achieve its vision of globalization. Accordingly, one has embarked on transforming the organization to meet its goals as enshrined in the vision and even more. Various initiatives to achieve the objectives have been undertaken such as structural changes like organisational design, business process reengineering, benchmarking, strategy formulation which are in various stages of implementation . </li></ul>The changing Social context and emerging Issues. Indian environment : The Changing Scenario
  8. 8. <ul><li>As a necessary part of the organizing function of management </li></ul><ul><ul><li>Selecting, training, and evaluating the work force </li></ul></ul><ul><li>As an important strategic tool </li></ul><ul><ul><li>HRM helps establish an organization’s sustainable competitive advantage. </li></ul></ul><ul><li>Adds value to the firm </li></ul><ul><ul><li>High performance work practices lead to both high individual and high organizational performance. </li></ul></ul>
  9. 9. <ul><li>Self-managed teams </li></ul><ul><li>Decentralized decision making </li></ul><ul><li>Training programs to develop knowledge, skills, and abilities </li></ul><ul><li>Flexible job assignments </li></ul><ul><li>Open communication </li></ul><ul><li>Performance-based compensation </li></ul><ul><li>Staffing based on person–job and person–organization fit </li></ul>
  10. 10. Functions of the HRM Process <ul><li>Ensuring that competent employees are identified and selected. </li></ul><ul><ul><li>Providing employees with up-to-date knowledge and skills to do their jobs. </li></ul></ul><ul><ul><li>Ensuring that the organization retains competent and high-performing employees who are capable of high performance. </li></ul></ul>
  11. 12. <ul><li>Employee Labor Unions </li></ul><ul><ul><li>Organizations that represent workers and seek to protect their interests through collective bargaining. </li></ul></ul><ul><ul><ul><li>Collective bargaining agreement </li></ul></ul></ul><ul><ul><ul><ul><li>A contractual agreement between a firm and a union elected to represent a bargaining unit of employees of the firm in bargaining for wage, hours, and working conditions. </li></ul></ul></ul></ul><ul><li>Governmental Laws and Regulations </li></ul><ul><ul><li>Limit managerial discretion in hiring, promoting, and discharging employees. </li></ul></ul><ul><ul><ul><li>Affirmative Action: the requirement that organizations take proactive steps to ensure the full participation of protected groups in its workforce. </li></ul></ul></ul>
  12. 13. -developing leadership capability in managers and supervisors -talent retention (from shortages in skilled labor) -success planning (with baby boomers retiring) -more strategic approach to HR (knowledge economy elevates importance of human capital) -greater take up of more sophisticated e - learning -strategies for increasing employee engagement Current or emerging trends in HRM
  13. 14. <ul><li>ARTICLES ON CURRENT TRENDS </li></ul>
  14. 15. <ul><li>Companies Won't Sleep In a quest to reach new customers in foreign time zones and to speed up production and services, more and more companies in the future will be open for business around the clock, seven days a week. While the 24/7 worker used to be an assembly-line worker, today he or she may well be a college-educated computer-tech-support specialist working nights in San Francisco, providing Japanese-language advice to a customer who calls from Tokyo during his lunch hour. The migration to a 24/7 workplace will make human resources managers’ jobs far more complex. &quot;You may have to offer nighttime child-care providers, who watch kids while they sleep,&quot; he says. &quot;And you may have to be much more creative in terms of scheduling--for example, if you’re running a call center for a retailer, you may have to have more staff on hand right after the 2:30 a.m. infomercial.&quot; Employers also will have a trickier time dealing with disability claims, since some mental health conditions may be exacerbated by a shift to nighttime work. </li></ul>
