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Key Result Areas of Human Resource Management By Jayadeva de Silva

Strategic Importance of Human Resource Management The attainment of organizational goals in an effective and efficient manner through planning, organizing, leading and controlling organizational resources. Different terms in HRM HRM The philosophy, policies, procedures and practices related to the management of people within an organization Philosophy of HRM “ The worth of an organization in the long run is the worth of the individuals comprising it ” Interesting quote ? “We were looking for employees. But people turned up instead” Anita Roddick Challenge before HR Professionals maximizing economic returns from labour resources by integrating HRM into business management Why Study HRM?

•People (human resources) are the essential resource of all organizations

•These human resources create organizational innovations and accomplishments

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•Organizational success depends upon careful attention to human resources Major Concerns of HRM

Recruiting right people with right skills and retaining them

Creating a competent workforce

Developing people and creating a committed workforce

Cost effectiveness Challenges for Organizations Challenges: Economic

•Global Trade Challenge –Jobs and prosperity depend upon international trade

•Challenge of Productivity Improvement –Essential for long-term success –SriLanka faces gap with other countries in productivity improvement –Requires strategic thinking and creative responses Challenges: Technological

•Computerization –Impacts virtually all aspects of work and life –Process and provide large amounts of data at great speed to managers –Flexibility e.g. telecommuting

•Automation –Potential benefits include speed, better customer service, predictability and production quality –Use robots for hazardous or boring jobs Challenges: Demographic Trends

•Increasing number of women in the workforce

•Shift toward knowledge workers

•Educational attainment of workers

•Employment of older workers

•More part-time, contract and contingent workers Challenges: Cultural

•Work related attitudes –Changing attitudes toward work and leisure

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–Demand for ethical conduct of business

•Ethnic diversity –Cultural mosaic

•Attitudes toward governments: –Fallen out of favour with many HRM Activities Ker result areas of HRM •HR Planning •HR policies & procedures (HR Administration) •Recruitment & selection •Benefits (including terminal) administration •Training & Development •Discipline •Employee Relations Objectives of HRM revisited Objectives of HRM: Organizational

•Contribute to organizational effectiveness

•Means of helping the organization to achieve its primary objectives

•Provide level of service appropriate to the organization Objectives of HRM: Societal

•Respond to the needs and challenges of society

•Minimize negative impacts on the organization

•Reflect society’s concerns e.g. ecological Objectives of HRM: Employee

•Assist employees in achieving their personal goals –Employee performance may decline or employees may leave the organization if personal objectives are not considered Strategic HRM

•Linked to the strategic needs of an organization

•Human resource strategies and tactics must be mutually consistent

•Reflects the organizational mission and strategy

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HRM – Small Organization

•A separate HR department: –Emerges when HR activities become a burden –Emerges as a small department or an individual reporting to a middle manager

•Duties typically include: –Maintaining employee records –Recruiting HRM – Large Organization

•HR department usually grows in impact and complexity

•Specialists are added: –Employment –Compensation –Training etc.

•Head of HR department may become a “Vice President” Service Role of HR Department

•Staff Authority –Authority to advise, not direct managers in other departments

•Line Authority –Possessed by managers of operating departments to make decisions about production, performance, and people

•Functional Authority –When HR department makes decisions usually made by line or senior managers – HR & Organization Character

•Technology –Routine versus non-routine

•Managerial philosophy –Decisions and values

•Organization’s strategic positioning –Defenders versus prospectors HRM Profession of the Future

•Enormous growth in the number of HR Managers

•Sample competencies: –Business Mastery, Mastery of HRM Tools, Change Mastery, Personal Credibility

•CHRP (Certified Human Resources Professional)

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Trends in the HR Department •Become business partners •Link HR activities to business results •Provide integrated solutions Trends in the HR Department •Shift from centralized to decentralized •Shift from internal to outsourcing •Shift people responsibility to “line” manager •Shift to self-development •Examining how to leverage technology •Reporting level of HR at right level for strategic partnership Trends in the HR Department Putting People First: Bottom Line

•High performance management practices provide a number of important sources for enhanced organizational performance: –People work harder because of the increased involvement and commitment that comes from having more control and say in their work –People work smarter because they are encouraged to build skills and competence –People work more responsibly because more responsibility is placed in the hands of employees farther down in the organization Seven Practices of Successful Organizations •Employment security •Selective recruitment & hiring •Participation facilitated via self-managed teams & decentralization as basic elements of organizational design •Comparatively high compensation, contingent on organizational performance •Extensive training & work designs that leverage its benefits •Reduction of status differences •Sharing information • What Gets in the Way of Using High Performance Human Resource Practices? •Managers are enslaved by short-term pressures •Organizations tend to destroy competence or make it impossible for knowledge & experience to benefit the firm •Managers don’t delegate enough

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•Perverse norms about what constitutes good management •A one-in-eight chance, due to piecemeal implementation and weak commitment Barriers to Implementation of Best Human Resource Practices •Strategy & Financial Barriers –Great attention to these 2 areas, but little attention to effective management of human resources •Measurement Barriers –We monitor costs but not necessarily value (eg., hourly wage versus value added) •Social Barriers –Human resource approaches to management are often seen as soft and less success-driven Barriers to Implementation of Best Human Resource Practices •Power & Political Barriers –Embracing this approach is an admission that things could have been done better –Human resource directors often have less power & restricted career paths that reduce their credibility –The benefits of change are dispersed more widely & are less certain than the costs –The changes involve power redistribution, information sharing, local measurement & control, local accountability and trust Development of Human Resource Management in SriLanka History •1790 Operations /Line Manager •1870 Accountant •1900 Administrative Officer •1920 Personnel Officer •1930-1950 Personnel Manager •1960-1970 Human Resources Manager •1990- 2000 Human Talent Manager

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Institute of Personnel Management (IPM) •Vision To be the guiding force and the leader in developing best people Management practices in the Asian region Mission We open pathways to the Human Resource Management profession. We are the knowledge Centre for local and regional People Managers. As the catalyst and partner in human capital development we continuously improve quality, standards and practices in the profession. Values •We demonstrate integrity in all our dealings •We are passionate about provide quality, timely and excellent service •We show mutual respect in all interactions •We are courageous and seek out challenges to be ahead •We are conscious of the need to be one team •We encourage diversity within our team

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