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Management School of CUG River Liu Email: Human Resources Management Management School of CUG River Liu Dimensions of HR Practices pManaging the HR Environment pAcquiring and Preparing HR pAssessing and Developing HR pCompensating HR COMPETITIVENESS Management School of CUG River Liu Course Description This course uis an overview of human resource management uexamines the techniques, policies, processes, strategies, and practices used by companies and managers to effectively and efficiently utilize human resources. We will learn theories and practices of human resource management including: u staffing u performance management u work and job design u training compensation, u labor relations Management School of CUG River Liu Course Objectives to provide us with an understanding and appreciation of the basic functions of human resource management and current practices and issues. Because HRM is becoming less of a functional responsibility and more of managers responsibility, the theories and techniques taught in the course are applicable for all types of positions in all types of organizations that you may work in. Management School of CUG River Liu Main Contents qThe Strategic Role of HRM qJob Analysis qPersonnel Planning and Recruiting qTraining and Development qAppraising Performance qCompensation qLabor Relations and Employee Security Management School of CUG River Liu Chapter Structure CH1 Introduction- An Overview of HRM (The Strategic Role of Human Resource Management) CH2 Job analysis Ch3 Personnel/HR Planning (HRP) and Recruiting CH4 Employee Testing and Selection CH5 Interviewing Candidates CH6 Training and Developing Employees CH7 Appraising Performance CH8 Establishing Pay Plans CH9 Pay for Performance and Financial Incentives developing plans and forecasting some future occurrence. qOrganizing:Giving each subordinate a specific task; establishing departments; delegating authority to subordinates; establishing channels of authority and communication; coordinating the work of subordinates. qStaffing:Deciding what type of people should be hired;recruiting prospective employees;selecting employees;setting performance standards;compensating the employees;evaluating performance;counseling employees;training and development employees. qLeading:Getting others to get the job done;maintaining morale; motivating subordinates. qControlling. Setting standards ;checking to see how actual performance compares with the standards;taking corrective action as needed. Management School of CUG River Liu p HR is the staffing function of management. p What is HRM?(Gary Dessler) The policies and practices involved in carrying out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising. Management School of CUG River Liu II. Human Resource Management includes all activities used to attract essentially the culture of the organization. lPolicies n Expressions of shared values and guidelines for action on employee-related business issues. lPrograms n Coordinated and strategized approaches to initiate, disseminate, and sustain strategic organizational change efforts necessitated by strategic business needs. Management School of CUG River Liu lPractices n HR practices that motivate behaviors that allow individuals to assume roles consistent with the organizations strategic objectives. lProcesses n The continuum of participation by all employees in the specific activities of to facilitate the formulation and implementation of other activities. Management School of CUG River Liu (2)History of HRM & Strategy (In American) l Early 1900s personnel office first took over hiring, firing, payroll, benefits, insuring correct procedures were followed. l WWI development of employment tests led to expanded role in selection, training, promotion l 1930s Union legislation led to HR emphasis on protecting company l 1960s-70s discrimination legislation led to increased importance in effective HR practices l Today role shifting from protector and screener to strategic partner, planner & change agent Management School of CUG River Liu Traditional HR versus Strategic HR Management School of CUG River Liu (3)Levels of Strategic Planning lStrategic planning development and implementation of companys strategy (long-term plan to balance strengths, weaknesses, opportunities, threats) Management School of CUG River Liu There are three levels of strategic planning Business IDs how managers will build and strengthen businesss long-term competitive position in market Corporate Strategy Business Strategy Business Strategy Business Strategy Business Strategy Functional Strategies Functional IDs basic courses of action that each department will pursue during goal attainment Corporate IDs portfolio of businesses comprising organization and relationships among them Management School of CUG River Liu (4) How HR helps strategy execution? -Strategic Management Process l Strategy Formulation l Functional strategies should support competitive strategies l Value chain analysis l Outsourcing Management School of CUG River Liu Strategy Formulation Management School of CUG River Liu Strategy Formulation Mission - reason for being Goals - what it hopes to achieve Strategic Choice External Analysis - opportunities - threats Internal Analysis - strengths - weaknesses - ways to fulfill goals and mission HR Input Management School of CUG River Liu Management School of CUG River Liu Functional strategies should support competitive strategies -Strategy Implementation Strategic Choice Firm Performance - productivity - quality - profitability HR Needs - skills - behaviors - culture HR Capability - skills - abilities - knowledge HR Actions - behaviors - results HR Practices - recruitment - training - performance management - labor relations - HR planning - job analysis - job design - selection - development - pay structure - incentives - benefits Management School of CUG River Liu HR Needs in Strategic Types Differentiation Cost LeadershipHR Role Focus of firm Employee role Training Staffing Compensation Performance management - efficiency - specific & repetitive - specific/short-term skills - promote internally - internal pay equity - behavior-oriented - creative, risk-taking - broader tasks creative risk-takers - broad career paths - recruit more from outside - external pay equity - results-oriented Management School of CUG River Liu The Value Chain Approach Management School of CUG River Liu Outsourcing Outsourcing is work done for a company by another company or people other than the original companys employees. Management School of CUG River Liu (5)Barriers to Strategic HR Management School of CUG River Liu (6)Issue 1: HR and Organizational Excellence lHR can help deliver organizational excellence by: n Becoming a partner with senior and line managers in strategy execution. n Becoming expert in the way work is organized, delivering administrative efficiency to ensure that costs are reduced while quality is maintained. n Becoming a champion for employees, representing their concerns to senior management and working to increase employee contributions. n Becoming an agent of continuous transformation by shaping processes and organizational culture. Management School of CUG River Liu Issue 2: HR as Strategy Execution Partner l HR is responsible for defining an organizational structure as the model for the companys way of doing business. l HR must be accountable for conducting an organizational audit. l HR is to identify methods to renovate part of the organizational architecture. l HR must take stock of its own work and set clear priorities. Management School of CUG River Liu Issue 3: HR and Organizational Culture lHR can help bring about a cultural change by: n Defining and clarifying the concept of cultural change. n Articulating why cultural change is central to business success. n Defining a process for assessing the current culture and the desired new culture, as well as measuring the gap between the two. n Identifying alternative approaches to creating culture change. Management School of CUG River Liu Issue4: Four Changes for the Line lHow senior operating management can create an environment in which HR becomes focused on outcomes instead of activities: n Communicate to the organization that the “soft stuff” matters. n Explicitly define the deliverables from HR, and hold HR accountable for results. n Invest in innovative HR practices. n Upgrade HR professionals. Management School of CUG River Liu Issue 5: Human Capital Management lTo become effective human capital managers, HR mangers must develop competencies in: n Knowledge of the business. n Human resource functional expertise. n The management of change. Management School of CUG River Liu Issue 6: New Functional Role for HR l HR must focus on business level outcomes rather than HR level inputs. l HR must become a strategic core competency rather than a market follower. l Strategic competencies are more important than functional competencies. l The most important missing element in the HR function expertise is a systems perspective. Management School of CUG River Liu Issue 7: Organization Culture Questionnaire lTopics to be included in the questionnaire: n How is performance defined, measured and rewarded in the organization? n How are information and resources allocated and managed in the organization? n What is the operational philosophy of the organization with regard to risk-taking, leadership, and concern for overall results? n Does the organization regard its human resources as costs or assets? Management School of CUG River Liu (7) CASE STRATEGY PLANNING HAS SUDDENLY GOT SEXY In the past decade, the North American workplace, as those in Europe, has seen a constant parade of management fads and fashions. In 1993, the top three most popular management techniques were mission statements, customer satisfaction measurement, and total quality management. In 1996, strategic planning, mission statements and benchmarking were the top three management techniques. Of the 409 North American companies surveyed, 89 per cent reported using strategic planning in 1996. As one business observer (Pitt, 1998) commented: Strategic planning has always been around but it suddenly got sexy. Management School of CUG River Liu B.Creating high performance work system Three main ways to improve perfromance: n Managing with technology,eg table1-1 n HR practices(eg,training) n High performance work system: Management School of CUG River Liu HR and Technology lBenefits of technological applications for HR n Intranet-based employee portals through which employees can self-service HR transactions. n The availability of centralized call centers staffed with HR specialists. n Increased efficiency of HR operations. n The development of data warehouses of HR-related information. n The ability to outsource HR activities to specialist service providers. Management School of CUG River Liu Management School of CUG River Liu Benefits of a High Performance Work System (HPWS) lGenerate more job applicants lScreen candidates more effectively lProvide more and better training lLink pay more explicitly to performance lProvide a safer work environment lProduce more qualified applicants per position lMore employees are hired based on validated selection tests lProvide more hours of training for new employees lHigher percentages of employees receiving regular performance appraisals. Management School of CUG River Liu C. Measuring the HRM teams performance Management School of CUG River Liu HR Metrics lAbsence Rate (Number of days absent in month) (Average number of employees during mo.) (number of workdays) 100 lCost per Hire (Advertising + Agency Fees + Employee Referrals + Travel cost of applicants and staff + Relocation costs + Recruiter pay and benefits) Number of Hires lHealth Care Costs per Employee Total cost of health care Total Employees lHR Expense Factor HR expense Total operating expense Figure 15 Management School of CUG River Liu HR Metrics (contd) l Human Capital ROI (Revenue (Operating Expense Compensation cost + Benefit cost) ) (Compensation cost + Benefit cost) l Human Capital Value Added (Revenue (Operating Expense Compensation cost + Benefit Cost) Total Number of FTE (Full-time equivalent (FTE) is a way to measure a workers involvement in a project, or a students enrollment at an educational institution. An FTE of 1.0 means that the per

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