Managing Human Resources Today Topic 1 The HRM Environment: Repared by Raymond Stone PHD

MANAGING HUMAN RESOURCES TODAY TOPIC 1 THE HRM ENVIRONMENT
Prepared by
Raymond Stone PhD
Copyright Asia Pacific Management Pty. Ltd. 2011
WHY ARE HUMAN RESOURCES IMPORTANT?
Human resources provide the creative spark in any organization People design and produce the goods and services, control quality, market the products and services, allocate financial resources, set the objectives and develop the strategies for the organization Without human resources, it is not possible for an organization to achieve its strategic objectives
WHAT IS HUMAN RESOURCE MANAGEMENT?
The focus of HRM is on the management of people within the employer-employee relationship. Specifically HRM involves the productive utilization of people in achieving the organization's objectives and the satisfaction of individual needs.
HRM UNDERPINNINGS
People create a competitive advantage HRM strategically aligned with corporate objectives Accepts managements right to manage Employs a unitarist philosophy
common objectives between organization and employees conflict is avoidable unions represent competition for employee loyalty bad industrial relations is a product of bad management
Strategic business partner HRM adds value
APPROACHES TO HRM
Instrumental HRM (hard approach): stresses the rational, quantitative and strategic aspects of managing human resources. Humanistic HRM (soft approach): while emphasizing the integration of HR practices with strategic objectives, it stresses its competitive advantage is achieved by employees.
APPROACHES TO HRM
Instrumental Humanistic Employees proactive Emphasises employee contributors to development, organizations collaboration, strategic business participation, trust & objectives informed choice Risks creating Can also create union industrial conflict problems
DIMENSIONS OF EFFECTIVE PEOPLE MANAGEMENT
Employment security Rigorous selection Employee participation Open communications Equal opportunity Fair rewards Employee training and development
BEST EMPLOYERS
Have credible leaders who are accessible Maintain frequent and open communications Recognize and reward performance Deliver on promises to employees Ensure that HR policies support business objectives Provide flexible work patterns and structures
HRM - THE BIG ISSUES

securing and maintaining talent improving leadership development managing work-life balance managing demographics managing multicultural workforce managing globalisation managing organizational restructuring managing external and internal environments creating learning organisations ensuring HR is a strategic partner
HRM & MANAGEMENT

Management is the art of getting things done through people It involves planning, leading, organizing and controlling the organizations resources HRM is concerned with the productive contribution of people and their welfare It is involved with the attraction, development, motivation and reward,maintenance and exit of people HRM is intimately related to all aspects of management
HRM ACTIVITIES
HRM involves the acquisition, development, reward and motivation, maintenance and departure of an organizations human resources. Certain key HRM activities must be undertaken to satisfy these aims. Each of these activities is interrelated and together they represent the core of HRM
HR or Employee planning Job Analysis Recruitment and Selection Performance Appraisal Training and Development Career Planning and Development Employee Motivation Remuneration Industrial Relations Health and Safety Change Management Diversity Management Culture Management
STRATEGY Plan of action that * determines resource allocation * deals with the environment * seeks a competitive advantage * activates the organization objectives
COMPONENTS OF STRATEGIC MANAGEMENT

Establish mission and key objectives Analyse the environment Analyse and select business strategies Implement the strategies Monitor and evaluate performance
STRATEGIC QUESTIONS
What is our core business? Are we in the right business? Can we pick the changes affecting our business? Who are our customers? What are their buying criteria?
ENVIRONMENTAL INFLUENCES
EXTERNAL Political Legal Environmental Technological Cultural Demographic Social Business Economic Industrial relations INTERNAL Organisational: strategies culture structure systems people
ORGANIZATIONAL STAKEHOLDERS
A stakeholder is a person or group that has a vested interest in an organizations operations and performance
owners management trade unions special interest groups suppliers governments employees general public customers
TYPES OF STRATEGIES
GROWTH RETRENCHMENT STABILITY COMBINATION
INTERNATIONAL STRATEGIES
Global - ethnocentric orientation Multidomestic polycentric orientation Transnational geocentric orientation

STRATEGY SELECTION (SWOT ANALYSIS)