  15. 16. <ul><li>The Simmering Malaise For several years, employees have had a very tough time. They’ve lived with the fear of downsizing. They’ve watched benefits and retirement savings shrink. And they’ve been forced to work harder and longer, with fewer opportunities for promotions or raises. Even when the economy eventually recovers, experts say, pervasive dissatisfaction and anger aren’t likely to evaporate. Only 25 percent of workers feel a strong attachment to their employers, and 4 in 10 feel trapped in their jobs. Employee loyalty was on the decline even before the economy stalled, and that pattern is likely to continue. Employers who ignore workplace discontent run the risk of periodic productivity slumps as skilled staffers depart for higher-paying positions whenever the labor market surges. Smart companies that make employees feel valued will gain a crucial competitive edge. </li></ul>
  16. 17. <ul><li>Defined Benefit Plans Attracting the best and brightest employees in the future will become nearly impossible without a defined benefit plan. Companies without retirement plans that provide guaranteed benefits will be passed over for employers that do. &quot;Employees now understand the volatility of defined contribution plans and are looking for a balanced program with both the upside potential of a defined contribution plan and the mitigation of downside risk of a defined benefit plan. </li></ul><ul><li>Major employers such as Microsoft, Wal-Mart, and Cisco Systems currently don’t offer defined benefit plans because they have been able in recent years to recruit effectively without them. This will no longer be true. As the workforce ages and labor shortages increase, companies will have to offer retirement plans that provide a floor level of retirement income. </li></ul>
  17. 18. Child Care Child care is and will continue to be a major, often heartrending subject for working parents. As the national workforce ages and the number of women of childbearing age levels off in the next five years, the demand for child care may lessen. But access to quality child care will continue to be a major issue for working moms and their employers. One of the major problems for working parents is what to do when the babysitter is sick or doesn’t show up, or the regular preschool is closed for a holiday or vacation break. She expects that an increasing number of companies will offer backup-care arrangements that employees can use in the event of emergencies. &quot;Employees often are willing to pay a fee for the care, so all the company may have to provide is the space,&quot;. A related trend may be the rise of contractors that provide innovative activities for company-sponsored day care, such as theater classes for kids
  18. 19. <ul><li>Help Wanted: Ten Million Workers </li></ul><ul><li>The convergence of several trends--declining births, retiring baby boomers, and expected business growth--will create more jobs than there will be workers to fill them by 2010, experts predict. </li></ul><ul><li>The math is relatively simple. </li></ul><ul><li>Roger Herman, a futurist specializing in workplace issues, says pressure on baby boomers wanting to retire will be so great that they will be pulled back into the labor market. Even so, he says, older workers won’t show up in large enough numbers to fill the millions of jobs available. Herman says the problem will be aggravated by the shortage of skilled, educated workers already occurring in manufacturing, health care, and various technical fields. </li></ul>
  19. 20. <ul><li>Human Resource (HR) Planning </li></ul><ul><ul><li>The process by which managers ensure that they have the right number and kinds of people in the right places, and at the right times, who are capable of effectively and efficiently performing their tasks. </li></ul></ul><ul><ul><li>Helps avoid sudden talent shortages and surpluses. </li></ul></ul><ul><ul><li>Steps in HR planning: </li></ul></ul><ul><ul><ul><li>Assessing current human resources </li></ul></ul></ul><ul><ul><ul><li>Assessing future needs for human resources </li></ul></ul></ul><ul><ul><ul><li>Developing a program to meet those future needs </li></ul></ul></ul>
