Vous êtes sur la page 1sur 47

Human Resource Management

Shah M Saad Husain

B Engg, MS Engg, PE, MBA, FICS, FIMM

Human Resource Management by Shah M Saad Husain

Shah M Saad Husain


BEngg, MS Engg, MBA, FICS, FIMM, PE

35 years management experience with


multinational, private sector and government
companies in engineering, petroleum, energy
and mineral sectors.

in General Management, Marketing, HR, Project


Management,
Engineering
Operations,
Business
Development,
External
Affairs,
Corporate Planning, CSR and Customer
Relations.

with PIDC, Habib Group, British Petroleum, BHP


Billiton, Toyota Indus Motor, Pak-Arab Refinery.

26 years teaching experience at IBA, CBM,


PIQC, PIM, NIPA, LUMS. Subjects: Industrial
Marketing, Customer Ascendancy, B to B
Marketing, Marketing Management, Strategic
Management,
HRM,
Performance
&
Compensation
Management,
Project
Management, Japanese Management, CSR.

Human Resource Management

Course Contents

The Strategic Role of HRM


Job Analysis and Job Design
Staffing
Employee Development
Compensation
Employee Relations

Human Resource Management by Shah M Saad Husain

Human Resource Management

Course Objectives
Knowledge
Practices.

of HRM Theory, Concepts, Processes and

Identifying Sources of Information and using them.


Class Interaction, learning from the Marketplace.
Practical Application of course, developing HRM
Strategies for Organizations.

Performance Assessment: Students nTeacher.

Human Resource Management by Shah M Saad Husain

Human Resource Management


Course Requirements

Readings from selected texts, journals


Theory, Concepts discussed in Class
Student Projects and Reports
Guest Speakers, Real Life Cases
Examinations
Presentations and Class Evaluations
Class Participation, Quizzes, Home Assignments

Human Resource Management by Shah M Saad Husain

Strategic Human Resource Management


Instructions for Students

Bring Course File to each class


Read reading materials before class
Write notes as slides are explained and discussed
Keep track of Course Calendar, Class Timings,
Grades, etc., on E-group and with CR
Maintain contact with CR and SSH
Meet Attendance and Punctuality requirements
Discipline is key. Adhere to Class Rules.

Human Resource Management by Shah M Saad Husain

Human Resource Management - Grading

Midterms ( 2 x 20 )
Final
Project Report, Presentation
Home Assignments, Quizzes

All Quizzes are open book

For an overall A grade in the course:

A in Final
A in Project Report
Active Class Participation

Human Resource Management by Shah M Saad Husain

=
=
=
=

40
30
20
10

Human Resource Management - Readings


I.

Luis R. Gomez Mejia, David B. Balkin,


Robert L. Cardy (2008) : Prentice Hall
Managing Human Resources

II.

Lloyd L. Byars, Leslie W. Rue (1997) : Irwin


McGraw-Hill
Human Resource Management

III.

Wayne F. Cascio (2005), Tata McGraw-Hill


Managing Human Resources

Human Resource Management by Shah M Saad Husain

Introduction to HRM

Human Resources Strategy in a firm is a


firms deliberate and planned use of human
resources to help it gain a competitive
advantage.

The HRM strategy of a firm is its grand plan


to ensure that it effectively uses its people to
accomplish its mission.

Performance & Compensation Management by Shah M Saad Husain

HUMAN RESOURCE MANAGEMENT


Employer/Organizational Objectives
Organizational Structure
Job Identification, Analysis & Design
Job Specification (Before Joining)
Job Description (After Joining)
Tasks, Activities, Responsibilities, Accountabilities
Power (Financial/Administrative)
Reporting Structure
Manpower Planning, Recruitment, Induction
Training & Development

JOB
(Scope & Depth)

Employee Objectives
Work

Growth in
Family & Self
Profession
Career
Security
Social Status

EMPLOYEE

Employee Employer
Relationship

Performance
Management

Performance Evaluation
Increments
Bonus
Incentives
Career Development
Ultimate Potential

