Strategic role of human resources management

Prepared By ; Gihan aboueleish

 Definitions of Management /strategic & HRM.
 HR Role , activities & challenges.
 HRM objectives & activities.
 HR Planning.
 HRM Trends.
 HR Strategy.
 HRM Tools.
 Strategic Management.
 HR & Technology.
 HR Application in technology.

Strategic of Human Resources Management - Gihan Aboueleish Saturday, January 21, 2012

What is management ?

Management process includes the planning,
organizing, leading and controlling that takes
place in order to accomplish objectives.
Management is the process of efficiently getting
activities completed with and through other
people


3 Common Factors

1 GOALS

2 Limited Resources

3 PEOPLE


Human Resources Management definition

consists of people with various background
An
Organization depends on people to make them operate
is nothing without human resources


“Human resource management is the effective use of human resources
in order to enhance organizational performance.”

Objectives:
 Maximize the return on investment from the organization's human
capital and minimize financial risk.
 To align the capabilities and behaviors of employees with the short-
term and long-term goals of the retail firm.



Human resource management is concerned with the ‘people’
dimension in management

acquiring their services
developing their skills
motivating them to high levels of performance
Ensuring that they continue to maintain their
Commitment to the organization

Organizational Objectives


1 ACQUISITIONS

2 DEVELOPMENT
HRM
3 MOTIVATION

4 MAINTENANCE


The role of Human resources

HRM

Administration
functions

Recruitment
Compensation analysis
Benefits administration
Training and Development
General employee administration


Recruiting

Selecting

Training

Motivation

Evaluation

Compensation


Economic development and
Technology development

HR Challenges Human resources availability
and quality

Demographic

Organization Re-structuring

Hudson Institute Research on the Workforce 2020


HRM Activities Focus On

Productivity

Quality

Services


Recruitment and staffing

Equal employment
HR Development opportunity

HRM
Activities
Planning and analysis
Compensation Of the HR
And benefits

Remuneration
And HR Relation


HRM Objectives Proportion

Recruitment, selection, positioning 55 %
Training and development 46 %

Compensations 36 %

Industrial relation 28 %


HRM Objectives

1 Increasing Value Of The Human Capital

2 Recruiting And Maintenance HR

3 HR Skills And Capability Development

4 Identifications And Compensation

5 Cost And Effectiveness System Result

6 Efficient Administration


Traditional HR functions: HR on the next century functions:

Administration focused only focused on Strategy

Reactive Pro - Active

As key part of the
Separated & isolated from
Company‟s mission
Company‟s mission

Focused on Services
Production focused only

Horizontal responsibility
Vertical authority

HR=investment (expertise)
Human Resources=cost


HRM= People Dimension in Management
HRM has 4 steps: ATMM (Acquisition, Training
and Development, Motivation & Maintenance )
Getting and Keeping good people is critical to the
success of every organization whether it be public
or private


What is that?

“Change”

• Human Resource Planning ;
is the process by which an organization ensures that it has the
right number and kind of people, at the right places, at the right time,
capable of effectively and efficiently completing those tasks that will help
the organization achieve its overall objectives.
( Source: Decenzo and Robbins 2000, Personnel/Human Resource Management))


• HR/ Manpower Planning ;
is the process of acquiring and utilizing human
resources in the organization. It ensures that the
organization has the right number of employees in the right
place at the right time.( Source: Adhikari, Dev Raj, 2001,Human
Resource Management )


•Employment planning ;
is the process of formulating plans to fill future
openings based on an analysis of the positions that are
exppected to be opeb and whether these will be filled by inside
or outside candidates.
(Source: Dessler, G. 2000,Human Resource Management )


Work Force Diversity ; Women Participation
(Example: In U.S. 45.5% in 1979, 47.7% in 2005)

•Racial Composition
( Example: Inclusion of different race and communal group)

•Portion of Ageing work force
( Example: retirement age, average life expectancy etc.)

•Technological Change
( Example: Stenograph, Teletype, Fax, Email, Tele-seminar etc.)