  20. 21. <ul><li>Human Resource Inventory </li></ul><ul><ul><li>A review of the current make-up of the organization’s current resource status </li></ul></ul><ul><ul><li>Job Analysis </li></ul></ul><ul><ul><ul><li>An assessment that defines a job and the behaviors necessary to perform the job </li></ul></ul></ul><ul><ul><ul><ul><li>Knowledge, skills, and abilities (KSAs) </li></ul></ul></ul></ul><ul><ul><ul><li>Requires conducting interviews, engaging in direct observation, and collecting the self-reports of employees and their managers. </li></ul></ul></ul>
  21. 22. <ul><li>Job Description </li></ul><ul><ul><li>A written statement of what the job holder does, how it is done, and why it is done . </li></ul></ul><ul><li>Job Specification </li></ul><ul><ul><li>A written statement of the minimum qualifications that a person must possess to perform a given job successfully. </li></ul></ul>
  22. 23. Supply of Employees Demand for Employees
  23. 24. <ul><li>Recruitment </li></ul><ul><ul><li>The process of locating, identifying, and attracting capable applicants to an organization </li></ul></ul><ul><li>Decruitment </li></ul><ul><ul><li>The process of reducing a surplus of employees in the workforce of an organization </li></ul></ul><ul><li>E-recruiting </li></ul><ul><ul><li>Recruitment of employees through the Internet </li></ul></ul><ul><ul><ul><li>Organizational web sites </li></ul></ul></ul><ul><ul><ul><li>Online recruiters </li></ul></ul></ul>
  24. 27. <ul><li>Selection Process </li></ul><ul><ul><li>The process of screening job applicants to ensure that the most appropriate candidates are hired. </li></ul></ul><ul><li>What is Selection? </li></ul><ul><ul><li>An exercise in predicting which applicants, if hired, will be (or will not be) successful in performing well on the criteria the organization uses to evaluate performance. </li></ul></ul><ul><ul><li>Selection errors: </li></ul></ul><ul><ul><ul><li>Reject errors for potentially successful applicants </li></ul></ul></ul><ul><ul><ul><li>Accept errors for ultimately poor performers </li></ul></ul></ul>
  25. 29. <ul><li>Validity (of Prediction) </li></ul><ul><ul><li>A proven relationship between the selection device used and some relevant criterion for successful performance in an organization. </li></ul></ul><ul><ul><ul><li>High tests scores equate to high job performance; low scores to poor performance. </li></ul></ul></ul><ul><li>Reliability (of Prediction) </li></ul><ul><ul><li>The degree of consistency with which a selection device measures the same thing. </li></ul></ul><ul><ul><ul><li>Individual test scores obtained with a selection device are consistent over multiple testing instances. </li></ul></ul></ul>
  26. 30. <ul><li>Application Forms </li></ul><ul><li>Written Tests </li></ul><ul><li>Performance Simulations </li></ul><ul><li>Interviews </li></ul><ul><li>Background Investigations </li></ul><ul><li>Physical examinations </li></ul>
  27. 31. <ul><li>Types of Tests </li></ul><ul><ul><li>Intelligence: how smart are you? </li></ul></ul><ul><ul><li>Aptitude: can you learn to do it? </li></ul></ul><ul><ul><li>Attitude: how do you feel about it? </li></ul></ul><ul><ul><li>Ability: can you do it now? </li></ul></ul><ul><ul><li>Interest: do you want to do it? </li></ul></ul><ul><li>Legal Challenges to Tests </li></ul><ul><ul><li>Lack of job-relatedness of test items or interview questions to job requirements </li></ul></ul><ul><ul><li>Discrimination in equal employment opportunity against members of protected classes </li></ul></ul>
  28. 32. <ul><li>Testing an applicant’s ability to perform actual job behaviors, use required skills, and demonstrate specific knowledge of the job. </li></ul><ul><ul><li>Work sampling </li></ul></ul><ul><ul><ul><li>Requiring applicants to actually perform a task or set of tasks that are central to successful job performance. </li></ul></ul></ul><ul><ul><li>Assessment centers </li></ul></ul><ul><ul><ul><li>Dedicated facilities in which job candidates undergo a series of performance simulation tests to evaluate their managerial potential. </li></ul></ul></ul>
