Mohsin Bashir PhD in Business Administration(HUST) (Organizational culture values) Gold medallist Ten (10) International research publications

10 years private, government, administration, teaching and research experience

The policies and practices one need to carry out the people or human resources aspect of a management position include Recruiting Screening Training Development Rewarding Appraising

.
Healthy work climate Utilization of people

Organizations Responsibility

Recognize, reward and nurture talent at all levels

Need Competent Leader

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Human Resource Management:

Features

Pervasive force( Encompasses, enveloping, persistent ) Action oriented Individually oriented People oriented Future oriented

Development oriented
Integrating mechanism Comprehensive function Auxiliary service (supplementary) Inter-disciplinary function Continuous function

The Strategic Role Of Human Resources Management

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Important terms

Clearing the Fog

Human resource: Knowledge, skill sets, expertise adaptability, commitment and loyalty of employees. of employees, the

Skills: The individual abilities of human beings to perform a piece of work.

Resource: The stock of assets and skills that belong to a firm at a point of time. Capability: The ability of a bundle of resources to perform an activity; a way of combining assets, people and processes to transform inputs into outputs. Core competencies: Activities that the firm performs especially well when compared to its competitors and through which the firm adds value to its goods and services over a long period of time. Competitive advantage: It comes from a firm's ability to perform activities more distinctively and more effectively than rivals. To attain competitive advantage, firms need to add value to customers and offer a product or service that cannot be easily imitated or copied by rivals (Uniqueness). Value: Sum total of benefits received and costs paid by the customer in a given situation.

The Strategic Role Of Human Resources Management

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HRM as a central subsystem in an organisation

Product Subsystem

HR Subsystem Finance Subsystem Recruitment Training Compensation Appraisal Rewards Marketing Subsystem

Technical Subsystem

The Strategic Role Of Human Resources Management

Strategic Human Resource Management

SHRM, simply stated, is the linkage of HRM with strategic goals and objectives with a view to improve business performance and develop organizational cultures that foster innovation and flexibility

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Traditional HR vs. Strategic HR

Point of distinction Focus Role of HR Initiatives Time horizon Control Job design Traditional HR Employee Relations Transactional change follower and respondent Slow, reactive, fragmented Short-term Strategic HR Partnerships with internal and external customers Transformational change leader and initiator Fast, proactive and integrated Short, medium and long (as required) Organic-flexible, whatever is necessary to succeed Broad, flexible, cross-training teams

Bureaucratic-roles, policies, procedures

Tight division of labour; independence, specialisation Capital, products

Key investments Accountability Responsibility for HR

Cost centre
Staff specialists

People, knowledge Investment centre Line managers

The Strategic Role Of Human Resources Management

 Pre-selection practices .
HR Planning Job analysis

Employees centered out comes

Organization centered out come

Competitive Advantages

Selection Practices Recruitment Selection

Post selection Practices Training/Development Performance Appraisal Compensation Productivity Improvement Program Practices affected by External factor Workplace justice Unions Safety and Health International Competence Motivation Work related activity

Out-put Retention Legal compliance Company Image

Cost Leadership Product differentiation

.
Human resource Management focus

People aspect of management

Help organization effectively

Pre-selection, selection and post selection

Type of job opening

Preselection Practices
Selection of employees Qualification require for job

.
Selection practices

Recruiting application

Assessing qualification

Selecting most qualified employee

.
Create condition (Energize, Direct, Facilitate )

Effective management of people

Post selection practices

Maximize Performance

Necessary knowledge and Skill

Satisfaction levels

Human resource Planning

A process that helps companies indentify their future HRM needs and how those need can be met

HR Planning

Helps managers anticipate and meet Changing need(Acquisition, deployment, utilization of employees)

Maps out an over all plan(Strategic Plan )

Demand and supply forecasting

Enable organization to plan (Recruitment, selection, training strategies, Development etc)

Job Analysis
Systematic procedure of gathering, analysing, and

documenting information about particular job 1. Determining job qualification for recruitment purposes 2. Choosing the most appropriate selection technique 3. Developing training programs 4. Helping to determine pay rates 5. Setting performance standard for productivity improvement program

Selection Practices
1
Locate &
Attract job applicant

Recruitment
External recruitment Internal recruitment

Selection Practices
2
Assessing Applicant

Legal

Selection

Choosing Applicant

Technically sound

Post Selection Practices

1. Training and Development
Planned learning experience

Training

Development

Current Job

Possible future Job

2. Performance Appraisal Process

Measure the adequacy of employees job performance
Communication of evalution to employees Motivate employees to continue appropriate behaviour

