Human Resource Management

.:: Human Resource Management ::. Human resource management (HRM) is a relatively modern brand for the range of ideas and practices involved in managing people. HRM has become the dominant approach to people management in many countries. But it is important to stress that HRM has not 'come out of nowhere'. There is a long history of attempts to achieve an understanding of human behavior in the workplace. Throughout the 20th century and earlier, practitioners and academics developed theories and practices to explain and influence human behavior at work. HRM has absorbed ideas and techniques from a wide range of these theories and practical tools. In effect, HRM is a synthesis of themes and concepts drawn from a long history of work, more recent management theories and social science research. The roots of people management (and, therefore, of HRM) lie deep in the past. Just as the tasks that have to be carried out in modern organizations are allocated to different jobs and the people who perform those jobs, humans in ancient societies divided work between them.

Training Outline 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Training Objectives. Why Human Resource Management? Learning Levels “ Learning Skills Stages ” Human Resource as a Strategic Partner and its impact on the Organization. HR’s role in the development and success of the organization. Organization Structures " Models, Mission Statement, Vision, Values “ Human Resource Management Roles. Mind Games. Linking Organizational Strategies and HR Plans "Strategies". The Modern Functions of the Human Resource Management. • • • • • • • •

Recruitment Compensation & Benefits Training and Development Equal Employment Opportunity Performance Management HR Planning and Development Employee and Labor/Management Relations: HR Policies, Procedures, and Rules

11. HRIS as a HR Technology module in the new ERA. 12. HR and Leadership in the Context of Management.

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Human Resource Management Training Objectives • • •

Introducing the importance and the role of the Human Resource Management in The Modern Organizations To help clarifying the basics of the human resource functions, and the methods and techniques that are used to active each function in the organization To enable/motivate the HR members to apply the methods and techniques in their companies mainly in the areas of organization structures, performance appraisal recruitment and interviewing as well as softer HR Services.

Why Human Resource Management?

If we want to answer this question, first we have to ask ourselves: What Is Management? “Management” is one of those words which we all use and which we think we understand until we are asked exactly what it means. At its most general, management may be viewed as a process which enables organizations to achieve their objectives. The inclusion of the word “process” tells us that something is going on. Thus, the question “what is management?” is, perhaps, best turned into “what do managers do?” Towards a Definition There are almost as many definitions of management as there are writers about the subject – and that Is a lot! We shall start here by briefly considering a number which illustrate the range of possible views of the subject. H Fayol An early classic definition was put forward by Fayol: “To manage is to forecast and plan, to organize, to command (we would now term this “to direct”), to coordinate and to control.” Fayol stresses the authoritative role of management – he does not mention motivation or any special qualities of leadership. Making Resources Productive – Peter Drucker Peter Drucker, probably the most widely read present-day writer on general management, in his book “The Practice of Management” wrote: “Management is the organ of society specifically charged with making resources productive.”

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Human Resource Management Therefore you got to know that Human Resource Management Will do: • • •

More effective management of Human Resources (HR) increasingly is being seen as positively Affecting Performance in Organizations, both large and small. HRM participate in Developing Strategies and ensure that Human Dimensions are considered Deals with the Design of Formal systems in an organization to Ensure the Effective and Efficient use of Human Talent to accomplish organizational goals

And from the above snapshot we conclude the importance of HRM in any organization.

Learning a Skill Goes Through Four Stages

1. Unconscious Incompetence We don't know what we don't know. 2. Conscious Incompetence We realize that we can't do something. 3. Conscious Competence We are developing the skill, but still have to concentrate, when we apply it. 4. Unconscious Competence We practice the skill fluidly and naturally - it's an automatic part of our behavior. Before you hear anything about HRM, you were in stage one, then when you knew that there is HRM but you don't know the KNOW HOW, you were in stage 2, afterwards when you finish this course you will be in stage 3, after practicing and working out with your skills in HRM, you will be doing HRM automatically and you are in stage 4 by that time. As in this training, we use a mixture of practical sessions, fun exercises, group work, case studies, accelerated skill development and stimulating group discussion, supported by the relevant background theory. These help you identify, apply and integrate the techniques that make the critical difference between people who are “getting by” and those who excel in the way they communicate, motivate, influence, lead and succeed.

Human Resource A Strategic Partner

A major concern of many human resources professionals is how to restructure the human resources function into a strategic partner in running the business. On too many occasions our profession is viewed as an administrative function with little or no voice in determining how the business operates and a perception (and in some cases reality) of a human resources department with no impact on the organization. As a result both the business and its employees suffer. Moving a human resources function from an administrative role to a strategic partner takes both effort and time. It is not an easy task to accomplish, especially if there is resistance from within. After all, organizations may not desire to have their human resources department as a business partner. However, this change to a strategic partner role can take place provided you understand the process that is required to accomplish this objective.

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Human Resource Management One of your immediate goals upon starting your job as head of HR is to transform the human resources function from an administrative function to a true operational partner. Though this effort has taken some time, the road map introduced here proved to be invaluable. These are the key concepts: • Determined Leadership The head of human resources has to have the desire to move the department forward into a strategic partner role. For some human resources professionals, it is much easier and safer to maintain their department as only an administrative function and not take on the associated risks of running the business. Being a strategic partner means the head of human resources is more at risk both for the success of the business and how the human resources department supports that business need. • A "User-Friendly" Human Resources Department. A human resources department that is viewed as easily approachable and trusted is very important in transforming the function to a business partner. If its customer base does not trust human resources, it will always be viewed as an "outsider" with no influence on the business operation. In the year of 1996, the human resources staff was organized as specialists reporting to the manager. If an employee had an employee relations issue, the employee went to the employee relations specialist. If the employee had a benefit issue, the employee went to the benefit specialist. This approach was neither user-friendly nor time-effective and resulted in much frustration among our customer base as to who to contact for various issues. In the year of 2000 the human resources department was restructured into a service center approach. Each human resources representative was assigned departments to provide "cradle to grave" service for the internal customers in those departments. This change to one-stop shopping provided better customer service since employees only had to deal with one human resources professional to handle all of their HR-related issues. Service was further improved in 2002 when the human resources department was physically moved from the office area to the plant. The human resources representatives actually have office hours in their assigned departments. These changes were well received both by the employees and the leadership team. • Understanding the Business and Its Needs. It has been my experience that some human resources professionals take little time to understand the business they serve, how it operates and its needs. If you cannot speak the language of the business you can never be seen as a business partner. This means that human resources professionals need to understand what makes the business tick, what its challenges are and how the HR function can help meet these challenges. • Linking the Human Resources Business Plan to the Business Operation. Each year the company's president delivers the "President's Direction" which serves as our one-year business plan. Each department develops in own "direction" based upon the "President's Direction" in support of the business operation. For fiscal year 2002, the human resources directions are to: Develop and implement a cost effective health care program. Develop and implement a turnover tracking and analysis system. Develop and implement a methodology to reduce absenteeism. Stabilize existing human resources systems (part of our long-term HR strategic plan). Results will be reviewed by the company officers quarterly with countermeasures developed for items that fail to make target.

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Human Resource Management • If It Is Not Measurable, It Is Not Controllable. The success or failure of our business operation is determined by 16 key measurements that are reviewed every month by the Executive Committee at the managers' meeting. The human resources department, as a strategic partner, has aligned its performance standards to support these measurements. For fiscal year 2002, these performance standards will measure and track the following items in support of the business operation:

o OSHA "Occupational Safety and Health Act" recordable events. o Headcount versus target. o Changeable HR costs versus budget. o Employee turnover. In addition, goals are established for each of these performance standards. The human resources manager is responsible for reaching these goals, which requires cooperation and teamwork among the various departments. The ability to reach these performance standards results in bonus potential payable every six months. • Quick and Accurate Information. The need for an updated human resources information system is as important as measurable performance standards. Improved systems technology can provide human resources and its business partners with information needed to help run the business and manage its human resources. In 1999 the upgrade of the human resources information system has begun. Up to that point in time, reports were not accurate and were time-consuming to produce. As a result the management team did not believe them. Upgrading our systems technology enabled human resources to provide leadership with reports and analyses that aid in running the business and add credibility to the department. • If It Is Not Controllable, It Is Not Auditable. Human resources systems have to be audited on a regular basis to ensure that all government regulations and company polices are being followed. Next to the accounting function, human resources is the most regulated department in a company. This is a fact that human resources professionals must live with every day. Though audits are never fun, they do serve a useful purpose. Audits help ensure that: •

Human resource policies and procedures are fully implemented and in compliance with federal and state regulations.