•Attraction to White Collar and professional jobs

Globalization/Changing Economy ; Production globalization
(Example: same product from different countries, production of
different accessories-parts in different countries).

•International competition of market
( Example: automobile, electronics, knowledge industries etc.)

•Manufacturing plant in different countries
( Example: Sony in Malaysia, )

•Job sifting from one place to another
( Example: Tendency to use cheaper workforce, e. g. garments)

•High performance work system

•Changing legal provisions such as equal opportunity laws
are being passed which bars discrimination on the basis of
age, sex, race, religion, disability, national origin etc.
•Health and occupational safety rules are also affect HRM.


Linking business strategy with operational
strategy:
HRP is an important process to maintain the link between
business strategy and it operation. It follows different
procedures including the need to assess the impact of
technological changes on new jobs and new skills
(Example: Nepal Telecom staff used to operate Wireless Set before,
but at present complex IT equipment's must to handle.)


Minimizing the risk of loosing:
By forecasting the needs of technical and other human resources it
can minimize the future risk of loosing. Delay in recognizing human
resources might be costly and expensive in the future.
(Example: Government run banks are compelled to upgrade own staff
by providing latest skills and knowledge to them to compete with other
fast growing banking organizations.)


HRP needs for HRD :

HRP is important for planning the investment in the development and
utilization of human resources. Any investment in the HR activities is
considered an investment for the future growth and development of the
organization.

(Example: When curriculum has to be changed, required knowledge
and skills of teachers/instructors should be developed prior to
implement the new curriculum. So, educational institutions have to be
aware of that)


HRP is pro-active, not reactive :

For solving any sort of future HR problem HRP is pro-active rather than
re-active.

(Example: HRP might be helpful to accommodate government
legislation regarding inclusion, qualification, possible future demand of
trade unions)


HRP is not in isolation :

HRP recognizes that there must be an explicit link between planning
function of human resources and other organizational functions, such
as strategic planning and market forecasting.


HRP is promotes awareness :

HRP promotes the awareness that human resource activities
are equally important at every level of the organization. Both
lone and staff managers have to be involved in HR planning
activities.


How strategy affects?

The organization‟s objectives and strategies for the future determine
future need of human resources. It means number and mix of human
resources are reaction to the overall organizational strategy.


Implications of future demands

Projection of future human resource needs and future direction of the
organization is done basing upon the assessment of its current human
resources situation.
So, year by year analysis for every job level and type is necessary.
Organization usually needs heterogeneous mix of people but it is not
easy task to maintain all type of people in the organization. If accurate
estimates are to be made of future demand in both qualitative and
quantitative terms, a lot of information is required.


Implications of future supply

Increase and decrease of future human resources assessed by
estimating changes in internal supply looking at different factors of
changes.
So, increasing and decreasing of human resources is normal.


Increasing supply

Increment in human resource supply can be done by combination of
following sources:
• New hiring : easily predictable with high accuracy
• Transfer of personnel: affects in other unit and so difficult.
• Individuals returning from long leaves: Such as maternity, military
service. These are easy to estimate as they are for fixed period. But
difficulties arises when the period exceeds not from the cause of the
organization. In this situation the organization can not fire the
employee as per legislation.


Decreasing supply

Decrease in human resource supply can be done by combination of
following sources:
• Retirements : easily predictable with high accuracy but very difficult
to forecast voluntary quits, prolonged illness and deaths.
• Dismissals: It can be forecast within reasonable limits of accuracy.
• Sabbaticals: easy to predict as it is given to the employees in
frequent intervals, especially to the universities teachers usually with
full salary paying.


What you expect when you enter in any shop?

Strategic of Human Resources Management - Gihan Aboueleish
Saturday, January 21, 2012

Process of locating, identifying,
and attracting capable candidates.

Can be for current or future needs.

What sources do we use for
recruitment.


The process of assessing
candidates and appointing a post holder.

Purpose is to hire the person(s)
best able to meet the needs of the
organization.

Method of Selection
Interview
Aptitude test


Training tends to be done for
current job.

Aims to improve efficiency.

Keeps the employee up to date with
changes in the field

Can be external or „in-house‟.