Employer Objectives
Services

EMPLOYER
Compensation &
Rewards

Growth in
Goods & Services
Customer Satisfaction
Revenue Generation
Profits
Return on Equity (ROE)
Expansion of Business
Corporate Reputation

Salary
Benefits
Facilities and Perks
Allowances
Professional, Career, Societal
Recognition
Internal + External (Mkt) Equity

Performance & Compensation Management by Shah M Saad Husain

10

Human Resource Management by Shah M Saad Husain

Human Resource Management by Shah M Saad Husain

Human Resource Management by Shah M Saad Husain

Human Resource Management by Shah M Saad Husain

HRM and the 21st Century

Due to Internet technologies, organizations are undergoing a complete


transformation. The 21st century organization must adapt itself to management
via the web.

Intellectual capital will be critical to success. Advantage of bringing new


technologies to the market will be shorter. Technologies will let competitors
match them almost immediately.

In such times, it will be critical to attract and retain the best thinkers.

Retaining and attracting the top talent will require more than just paychecks. It
will require a culture of empowering people, and a reward system that rewards
the best as if they were the owners of the company.

Intellectual capital will be called on from around the globe. A global corporation
might be based in the US but does its software programming in Sri Lanka,
engineering in Germany, its manufacturing in China, and is linked via the
Internet to allow employees to interact and work in real time.

Performance & Compensation Management by Shah M Saad Husain

15

HRM and the 21st Century Corporation


20th Century Corporation

21st Century Corporation

Predicated itself on stability

Predicated itself on constant change

Organized around rigid hierarchies

Organized around networks and teams

Built on self-sufficiency

Built on
alliances

Organizational chart defined as a


shrinking pyramid leading to the CEO

Organizational chart more likely to be a


flat web, intricately woven that links
partners,
employees,
external
contractors, suppliers, and customers
in various collaborations

Constructed on bricks and mortar

Constructed
on
knowledge
technological advantages.

Performance & Compensation Management by Shah M Saad Husain

shifting

partnerships

and

and

16

Human Resource Management by Shah M Saad Husain

Human Resource Management by Shah M Saad Husain

Outcomes of HRM Practices

HRM practices make an important practical


difference in three key organizational
outcomes.
1.

Productivity

2.

Quality of Work Life

3.

Profit : Total Revenue minus the Total Cost

4.

Role of HR Professionals Today

Performance & Compensation Management by Shah M Saad Husain

19

Outcomes of HRM Practices:


1. Productivity

A measure of the output of goods and


services relative to the input of labor, capital,
and equipment.
Higher productivity
Leads to higher wages without boosting inflation.
Is not working harder, it is working smarter.
Is about doing more with fewer people, less money, less
time and space, and fewer resources.

Performance & Compensation Management by Shah M Saad Husain

20

MORE PRODUCTIVE ORGANIZATIONS GET MORE GOODS AND


SERVICES FROM A GIVEN AMOUNT OF LABOR, CAPITAL, EQUIPMENT.

Performance & Compensation Management by Shah M Saad Husain

21

Outcomes of HRM Practices:

1. Productivity Improvement

Rebuild employee loyalty.

Establish a clear link between rewards and


production.

Say no to Quick Fix approach.

Emphasize on Continuous Improvement.

Performance & Compensation Management by Shah M Saad Husain

22

Outcomes of HRM Practices:

2. Quality of Work Life

Two ways of looking at Quality of Work Life


(QWL)

Organizational Conditions and Practices such as


promotion from within, democratic supervision, participative
management, employee involvement, safe working
conditions, mutual trust, team work.

Employees Perceptions that they are respected, relatively


well satisfied, and able to grow and develop as human beings
and professionals.

Performance & Compensation Management by Shah M Saad Husain

23

Human Resource Management by Shah M Saad Husain

Outcomes of HRM Practices:


3. Profit

Management Systems that produce profits through people share the


following dimensions:
1.

Employment Security.

2.

Selective Hiring.

3.

Self-managed teams and decentralization.

4.

High Compensation contingent on organizational performance.

5.

Extensive Training, Development and Professional grooming.

6.

Reduced differences in status. Respect for competence and


performance.

7.

Sharing of information, effective communication systems.

8.