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The human resources department is being fully utilized.

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Benchmarking measurements are established as to current practices.

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Areas for improvement are discovered.

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Credibility of the human resources function within the organization is enhanced.

The road to becoming a strategic partner takes time and effort. In addition to rethinking our profession and its role in the business, a strategic partnership requires our customers to view human resources through a different set of eyes. However, reshaping the human resources profession into a business partner provides us with many more ways we can contribute to our employer. Indeed, our profession is in store for an exciting future.

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Human Resource Management

HR’s role in the development and success of the organization Enhancing Organizational Performance Organizational performance can be seen in how effectively the products or services of the organization are delivered to the customers. The human resources in organizations are the ones who design, produce, and deliver those services. Therefore, one goal of HR management is to establish activities that contribute to superior organizational Performance. Only by doing so can HR professionals justify the claim that they contribute to the strategic success of the organization. Involvement in Strategic Planning Integral to being a strategic partner is for HR to have “a seat at the table” when organizational strategic planning is being done. Strategically, then, human resources must be viewed in the same context as the financial, technological, and other resources that are managed in organizations. For instance, the strategic planning team at one consumer retailer was considering setting strategic goals to expand the number of stores by 25% and move geographically into new areas. The HR executive provided information on workforce availability and typical pay rates for each of the areas and recommended that the plans be scaled back due to tight labor markets for hiring employees at pay rates consistent with the financial plans being considered. This illustration of HR professionals participating in strategic planning is being seen more frequently in organizations today than in the past.

Decision Making on Mergers, Acquisitions, And Downsizing In many industries today, organizations are merging with or acquiring other firms. One prime illustration is the banking and financial services industry, in which combinations of banks have resulted in changes at Bank of America, Wells Fargo, Nations Bank, First Union, and others large and small. The merger of Chrysler and Daimler-Benz has had significant implications for the automobile industry. Many other examples could be cited as well. In all of these mergers and acquisitions there are numerous HR issues associated with combined organizational cultures and operations. If they are viewed as strategic contributors, HR professionals will participate in the discussions prior to top management making final decisions. For example, in a firm with 1,000 employees, the Vice-President of Human Resources spends one week in any firm that is proposed for merger or acquisition to determine if the “corporate cultures” of the two entities are compatible. Two potential acquisitions that were viable financially were not made because he determined that the organizations would not mesh well and that some talented employees in both organizations probably would quit. But according to one survey of 88 companies, this level of involvement by HR professionals is unusual. That study found that less than one-third of those involved in mergers surveyed have adequately considered HR issues. Redesigning Organizations and Work Processes

It is well established in the strategic planning process that organization structure follows strategic planning. The implication of this concept is that changes in the organization structure and how work is divided into jobs should become the vehicles for the organization to drive toward its strategic plans and goals.

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Human Resource Management A complete understanding of strategic sources of competitive advantages for human resources must include analyses of the internal strengths and weaknesses of the human resources in an organization. Those in HR management must be the ones working with operating executives and managers to revise the organization and its components. Ulrich likens this need to that of being an organizational architect. He suggests that HR managers should function much as architects do when redesigning existing buildings. In this role HR professionals prepare new ways to align the organization and its work with the strategic thrust of each business unit. Ensuring Financial Accountability for HR Results A final part of the HR management link to organizational performance is to demonstrate on a continuing basis that HR activities and efforts contribute to the financial results of the organization. Traditionally, HR was seen as activity-oriented, focusing on what was done, rather than what financial costs and benefits resulted from HR efforts. For instance, in one firm the HR director reported every month to senior management how many people were hired and how many had left the organization. However, the senior managers were becoming increasingly concerned about how long employment openings were vacant and the high turnover rate in customer service jobs.

A new HR director was hired who conducted a study that documented the cost of losing customer service representatives. The HR director then requested funds to raise wages for customer service representatives and also implemented an incentive program for those employees. Also, a new customer service training program was developed. After one year the HR director was able to document net benefits of $150,000 in reduction of turnover and lower hiring costs for customer service representatives. In the past HR professionals justified their existence by counting activities and tasks performed. To be strategic contributors, HR professionals must measure what their activities produce as organizational results, specifically as a return on the investments in human resources. HR management that focuses on high-performance work practices has been linked to better financial performance of the organization. This shift to being a strategic business contributor requires that all HR activities be examined and justified as producing results and value for the organization. Figure 1—1 indicates the HR priorities according to a recent survey of HR executives. For instance, training must be justified by the increase in capabilities of employees and the value that training

produces in greater organizational results. In summary, HR must justify its existence as an organizational contributor, and not just a cost center. Expanding Human Capital Another goal for those focusing on HR management, as well as operating executives and managers, is to enhance the human capital of the organization. Human capital is the total value of human resources to the organization. Also sometimes referred to as intellectual capital, it is composed of the people in the organization and what Capabilities they have and can utilize in their jobs. A critical part of expanding human capital is to utilize the talents of all people inside the organization and to bring in the best from the diverse population outside.

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Human Resource Management Due to the shifting demographics in the workforce, HR management must be built to maximize the capabilities of all the diverse human resources. Thus, HR professionals must be those who ensure that all people, regardless of their life circumstances or backgrounds, are provided opportunities to develop their capabilities. Attracting and Retaining Human Resources As strategic business contributors, HR professionals must ensure an adequate supply of people with the capabilities needed to fill organizational jobs. Various experts on human capital have predicted a skills shortage for U.S. organizations that would hurt their competitive edge unless more investment is made in human capital. If that trend spreads as predicted, being able to attract people to the organization with the requisite capabilities currently requires more planning and creative implementation than in the past. For instance, at a computer software firm, growth is being limited by shortages of programmers and systems analysts. The company plans to open a new facility in another state so that a different labor market can be tapped, and the HR director heads up the site-selection team. As the HR Perspective indicates, in many geographic locations in the world wide and in many occupations, it is difficult to find sufficient qualified workers with the necessary capabilities. Truck drivers, welders, computer software engineers, legal assistants, and many others are just some jobs for which difficulty in recruiting has occurred. In many geographic locales in the United States, the official unemployment rate has been below 3%, which creates more staffing pressures. To meet the staffing challenges, HR professionals are using a greater number of options. Traditionally, work was done by people who were employees. Increasingly today, work is done by independent contract workers, consultants, temporary workers, and others who are not employees of organizations. Developing policies, negotiating contracts, evaluating staffing suppliers, and monitoring work performance of these non-employees requires a broader role than when all workers are employees. But recruiting and selecting new employees is only part of the challenge. The HR activities in organizations must be revised in order to retain employees. For every employee who does not leave the organization for a new job elsewhere, that is one less employee who has to be recruited from outside. Therefore, significant emphasis is being placed on keeping existing employees and providing growth opportunities for them. Figure 1-1 Human Resource Priorities

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Human Resource Management Developing Human Resource Capabilities The human capital in organizations is valuable because of the capabilities that the people have. As part of the strategic role, HR managers are often seen as responsible for expanding the capabilities of the human resources in an organization. Currently, considerable emphasis is being focused on the competencies that the employees in the organization have and will need for the organization to grow in the future. HR management must lead in developing the competencies that employees have in several ways. First, the needed capabilities must be identified and linked to the work done in the organization. This identification often requires active cooperation between HR professionals and operating managers. Next, the capabilities of each employee much be assessed. This approach requires that the competencies and depth of those competencies be identified. For example, in a firm with 100 employees, the HR director is developing career plans and succession charts to determine if the firm has sufficient human resources to operate and manage the 70% growth it expects over the upcoming four years. Once the comparison of the “gap” between capabilities needed in the organization and those existing in employees is identified, then training and development activities must be designed. The focus throughout is providing guidance to employees and creating awareness of career growth possibilities within the organization. For many individuals, continuing to enhance their capabilities and knowing that there are growth opportunities in the organization may lead to greater job satisfaction and longer employment with that organization. Identifying And Rewarding Performance The formal reward systems in organizations must be aligned with the strategic goals for the organization. It is important that the human capital in organizations be rewarded competitively for their capabilities. Currently, many organizations are emphasizing compensation based on individual, team, and organizational performance. If performance is going to be emphasized, then the means of identifying employee performance must be developed or reviewed. This is particularly true when employees work in teams or if their supervisors and managers are located elsewhere. Once employee performance has been measured, it must be linked to compensation programs. Unlike traditional compensation programs that provide “cost-of-living” or other across-the-board pay increases, HR has to develop and implement more performance-oriented reward programs. In this regard they have to serve as agents of change because of the increasing complexity of compensation issues. Base pay for many jobs and fields has increased faster due to worker shortages than pay structures have increased in organizations. This imbalance has affected employee retention, and has required HR professionals to develop more and different compensation programs tailored to the demands of different employee groups and business unit realities. There has been a significant increase in variable pay programs, such as gain sharing, team-based incentives, and others.