Strategic of Human Resources Management - Gihan
Aboueleish Saturday, January 21, 2012

Motivating employees to perform up to their potential is the
key to maintaining a productive, successful business.
Ways in which you can motivate employees -
Interact - Talk to your employees regularly.

Recognition & Appreciation - A job well done should be
appreciated and encouraged.

Pay them Right - Pay employees for what they are worth and
they will be happy to work.

New challenges - Give employees new and interesting
challenges to keep them stimulated and learning.

Motivating Employees

How critical is Motivation of employees?

Employees personal goals does
vary with the management‟s goals

According to a study, 5% increase
in employee satisfaction results in a
1.3% increase in customer
satisfaction and 0.5% increase in
sales

Customer loyalty is directly related
to motivation of employees


Establishing performance standards
and reviewing the performance.

Means to ensure organizational goals
are being met.

To identify employees who are
performing well and those who aren‟t.


Incentive Compensation can be
Commission, Bonus and stock options.

Commission is a compensation based
on fixed formula for sales.

Bonus is periodical compensation
based on the store‟s performance
during that period.

Stock options-employees are
encouraged to buy shares of their
company at discounted prices


HR Challenges faced by Retailers

Categories of Management

Building Employee Commitment


Part-time Employees

Expense Control

Employee Demographics

International HR issues


Part-time Employees

Part-time employees are essential apart from the regular full-
time employees.

Part-time employees are less committed to the company
and their jobs.

Part-time employees are more likely to quit the company
than the full-time employees.


Expense Control

Retailers work on thin margins and must control expenses. Thus they
are cautious about paying high to their employees who perform low-skill
jobs.

Poor attitude, lack of experience and lack of motivation directly reflect on
the sales and customer loyalty as Employees get into direct contact with
the customer.


Employee Demographics

The changing demographic patterns results in a chronic
shortage of sales associates.

Since 1995, the Asian workforce has grown by 240 million
while Europe‟s has only grown by 6 million.

Thus managing this growing diversity and changing values in
retail workforce especially in tight labor markets creates
problems for HR managers.


HR Challenges Faced By Retailers

International HR issues

Managing employees working for a international retailer is
challenging because of difference in work values, economic
systems and labor laws.

Differs

This implies that HR practices effective in one country might
not be effective in another.


Managements are categorized based on the tasks they perform.
They are:

Strategic Management

Merchandise Management

Store Management

Administrative Management



Strategic Management

Performed by senior management.

To develop a retail strategy

Identify the target market

Design organizational structure

Select locations



Merchandise Management

Performed by Corporate Staff

Buy merchandise :
Locate vendors, Evaluate vendors, Negotiate with vendors, Place
orders

Control merchandise Inventory:
Budget plans, Allocate Merchandise to stores, Evaluate stock
position

Price merchandise:
Set Initial prices, Adjust Prices



Storage Management
Plan Schedules
Recruit
Maintain
Facilities
Evaluates
Performance

Sell
Merchandise Provide Service

Train
Display Employees
Merchandise



Administrative Management (operations)

Performed by Operations Manager

Promote the firm, its merchandise and services
Plan communication programs, Develop communication
budget, Plan special promotions, Design special displays.

Manage Human Resource
Recruit, hire and train managers, Plan career path, Develop
policies for managing employees.



Some approaches that retailers take to build employee
commitment.

Selective Hiring and Training

Empowering employees

Creating Partnering Relationships



Selective Hiring and Training

To seek best and the brightest candidate.

To seek the candidate with the right attitude.

Investing in developing employee skills is very important as more
than 60% employees have direct customer contact. and If you don‟t
care of your customer some one else will do.

Both PRODUCT and ETIQUETTE training must be imparted.



Empowering employees
Empowerment is the process of managers sharing power and decision-
making authority with employees.

Ways of empowering employees:
Share Leadership Vision- Help people feel that they are part of
something bigger than themselves and their individual job.

Trust People

Provide Frequent Feedback -so that people know how they are doing.

