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HRM and Operations Management in Today’s Business World

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Presentation on theme: "HRM and Operations Management in Today’s Business World"— Presentation transcript:

1 HRM and Operations Management in Today’s Business World
Facilitator: Saadia Malik

2 Contents Human Resources Management – An Overview
Importance of HR function Role and activities of HR department Recruitment & Selection/ Staffing Sub Function Employee Compensation, Performance Management & Organizational Development Environmental factors impacting HR Function in an organization


4 Learning Outcomes Understanding the importance of HRM function in an organization and its related activities, Become better managers in organizations/work place Awareness of theories and philosophies forming the basics of deign of HRM function and activities. Awareness of the latest issues and happenings in this field How HRM links up with Operations Management in today’s dynamic business world

5 Management The process of trying to accomplish goals through other people

6 Human Resource Management
A Management Function which focuses on the utilization of individuals to achieve organizational objectives All managers at every level must concern themselves with human resources management.

7 Importance of HR Function
Linked to the strategic management of an organisation. Seeks commitment to organisational goals Focuses on the individual needs rather than the collective workforce. Enables organisations to dissolve power and become more flexible Emphasises people are an asset to be positively utilised by the organisation.

8 Strategic Importance Long term importance of HRM:
'Human capability and commitment’ is what differentiates organisations. HRM needs to be implemented into the organisational strategy and needs to be considered at the highest management level. Long term importance of HRM: It needs to be integrated into the management functions and is seen to have important consequences on the ability of the organisation to achieve its goals. The key functions of HRM which are seen to encourage commitment rather than compliance.


10 Traditional HR Functions

11 Human Resource Management Functions
Recruitment & Selection Training & Development Compensation & Benefits Safety & Health Employee & Labor Relations

12 Research vs. Practice Effective HR management requires proper understanding and utilization of knowledge gained through research Recruitment Realistic job previews Interviews Performance appraisals


14 The Recruitment & Selection Process
Stage 1 Agree on Vacancy Stage 2 Job Analysis Stage 3 Attracting Candidates Stage 4 Sorting Candidates Stage 5 Selection Interviews

15 The Recruitment & Selection Process
Advertisements Recruitment Agencies Resume Scanning Recruitment Word of mouth Short listed candidates Walk ins Company’s website Telephonic Interviews Selection New Hires One-on-one Interviews Panel Interviews

16 How job assessments help you reach the ultimate goal
Interviewing How job assessments help you reach the ultimate goal

17 Steps involved in the interviewing process are..
Understand the purpose of the interview Rethink your interviewing strategy Develop a list of desired skills Create a list of interview questions. Check your list twice Tell the applicant about the interview format Prepare for questions. Take notes

18 Exercise Choose a position for which it is difficult to find a good performer. What competencies are important? Develop three questions to explore a candidate’s past or present behavior that demonstrates the competencies.

19 The Dynamic Human Resources Management Environment

Environment of Human Resource Management EXTERNAL ENVIRONMENT INTERNAL ENVIRONMENT Unions Society 1 Marketing Operations Technology Legal Considerations Staffing Human Resource Management Human Resource Development Employee and Labor Relations Compensation and Benefits Finance Other Functional Areas Shareholders The Economy Safety and Health Customers Competition Labor Force

21 Society Social responsibility – Implied, enforced or felt obligation of managers to serve or protect interests of groups other than themselves Ethics – Discipline dealing with what is good and bad, or right and wrong, or with moral duty and obligation

22 HR’s Changing Role: Who Performs Human Resources Management Tasks?
Human Resource Managers Outsourcing Firms Line Managers Project Managers

23 Human Resources Function In Organizations Of Various Sizes

24 Human Resources Function in a Small Business
Manager/Owner Sales Operations Finance

25 The Human Resource Function in a Medium-Sized Business
President Sales Manager Operations Manager Finance Manager Human Resources Manager

26 The Human Resource Function in a Large Firm
President and CEO VP/Dir Marketing VP/Dir Operations VP/Dir Finance VP/Dir Human Resources Manager, Training and Development Manager, Compensation and Benefits Manager Staffing Manager Safety and Health Manager Labor Relations

27 An Evolving Human Resource Organization Example
President and CEO VP Operations VP Human Resources VP Other Major Functions Director of Safety and Health Executive Development Manager Training Manager Other HRM Functions Employee Benefits Shared Service Center Outsourced

28 The Harvard Model of Human Resources Management

29 Changing Nature of Human Resources Management
Scientific management Breaking down jobs into elemental activities and simplifying job design Jobs Comprise a set of tasks, elements, and job motions (basic physical movements) In a piece-rate wage system, pay is based on output Assembly-line Production meshed with principles of scientific management Advantages of task specialization High output, low costs, and minimal training Disadvantages of task specialization Boredom, lack of motivation, and physical and mental fatigue 8-29