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Human Resource Management These programs link rewards directly to organizational performance goals, so that the compensation system is integrally linked to the strategic objectives and results of the organization. Benefit programs also have had to become more varied and cost-effective as well. Demonstrating Administrative Efficiency A final part of HR management is to deliver HR services and activities in a cost-effective and timely manner. Many HR professionals are aware that there is too much “administrivia” affecting HR. One study of senior-level HR executives found that 59% of their time is spent on administrative matters, and only 6% is spent on strategic issues with the remainder being operational in nature. But the HR executives indicated that they would rather spend only 6% on administration and 92% on strategy.26 three trends in this area are currently affecting HR delivery systems. First is the growing use of information systems to replace the manual record keeping and processing of HR data. There are numerous federal, state, and local laws requiring that organizations keep many different records on employees. The requirements are so varied that it is difficult to identify exactly what should be kept and for how long. Generally records relating to employment, work schedules, wages, performance appraisals, merit and seniority systems, and affirmative action programs should be kept by all employers who are subject to provisions of the Fair Labor Standards Act (FLSA). Other records may be required on issues related to EEO, OSHA, or the Age Discrimination Act. The most commonly required retention time for such records is three years. Throughout the book, details on the most important laws and regulations are presented in appropriate content sections. Second, rather than HR information being centrally processed and controlled, it has been more dispersed, so that managers and employees can access HR data themselves. The distribution of HR information has changed dramatically as a result of the widespread usage of e-mail, the Internet, distributed information processing, and other technology. However, with wider access has come the need for greater security to protect employee privacy of certain types of data and to preserve the integrity of the data from improper alteration. A third trend is the growing use of outsourcing of HR activities. Increasingly, HR departmental functions are being examined to determine if outside providers can perform them more efficiently and at lower cost than when done internally. In summary, HR professionals must cost-justify their existence and administratively deliver HR activities efficiently and responsively. Otherwise, HR management is seen as a cost center that does not produce results for the organization.

Human Resource Management Roles

HR as Employee Advocate Traditionally, HR has been viewed as the “employee advocate” in organizations. As the voice for employee concerns, HR professionals traditionally have been seen as “company morale officers” who do not understand the business realities of the organizations and do not contribute measurably to the strategic success of the business. Some have even suggested dismantling HR departments totally because they contribute little to the productivity and growth of organizations. Despite this view, HR plays a valuable role as the “champion” for employees and employee issues. One example is the stress that many employees feel when balancing work and family pressures. Dr.Abd El Halim Hafez

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Human Resource Management HR professionals must be the advocate for employees, recognizing that they have other lives besides work, and ensuring that organizational policies and practices consider these pressures. Otherwise, in many cases, the organization loses valuable human resources who do not want to continue working in a “family-unfriendly” environment. Closely related, HR professionals spend considerable time on HR “crisis management” dealing with employee problems that are both work and non-work related. Another facet of employee advocacy is to ensure that fair and equitable treatment is given to people regardless of their personal background or circumstances. Some entity inside the organization must monitor employee situations and respond to employee complaints about unfair treatment or inappropriate actions. Otherwise, employers would face even more lawsuits and regulatory complaints than they do now. As HR management has changed, it has become clear that there is a need for HR to balance being the advocate for employees and being a business contributor. What this balancing means is that it is vital for HR professionals to represent employee issues and concerns in the organization. However, just being an effective employee advocate is not sufficient. Instead, the HR professionals must be strategic contributors, partners with operating managers, administratively efficient, and cost effective. As Figure 1—2, HR management has three roles in organizations. The traditional administrative and operational roles of HR management have broadened to include more strategic facets. It should be emphasized that as HR roles shift to the right, the previous roles still must be met and the additional ones performed. Also, the continuum shows that the primary focus of HR as it becomes more strategic, changes to considerations with longer time horizons and the broader impact of HR decisions.

Administrative Role of HR Management The administrative role of HR management is heavily oriented to processing and record keeping. Maintaining employee files and HR-related databases, processing employee benefits claims, answering questions about tuition and/or sick leave policies, and compiling and submitting required state and federal government reports are all examples of the administrative nature of HR management. These activities must be performed efficiently and promptly. However, this role resulted in HR management in some organizations getting the reputation of paper shufflers who primarily tell managers and employees what cannot be done. If limited to the administrative role, HR staff is seen primarily as clerical and lower-level administrative contributors to the organization.

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Human Resource Management In some organizations these administrative functions are being outsourced to external providers, rather than being done inside the HR departments. Also, technology is being used to automate many of the administrative tasks. Figure 1-2 HR Management Roles

Operational Role of HR Management Operational activities are tactical in nature. Compliance with equal employment opportunity and other laws must be ensured, employment applications must be processed, current openings must be filled through interviews, supervisors must be trained, safety problems must be resolved, and wages and salaries must be ad-ministered. In short, a wide variety of the efforts performed typically are associated with coordinating the management of HR activities with the actions of managers and supervisors throughout the organization. This operational emphasis still exists in some organizations, partly because of individual limitations of HR staff members and partly because of top management’s resistance to an expanded HR role. Typically, the operational role requires HR professionals to identify and implement operational programs and policies in the organization. They are the major implementers of the HR portion of organizational strategic plans developed by top management, rather than being deeply involved in developing those strategic plans.

Strategic Role of HR Management Organizational human resources have grown as a strategic emphasis because effective use of people in the organization can provide a competitive advantage, both domestically and abroad.

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Human Resource Management The strategic role of HR management emphasizes that the people in an organization are valuable resources Representing significant organizational investments. For HR to play a strategic role it must focus on the longer-term implications of HR. How changing workforce demographics and workforce shortages will affect the organization, and what means will be used to address the shortages over time, are illustrations of the strategic role. The importance Of this role has been the subject of extensive discussion recently in the field, and those discussions have emphasized the need for HR management to become a greater strategic contributor to the success of organizations. Organization Structures "Models, Mission Statement, Vision, Values" Organization design specialists state that an organization will perform the way it is designed to perform and that the design must be able to realize specifically desired outputs. As evidence of this the Organization Design Forum – a world wide-based networking group for organization design practitioners – actively promotes the belief that highly effective, thriving, competitive businesses are consciously designed to achieve these ends. A conscious organization design is more than its structure (defined as the under-pinning framework – the sort of thing you see on an organization chart). Nevertheless, it is useful to have an idea of what types of structures are commonly found in organizations in order to find a structure that will meet your overall design purpose. Consider an architecture similarity – if you know the types of structures commonly used for domestic residence for example, town-house, studio flat, block of flats, open plan, detached, semi-detached, terraced – you can then accept or reject structures that do not suit your purpose (a studio-flat structure would not be the best design option for family unit of one parent and two grown-up children).

Jack Kondrasuk and John Lewison in their paper Organization Structures: a primer describes the range of types of organizational structures. Functional structures are the form you are most likely to be familiar with. Usually they are organized on a departmental basis with skill or expertise within the function. Typically in an organization of this type you will see department heads of Marketing, HR, Sales, and Product Development and so on. Each department has a specific function and is usually managed in a selfcontained way giving rise to senior management statements like ‘we must break down the silo mentality.’ Co-ordination of the departments takes place at an executive level.