  29. 33. <ul><li>Interviews </li></ul><ul><ul><li>Although used almost universally, managers need to approach interviews carefully. </li></ul></ul><ul><li>Background Investigations </li></ul><ul><ul><li>Verification of application data </li></ul></ul><ul><ul><li>Reference checks: </li></ul></ul><ul><ul><ul><li>Lack validity because self-selection of references ensures only positive outcomes. </li></ul></ul></ul><ul><li>Physical Examinations </li></ul><ul><ul><li>Useful for physical requirements and for insurance purposes related to pre-existing conditions. </li></ul></ul>
  30. 34. <ul><li>Structure a fixed set of questions for all applicants. </li></ul><ul><li>Have detailed information about the job for which applicants are interviewing. </li></ul><ul><li>Minimize any prior knowledge of applicants ’ background, experience, interests, test scores, or other characteristics. </li></ul><ul><li>Ask behavioral questions that require applicants to give detailed accounts of actual job behaviors. </li></ul><ul><li>Use a standardized evaluation form . </li></ul><ul><li>Take notes during the interview. </li></ul><ul><li>Avoid short interviews that encourage premature decision making. </li></ul>
  31. 35. <ul><li>Can ’ t Ask </li></ul><ul><ul><li>What ’ s your birth date? or How old are you? </li></ul></ul><ul><ul><li>What ’ s your marital status? or Do you plan to have a family? </li></ul></ul><ul><ul><li>What ’ s your native language? </li></ul></ul><ul><ul><li>Have you ever been arrested? </li></ul></ul><ul><li>Can Ask </li></ul><ul><ul><li>Are you over 18? </li></ul></ul><ul><ul><li>Would you relocate? </li></ul></ul><ul><ul><li>Are you authorized to work in the United States? </li></ul></ul><ul><ul><li>Have you ever been convicted of [fill in the blank]? — The crime must be reasonably related to the performance of the job. </li></ul></ul>* Note: Managers should be aware that there are numerous other “ can and can ’ t ask ” questions. Be sure to always check with your HR department for specific guidance.
  32. 37. <ul><li>Realistic Job Preview (RJP) </li></ul><ul><ul><li>The process of relating to an applicant both the positive and the negative aspects of the job. </li></ul></ul><ul><ul><ul><li>Encourages mismatched applicants to withdraw. </li></ul></ul></ul><ul><ul><ul><li>Aligns successful applicants’ expectations with actual job conditions; reducing turnover. </li></ul></ul></ul>
  33. 38. <ul><li>Transitioning a new employee into the organization. </li></ul><ul><ul><li>Work-unit orientation </li></ul></ul><ul><ul><ul><li>Familiarizes new employee with work-unit goals </li></ul></ul></ul><ul><ul><ul><li>Clarifies how his or her job contributes to unit goals </li></ul></ul></ul><ul><ul><ul><li>Introduces he or she to his or her coworkers </li></ul></ul></ul><ul><ul><li>Organization orientation </li></ul></ul><ul><ul><ul><li>Informs new employee about the organization’s objectives, history, philosophy, procedures, and rules. </li></ul></ul></ul><ul><ul><ul><li>Includes a tour of the entire facility </li></ul></ul></ul>
  34. 39. Type Includes General Communication skills, computer systems application and programming, customer service, executive development, management skills and development, personal growth, sales, supervisory skills, and technological skills and knowledge Specific Basic life/work skills, creativity, customer education, diversity/cultural awareness, remedial writing, managing change, leadership, product knowledge, public speaking/presentation skills, safety, ethics, sexual harassment, team building, wellness, and others