Correct inappropriate one

HRM-related decision( promotion, Demotion,

Discharges, pay raises )

3.Compensation
Pay Benefit

Wages or salary

Health insurance or employees discount or membership

Establish and maintain a competent and loyal workforce at affordable cost

Productivity Improvement Program

Tie job behaviour to reward
Reward may be financial(Bonuses, pay raises) Nonfinancial (Improved job satisfaction)

Motivate employees to engage in appropriate job

behaviour

External factor Influence HR Practice

Safety and health insurance concern

Accident prevention program 2. wellness and employees assistance program International Influence 1. Compete as part of globally interconnect set of business market 2. Foster the development of more globally oriented manger(understand foreign language and culture, Dynamics of foreign marketplace)
1.

Who Is Responsible for Developing and Implementing HRM Practices

Responsibility lies with both HR professional and line

manager Ineffective managers put all responsibility on HR Department Effective manager attempt to resolve the problem 1. Providing input into selection decision in first place 2. Trying to supervise people in a way that create team 3. Providing training and coaching 4. Create opportunity for their employees career advancement 5. Providing flexible scheduling for students and other parttimers

1. Establish HR Procedures And Method

HR Professional Role
3. Advise / Assist Manager on HRM-Related Matters
2. Monitor / Evaluate HR Practices

Direct employees day to day task

Line Manager Role

Assist HR professional with necessary inputs Implementation of HR Practices

6.Investigat e accident Settle grievance Issue

1.Interview job applicants

2.Provide orientation, coaching , job training(mentor)

Implementing HR Practices

5.Disciplinary procedure 4.Recommen d Salary increase

3.Job performance rating

Gaining Competitive Advantage

Cost leadership

Competitive advantages

Product differentiation

Cost Leadership
Firms provide same services or product as competitor

but produce them at lower cost Number of unit produce/ Total Cost of production Increase the nominator or dominator can increase the value of ratio How could firm accomplish this aim? 1. Using new technology 2. Devising more efficient work methods

Product differentiation
Firm produce a product or services that is preferred by

buyers 1. Creating a better quality product or services than its competitors 2. Providing innovation product or services that are not offered by its competitor 3. Choosing a superior location one that is more accessible to its competitor 4. Promoting and packaging its product to create the perception of high quality

HR practices that Enhance Competitive Advantages

1.
2. 3.

4.
5. 6. 7. 8.

Selectivity in recruiting Employment Security High wages Incentive pay Employees ownership Information sharing Participation and empowerment Teams and job design

9.Training and skill development 10.Cross utilization and cross training 11.Symbolic egalitarianism(equality of employees, eliminating executive dinning room and reserved parking space) 12.Wage compression 13. Promotion from within 14.Long term perspective 15.Measurement of practices(Attitude, success of various program, employees performance level) 16.Overarching philosophy

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EVOLUTION OF HRM
The field of HRM evolved both in Pakistan and elsewhere over a number of years to present level of sophistication and use of proactive methods The industrial revolution Scientific management Trade unionism Human relations movement Human resources approach

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Evolution of the Personnel Function

Concept The Commodity concept What is it all about? Labour was regarded as a commodity to be bought and sold. Wages were based on demand and supply. Government did very little to protect workers.

The Factor of Production concept

The Goodwill concept

Labor is like any other factor of production, money, materials, land, etc. Workers are like machine tools.
Welfare measures like safety, first aid, lunch room, rest room will have a positive impact on workers productivity Management must assume a fatherly and protective attitude towards employees. Paternalism does not mean merely providing benefits but it means satisfying various needs of the employees as parents meet the requirements of the children.
Cont

The Paternalistic concept/ Paternalism

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Evolution of the Personnel Function

The Humanitarian concept To improve productivity, physical, social and psychological needs of workers must be met. Money is less a factor in determining output, than group standards, group incentives and security. The organization is a social system that has both economic and social dimensions.

The Human Resource concept

Employees are the most valuable assets of an organisation. There should be a conscious effort to realize organizational goals by satisfying needs and aspiration of employees.

The Emerging concept Employees should be accepted as partners in the progress of a company. They should have a feeling that the organisation is their own. To this end, managers must offer better quality of working life and offer opportunities to people to exploit their potential fully. The focus should be on Human Resource Development.

The Strategic Role Of Human Resources Management

Book
Human resource management: A managerial tool for

competitive advantages(4th edition, 2009) Lawrence S. Kleiman