Process structures are best seen as an alternative to functional structures. In these, processes cut across an organization and represent the flow and transformation of information, decisions, materials, or resources to serve customers. Organizations structured in this way have the potential to quickly introduce new processes or make radical changes to existing processes. They are worth considering if you have a need to reduce process cycle times in your organization.

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Human Resource Management Product, market, or geographical structures start to evolve as a result of trying to get better crossorganization working. Business units are formed around a product, service and/or geography (e.g. Commercial Banking in Hong Kong, Retail Banking in the Americas) and there may be a sharing of corporate supports services like HR, IT, and finance. Whilst these structures may benefit from closer contact with customers than other structures, frequently there are replications of each of the core functions. So one organization might have several IT functions each one within a product business unit. When this happens you often hear statements like ‘we must get rid of overlap and duplication.’ Matrix or project organizations combine aspects of both the functional and product structures. Typically employees deploy their technical skills on a project either full or part-time and report to a project manager on this while reporting to a line manager for the non-project aspects of their work. Some organizations are wholly structured on a matrix basis. In this case there may be ‘embedded’ functional/ product staff who report to the business unit head and to the functional head. Boundary less organizations have no discernable formal structure but, rather are formed on a network basis to operate the business in an emerging way. There are organizations which aspire to this structure and some are close to operating it. Visa under the leadership of Dee Hock is one such example often mentioned. Modular organizations are those which co-ordinate a range of suppliers whose products or services are integral to the end product. So, for example, Dell computers have Intel chips and Microsoft software. Airline catering is another example where the meals provided are integral to the service passengers get on airlines, but are not usually part of the core airline business – they are outsourced or sub-contracted. This type of organization has a certain designed in flexibility which can be advantageous. Adopting this structure requires high attention to be paid to service level agreements and delivering on these. Virtual organizations, partnerships, alliances – a bit of a catch-all category describing a variety of forms – some may have a short life span if they have been formed to deliver a particular one-off project which is then disbanded once that has been accomplished. Construction work frequently involves a number of organizations where each has a specific but autonomous role to play in the lifespan of the project.

Cellular organizations, networks or associations are typically self organizing structures, attracting people who have similar interests and can benefit from some joint activity with little or no formal organization. ‘Communities of practice’ are examples as they are special interest groups. People can be members of many different associations and cells contributing to and gaining from each in a variety of ways. One of your major organizational design choices is the basic structure. But you cannot start by deciding on the structure. The choice process begins with you having a clear understanding of your business strategy. By matching what is required by the strategy to what is done best by the various structures, you can start to come to a decision. Unfortunately, in the typical situation no one type of structure will necessarily best fit the business strategy. You need to go through a process to identify the various structural alternatives possible. Part of this includes considering what your business priorities are in relation to the strategy and where you most want the new design to make a difference. However, structure is not the only consideration. Jay Galbraith (1995) describes a framework for organizational design consisting of a series of design policies that are controllable by management and can influence employee behavior. He describes them in five categories and depicts them as a star model (Figure 1.3). Dr.Abd El Halim Hafez

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Human Resource Management This model clearly demonstrates that changing the structure impacts on each of the other aspects of the organization. For things to work well you need to design not simply re-structure. This is why it is not a good idea to re-draw the organization chart, put people in their new places and expect performance improvements. Thinking beyond structure into design additionally involves consideration of two inputs: customer requirements and environmental demands and opportunities (these lead to the identification of the business purpose and then to the business strategy). A somewhat different

Figure 1.3 the Star Model

Figure 1.4 Input-Output Model

design model from Jay Galbraith’s, presents designing as an input– output diagram where the structure and design decisions take place in the processing elements (people, work, formal organization, informal organization, see Figure 1.4) where you are working to get balance and harmony among these elements in order to produce the required outputs. Organization Structures "Models, Mission Statement, Vision, Values “ Is concerned with foreseeing a future for your business, creating value in the eyes of your customers, and building and sustaining a strong position in the marketplace. The Strategic Planning Framework for Vision, Mission, Values

Values are traits or qualities that are considered worthwhile; they represent an individual’s highest priorities and deeply held driving forces.

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Human Resource Management Value statements are grounded in values and define how people want to behave with each other in the organization. They are statements about how the organization will value customers, suppliers, and the internal community. Value statements describe actions that are the living enactment of the fundamental values held by most individuals within the organization. Vision is a statement about what the organization wants to become. The vision should resonate with all members of the organization and help them feel proud, excited, and part of something much bigger than themselves. A vision should stretch the organization’s capabilities and image of itself. It gives shape and direction to the organization’s future. Mission/Purpose is a precise description of what an organization does. It should describe the business the organization is in. It is a definition of "why" the organization exists currently. Each member of an organization should be able to verbally express this mission. Strategies are the broadly defined four or five key approaches the organization will use to accomplish its mission and drive toward the vision. Goals and action plans usually flow from each strategy. One example of a strategy is employee empowerment and teams. Another is to pursue a new worldwide market in Asia. Another is to streamline your current distribution system using lean management principles I recommend that you start developing this strategic framework by identifying your organization’s values. Create an opportunity for as many people as possible to participate in this process. All the rest of your strategic framework should grow from living these. What are Values? The following are examples of values. You might use these as the starting point for discussing values within your organization. Ambition, competency, individuality, equality, integrity, service, responsibility, accuracy, respect, dedication, diversity, improvement, enjoyment/fun, loyalty, credibility, honesty, innovativeness, teamwork, excellence, accountability, empowerment, quality, efficiency, dignity, collaboration, empathy, accomplishment, courage, wisdom, independence, security, challenge, influence, learning, compassion, friendliness, discipline/order, generosity, persistency, optimism, dependability, flexibility Why Identify and Establish Values? Effective organizations identify and develop a clear, concise and shared meaning of values/beliefs, priorities, and direction so that everyone understands and can contribute. Once defined, values impact every aspect of your organization. You must support and nurture this impact or identifying values will have been a wasted exercise. People will feel fooled and misled unless they see the impact of the exercise within your organization.

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Human Resource Management If you want the values you identify to have an impact, the following must occur. •

People demonstrate and model the values in action in their personal work behaviors, decision making, contribution, and interpersonal interaction.

•

Organizational values help each person establish priorities in their daily work life.

•

Values guide every decision that is made once the organization has cooperatively created the values and the value statements.

•

Rewards and recognition within the organization are structured to recognize those people whose work embodies the values the organization embraced.

•

Organizational goals are grounded in the identified values.

•

Adoption of the values and the behaviors that result is recognized in regular performance feedback.

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People hire and promote individuals whose outlook and actions are congruent with the values.

•

Only the active participation of all members of the organization will ensure a truly organizationwide, value-based, shared culture.

Both people and organizations need to establish a strategic framework for significant success. This framework consists of: •

a vision for your future,

•

a mission that defines what you are doing,

•

values that shape your actions,

•

strategies that zero in on your key success approaches, and

•

goals and action plans to guide your daily, weekly and monthly actions.

Your organization's success and your personal success depend on how well you define and live by each of these important concepts. In fact: •

Companies whose employees understand the mission and goals enjoy a 29 percent greater return than other firms (Watson Wyatt Work Study).

•

U.S. workers want their work to make a difference, but 75% do not think their company's mission statement has become the way they do business (Workplace 2000 Employee Insight Survey).

Vision Statement A vision is a statement about what your organization wants to become. It should resonate with all members of the organization and help them feel proud, excited, and part of something much bigger than themselves. A vision should stretch the organization’s capabilities and image of itself. It gives shape and direction to the organization’s future. Visions range in length from a couple of words to several pages. I recommend shorter vision statements because people will tend to remember their shorter organizational vision.