  35. 40. <ul><li>Traditional Training Methods </li></ul><ul><ul><li>On-the-job </li></ul></ul><ul><ul><li>Job rotation </li></ul></ul><ul><ul><li>Mentoring and coaching </li></ul></ul><ul><ul><li>Experiential exercises </li></ul></ul><ul><ul><li>Workbooks/manuals </li></ul></ul><ul><ul><li>Classroom lectures </li></ul></ul><ul><li>Technology-Based Training Methods </li></ul><ul><ul><li>CD-ROM/DVD/videotapes/ audiotapes </li></ul></ul><ul><ul><li>Videoconferencing/ teleconferencing/ satellite TV </li></ul></ul><ul><ul><li>E-learning </li></ul></ul>
  36. 41. <ul><li>Performance Management System </li></ul><ul><ul><li>A process of establishing performance standards and appraising employee performance in order to arrive at objective HR decisions and to provide documentation in support of those decisions. </li></ul></ul>
  37. 42. Method Advantage Disadvantage Written essays Simple to use More a measure of evaluator ’ s writing ability than of employee ’ s actual performance Critical incidents Rich examples; behaviorally based Time-consuming; lack quantification Graphic rating scales Provide quantitative data; less time-consuming than others Do not provide depth of job behavior assessed BARS Focus on specific and measurable job behaviors Time-consuming; difficult to develop Multiperson comparisons Compares employees with one another Unwieldy with large number of employees; legal concerns MBO Focuses on end goals; results oriented Time-consuming 360-degree appraisals Thorough Time-consuming
  38. 43. <ul><li>Benefits of a Fair, Effective, and Appropriate Compensation System </li></ul><ul><ul><li>Helps attract and retain high-performance employees </li></ul></ul><ul><ul><li>Impacts on the strategic performance of the firm </li></ul></ul><ul><li>Types of Compensation </li></ul><ul><ul><li>Base wage or salary </li></ul></ul><ul><ul><li>Wage and salary add-ons </li></ul></ul><ul><ul><li>Incentive payments </li></ul></ul><ul><ul><li>Skill-based pay </li></ul></ul><ul><ul><li>Variable pay </li></ul></ul>
  39. 45. <ul><li>Career Defined </li></ul><ul><ul><li>The sequence of positions held by a person during his or her lifetime. </li></ul></ul><ul><ul><li>The Way It Was </li></ul></ul><ul><ul><ul><li>Career Development </li></ul></ul></ul><ul><ul><ul><ul><li>Provided for information, assessment, and training </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Helped attract and retain highly talented people </li></ul></ul></ul></ul><ul><ul><ul><li>Now </li></ul></ul></ul><ul><ul><ul><ul><li>Individuals—not the organization—are responsible for designing, guiding, and developing their own careers. </li></ul></ul></ul></ul><ul><ul><li>Boundaryless Career </li></ul></ul><ul><ul><ul><li>A career in which individuals, not organizations, define career progression and organizational loyalty </li></ul></ul></ul>
  40. 47. <ul><li>Managing Downsizing </li></ul><ul><ul><li>The planned elimination of jobs in an organization </li></ul></ul><ul><ul><ul><li>Provide open and honest communication. </li></ul></ul></ul><ul><ul><ul><li>Provide assistance to employees being downsized. </li></ul></ul></ul><ul><ul><ul><li>Reassure and counseling to surviving employees. </li></ul></ul></ul><ul><li>Managing Work Force Diversity </li></ul><ul><ul><li>Widen the recruitment net for diversity </li></ul></ul><ul><ul><li>Ensure selection without discrimination </li></ul></ul><ul><ul><li>Provide orientation and training that is effective </li></ul></ul>
  41. 48. <ul><li>Sexual Harassment </li></ul><ul><ul><li>An unwanted activity of a sexual nature that affects an individual’s employment. </li></ul></ul><ul><ul><ul><li>Unwanted sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature when submission or rejection of this conduct explicitly or implicitly affects an individual’s employment. </li></ul></ul></ul><ul><ul><li>An offensive or hostile environment </li></ul></ul><ul><ul><ul><li>An environment in which a person is affected by elements of a sexual nature. </li></ul></ul></ul><ul><li>Workplace Romances </li></ul><ul><ul><li>Potential liability for harassment </li></ul></ul>