What are our strengths? What are our weaknesses? What are our opportunities? What are our threats?
STRATEGIC HRM
HRM strategies outline the organizations people objectives and must be an integrated part of the overall strategy HRM strategic planning clarifies for employees the services that HRM intends to provide, the methods it will use and the performance standards it is aiming for
STRATEGIC APPROACH TO HRM HRM is influenced by both internal and external environmental factors These influence the organizations HRM objectives, strategies and action plans Organizations that adopt HRM strategies and HR policies consistent with environmental demands outperform organizations that do not
HRM STRATEGIC ALIGNMENT

Strategic vertical integration of HRM objectives and strategies with corporate objectives and strategies aim to achieve a direct linking of business and people management strategies Functional horizontal integration of all HRM systems to ensure that they are mutually consistent and support the organizations overall HRM objectives and strategies aims to ensure that all HRM activities are mutually reinforcing
ROLE OF THE HR MANAGER

Strategic partner part of the top management team seen as contributing to the achievement of strategic objectives Administrative expert professionally competent create value measure performance Employee champion understand needs of employees act as employee voice Change agent act as a catalyst for change within the organization Manager of culture ensure culture reflects strategy
HRM ETHICAL ISSUES

HR managers face complex, ambiguous and conflicting issues over what is right or wrong, good or bad. Examples :
- executive pay - downsizing - child labour - corruption - equal employment - employee privacy - social networking
HRM THEORY OR REALITY? Subtle form of employee manipulation and exploitation Promotes management control Creates ethical dilemmas for HR managers Companies have renamed their personnel function. In practice, remains a non strategic, administrative function.
HRM OUTCOMES AND PERFORMANCE Evaluation of HRM performance considers: Adaptability Commitment Competence Congruence
HRM OUTCOMES AND PERFORMANCE Cost-effectiveness Job satisfaction Justice Motivation Performance Trust
SUMMARY
HR managers need to adopt a strategic approach, be part of the top management team, be involved in corporate planning and develop a vision for HRM. HRM activities must be part of a coordinated effort to improve the productive contribution of people in meeting the organizations strategic business objectives.
GLOBALIZATION
The winning companies in the global competition will be those companies that can put together the best of research, engineering, design, manufacturing, distribution - wherever they can get it, anywhere in the world - and the best of each of these will not come from one country or from one continent. Scale will become the dominant factor.
Jack Welch Former Chairman, General Electric
GLOBALIZATION DRIVERS
Cost reduction USA manufacturing -- China Market expansion Tobacco companies China, Indonesia, Africa Raw materials Capital sources China Hong Kong Government regulations Trade unions Technology Take jobs to labour e.g. Cartoons (Simpsons Korea (Philippines) Taxation
THE GLOBAL COMPETITOR

Worldwide product line with the concept of inbuilt adaptability Single identity worldwide for major products or brands International production schedules Assimilation of the best aspects of local practice Development of a global mindset
GLOBAL MINDSET
Commitment by top management to being internationally competitive Acceptance of the need to employ foreigners Development of global managers Ongoing search for strategic alliances / joint ventures Top management sees the world as its marketplace
GLOBALIZING MANAGEMENT
Get a board and CEO with global vision Select superstars for international assignments Bring the best overseas talent into head office Recruit internationally Move the best talent internationally (regardless of nationality) Develop a long term view of management development
language cross cultural cross functional
Recognize and reward international experience Place top performers with international experience in HRM
GLOBAL ORGANIZATION HRM CHALLENGES
EEO ethic International performance recognized and linked to rewards and promotions Corporate culture/corporate family Orientation training related to working in a global company Management training and development programs which reflect the global nature of the organization Hiring of employees who have an international outlook
INTERNATIONAL STRATEGIES
High Global world is one homogeneous market standardized products and services standard quality standardized advertising emphasis on cost reduction and economies of scale situated in few locations resources are located in a limited number of locations innovation and knowledge base centralized cultural differences not considered important centralized control ethnocentric view Transnational blend of standardization and local responsiveness attempts to optimize costs and flexibility resources are located where most beneficial knowledge transfer promoted cultural differences recognized geocentric view
Cost pressures
Low
Multidomestic world is a series of local markets adapt products and services to local needs customize advertising resources are located in many locations centralized control polycentric view innovation and knowledge base diversified making transfer of learning difficult Copyright Asia Pacific Management innovation focus on a specific domestic market
Pty. Ltd. 2011
STRATEGIC ORIENTATION
HK organization with international operations Personal All senior and many middle management positions held by HK Highly centralized in HK, large head office HK multinational organization Localization of some management positions but all top corporate positions held by HK Some decentralization to regional or area headquarters, head office in HK Regional headquarters are the main source of communications, but with instructions and advice coming from HK head office HK for expatriates, with separate localized policies and practices for foreign employees in each location Mix of HK and local Polycentric Multidomestic HK global organization All management positions open to the best people regardless of nationality Decentralized, with small global headquarters in HK (or elsewhere) Two-way communication between overseas operations and head office and among the various overseas operations Benchmarked on best international practice
Decision making
Communication
Instruction and advice from HK head office to subsidiaries
HRM policies and practices
Predominantly HK with some modification to satisfy foreign requirements HK Ethnocentric Global
Corporate culture HR Strategy International HR strategy
International Geocentric Transnational
INTERNATIONAL HR STRATEGIES ETHNOCENTRIC