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Human Resource Management Vision Statement Samples "Year after year, Westin and its people will be regarded as the best and most sought after hotel and resort management group in North America." "To be recognized and respected as one of the premier associations of HR Professionals." (HR Association of Greater Detroit) Personal Vision Statement Your personal vision for your life can be as simple as a couple of words or as lengthy as 200 or more items you want to attain or accomplish. Mission Statement Mission or Purpose is a precise description of what an organization does. It should describe the business the organization is in. It is a definition of “why” the organization exists currently. Each member of an organization should be able to verbally express this mission. Additionally, each person needs a mission for his or her life. The alignment of your life mission with your organization’s mission is one of the key factors in whether you are happy with your work and workplace. If they are incongruent, you are likely dissatisfied with your work choice. Mission Statement Samples "Our goal is simply stated. We want to be the best service organization in the world." (IBM) "FedEx is committed to our People-Service-Profit Philosophy. We will produce outstanding financial returns by providing totally reliable, competitively superior, global, air-ground transportation of high-priority goods and documents that require rapid, time-certain delivery." (Federal Express) "To give ordinary folk the chance to buy the same thing as rich people." (Wal-Mart) "Our mission is to earn the loyalty of Saturn owners and grow our family by developing and marketing U.S.manufactured vehicles that are world leaders in quality, cost, and customer enthusiasm through the integration of people, technology, and business systems." (Saturn) "In order to realize our Vision, our Mission must be to exceed the expectations of our customers, whom we define as guests, partners, and fellow employees. (Mission) We will accomplish this by committing to our shared values and by achieving the highest levels of customer satisfaction, with extraordinary emphasis on the creation of value. (strategy) In this way we will ensure that our profit, quality and growth goals are met." (Westin Hotels and Resorts)

Core Values Values are traits or qualities that are considered worthwhile; they represent an individual’s highest priorities and deeply held driving forces. (Values are also known as core values and as governing values; they all refer to the same sentiment.) Value statements are grounded in values and define how people want to behave with Dr.Abd El Halim Hafez

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Human Resource Management Each other in the organization. They are statements about how the organization will value customers, suppliers, and the internal community. Value statements describe actions which are the living enactment of the fundamental values held by most individuals within the organization. The values of each of the individuals in your workplace, along with their experience, upbringing, and so on, meld together to form your corporate culture. The values of your senior leaders are especially important in the development of your culture. These leaders have a lot of power in your organization to set the course and environment and they have selected the staff for your workplace. If you think about your own life, your values form the cornerstones for all you do and accomplish. They define where you spend your time, if you are truly living your values. Each of you makes choices in life according to your most important four – ten values. Why not take the time to identify what is most important to you and to your organization.

Value Statement Samples Want to see samples of values and value statements? These give you an idea of the depth and breadth in which organizations write their values. Search online for values and value statements and you'll find some that stretch to several pages, too. "To preserve and improve human life." (Merck) At Merck, "corporate conduct is inseparable from the conduct of individual employees in the performance of their work. Every Merck employee is responsible for adhering to business practices that are in accordance with the letter and spirit of the applicable laws and with ethical principles that reflect the highest standards of corporate and individual behavior... "At Merck, we are committed to the highest standards of ethics and integrity. We are responsible to our customers, to Merck employees and their families, to the environments we inhabit, and to the societies we serve worldwide. In discharging our responsibilities, we do not take professional or ethical shortcuts. Our interactions with all segments of society must reflect the high standards we profess." (Read more: (Merck) Patriot Ledger (SouthofBoston.com): "We have a total commitment to these values, shaping the way we do business for our employees, our customers and our company.

"Our Employees" •

Our employees are the most valued assets of our company, essential participants with a shared responsibility in fulfilling our mission.

•

We recognize that the quality, motivation and performance of our employees are the key factors in achieving our success.

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Human Resource Management "Accordingly, our Human Resources policies and practices are built on: •

Dedication to assisting every employee in reaching his or her full potential in both performance and reward.

•

Commitment to diversity, equal opportunity and fair treatment.

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Promotion based on merit and from within whenever possible.

•

We want our organizational structure and culture to promote employee involvement, open communication, teamwork and cooperation."

Strategies, Goals and Action Plans Strategies are the broadly defined four or five key approaches the organization will use to accomplish its mission and drive toward the vision. Goals and action plans usually flow from each strategy. One example of a strategy is employee empowerment and teams. Another is to pursue a new worldwide market in Asia. Another is to streamline your current distribution system using lean management principles. A university Human Resources Development department established several broad strategies for growth. These included becoming the training and education resource of choice for all employees by offering onestop access to any and all existing education and training resources. Additionally, they determined key strategies for expanding their funding base and moving courses online for customer convenience. A Human Resources department devised strategies to develop a superior workforce. These included eliminating poor performers; hiring from several choices of excellent candidates, not just "settling" on a candidate; developing succession planning; and increasing training and cross-training opportunities.

Sample Strategies "The Human Resource Association of Greater Detroit's (HRAGD) efforts to advance its mission will include: The promotion of voluntary member interchange, observance of ethical and professional standards, the conduct of meetings and workshops on relevant human resources topics and issues, communication of our purpose and activities to the broader business community, cooperation with the Society for Human Resources Management (SHRM), as well as, other SHRM professional and student chapters and related Human Resources organizations and the community involvement of our membership.

The Association regularly publishes newsletters throughout the year which cover items such as monthly meeting highlights, future programs, Executive Board announcements, SHRM and legislative updates and general human resources news. In addition, a Membership Directory and member skills listing are published." The San Antonio Express News developed these strategies: •

"EXPAND our customer base and enhance the franchise by pursuing multimedia opportunities.

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DELIVER an award-winning level of journalistic excellence, building public interest, trust and pride.

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PROVIDE vigorous community leadership and support.

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Human Resource Management •

INSTILL an environment of internal and external excellence in customer service.

•

EMPOWER and recognize each employee's unique contribution.

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ACHIEVE the highest standards of quality.

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IMPROVE financial strength and profitability."

Goals and Action Plans After you have developed the key strategies, turn your attention to developing several goals that will enable you to accomplish each of your strategies. Goals should be SMART: specific, measurable, achievable, realistic and time-based. In the example above, the HRAGD group might consider setting one goal to hold a monthly chapter meeting. Another goal that supports their strategies is to schedule a relevant seminar quarterly. Another goal might include holding informal dinners and cocktail hours to support voluntary member exchange. Once you have enabled strategy accomplishment through setting SMART goals, you will want to develop action plans to accomplish each goal. Continuing with HRAGD as the example, to offer a quarterly seminar, you will need to follow an action plan: •

Establish a cross section of professionals as a committee and meet to plan the sessions.

•

Determine budget.

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Perform HRAGD member needs assessment.

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Select topics based on member needs assessment.

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Locate exceptional speakers.

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Pick speaker and negotiate workshop length, pay, topic and objectives.

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Determine location and schedule the seminar.

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Plan advertising strategies, and so forth.

Make action plans as detailed as you need them to be and integrate the individual steps into your planning system. An effective planning system, whether it uses a personal computer, a paper and pen system, a handheld computer or a Palm, will keep your goals and action plans on track and on target. Want to be one of the organizations, whose employees understand the mission and goals, that enjoy a 29 percent greater return than other firms? Involve as many people as you can in charting the road map I've shared with you for developing a strategic framework for your business. And you will enjoy the greater return. With your vision, mission, values, strategies, goals and action plans developed and shared, you'll all win, both personally and professionally.

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Human Resource Management How to Implement Strategic Planning: Vision Statement, Mission Statement, Values Develop a Strategic Culture In an earlier, popular article, I gave you a strategic planning framework, samples, and examples for creating your organization’s mission statement, vision statement, values, and goals. The most important question I encounter, as a result of the strategic planning article, is: now that I know what all of this should look like, how do I actually make strategic planning happen in my organization? The strategic planning how-to question strikes at the heart of how to make change of any kind happen in your organization. Start by answering why your organization might want to embark on a strategic planning process. Want to be one of the organizations, in which employees understand the mission and goals? They enjoy a 29 percent greater return than other firms. This seems like a good reason to start strategic planning to me. How about you? Keys to Strategic Planning Success These are the keys to effective strategic planning for your business. •

Full and active executive support,

•

Effective communication,

•

Employee involvement,

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Thorough organizational planning and competitive analysis, and

•

Widespread perceived need for the strategic planning.

If you are implementing your strategic planning in an organizational environment that is already employeeoriented, with a high level of trust, you start the strategic planning process with a huge plus. An additional plus is an organization that already thinks strategically. Unfortunately, the implementation of strategic planning most frequently occurs as an organization moves from being traditionally reactionary to strategic. So, often, learning to think strategically is part of the strategic planning learning curve.