  42. 49. <ul><li>Work-Life Balance </li></ul><ul><ul><li>Employees have personal lives that they don’t leave behind when they come to work. </li></ul></ul><ul><ul><li>Organizations have become more attuned to their employees by offering family-friendly benefits : </li></ul></ul><ul><ul><ul><li>On-site child care </li></ul></ul></ul><ul><ul><ul><li>Summer day camps </li></ul></ul></ul><ul><ul><ul><li>Flextime </li></ul></ul></ul><ul><ul><ul><li>Job sharing </li></ul></ul></ul><ul><ul><ul><li>Leave for personal matters </li></ul></ul></ul><ul><ul><ul><li>Flexible job hours </li></ul></ul></ul>
  43. 50. <ul><li>Controlling HR Costs </li></ul><ul><ul><li>Employee health-care </li></ul></ul><ul><ul><ul><li>Encouraging healthy lifestyles </li></ul></ul></ul><ul><ul><ul><ul><li>Financial incentives </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Wellness programs </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Charging employees with poor health habits more for benefits </li></ul></ul></ul></ul><ul><ul><li>Employee pension plans </li></ul></ul><ul><ul><ul><li>Reducing pension benefits </li></ul></ul></ul><ul><ul><ul><li>No longer providing pension plans </li></ul></ul></ul>
  44. 51. <ul><li>high-performance work practices </li></ul><ul><li>human resource management process </li></ul><ul><li>labor union </li></ul><ul><li>affirmative action </li></ul><ul><li>human resource planning </li></ul><ul><li>job analysis </li></ul><ul><li>job description </li></ul><ul><li>job specification </li></ul><ul><li>recruitment </li></ul><ul><li>decruitment </li></ul><ul><li>selection </li></ul><ul><li>validity </li></ul><ul><li>reliability </li></ul><ul><li>work sampling </li></ul><ul><li>assessment centers </li></ul><ul><li>realistic job preview (RJP) </li></ul><ul><li>orientation </li></ul><ul><li>performance management system </li></ul><ul><li>written essay </li></ul><ul><li>critical incidents </li></ul><ul><li>graphic rating scales </li></ul>
  45. 52. <ul><li>behaviorally anchored rating scales (BARS) </li></ul><ul><li>multiperson comparisons </li></ul><ul><li>360 degree feedback </li></ul><ul><li>skill-based pay </li></ul><ul><li>variable pay </li></ul><ul><li>career </li></ul><ul><li>downsizing </li></ul><ul><li>sexual harassment </li></ul><ul><li>family-friendly benefits </li></ul>
  46. 53. Overview of concept and scope of Human Resource Management (HRM) <ul><li>Definition and concept of Human Resource Management. </li></ul><ul><li>Functions of Human Resource Management </li></ul><ul><li>Role of HR Executives </li></ul><ul><ul><ul><ul><li>Challenges to HR Professionals </li></ul></ul></ul></ul>
  47. 54. <ul><li>Employee Labor Unions </li></ul><ul><ul><li>Organizations that represent workers and seek to protect their interests through collective bargaining. </li></ul></ul><ul><ul><ul><li>Collective bargaining agreement </li></ul></ul></ul><ul><ul><ul><ul><li>A contractual agreement between a firm and a union elected to represent a bargaining unit of employees of the firm in bargaining for wage, hours, and working conditions. </li></ul></ul></ul></ul><ul><li>Governmental Laws and Regulations </li></ul><ul><ul><li>Limit managerial discretion in hiring, promoting, and discharging employees. </li></ul></ul><ul><ul><ul><li>Affirmative Action: the requirement that organizations take proactive steps to ensure the full participation of protected groups in its workforce. </li></ul></ul></ul>
  48. 55. Role of HR Executives
  49. 56. Challenges to HR Professionals <ul><li>Focus strategically- act tactically </li></ul><ul><li>Assessment </li></ul><ul><ul><li>Develop/apply new measures </li></ul></ul><ul><ul><li>Audit measures </li></ul></ul><ul><ul><li>Analyze & report </li></ul></ul><ul><li>Change planning and implementation </li></ul><ul><li>Continuous improvement </li></ul>
  50. 57. <ul><li>HR Strategies </li></ul><ul><ul><li>The means used to anticipate and manage the supply of and demand for human resources. </li></ul></ul><ul><ul><ul><li>Provide overall direction for the way in which HR activities will be developed and managed. </li></ul></ul></ul>