Employee Care and Satisfaction.

9.

Trust.

Performance & Compensation Management by Shah M Saad Husain

25

Outcomes of HRM Practices:

4. Roles of HR Professionals Today


The greatness of an Organisation is due to the Greatness of its People, Eiji Toyoda
1.

Strategic Partners: work with multiple stakeholders to achieve business


plans.

2.

Innovators: create an environment that supports continuous learning and


improvement.

3.

Collaborators: create win-win situations with internal and external


stakeholders.

4.

Change facilitators: anticipate the need for change, think, conceptualize,


articulate, execute and energize organization to bring change.

Performance & Compensation Management by Shah M Saad Husain

26

HRM and Corporate Strategic Goals

Human Resource Management is essential to


advance a firms strategic goals.
Linking Corporate Strategic Goals
with
HRM

CORPORATE
STRATEGIC
GOALS
CORPORATE
STRATEGY
HR
STRATEGY

HR
TACTICS
HR
PLANS

Performance & Compensation Management by Shah M Saad Husain

HR
POLICIES,
SYSTEMS,
SOPs

HR
PRACTICES

27

The Benefits of HR Planning


1.

Encouragement of proactive rather than reactive behavior

2.

Explicit communication of Company Goals

3.

Stimulation of critical thinking and ongoing examination of


assumptions

4.

Identification of gaps between Current Situation and Future


Vision

5.

Encouragement of Line Managers Participation

6.

Identification of HR constraints and opportunities

7.

Teamwork and creation of common bonds

Human Resource Management by Shah M Saad Husain

HRs Strategic Role

Successful firms align their HR strategies


and tactics with:
1.

Environmental Opportunities and Threats.

2.

Business Strategies.

3.

Organizational Unique Characteristics.

4.

Organizations Competence.

Performance & Compensation Management by Shah M Saad Husain

29

Selecting HR Strategies to Increase Firms Performances

HR Strategys effect on a firms performance


depends on how well it fits with other factors

Fit refers to the consistency and compatibility


between HR strategies and other important
aspects of the organization

Performance & Compensation Management by Shah M Saad Husain

30

Fit with Organization Strategies

Corporate Strategy is referred to as the mix


of businesses a corporation decides to hold
and the flow of resources among those
businesses. e.g., PARCO

Business Unit Strategies are those that are


formulated and implemented by a firm that is
relatively autonomous, even if it is part of a
larger corporation. eg. PAPCO

Performance & Compensation Management by Shah M Saad Husain

31

Effective HR Strategy Formulation and Implementation

Human Resource Management by Shah M Saad Husain

Human Resource Management by Shah M Saad Husain

Selected HR Strategies That Fit Miles and Snows Two Major Types of
Business Strategies

Human Resource Management by Shah M Saad Husain

Fit with the Environment

HR strategies should help the organization better exploit


environmental opportunities or cope with the unique
environmental forces that affect it

The relevant environment can be measured in terms of four


dimensions:
1.

Degree of uncertainty: how much accurate information is


available to make appropriate business decisions

2.

Volatility: how often does the environment change

3.

Magnitude of change: how drastic the changes are

4.

Complexity: how many different elements in the environment


affect the firm either individually or together

Human Resource Management by Shah M Saad Husain

Selected HR Strategies for Firms Low and High on Different


Environmental Characteristics

Human Resource Management by Shah M Saad Husain

Fit with Organizational Characteristics


The production process for converting inputs into
outputs

1.

Routine production process benefits from HR strategies that


emphasize control
example: Specific job description and job specific trainings

Firms with non-routine production processes such as


advertising firms, custom printers, and biotechnology
companies, benefit from flexible HR strategies that support
organizational adaptability, quick response to change and
creative decision making
example: Broad job classes, loose work planning, and generic training

Human Resource Management by Shah M Saad Husain

Fit with Organizational Characteristics


The Firms Market Posture

2.