Full and Active Executive Support for Successful Strategic Planning Successful strategic planning requires a large commitment from executives and senior managers, whether the strategic planning is occurring in a department or in a complete organization. Executives must lead, support, follow-up, and live the results of the strategic planning process. Or, the strategic planning process will fail. It’s as simple as that. Without the full commitment of the organization’s senior executives, don’t even start strategic planning. Participants will feel fooled and misled. Dr.Abd El Halim Hafez

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Human Resource Management A vision statement and a mission statement, along with this year’s goals, filed, unimplemented in a cabinet or computer is a serious source of negativity and poor employee morale. Senior leaders can do the following to create a successful strategic planning process. •

Establish a clear vision for the strategic planning process. Paint a picture of where the organization will end up and the anticipated outcomes. Make certain the picture is one of reality and not what people “wish” would occur. Make sure key employees know “why” the organization is changing.

•

Appoint an executive champion or leader who “owns” the strategic planning process and makes certain other senior managers, as well as other appropriate people in the organization, are involved.

Human Resource Plans: The Foundation For Organizational Strategic Planning

Effective decision-making is founded on sound planning. In order to be successful, organizations must develop both long-range (strategic) and short-range (tactical) plans. In addition, resources must be organized and allocated to carry out organizational goals in an effective and efficient way. Human resource professionals need to utilize those same approaches to strategic planning and business development that are present in the marketing, financial, technology and operational departments. Every company has a marketing plan to guide its product and/or service strategy. Hence, every organization should have a human resource plan that outlines its people strategy. The Business Case for HR Plans An organization’s human resource plan should be directly tied to the overall strategic plan of the company. It provides the future needs and availability of human capital for the organization. Strategic decisions require long-term commitments. A strategic error can result in workforce skill deficiencies, which can impact customer service and profitability. On the other hand, a good plan can help support corporate goals and protect a company’s resources. Components of an HR Plan The same components that are used in overall strategic planning can be used to develop a human resource plan. The first step is to conduct a thorough analysis of the current environment. The result of this environmental analysis will bring relevant data to the department in the form of information, communications, surveys and assessment systems. This process will surface factors that affect the department both now and in the future.

HR professionals will want to monitor these trends and consider how they will affect the workplace. The environmental analysis should consider several factors including government influence, economic conditions, business competition and workforce demographics. Once the analysis is complete, then planning can begin. HR planning consists of four phases that are outlined below:

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Human Resource Management 1. Formulation It is important that the HR culture is in alignment with the rest of the organization. The vision statement should represent the overall, guiding image of the department. It is the ultimate expression of success for the human resources department. The mission statement will specify what activities the human resources department intends to pursue in order to achieve its vision. A well-defined mission and vision will keep the human resources team focused and convey an organizational purpose that will motivate the team. The last component is defining department values. Values are the “heartbeat” of the organization. They outline what is important and often dictate employee behavior. Department values should correspond with the values of the organization. Once the vision, mission and values of the department are established, it is important to determine how and when to communicate this information both internally and externally. 2. Development It is important to understand the status quo before a roadmap for the future can be determined. A simple and effective way to gain a clear picture of the current state of the department is to conduct a SWOT Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis. This process answers four basic questions: a) What are your department’s internal strengths? b) What are your department’s internal weaknesses? c) What external opportunities would move the department forward? d) What external threats might hold the department back? Some of the topics that are included in the SWOT Analysis are staff capabilities, benefit programs, employee services, information systems, office facilities, and the reputation of human resources within the organization. It is important to remember that the SWOT Analysis is not just about exploiting strengths; it is about addressing the weaknesses as well. At this point, long-term strategies are created. These are specific results that an organization seeks to achieve its basic mission. The time frame for long-term strategies is three to five years. The values of an organization should be taken into account when developing strategies. For example, companies with traditional practices might want to think twice about implementing “trendy” programs— unless of course it is their strategy to move the culture in that direction. 3. Implementation In order to complete long-term strategies, short-term objectives should be established. Short-term objectives are milestones that can be accomplished within six months to one year. These objectives allow for continuous commitment and frequent evaluation of the long-term strategy. Each short-term objective will need an action plan and resource allocation budget (i.e., finances, human capital, equipment, technology, etc.)

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Human Resource Management One of the most critical components during this phase is to motivate employees or explain “What’s in it for them?” Connecting the short-term project/objective to the long-term strategy of the organization creates employee commitment and positive productivity. 4. Evaluation Regular reviews of the department strategy are vital to the success of the plan. Unforeseen issues can be quickly brought to resolution with regular monitoring. In addition, it is important to track results data regarding the project. Be aware that data collected during a short-term project might not accurately reflect trends and performance. Information gathered over the course of time allows for evaluation and assessment of how well the department has performed in relation to its plan goals and objectives. A human resource plan should reflect results in measurable terms. Being able to articulate return on investment metrics is critical to future resource allocations and the ability for the initiative to have a positive impact. Two of the most common measurements are time and budget. Strategy evaluation will lead to decisions focused on either: 1) altering strategies; or 2) waiting for desired results. Change is an inevitable part of the process and taking corrective action is necessary to keep the department on track in achieving its vision. In Summary Strategic planning is a multistep process. Effective planning is a continuous process requiring creativity and support from top management. Using HR planning processes to analyze and identify the need for human capital allows the organization to achieve its goals and objectives.

The Modern Functions of the Human Resource Management

Training and Development Beginning with the orientation of new employees, HR training and development also includes job-skill training. As jobs evolve and change, ongoing retraining is necessary to accommodate technological changes. Encouraging development of all employees, including supervisors and managers, is necessary to prepare organizations for future challenges. Career planning identifies paths and activities for individual employees as they develop within the organization. Assessing how employees perform their jobs is the focus of performance management.

“Training is something we hope to integrate into every manager’s mind set.” Dr.Abd El Halim Hafez

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CHRIS LANDAUER

Human Resource Management Types Of Trainings : Internal Training Training in on-the-job locations tends to be viewed as being very applicable to the job, it saves the cost of sending employees away for training, and it often avoids the cost of outside trainers. However, trainees who are learning while working can incur costs in the form of lost customers and broken equipment, and they may get frustrated if matters do not go well. Often, technical training is conducted inside organizations. Technical training is usually skills based, for example, training to run precision computer-controlled machinery. Due to rapid changes in technology, the building and updating of technical skills have become crucial training needs. Basic technical skills training is also being mandated by federal regulations in areas where the Occupational Safety and Health Administration (OSHA), the Environmental Protection Agency (EPA), and other agencies have regulations. As noted in the opening discussion, web-based training and intranets also are growing as internal means of training. One internal source of training that has grown is informal training, which occurs internally through interactions and feedback among employees. One study found that 70% of what employees know about their jobs they learned informally from other employees, not from formal training programs. Several factors account for the amount of informal learning. First, as employees work in teams and on projects with others, they ask questions, receive explanation, and share information with coworkers. Second, rather than relying on the employer to train them and keep their capabilities current, employees request assistance from other employees more knowledgeable or skilled. Third, informal learning occurs among employees striving to meet organizational goals and deadlines. However, problems with informal training include the fact that some training done by fellow employees may not be accurate and may miss certain important details. At one company in the southeastern England, managers initially became concerned about the amount of time that employees spent talking with each other in the lunchroom. However, an HR professional who spent time in the lunchroom found that many of the conversations were problem solving discussions about company projects. Consequently, white boards and flip charts were placed in the lunchroom for employees to use if they wish to do so

External Training occurs for several reasons: •

It may be less expensive for an employer to have an outside trainer conduct training in areas where internal training resources are limited.

•

There may not be sufficient time to develop internal training materials.

•

The HR staff may not have the level of expertise needed for the subject matter

•

where training is needed.

•

There are advantages to having employees interact with managers and peers in

•

other companies in training programs held externally.

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Human Resource Management One growing trend is the outsourcing of training. Vendors are being used to train employees. For example, many software providers have users’ conferences where employees from a number of employers receive detailed training on using the software and new features being added. Also, vendors can do training inside the organization if sufficient numbers of employees are to be trained. Several computer software vendors offer employees technical certifications on their software. For example, being a Master Certified Novell Engineer or Microsoft Certified Product Specialist gives employees credentials that show their level of technical expertise. The certifications also provide employees items to put on their resumes should they decide to change jobs. These certifications also benefit employers, who can use the certifications as job specifications for hiring and promotion purposes. If an employer pays for employees to become certified, employees may view the employer more positively and be less prone to leave.