  51. 58. <ul><li>The intent of the new HR paradigm is to achieve alignment among the </li></ul><ul><ul><ul><ul><ul><li>Strategy </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Structure </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Culture </li></ul></ul></ul></ul></ul><ul><li>of the enterprise. </li></ul>
  52. 59. Strategic HR <ul><li>Focus </li></ul><ul><li>Alignment </li></ul><ul><li>Process integration </li></ul><ul><li>Information management </li></ul><ul><li>Innovation </li></ul><ul><li>Measurable results </li></ul>
  53. 60. HR Strategic Architecture HR Function HR professionals with strategic competencies to deliver products/services that drive organizational success HR System Performance driven, strategically aligned policies & practices Human Performance Strategically focused competencies, motivation, skills, capabilities
  54. 61. <ul><li>A recent survey by the Towers Perrin Group revealed that: </li></ul><ul><ul><li>50% of HR professionals see themselves as strategic business partners within their organizations </li></ul></ul><ul><ul><li>But only 17% of HR professionals say they are invited to participate in the initial stages of major enterprise initiatives </li></ul></ul><ul><li>A change in mindset </li></ul><ul><ul><ul><li>HR </li></ul></ul></ul><ul><ul><ul><li>The Enterprise </li></ul></ul></ul><ul><li>Continuing to performing the basic functions well </li></ul><ul><li>Organizational Literacy </li></ul><ul><li>Courageous Leadership </li></ul>
  55. 62. <ul><li>Historically: HR and people were not considered tangible assets. The ‘means of production’ was a machine bolted to the factory floor. People merely operated it. </li></ul><ul><li>Today: The intangible of human capital (what people know + their level of commitment to the organization) is the prime driver of organizational results. </li></ul><ul><li>HR is shifting from focusing on the organization of the business to focusing on the business of the organization </li></ul>
  56. 63. <ul><li>Auditing Jobs and Skills </li></ul><ul><ul><li>What jobs exist now? </li></ul></ul><ul><ul><li>How many individuals are performing each job? </li></ul></ul><ul><ul><li>How essential is each job? </li></ul></ul><ul><ul><li>What jobs will be needed to implement future organizational strategies? </li></ul></ul><ul><ul><li>What are the characteristics of anticipated jobs? </li></ul></ul>
  57. 64. Assessing HR Effectiveness <ul><li>HR Audit </li></ul><ul><ul><li>A formal research effort that evaluates the current state of HR management in an organization </li></ul></ul><ul><ul><li>Audit areas: </li></ul></ul><ul><ul><ul><li>Legal compliance (e.g., EEO, OSHA, ERISA, and FMLA) </li></ul></ul></ul><ul><ul><ul><li>Current job specifications and descriptions </li></ul></ul></ul><ul><ul><ul><li>Valid recruiting and selection process </li></ul></ul></ul><ul><ul><ul><li>Formal wage and salary system • Benefits </li></ul></ul></ul><ul><ul><ul><li>Employee handbook </li></ul></ul></ul><ul><ul><ul><li>Absenteeism and turnover control </li></ul></ul></ul><ul><ul><ul><li>Grievance resolution process </li></ul></ul></ul><ul><ul><ul><li>Orientation program • Training and development </li></ul></ul></ul><ul><ul><ul><li>Performance management system </li></ul></ul></ul>
  58. 65. Using HR Research for Assessment <ul><li>HR Research </li></ul><ul><ul><li>The analysis of data from HR records to determine the effectiveness of past and present HR practices. </li></ul></ul><ul><li>Primary Research </li></ul><ul><ul><li>Research method in which data are gathered first-hand for the specific project being conducted. </li></ul></ul><ul><li>Secondary Research </li></ul><ul><ul><li>Research method using data already gathered by others and reported in books, articles in professional journals, or other sources. </li></ul></ul>
  59. 66. Need for HR Value – Changing Dynamics <ul><li>Company focus </li></ul><ul><li>Nature of work </li></ul><ul><li>Employee profile </li></ul><ul><li>Employee aspiration </li></ul>Change in internal environment Change in external environment <ul><li>Competition </li></ul><ul><li>Technology </li></ul><ul><li>Globalization </li></ul><ul><li>Local & foreign regulations </li></ul>