Department of Commerce & Financial Management University of Kelaniya

M. Shamil
B.Com (Sp), MBA

Human resources of an organization consist of all people who perform its activities Talented individuals are arguably the most valuable resource in today's global economy According to M. Porter employees of an organization can provide competitive advantage

University of Kelaniya, Sri Lanka

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Employees KASOCs
Competitive Advantage

Right quality people should join & remain with organizations

Organizational Success

University of Kelaniya, Sri Lanka

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The policies & practices involved in carrying out the people or human resource aspect of a management position
Dessler, G

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Human Resource Management is concerned with the people dimension in Management

Decenzo & Robbins

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the HRM focus should always be maintaining & ideally expanding the customer base while maintaining and ideally maximizing profit. HRM has whole lot to do with this focus regardless of the size of the business or the product or services you are trying to sell
Dr James Spina

University of Kelaniya, Sri Lanka

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a strategic & coherent approach to the management of an organization's most valued assets: people who individually & collectively contribute to the achievement of its objective
Armstrong, M.

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a set of techniques, which enables interventions to be made within the business in order to improve performance
Fombrun et al (1984)

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It is a set of distinct interrelated practices, policies, & philosophies that facilitate the attainment of organizational strategy
Belcourt & McBey

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matching HRM activities & policies to some explicit business strategy

Henry and Pettigrew (1986)

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the process of linking the human resource function with the strategic objectives of the organization in order to improve performance
John Bratton

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the process by which organizations seek to link the human, social, & intellectual capital of their members to the strategic needs of the firm
Bamberger and Meshoulam (2000)

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Linking of Human Resource Management with strategic goals & objectives in order to improve business performance & develop organizational cultures that foster innovation and flexibility
Dessler, G.

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Acquisition: HR Planning Recruitment Selection Socialization

Development: Training Management & Career development

Motivation: Job Design Appraisal Rewards Job Evaluation Discipline

Maintenance: Safety & Health Employee relations

Source: Decenzo & Robbins, (2003), Personnel & Human Resource Management University of Kelaniya, Sri Lanka 8/23/2013 14

Organization
Organization Design, Organization development,

Job & Role design

Resourcing
HR planning, Talent management & Recruitment &

Selection

Performance Management Human Resource Development

Learning, Training, Management development &

Career management
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Reward Management
Pay systems, Contingent pay & Non financial rewards

Employee relations
Industrial relations, Employee voice &

Communication

Health, Safety & Welfare services Employment & HR services Implementation of certification related programs & Compliance auditing
ISO
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University of Kelaniya, Sri Lanka

Managing Director

Staff Authority

Marketing Manager

Finance Manager

Operations Manager
Line Authority

HR Manager

Executive 1

Executive 2

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China Cost centre to Profit centre

Strategic HRM HR Management Personnel Management

Schools of Management TQM Strategic Mgt IHRM CHRM HRMS e-HR Global HRM Knowledge

Japan

Personnel Administration
1890 1930

UK USA

1960

1980

2000>

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Determine the best method of performing each task: the job & task Scientific selection of workers: select the right person Scientific education & development of the worker: train workers Differential Rate system: higher pay for higher performance

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There is no dominant theory HRM is hyped up version of Personnel Management to exploit labour Contradiction between Hard & Soft versions of HRM
Organizational practices are influenced by either

versions

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Postmodernism
Knowledge is not an object, its a source for power

HR is not a panacea for all the organizational problems Relationship between HRM & organizational performance

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Employees

Morale, Commitment, Competence, Retention Retention Satisfaction Commitment Profitability, Cost Growth, Cash flow Margin

HR Practices

Customers

Investors

Source: Ulrich, D. (1997). Human Resource Champions University of Kelaniya, Sri Lanka 8/23/2013 26

1.

2.
3. 4.

Closely linked to business strategic plans Jointly conceived & implemented by line & HR managers Responsive to a highly competitive marketplace & global business structure Focused on quality, customer service, productivity, employee involvement, team work, & workforce flexibility

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Departments

Sales

Air Operations Customer Freight Service

IT

Admin Accounts Transport & HR

Import Export Import

Export

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HRP determines the human resources required by the organization to achieve its strategic goals
Armstrong, M.

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HRP is the process for ensuring that human resource requirements of an organization are identified & plans are made for satisfying those requirements
Bulla & Scott, 1994

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HRP process includes

1.Environmental scanning 2.Labour demand analysis 3.Labour supply analysis 4.Gap analysis 5.Action programming 6.Control & evaluation

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Talent management is the process of ensuring that the organization attracts, retains, motivates, & develops the talented people it needs
Armstrong

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1.

Defining requirements
Prepare JDs & JSs, Decide on the terms & conditions of the employment

2.

3.
4.

Attracting candidates Selecting candidates Hiring

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Bio Data, CV or Resume Graphology Interviews Tests Assessment Centre References

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Assessment Centre (Promotion)

Ability Tests

0.5

Assessment Centre (Performance) Personality Tests Bio Data Interviews References

Graphology

0 -1
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a strategic & integrated approach to delivering sustained success to organization by improving the performance of the people who work in them & by developing the capabilities of teams & individual contributors
Armstrong & Baron

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If you cant define performance, you cant measure or manage it

Armstrong & Baron 1999

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Role Profile

Performance Agreement Performance Review Performance Development Planning Performance

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Graphic Rating Scale Method (GRS) Alternation Ranking Method Paired Comparison Method Forced Distribution Method Critical Incident Method Behaviorally Anchored Rating Scales (BARS)

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the planned & systematic modification of behavior through learning events, programmes & instruction which enable individuals to achieve the levels of knowledge, skill & competence to carry out their work effectively
Armstrong

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Knowledge

Components of a computer Facilities available in the computer What is Ms Office How to switch on the computer How to use the Ms Word to prepare a letter and report How to use Ms Access to develop a database How to use Ms Exel to prepare financial statement How to use Ms Powerpoint to prepare a presentation

Skill

Attitude

Develop attitude towards the use of computer Develop attitude towards maintaining confidentiality on electronic documents Develop attitude towards using and maintaining computers
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Training Needs Analysis Training Evaluation Training Design

Training Implementation
University of Kelaniya, Sri Lanka

Training Development
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Dessler, G. (2004). Human Resource Management. 9th ed. Armstrong, M. (2007). A Handbook of Human Resource Management. 10th ed. Belcourt, M. & McBey, K. (2004). Strategic Human Resource Management. 2nd ed.

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