Solve Problems: Don't Pinpoint Problem People

Creating Partnering Relationships

Reduce Status Difference:
Retailers attempt to reduce status difference among the employees. With
limited status difference employees feel they play a important role in the
firm‟s achievement and their contributions are valued.

Promoting from within:
Promotion from within is a staffing policy that involves hiring new
employees only for the positions at the lowest level in job hierarchy and
then promoting employees for openings at higher levels in the hierarchy.


•HRIS :- a technology based system to acquire , retrieve, analyze & distribute
pertinent information regarding an organization human resource.
•ASM:- a web based employee assessment tool (application server model).
•CPM:- computerized performance monitoring
•Workflow technology.
•Vendor management system.
•Application tracking system.
•Performance management software.
•Internal mobility software.
•Executive & key people management software.
•E- recruitment software.
•Virtual office system


 Internet portals :- customize and personalize each person's workspace
through Internet portals. . A manager might track key indicators such
as labor costs or competency levels by workgroup. He or she might
also view personal account information, pending emails, alerts that
certain task need to be addressed--say an approval for a promotion or
a 360-degree review. A well designed portal can create a very
compelling experience.

 Shared service centers :-consolidating various functions in a single
location and processing all transactions and claims en masse, it's
possible to reduce--if not eliminate--much of the redundancy and
overlap that plagues the typical corporation .


 Application Service Providers :- Allow them to rent space on a remote system
and let an outside company manage system maintenance, security and
upgrades. For example, US Internetworking Inc., based in Annapolis,
Maryland, supports ERP packages from PeopleSoft and Lawson, customer
relationship management (CRM) software from Siebel Systems, and e-
commerce and messaging applications from Microsoft.

 Business intelligence :- Business intelligence uses tools such as online
analytical processing (OLAP), decision support systems (DSS), executive
information systems (EIS) and data mining.

 Resource Analysis:- HR department can analyze labor costs and productivity
among various groups of workers to better structure pay and benefits
packages.


 Personal digital assistants (PDAs):- Making human resources data
available through PDA, digital phones and interactive pagers. SAP
announced a partnership with Motorola that enables the PageWriter
2000 interactive pager to cull information from ERP software--
including sales automation, financial tracking, medical information
gathering and transactional updates from an array of industries.

 Virtual meetings:- Smart agents-pieces of software that monitor
networks and computers-will automatically sense bottlenecks and
trends and adjust or change processes to optimize workflow.

 Electronic travel & Expense reporting (T&E) :- Employees submit
expense reports electronically, using an intranet and browser. When an
employee logs on to the system, it auto populates charges from their
corporate American Express card. They simply add out-of-pocket
expenses and the system generates a report.


 Telecommuting :- Telecommuting is working from one's home or some
other remote location outside the company's office. It increases
quality of life by enabling a meshing of personal and professional lives.
Telecommuting include productivity gains, reduced absenteeism,
reduced employee turnover costs, reduced real estate costs, and
reduced relocation costs.

 Talent management system:- Lawson Talent Management Version
3.4, a system of record that captures all data related to the names,
titles, roles, experience, knowledge, skills and abilities of the people
within an organization. Six functional modules tapping that data
handle recruiting, goal management, performance management,
compensation, learning and development, and succession
management.


 B2E Employee Self Service (ESS):- An Internet based solution that
provides employees with a browser interface to relevant HR data
and transactions. It enables employees’ real-time access to their data.
They can update their personal details, apply for leave, view their
pay details and associated benefits, view internal job vacancies and
book training and travel.

 Performance Appraisal System :- A software program written to do
the calculations using data already in place, and another program
written to do the calculations. The new process reduces the
paperwork from 20 to 7 pages per employee. Supervisors and
managers were given the option of using computerized comment
sheets. Ability to use the system to record and document noteworthy
employee performance incidents, both positive and negative in
nature. This documentation feature eliminated the need for a
separate note-keeping system that many managers had been using.