Overview of Training and Development The first step in designing a training and development program is to conduct a needs assessment. The assessment begins with a "need" which can be identified in several ways but is generally described as a gap between what is currently in place and what is needed, now and in the future. Gaps can include discrepancies/differences between: • What the organization expects to happen and what actually happens. • Current and desired job performance. • Existing and desired competencies and skills. A needs assessment can also be used to assist with: • Competencies and performance of work teams. • Problem solving or productivity issues. • The need to prepare for and respond to future changes in the organization or job duties.

The results of the needs assessment allows the training manager to set the training objectives by answering two very basic questions: who, if anyone, needs training and what training is needed. Sometimes training is not the solution. Some performance gaps can be reduced or eliminated through other management solutions such as communicating expectations, providing a supportive work environment, arranging consequences, removing obstacles and checking job fit. Once the needs assessment is completed and training objectives are clearly identified, the design phase of the training and development process is initiated: • Select the internal or external person or resource to design and develop the training. • Select and design the program content. Dr.Abd El Halim Hafez

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Human Resource Management • Select the techniques used to facilitate learning (lecture, role play, workshop, etc.). • Select the appropriate setting (on the job, classroom, etc.). • Select the materials to be used in delivering the training (work books, videos, etc.). • Identify and train instructors (if internal). After completing the design phase, the training is ready for implementation: • Schedule classes, facilities and participants. • Schedule instructors to teach. • Prepare materials and deliver them to scheduled locations. • Conduct the training. The final phase in the training and development program is evaluation of the program to determine whether the training objectives were met. The evaluation process includes determining participant reaction to the training program, how much participants learned and how well the participants transfer the training back on the job. The information gathered from the training evaluation is then included in the next cycle of training needs assessment. It is important to note that the training needs assessment, training objectives, design, and implementation and evaluation process is a continual process for the organization.

Compensation & Benefits Compensation rewards people for performing organizational work through pay, incentives, and benefits. Employers must develop and refine their basic wage and salary systems. Also, incentive programs such as gain sharing and productivity re-wards are growing in usage. The rapid increase in the costs of benefits, especially health-care benefits, will continue to be a major issue.

The main compensation philosophy is reflected through the following guidelines:

• • • •

Ensure internal equity amongst the organization classifications Achieve and maintain appropriate labor market competitive salary levels Provide flexibility to address idealistic or unit needs while maintaining parameters established for the entire organization Recognize and reward

The Components of any Compensation Division are:

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Human Resource Management Classification Guidance and determinations on classification of new or reclassification of existing positions. Incentive programs Ensure compliance and offer technical advice on incentive program design and use. Market surveys Develop, maintain, and report market data sources. Merit programs Technical advice on merit program design, use, and compliance. Performance appraisal Advice on performance appraisal design and use; approve and ensure compliance. Policy Develop new and/or revised compensation policies. Salary plans "Payroll" Research, design, and implement wage and salary plans and other pay delivery programs.

To audit your compensation program, ask the following questions. The answers will help you to determine whether you have an effective compensation program. Job Descriptions • Does the organization have written descriptions of job duties and responsibilities? • Do these job descriptions list the essential functions of each position? • Are the job descriptions accurate? • Are all items related to job content? Dr.Abd El Halim Hafez

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Human Resource Management • Do the elements relate only to the job and not to the incumbent? • Did the writer have first hand knowledge of the job duties and responsibilities? • Do the job descriptions list only the education, experience, training, and skills necessary to perform the job? • Does the job description reflect the work now being performed? • Are the job descriptions periodically reviewed and updated? • Do incumbents participate in the review and revision of job descriptions? Job Evaluation Programs • Does the organization have a job evaluation plan? • Does the organization have more than one job evaluation plan? • Is there a regular check on how the plans relate to each other? • Does the plan have weighted factors to use in reaching evaluation decisions? • Are these factors reviewed for appropriateness of job content to the work being performed? • Are plan design considerations documented so that management can review the plan and how it is meeting organizational objectives? • Is the rationale for the choice of factors and weights properly documented and defensible? • Are the factors applied consistently to all jobs evaluated under the plan? • Are the factors limited to those concerned with education, experience, skill, effort, responsibility, and working conditions? • Are plan design considerations documented so that management can review the plan and how it is meeting organizational objectives?

• Is the plan related to the competitive labor market and competitors? • Is there a formal procedure for evaluating new jobs in the organization? • Are job evaluation decisions made by an individual or by a committee? • Is training provided to the decision maker(s)? • Are written directions provided? • Are protected-class persons involved in the decision making process? Dr.Abd El Halim Hafez

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Human Resource Management • Is the decision making team multi-functional? • Is there an appeal process for employees if they disagree with the evaluation? • Is the plan communicated effectively to the workforce so they can understand the plan and how it works? Salary Structures • Does the organization have a job hierarchy by job family or department? • Does the organization have a job hierarchy that extends to the entire organization? • Are all jobs included in this job hierarchy? • Is this hierarchy reviewed periodically to confirm the hierarchy of jobs? • Does the organization use the external marketplace to determine job values? • Does the organization have a stated position to market (25th, 50th, 75th percentile, etc)? • Are a variety of salary surveys utilized to determine position to market? • Does the organization age survey data to determine position to market? • Does the organization have formal salary structures? • Does the organization pay below or above the limits of this salary structure? Performance Appraisals • Does the organization have a formal performance appraisal process? • Does the system use objective job-related measurement to the fullest extent? • Is there a periodic appraisal of performance for all employees with the results documented? • Does someone who is thoroughly familiar with the employee's work complete the appraisal?

• Does the employee participate in the process? • Is there encouragement of two-way communication between the supervisor and subordinate before, during and after the performance appraisal? • Are the appraisers trained?

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Human Resource Management • Is the performance appraisal used as a guide in determining the specific amount of the salary increase, interval between increases and salary level relative to others in the same pay grade? • Are statistical techniques utilized which can be applied to identify apparent inconsistencies? Compensation Policies and Procedures • Does the organization have a formal salary administration policy? • Does the organization have formal procedures for recommending and approving salary adjustments? • Does the organization reward outstanding performance and/or the length of service? • Does the organization periodically review salaries to ensure they are adequate and reasonable? • Does the organization develop a formal budget for performance related salary adjustments? • Does the organization develop a formal budget for other types of salary adjustments? Short Term Incentive Programs • Does the organization have incentives for any employee population? • Are there formal plan documents describing how the plans operate? • Do employees know if they participate in an incentive plan? • Does the organization communicate plan information to employees? • Are objectives and incentive values communicated to participants? • Is there a formal program in place to measure actual performance for short term incentive purposes?

Recruitment “Staffing” The aim of staffing is to provide an adequate supply of qualified individuals to fill the jobs in an organization. By studying what workers do, job analysis is the foundation for the staffing function. From this, job descriptions and job specifications can be prepared to recruit applicants for job openings. The selection process is concerned with choosing the most qualified individuals to fill jobs in the organization. Staffing is the process of matching appropriate people with appropriate jobs. From the viewpoint of organizations, staffing entails using HR planning information to determine the correct numbers and kinds of candidates, locating them, and then selecting those who are most likely to be satisfactory employees. From the standpoint of job applicants, the staffing process affects how they see jobs and organizations, and the likelihood that they will be matched with jobs that are rewarding for them. The organizational perspective is the primary focal point in this chapter and the next. Dr.Abd El Halim Hafez

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Human Resource Management Staffing consists of two parts: recruiting and selection. This chapter examines recruiting, and the next examines selection. Recruiting is the process of generating a pool of qualified applicants for organizational jobs. If the number of available candidates only equals the number of people to be hired, there is no real selection—the choice has already been made. The organization must either leave some openings unfilled or take all the candidates. Many employers currently are facing shortages of workers with the appropriate knowledge, skills, and abilities (KSAs) in tight labor markets, as the chapter opener indicates. However, because business cycles go up and down, the demand for labor changes and the number of people looking for work changes. Because the labor market is the environment in which staffing takes place, learning some basics about labor markets aids understanding of recruiting.