international operations have little autonomy key decisions made at corporate HQ key positions held by expatriates
POLYCENTRIC
each international operation treated as a separate entity some local decision making autonomy usually managed by local nationals truly international - global business best people hold key positions irrespective of nationality HQ anywhere international operations are divided into regions e.g. Asia Pacific best people within region hold key positions little transfer/interaction outside of region
GEOCENTRIC
REGIOCENTRIC
Major differences between Domestic HRM and International HRM additional activities such as taxation, international relocation, expatriate remuneration, cross cultural training and repatriation increased complexities such as currency fluctuations, foreign HR policies and practices, and differing labour laws increased involvement in the employees personal life - that is, assistance with personal taxation, voter registration, housing, childrens education, health, recreation and spouse employment a more complex employee mix, such as a mix of more people from different cultures and ethnic backgrounds as more significant part of the workforce more complex external influences, such as different cultures, political system ethics and laws increased risks, such as emergency exits for illness, personal security, kidnapping and terrorism
HR PLANNING (EMPLOYEE PLANNING)

Attempts to anticipate future business and environmental demands on the organization and to meet the people requirements dictated by these conditions Concerned with the demand and supply of labour Purpose is to ensure that the right number of people with the correct skills are available at a specified time in the future Must be an integrated part of the organizations strategic planning process Human resource planning is the responsibility of all managers and not just the Human Resource department
HR PLANNING vs. STRATEGIC HRM PLANNING

Human Resource Planning [HRP] Employment planning Places it at the operational level of the organisation Concerned with detailed forecasts of employee supply and demand Strategic HRM Planning Concerned with defining organization objectives philosophy strategy It precedes HR planning
HR PLANNING IS CONCERNED WITH
Acquisition Development Departure
Entry of people into the organization Development of employee skills
Exit of employees from the organization
HR PLANNING ISSUES
What mix of knowledge, skills and abilities do we require now? What mix will we require in the future? Do we have the right number of qualified employees today? How will employee numbers change in the future? How do our labour costs and productivity compare with our competitors? Where will we find the people we need?
ENVIRONMENTAL INFLUENCES
Women in the work force Ageing population Casualization of the work force Skills shortages Acquisitions, mergers and divestures Flexible work schedules Outsourcing Globalization Academic standards Employee literacy Quality of life expectations Pollution Government regulations Telecommuting Union attitudes Community attitudes
EFFECTIVE HR PLANNING
Effective HR Planning ensures that: the available talent is correctly allocated labour costs are controlled employee numbers are appropriate productivity is improved talented employees are retained
ORGANIZATION CULTURE
Organizations psychological and social climate forms its culture Culture represents values, beliefs, assumptions and symbols that define how the organization conducts its business Organizational culture tells employees how things are done what kind of behaviour is rewarded Organizations with strong positive cultures have a much better chance of success than those with weak or negative cultures
CORPORATE CULTURES Kodak integrity, respect for the individual, trust, credibility and continuous improvement Hewlett Packard respect for the individual, a dedication to affordable quality and reliability, a commitment to community responsibility and a view that the company exists to make technical contributions for the advancement and welfare of humanity
THE SEVEN HP VALUES

Passionate about customers Showing trust and respect for individuals High level of contribution and achievement Speed and agility when taking action Delivering meaningful innovation Results through teamwork Uncompromising integrity in business
CULTURE AND STRATEGY Important for management to foster a culture that promotes the achievement of the organizations strategic business objectives
Campbells Soups beat the competition winning is what we are all about Honda destroy Yamaha Philip Morris winning beating others in a good fight Nike crush the opposition
Note: impact on
teams selection rewards
people management
learning and innovation

