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HR Challenges

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Human Resource

Management

1
Topics to be covered
We will cover the following:
– HRM Cycle & Model
– HR Challenges
– Strategic HRM
– HRIS

2
HR Model Organizational Developed by
Development
Training and Development Focus: assuring healthy intra
ASTD
focus: identifying, assessing and inter unit relationships
and through planned learning- and helping groups initiate
helping develop the key and manage change
competencies which enable
individuals to perform current
or future jobs Organization/ Job Design
Focus: defining how tasks,
authority and systems will be
Union & Labor Relations organized and integrated across
Focus: Assuring healthy organization units and in
union or organizational Human Resource Areas individual jobs
relationships
Outputs:
Employee assistance Quality of Work Life Human Resource Planning
Focus: providing personal Focus: determining the
problem solving, Productivity organization’s major human
counseling to individual resources needs, strategies
employee Readiness for Change and philosophies

Compensation/ Benefits
Selection and Staffing
Focus: assuring
compensation / benefits Focus: matching people
Personnel Research
fairness and consistency and their career needs
and Information
and capabilities with
System
jobs and career paths
Focus: assuring a
personnel information
bases
3
Model Explanation
 Quality of Work life: Quality Of Work Life is a
multifaceted concept.The premise of quality of
work life is having a work environment where an
employees activities become more important. This
means implementing policies and procedures that
make the work less routine and more rewarding
for the employee. This policy or procedure
includes autonomy, recognition, belonging,
progress and development and external rewards

4
Model Explanation
 Productivity: Productivity is the quantity or volume of the
major product or service that an organization provides. In
other words it is the amount of work that is being produced
in the organization in terms of how much and how well.
High productivity is what makes an organization thrive.
 Readiness for change: Change is a fact of life in both our
private and work life. At the work sight we must be aware
that change will occur. The change might be subtle, such
as getting a new boss. Or it might be a major endeavor
such as installing a computerized system, for the first time.
To reduce the fair associated with change, Training is very
important

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HR Challenges
 Acquisition: Create a readily deployable talent
pool.
 Managing Change: As the organizations are going
Global, managing change is a major problem faced
by the Managers and how to make people
acquainted with the changes
 Managing low attrition rate: More competition
also adds to high attrition. Now here is the
opportunity for the HR manager to play safe and
introduce good retention strategies.
 Balancing work and personal life: By flexi work
hours, maternity leaves and vacations are some of
the options in hand.
 Consultative approach: Developing continuous
dialogue, open communication, participative
decision making is very important for
implementing consultative approach.
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HR Challenges
 Work Culture: Due to acquisition and mergers
taking place it becomes important for the HR
Manager to develop the work culture
 Stress and Conflict: Long working hours, target
pressures, high competition etc adds stress and
conflicts in the Organization. It is the duty of an
HR Manager to have proper responses to the
stress and conflict before it causes damage to
someone’s' personality. It’s a challenge.
 Restructuring Organization: As the trend is
changing, Manager’s needs to develop a new
organizational structure that enables a more
efficient and flexible operation and serves better
its businesslike activities in the future.
 Globalization: Companies are going global due to
which the workforce diversity is increasing.
Managing these people with different religious,
cultural, moral background is a challenging task for
the HR Managers in 21st Century.
7
Profitability Through Cost and Growth

Revenue growth is a key component of the


profitability equation. The main paths to growth
include through leveraging customers, leveraging
core competencies and mergers, acquisitions or joint
ventures. Each of these has HR implications and
requires co-operation between management and HR
professionals to design and deliver new
organizational practices.
Capability Focus
Managers and HR professionals should constantly
seek the capabilities necessary for success. Whilst
general management must identify and foster what
capabilities they need to increase organizational
competitiveness, HR professionals must frame what
they do in terms of these capabilities at an
organizational level.
Technology
Managers and HR professionals need to be able to
redefine work to maximize the value of technology in
the organization. This means making technology a
viable and productive part of the work setting, and
requires that HR professionals keep ahead on the
information curve.
Attracting and Retaining
Intellectual Capital

Business organizations of the future will compete


aggressively for the best people, and the successful
organizations will be the ones that are able to attract
good people, use them effectively, develop them and
retain their skills within the organization.
Transforming the
Organization
Over the past decade, organizations have gone
through one change initiative after another including
downsizing, consolidations and restructurings. Unlike
many of these turnaround efforts, transformation
goes to the heart of the organization changing the
fundamental image of the business, as seen by
customers and employers. HR has to play a leading
role in organizational transformation.
Mergers, acquisitions and
restructuring
 These will continue as long as companies strive for
increased economies of scale, greater productivity
and market share. The changes we have been
reviewing are largely driven by one or more of
these activities. The potential employee problems
associated with combining differing work cultures,
restructuring hurdles can offset the intended
benefits of the changes. If well managed however,
the results can be very rewarding. Is your game
plan in place?
Sexual harassment

