Strategic role of human resources management

1. Prepared By ; Gihan aboueleish

2. 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

3. 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 Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

4. 3 Common Factors 1 GOALS 2 Limited Resources 3 PEOPLE Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

5. Human Resources Management definition consists of people with various background An Organization depends on people to make them operate is nothing without human resources Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

6. “Human resource management is the effective use of human resources in order to enhance organizational performance.”Objectives: Maximize the return on investment from the organizations 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. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

7. Human Resources Management definition 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 Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

8. Human Resources Management definition 1 ACQUISITIONS 2 DEVELOPMENT HRM 3 MOTIVATION 4 MAINTENANCE Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

9. The role of Human resources HRM Administration functions Recruitment Compensation analysis Benefits administration Training and Development General employee administration Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

10. Recruiting Selecting Training Motivation Evaluation Compensation Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

11. Economic development and Technology development HR Challenges Human resources availability and quality Demographic Organization Re-structuring Hudson Institute Research on the Workforce 2020Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

12. HRM Activities Focus On Productivity Quality Services Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

13. Recruitment and staffing Equal employment HR Development opportunity HRM Activities Planning and analysis Compensation Of the HR And benefits Remuneration And HR Relation Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

14. HRM Objectives Proportion Recruitment, selection, positioning 55 % Training and development 46 % Compensations 36 % Industrial relation 28 %Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

15. 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 Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

16. 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 Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

17. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

18. 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 Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

19. What is that? “Change “Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

20. • 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 helpthe organization achieve its overall objectives.( Source: Decenzo and Robbins 2000, Personnel/Human Resource Management)) Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

21. • 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 ) Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

22. •Employment planning ; is the process of formulating plans to fill future openings based on an analysis of the positions that are expected to be open and whether these will be filled by insider outside candidates.(Source: Dessler, G. 2000,Human Resource Management )Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

23. 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 Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

24. 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 Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

25. •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. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

26. 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 equipments must to handle.)Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

27. Minimizing the risk of losing: By forecasting the needs of technical and other human resources it can minimize the future risk of losing. 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.) Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

28. 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) Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

29. 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)Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

30. 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. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

31. 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. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

32. 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. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

33. 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. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

34. 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. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

35. 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 arise when the period exceeds not from the cause of the organization. In this situation the organization cannot fire the employee as per legislation. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

36. 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. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

37. What you expect when you enter in any shop? Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

38. Process of locating, identifying, and attracting capable candidates. Can be for current or future needs. What sources do we use for recruitment. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

39. 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 Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

40. 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

41. 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. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

42. 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 Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

43. 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. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

44. 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 Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

45. HR Challenges faced by Retailers Categories of Management Building Employee Commitment Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

46. Part-time Employees Expense Control Employee Demographics International HR issues Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

47. 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. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

48. 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. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

49. 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. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

50. 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. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

51. HR Challenges faced by Retailers Categories of Management Building Employee Commitment Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

52. Managements are categorized based on the tasks they perform. They are: Strategic Management Merchandise Management Store Management Administrative Management Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

53. Categories of Management Strategic Management Performed by senior management. To develop a retail strategy Identify the target market Design organizational structure Select locations Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

54. Categories of Management 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 Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

55. Categories of Management Storage Management Plan Schedules Recruit Maintain Facilities Evaluates Performance Sell Merchandise Provide Service Train Display Employees Merchandise Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

56. Categories of Management 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. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

57. HR Challenges faced by Retailers Categories of Management Building Employee Commitment Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012
58. Building Employee Commitment Some approaches that retailers take to build employee commitment. Selective Hiring and Training Empowering employees Creating Partnering Relationships Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

59. Building Employee Commitment 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 someone else will do. Both PRODUCT and ETIQUETTE training must be imparted. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

60. Building Employee Commitment 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 Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

61. Building Employee Commitment 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. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

62. 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 Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

63. 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, its possible to reduce–if not eliminate–much of the redundancy and overlap that plagues the typical corporation . Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

64. 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 People Soft 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. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

65. 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 Page Writer 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. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

66. Telecommuting: – Telecommuting is working from ones home or some other remote location outside the companies 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. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

67. 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. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

68. 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 Magazine, 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)Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

69. Revising the Performance Appraisal System at St. Luke’s Hospital:- A software program was written to assess 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).Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

70. 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, Hot Jobs, 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 Web hire (formerly Restrac) and Lawson Software’s job, which integrates online searching with resume tracking and database management, and its clear that a not-so-quiet revolution is taking place. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

71. 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. Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

72. 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 . Strategic of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

73. The 21st century will bring even more technology to human resources. Todays 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 of Human Resources Management – Gihan Aboueleish Saturday, January 21, 2012

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