 HRM TECHNOLOGY CONFERENCE 2010:-The work of the School
District of Hillsborough County to the conference—their efforts
towards improving teacher performance give our (marginally
meaningful) work real significance.
 Talent management system upgrade supports flexible self-service
role and task delegation.(InformationWeek September 29, 2010)
 Hu ManTech Inc. has released ergo Tool 5, a new version of its
popular web-based management tool for office ergonomics. The
software is designed to help employers quickly identify and address
ergonomic problems and develop effective solutions to improve
health, safety and productivity in the workplace.(HR Magzine,Oct
2006)
 Web-Based Training:- American Learning Exchange (ALX) has been
established by the U.S. Department of Labor. ALX was started to
provide employers and others a web-based source for training
resources.( www.alx.org)

 Revising the Performance Appraisal System at St. Luke’s Hospital:- A
software programe was written to asses the performance appraisal
system thereby reducing the paperwork and better employee
appraisal system.(Business week, 2009)

 CISCO VIRTUAL OFFICE :- Currently more than 14,000 Cisco employees are
using the Cisco Virtual Office solution. Through the results of an internal
survey, it was estimated that the average employee saved 2.81 hours of
commuting time per week and reduced up to 2.5 tons of CO2 emissions per
year.

Cisco Secure Sockets Layer (SSL) VPN solutions are secure methods to
extending office-quality services to the remote workforce .

 VIRTUALIZATION TO BUSINESS
Capgemini Partners with VMware to Deliver New Suite of Virtualization
business Services (V2B).

 MCI Worldcom Corp. in Clinton, Mississippi, have embraced Web technology and
transformed the way work gets done--inside and outside human resources.The
telecom giant has moved beyond online directories, handbooks and employee
record updates to a world where employees can venture online to purchase stock
and reallocate investments in their 401(k) account, fill out electronic W-4 forms,
and view an electronic pay stub a week before they're paid.

 Online Recruiting, which has revolutionized HR over the last few years. Sites such as
Monster.com, HotJobs, CareerBuilder and Career Mosaic have become central
hubs for job seekers and employers, while a slew of start-up companies have
flooded the marketplace. Firms such as Webhire (formerly Restrac) and Lawson
Software's iJob, which integrates online searching with resume tracking and
database management, and it's clear that a not-so-quiet revolution is taking place.


What was forecast 15 years ago?

 That employees would use multi-functional, wireless technology to do their jobs
from virtually anywhere.

 Business should expect major advances in voice recognition, wireless technology,
real time video conferencing.

 Smart Phones will really be handheld computers that store massive amounts of
information, music, phone numbers and will access the internet.

 Mobile Workforce will depend on HR assistants to act as ground control ensuring
a smooth flow of information.

 HR will take on activities such as internet research, desktop publishing, web page
development, help desk and computer training.


 Using Google-type searches, recruiters will identify potential passive
candidates without posted resumes and also gather background
information that can be used to qualify them as a potential
candidate.

 Corporate career websites will have the ability to "morph," so that
the information provided to different candidates changes to fit their
unique needs.

 The online self scheduling of candidate interviews will become
standard practice .
 More sophisticated fuzzy logic systems will, once you identify
your skills and interests, select an initial job automatically and then
"find" other "similar jobs" using the same process that Amazon.com
currently utilizes to refer other relevant books to clients. This smart
system will allow candidates to search for jobs without knowing the
precise title .

 The 21st century will bring even more technology to human resources.
Today's HR department must reinvent itself on a regular and ongoing
basis. As the enterprise becomes more global, new systems and
technology will lead to greater collaboration, without regard to political
boundaries and language. HR is likely to be at the center of this
revolution.
 Over your morning coffee you begin reviewing the ahead day on your
iDigi 2020 (think iPhone in 10 years), several employee training courses
are taking place, new policies are to begin being drafted on the Intranet,
and you are informed by that the workforce planning meeting scheduled
for tomorrow is today at 11am.
 The future office will be “Core Teams” who will manage employee, teams
working around the globe; from home offices; to business café’s.
 All these processes combined with the glut of information streaming in
from online sources have spawned entirely new ways of viewing and
thinking about information. Here are a few ways technology has changed


Strategic role of human resources management

Strategic role of human resources management

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