Firms that experience high sales growth and engage in product


innovation for a wide market segment benefit from HR
Strategies that support growth and entrepreneurial activities
example: External recruitment or buying skills, decentralized pay
decisions, customized appraisal

Firms with low rates of sales growth and limited product


innovation for a narrow market segment benefit from HR
strategies that emphasize efficiency, control, and firm specific
knowledge
example: Internal recruitment or making skills. On-the-job training,
and high dependence on superiors

Human Resource Management by Shah M Saad Husain

Fit with Organizational Characteristics


The firms overall managerial philosophy

3.

Companies whose top executives are risk-averse and operate


with an autocratic leadership style, and are inwardly focused
use HR strategies that match this outlook
example: Seniority based pay, formal hiring and socializing of new employees,
selection decisions made by the HR department and use of top-down
communication channels.

Management characterized by high risk taking, participation,


egalitarianism, and external, proactive environmental orientation
use HR strategies that fits this outlook
example: include variable pay, giving supervisors a major role in hiring
decisions, up-and-down communication channels, and multiple inputs for
performance appraisals

Human Resource Management by Shah M Saad Husain

Fit with Organizational Characteristics


The firms organizational structure

4.

Highly formal organizations that are divided into functional


areas like marketing, finance, production, etc, and
concentrate decision making on top: HR strategies for
such organizations include a control emphasis,
centralized pay decisions, explicit job descriptions, and
job-based pay.

Firms whose structures are less regimented benefit from


HR strategies that include informal hiring and socializing
of new employees, decentralized pay decisions, broad job
classes and individual-based pay.

Human Resource Management by Shah M Saad Husain

Fit with Organizational Characteristics


The firms organizational culture

5.

Companies that foster an entrepreneurial climate have loose work


planning, informal hiring and socializing of new employees and
variable pay.

Firms that discourage entrepreneurship generally prefer a control


emphasis, detailed work planning, formal hiring and socializing of
new employees, and fixed pay.

Firms with emphasis on moral commitment- the extent to which a


firm tries to foster a long-term emotional attachment between the
firm and the employees have emphasis on preventive vs. remedial
disciplinary action to handle employee mistakes, and explicit ethical
codes to monitor and guide behavior.

Firms that are low on moral commitment rely on authoritarian


relationship between employee and company.

Human Resource Management by Shah M Saad Husain

Fit with Organizational Capabilities

Distinctive competencies of a firm are its


capabilities
such
as
technology,
management systems, reputation, etc, that
give it a Competitive Edge

HR strategies should enhance a firms


performance by:
.

helping the company exploit its specific advantages or strengths


while avoiding weaknesses

2.

assisting the firm in better utilizing its unique blend of human


resource skills and assets

Human Resource Management by Shah M Saad Husain

Choosing consistent and appropriate HR tactics to implement


HR strategies

The best-laid HR strategies may fail when specific HR programs are


poorly chosen or implemented

In addition to fitting with each of the four organizational


characteristics; organizational strategy, environment, organizational
capabilities and characteristics, a firms HR strategies should be
mutually consistent

HR strategies are likely to be successful if they reinforce one


another rather than work at cross-purposes.
example: Working in teams, but traditional individual based
performance appraisals

Human Resource Management by Shah M Saad Husain

Choosing Consistent and Appropriate HR Tactics to Implement


HR Strategies

Human Resource Management by Shah M Saad Husain

Competencies Required of HR Department to Become a Full Strategic Partner

Human Resource Management by Shah M Saad Husain

Reckitt Benckiser diagram

Performance & Compensation Management by Shah M Saad Husain

46

PARCO`s Growth and HR Strategy

Projects

Projects
Engineering
Operations
Managerial

Marketing
Business Diversification

Engineering
Operations
Managerial
Marketing

Projects
Engineering

Talent
Management

HR Management
Linking HR & Corporate Goals

Sourcing & Recruitment

Performance Management

Personnel

Payroll

Management

Job Evaluation
Rightsizing

Learning & Development

Benefits

Salary Restructuring

Succession Planning

Leave

Employee Surveys

Recruitment

Industrial Relations

Single Product

Leadership Development

HR Processes

Compensation

SAP & HR Data Management

Work Life Balance

Talent Inventory

2008

1981
Local

Performance

Training and Development

Multi Product
National

2012

2014
Multi Business
Multinational