CRITICISMS OF CORPORATE CULTURE danger of indoctrination lack of flexibility loss of individuality unquestioning acquiescence
NATIONAL CULTURE Culture is a difficult and complex concept Described in terms of communication trust a collection of societal norms and values
NATIONAL CULTURE AND CORPORATE CULTURE National culture greater impact on shaping employee behaviour Note, importance of
self selection (screen out companies) employee selection (screen out individuals)
Ensure increased likelihood of a good fit between individual and organization culture
DESCRIPTIONS OF CULTURE Hofstedes cultural dimensions

individualism/collectivism power distance uncertainty avoidance masculinity/femininity time orientation
Halls communication dimensions

high context low context
Fukuyamas ethical habits

high trust low trust
COLLECTIVISTIC VS INDIVIDUALISTIC CULTURES Highlights emphasis given to individuals or groups Individualist cultures emphasize
independence focus on competency short emphasis competition conflict confrontation integration into a group group welfare focus on relationships long term emphasis cooperation conflict
accommodation collaboration withdrawal use of 3rd parties
Collectivist cultures emphasize
HIGH POWER DISTANCE CULTURES

Acceptance of an unequal distribution of power
social class organization position
More likely to comply with legitimate power

defer to those of higher rank or status behave appropriately
Leadership tends to be autocratic or paternalistic

decisions are made at the top communications are downward
Organizations
are hierarchical Copyright Pacific Management utilize status symbols Asia Ltd. 2011 Pty.
FAMILY POWER
Chinese organizations have many similarities to traditional family
authority vested in Father deference to Father as family head loyalty to Father and family obedience to Father Note: These may be more important than ability in a Chinese organization
Power relationship is more personalized and less dependent on a bureaucratic system of rules Power remains legitimate if it is used for the benefit of the family Must have
concern for welfare treat with respect (similar to duties and obligations of a Father)
DIMENSIONS OF NATIONAL CULTURE

Power Distance Country Australia Great Britain Hong Kong Indonesia Japan Korea, Rep. of New Zealand Philippines Singapore Taiwan Thailand USA Index 36 35 68 78 54 60 22 94 74 58 64 40
Individual/ Collectivism Index 90 89 25 14 46 18 79 32 20 17 20 91
Source: Bangert DC & Pirzada K (1992) Culture and Negotiation The International Executive, Vol. 34, No. 1, pp. 53,
TRUST
Trust involves honesty, truthfulness & reliability. It is also associated with cooperation, predictability and confidence Culture influences how willing a person is to trust someone from a different background Reduced propensity to trust is associated with high power distance, high context and low trust cultures The more ethnocentric a culture is, the greater the perceived social distance between cultural ingroups and outgroups Where clear distinctions are made between in and out groups (e.g. collectivistic cultures and high context cultures) cheating of outgroup members is acceptable The extent to which people are prepared to trust another party depends on their propensity to trust and on their perceptions of the other partys ability, benevolence and integrity
PERSONAL CHARACTERISTICS AND TRUST propensity to trust perceptions of ability, benevolence & integrity similarity of values ingroup/outgroup membership Outgroup members are perceived as less
honest reliable open trustworthy concerned with welfare predictable likeable
categorization as an outgroup member creates
distrust negative interpretations of the other parties actions conflict

Australian Negotiators
Chinese Negotiators more risk averse favor formality emphasize status less willing to trust
less risk averse favor informality downplay status more willing to trust
LOW CONTEXT CULTURES (Australia, Canada, UK, USA) What counts is the legal contract, not the social context Look for meaning in what is said Communications are direct Environment, situation and non verbal behaviour are less critical Directness is valued Personal relationships and loyalty less important, focus is on objectives Distinctions between in and out groups are less important HIGH CONTEXT CULTURES (China, Japan, Korea) The written contract is less important than status, reputation and social relations Look for meaning in what is NOT said Communications are indirect Environment, situation and non verbal behaviour are critical Subtlety is valued Personal relationship and loyalty are very important Sharp distinctions are made between in an dout group
CULTURAL DIMENSIONS SUMMARY

Australia, USA, Hong Kong and China
Individualism Australia USA Hong Kong China High High Low Low Power Distance Low Low High High Trust High High Low Low Context Low Low High High
Sources: Fukuyama, 1995; Hall, 1976; Hofstede, 1984; Hofstede, 1998.