30 Employee Motivation Motivation Improving Motivation
willingness to work hard because that effort satisfies an employee need Improving Motivation positive reinforcement and feedback effective organization and discipline fair treatment of people satisfaction of employee needs setting of work-related goals Improving Motivation (cont.) design of jobs to fit employee work responsibility empowerment restructuring of jobs when necessary rewards based on company as well as individual performance achievement of company goals 8-30

31 Evolution of Theories of Employee Motivation
Self- actualization Esteem Social Safety/Security Physiological (financial) Abraham Maslow’s Pyramid of Human Needs Douglas McGregor’s Theory X and Theory Y Theory X Employee Dislikes work Must be coerced Shirks responsibility Little ambition Security top motivator Theory Y Employee Work is natural Self-directed Controlled Accepts responsibility Makes good decisions Frederick Herzberg’s Hygiene/Motivation Theories Hygiene Factors Company policies Supervision Working conditions Interpersonal relations Salary, status, security Motivation Factors Achievement Recognition Job interest Responsibility Growth Advancement 8-31

32 Contemporary Trends in Human Resources Management
Job Training extensive and varied Enhances on the job skills and work knowledge Cross Function Training an employee learns more than one job Job Rotation horizontal movement between two or more jobs according to a plan Empowerment giving employees authority to make decisions Teams group of employees work on problems in their immediate work area 8-32

33 Contemporary Trends in Human Resources Management (cont.)
Job enrichment vertical enlargement allows employees control over their work horizontal enlargement an employee is assigned a complete unit of work with defined start and end Flexible time part of a daily work schedule in which employees can choose time of arrival and departure Alternative/Virtual workplace nontraditional work location Telecommuting employees work electronically from a location they choose Temporary and part-time employees mostly in fast-food and restaurant chains, retail companies, package delivery services, and financial firms 8-33

34 Employee Compensation
Types of pay hourly wage the longer someone works, the more s/he is paid individual incentive or piece rate employees are paid for the number of units they produce during the workday straight salary common form of payment for management commissions usually applied to sales and salespeople 8-34

35 Employee Compensation (cont.)
Gain sharing an incentive plan joins employees in a common effort to achieve company goals in which they share in the gains Profit sharing sets aside a portion of profits for employees at year’s end 8-35

36 Employee Performance Management
Setting Quantifiable Objectives Agree over expectations to perform Set time for discussion sessions Listen to the Employee Feedback process for evaluating employee performance Commonly used feedback programs are 90 degree, 180 and 360 degree

37 Organizational Development
Training & Development of Employees Change Management Methods Inter Organizational Communication

38 Job Design Task analysis Worker analysis Environment analysis
how tasks fit together to form a job Worker analysis determining worker capabilities and responsibilities for a job Environment analysis physical characteristics and location of a job Ergonomics fitting task to person in a work environment Technology and automation broadened scope of job design

39 Job Analysis Method Analysis (work methods)
Study methods used in the work included in the job to see how it should be done Primary tools are a variety of charts that illustrate in different ways how a job or work process is done Copyright 2009 John Wiley & Sons, Inc. 8-39

40 Process Flowchart Symbols
Operation: An activity directly contributing to product or service Transportation: Moving the product or service from one location to another Inspection: Examining the product or service for completeness, irregularities, or quality Delay: Process having to wait Storage: Store of the product or service Copyright 2009 John Wiley & Sons, Inc. 8-40 40

41 Managing Diversity in Workplace
Employers must strive to manage diversity in the workplace Programs include - Education - Awareness - Communication - Fairness - Commitment

42 Types of Work Related Behaviors
Joining the organization Remaining with the organization Maintaining work attendance Performing required job responsibilities Exhibiting organizational citizenship

43 Environmental factors impacting HR Function in an organization

44 The Changing Job Market What’s Happening in the External World?
“When the rate of change outside exceeds the rate of change inside, the end is near” Jack Welch Chairman, General Electric

45 The Changing Job Market What’s Happening in The External World
The Changing Job Market What’s Happening in The External World? (Big Picture) Redefinition of Loyalty/Security Increase in Part-Time, Contract Employment Mergers and Acquisitions Doing more with Less

46 The Changing Job Market What’s Happening In The External World
The Changing Job Market What’s Happening In The External World? (The 21st Century Worker) Employability External vendor-mindedness (Me Inc.) Resiliency Flexibility and adaptability Security comes from within Job Security is an illusion. Security comes from being employable not employed

47 The Changing Job Market (Personal Readiness)
Need for continuous learning Need for understanding of accomplishments Need for continuous networking

48 Roundtable Discussion
What are the factors impacting organizations and their ability to attract, recruit and retain?

49 Action Planning Guide What are your learning actions from today’s session? How do you plan to implement them at your work place in future?

50 Thanks for your time and attention!!

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