 This is a very popular subject at the water coolers


these days. Any form of harassment in the work-
place is disruptive and potentially damaging to
those involved, including the company. The
increasing challenge is the every-evolving
definition of harassment, as interpreted by the
courts, legislation and society as a whole. Are
your employees informed and are you, as an
employer, equipped?
Ongoing legal compliance

 "Ongoing" is the key word here. You cannot afford


to be complacent and assume that because you
were in compliance last year, you are still in
compliance today. Unfortunately, or fortunately,
depending upon your perspective, laws and other
government regulatory requirements tend to be
very dynamic, subject to constant change. Are
you in touch with the latest court interpretations of
the laws affecting you?
Creative compensation schemes

 Not unlike benefit plans, there is a growing need to


find more creative ways to motivate and reward
employees, at all levels. The demographics of
your particular work force are critical factors to be
considered when attempting to redesign
incentives, pay structures, etc. How do you
properly motivate the right group of people
without losing the rest?
Partnering with the business

If you are still grappling with what this really


means, you are likely approaching -- if not already
in -- trouble. Being in touch with the needs of the
organization and understanding how you can assist
with the fulfillment of its strategic directives is
paramount. Are you a real player?
To outsource or not

 That is the question on many minds in many


organizations. Is it a form of ultimate death or
critical to survival? The focus of all departments
within an organization should be the optimization
of resources toward the core business
objectives. Companies do not exist, for example,
to support the HR department. They exist to
produce, sell and/or market products and
services. Is your time being utilized to its greatest
potential?
Increasing services while lowering
costs
 How to do this becomes the stepping stone for
discussing potential outsourcing opportunities. As
with the frontline employees dealing directly with
external customers, levels of internal service from
the HR department should be continually evaluated
as well. Is it the best it can be? Is it truly adding
value?
What is Strategic HRM?
 Integration of HRM systems to the
overall mission, strategy, and success of
the firm, while meeting the needs of
employees and other stakeholders

 Two step definition:


 The HR System is the set of policies and
practices that mediate the relationship
between employer and employee.
 Strategic HRM is directed at the
development and implementation of an HR
System contributing to the creation of a
sustainable competitive advantage.
Steps in Strategic HR 20
Steps in Strategic HRM
1. Environmental Analysis
2. Organizational Mission and Goals Analysis
3. Analysis of Organizational Strengths and Culture
4. Analysis of Organizational Strategies
5. Choice and Implementation of HR Strategies
6. Review and Evaluation of HR Strategies

How can be strategic

21
How Can HRM Be Strategic?
 Participate in the  Design HR
Discussion of the Practices Which
New Strategy Can Execute New
 Evaluate Strategy (Link)
Organizational  Establish Metrics
Capacity to Evaluate
Practices

12/30/2018 22
What are the competencies of a
Strategic HRM Executive?
 Be a Strategist - Know the Business
 Be an Administrator - Deliver the Basics
 Be a People Champion
 Be a Change Agent

Strategic-Home

12/30/2018 23
Factors Traditional HR Strategic HR
Responsibility Staff specialist Line managers
for HR
Focus Employee Relations Partnerships with internal/
external customers
Role of HR Transactional, Change Transformational, change
follower and respondent leader and initiator
Initiatives Slow, Reactive, Fast, Proactive, Integrated
fragmented
Time horizon Short term Long term

Control Bureaucratic-policy, Organic, flexible


roles
Job Design Division Of labor, Team, flexible
specialization
Key Capital, Products People, knowledge
investment
Accountability Cost centre Investment centre
24
Human Resource Information
Systems
 Human resource information systems (HRIS)
– An integrated system of hardware, software, and
databases designed to provide information used in HR
decision making.
– Benefits of HRIS
• Administrative and operational efficiency in compiling HR
data
• Availability of data for effective HR strategic planning
– Uses of HRIS
• Automation of payroll and benefit activities
• EEO/affirmative action tracking
Uses of an HR Information System (HRIS)
Designing and Implementing an
HRIS
 HRIS Design Issues
– What information available and what is
information needed?
– To what uses will the information be put?
– What output format compatibility with other
systems is required?
– Who will be allowed to access to the
information?
– When and how often will the information be
needed?
Accessing the HRIS
 Intranet
– An organizational (internal) network that operates over
the Internet.
 Extranet
– An Internet-linked network that allows employees
access to information provided by external entities.
 Web-based HRIS Uses
– Bulletin boards
– Data access
– Employee self-service
– Extended linkage

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