VALUE DIFFERENCES
Youth vs Age Change vs Tradition Informality vs Formality Frankness Vs Diplomacy Individualism Vs Groupism Rights vs Obligations
KEY HRM CROSS CULTURAL ISSUES

Communications Ethics Trust Management style Equal employment opportunity Performance appraisal Training and development Remuneration Industrial relations Health and safety

Managing Human Resources Today Topic 1 The HRM Environment: Repared by Raymond Stone PHD

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Managing Human Resources Today Topic 1 The HRM Environment: Repared by Raymond Stone PHD

Hochgeladen von

Copyright:

Verfügbare Formate

MANAGING HUMAN RESOURCES TODAY TOPIC 1 THE HRM ENVIRONMENT

Copyright Asia Pacific Management Pty. Ltd. 2011

WHY ARE HUMAN RESOURCES IMPORTANT?

WHAT IS HUMAN RESOURCE MANAGEMENT?

Strategic business partner HRM adds value

Copyright Asia Pacific Management Pty. Ltd. 2011

Copyright Asia Pacific Management Pty. Ltd. 2011

DIMENSIONS OF EFFECTIVE PEOPLE MANAGEMENT

HRM - THE BIG ISSUES

HRM & MANAGEMENT

Copyright Asia Pacific Management Pty. Ltd. 2011

COMPONENTS OF STRATEGIC MANAGEMENT

Copyright Asia Pacific Management Pty. Ltd. 2011

Copyright Asia Pacific Management Pty. Ltd. 2011

Copyright Asia Pacific Management Pty. Ltd. 2011

Copyright Asia Pacific Management Pty. Ltd. 2011

Global - ethnocentric orientation Multidomestic polycentric orientation Transnational geocentric orientation

STRATEGY SELECTION (SWOT ANALYSIS)

Copyright Asia Pacific Management Pty. Ltd. 2011

Copyright Asia Pacific Management Pty. Ltd. 2011

HRM STRATEGIC ALIGNMENT

ROLE OF THE HR MANAGER

HRM ETHICAL ISSUES

Copyright Asia Pacific Management Pty. Ltd. 2011

Copyright Asia Pacific Management Pty. Ltd. 2011

THE GLOBAL COMPETITOR

Copyright Asia Pacific Management Pty. Ltd. 2011

GLOBAL ORGANIZATION HRM CHALLENGES

Pty. Ltd. 2011

Instruction and advice from HK head office to subsidiaries

HRM policies and practices

Predominantly HK with some modification to satisfy foreign requirements HK Ethnocentric Global

Corporate culture HR Strategy International HR strategy

International Geocentric Transnational

Copyright Asia Pacific Management Pty. Ltd. 2011

INTERNATIONAL HR STRATEGIES ETHNOCENTRIC

HR PLANNING (EMPLOYEE PLANNING)

HR PLANNING vs. STRATEGIC HRM PLANNING

Copyright Asia Pacific Management Pty. Ltd. 2011

HR PLANNING IS CONCERNED WITH

Acquisition Development Departure

Entry of people into the organization Development of employee skills

Exit of employees from the organization

Copyright Asia Pacific Management Pty. Ltd. 2011

Copyright Asia Pacific Management Pty. Ltd. 2011

THE SEVEN HP VALUES

learning and innovation

Copyright Asia Pacific Management Pty. Ltd. 2011

Copyright Asia Pacific Management Pty. Ltd. 2011

DESCRIPTIONS OF CULTURE Hofstedes cultural dimensions

Halls communication dimensions

Fukuyamas ethical habits

Collectivist cultures emphasize

Copyright Asia Pacific Management Pty. Ltd. 2011

HIGH POWER DISTANCE CULTURES

More likely to comply with legitimate power

Leadership tends to be autocratic or paternalistic

DIMENSIONS OF NATIONAL CULTURE

Individual/ Collectivism Index 90 89 25 14 46 18 79 32 20 17 20 91

categorization as an outgroup member creates

distrust negative interpretations of the other parties actions conflict

Copyright Asia Pacific Management Pty. Ltd. 2011