Labor Markets There actually is not one, but several labor markets that are the external sources from which employers attract employees. These markets occur because different conditions characterize different geographical areas, industries, occupations, and professions at any given time. For example, the demand for over-the road truck drivers is very strong at this writing (a tight labor market). Yet with downsizing and mergers in the banking industry, there is a surplus of middle level banking managers (a loose market). There are many ways to identify labor markets, including by geographical area, type of skill, and educational level. Some labor market segments might include managerial, clerical, professional and technical, and blue collar. Classified differently, some markets are local, others regional, others national; and there are international labor markets as well. For instance, an interesting labor market segment opened up with the demise of the Soviet Union. A number of excellent Soviet scientists became available due to the absence of job opportunities in their own countries. Several research organizations, including Sun Microsystems, have recruited them for jobs. Many of these recruits have continued to live in their home countries and are linked electronically to their employers in the United States. Recruiting locally for a job market that is really national likely will result in disappointing applicant rates. For example, attempting to recruit a senior accounting faculty member in a small town is not likely to be successful. Conversely, it may not be necessary to recruit nationally for workers in unskilled positions on the assembly line. The job qualifications needed and the distribution of the labor supply determine which labor markets are relevant. Changes in a labor market may force changes in recruiting efforts. If a new major employer locates in a regional labor market, then other employers may see a decline in their numbers of applicants. For instance, when three riverboat casinos, employing a total of 3,000 workers, opened in Council Bluffs, Iowa, many employers in the area noticed a dramatic decrease in the number of applicants for job openings outside of the casino industry. Also, some employers, particularly smaller manufacturing firms, had to raise their wages to prevent turnover of existing workers. Similar occurrences have followed the opening of large automobile manufacturing plants in South Carolina, Tennessee, Kentucky, and Alabama. To understand the components of labor markets in which recruiting takes place, three different concepts must be considered. Those three groups are labor force population, applicant population, and applicant Pool. The labor force population includes all individuals who are available for selection if all possible recruitment strategies are used. This vast array of possible applicants may be reached in very different ways. Dr.Abd El Halim Hafez

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Human Resource Management Different recruiting methods— for example, newspaper ads versus college recruiting—will reach different segments of the labor force population. The applicant population is a subset of the labor force population that is available for selection using a particular recruiting approach. For example, an organization might limit its recruiting for management trainees to MBA graduates from major universities. This recruiting method will result in a very different group of applicants from those who would have applied had the employer chosen to advertise openings for management trainees on a local radio station. At least four recruiting decisions affect the nature of the applicant population: • • • •

Recruiting method: advertising medium chosen and considering use of employment agencies Recruiting message: what is said about the job and how it is said Applicant qualifications required: education level and amount of experience necessary Administrative procedures: time of year recruiting is done, the follow-ups with applicants, and use of previous applicant files

The applicant pool consists of all persons who are actually evaluated for selection. Many factors can affect the size of the applicant pool. For example, the organization mentioned previously is likely to interview only a small percentage of the MBA graduates at major universities, because not all graduates will want to be interviewed. The applicant pool at this step will depend on the reputation of the organization and industry as a place to work, the screening efforts of the organization, and the information available to the applicant population. Assuming a suitable candidate can be found, the final selection is made from the applicant pool. The supply and demand of workers in the labor force population has a substantial impact on the staffing strategies of organizations. Internal labor markets also influence recruiting because many employers choose to promote from within whenever possible, but hire externally for entry-level jobs.

Equal Employment Opportunity Compliance with equal employment opportunity (EEO) laws and regulations affects all other HR activities and is integral to HR management. For instance, strategic HR plans must ensure sufficient availability of a diversity of individuals to meet affirmative action requirements. In addition, when recruiting, selecting, and training individuals, all managers must be aware of EEO requirements HR Planning and Development HR planning and development activities have several facets. Through HR planning, managers attempt to anticipate forces that will influence the future supply of and demand for employees. Having adequate human resource information systems (HRIS) to provide accurate and timely information for HR planning is crucial. The importance of human resources in organizational competitiveness must be ad-dressed as well. As part of maintaining organizational competitiveness, HR analysis and assessment of HR effectiveness must occur.

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Human Resource Management Employee and Labor/Management Relations The relationship between managers and their employees must be handled effectively if both the employees and the organization are to prosper together. Whether or not some of the employees are represented by a union, employee rights must be addressed. It is important to develop, communicate, and update HR policies and rules so that managers and employees alike know what is expected. In some organizations, union/management relations must be addressed as well.

HR Policies, Procedures, and Rules It is useful at this point to consider some guidelines for HR policies, procedures, and rules. They greatly affect employee rights (just discussed) and discipline (discussed next). Where there is a choice among actions, policies act as general guidelines that focus organizational actions. Policies are general in nature, while procedures and rules are specific to the situation. The important role of policies in guiding organizational decision making requires that they be reviewed regularly, because obsolete policies can result in poor decisions and poor coordination. Policy proliferation also must be carefully monitored. Failure to review, add to, or delete policies as situations change may lead to problems. Procedures are customary methods of handling activities and are more specific than policies. For example, a policy may state that employees will be given vacations. Procedures will establish a specific method for authorizing vacation time without disrupting work. Rules are specific guidelines that regulate and restrict the behavior of individuals. They are similar to procedures in that they guide action and typically allow no discretion in their application. Rules reflect a management decision that action is taken—or not taken—in a given situation, and they provide more specific behavioral guidelines than policies. For example, one computer-repair company has a policy stating that management intends to provide the highest-quality repair service in the area. The rule that repair technicians must have several technical product certifications or they will not be hired promotes this policy, and this constrains HR selection decisions.

Responsibilities for HR Policy Coordination For policies, procedures, and rules to be effective, coordination between the HR unit and other managers is vital. As (Figure 1—5) shows, managers are the main users and enforcers of rules, procedures, and policies; and they should receive some training and explanation in how to carry them out. The HR unit supports managers, reviews disciplinary rules, and trains managers to use them. It is critical that any conflict between the two entities be resolved so that employees receive appropriate treatment.

Guidelines for HR Policies and Rules Well-designed HR policies and rules should be consistent, necessary, applicable, understandable, reasonable, and distributed and communicated. A discussion of each characteristic follows. Dr.Abd El Halim Hafez

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Human Resource Management Figure 1-5 Coordination between the HR unit and other managers

CONSISTENT Rules should be consistent with organizational policies, and policies should be consistent with organizational goals. The principal intent of policies is to provide written guidelines and to specify actions. If some policies and rules are enforced and others are not, then all tend to lose their effectiveness. NECESSARY HR policies and rules should reflect current organizational philosophy and directions. To this end, managers should confirm the intent and necessity of proposed rules and eliminate obsolete ones. Policies and rules should be reviewed whenever there is a major organizational change. Unfortunately, this review is not always done, and outdated rules are still on the books in many organizations. APPLICABLE Because HR policies are general guidelines for action, they should be applicable to a large group of employees. For policies that are not general, the appropriate areas or people must be identified. For instance, if a sick-leave policy is applicable only to nonexempt employees that should be specified in the company handbook. Policies and rules that apply only to one unit or type of job should be developed as part of specific guidelines for that unit or job. UNDERSTANDABLE HR policies and rules should be written so employees can clearly understand them. One way to determine if policies and rules are understandable is to ask a cross-section of employees with various positions, education levels, and job responsibilities to explain the intent and meaning of a rule. If the answers are extremely varied, the rule should be rewritten. REASONABLE Ideally, employees should see policies as fair and reasonable. Policies and rules that are perceived as being Dr.Abd El Halim Hafez

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Human Resource Management inflexible or as penalizing individuals unfairly should be reevaluated. For example, a rule forbidding workers to use the company telephone for personal calls may be unreasonable if emergency phone calls are occasionally necessary. Limiting the amount of time the telephone can be used for personal business and the number of calls might be more reasonable. Some of the most ticklish policies and rules involve employee behavior. Dress codes are frequently controversial, and organizations that have them should be able to justify them to the satisfaction of both employees and outside sources who might question them. Information on policies regarding dress at work in organizations is shown in (Figure 17—11.) . DISTRIBUTED AND COMMUNICATED To be effective, HR policies must be distributed and communicated to employees. It is especially important that any changes in HR policies and rules be communicated to all employees. Employee handbooks can be designed creatively to explain policies and rules, so that employees can refer to them at times when no one is available to answer a question. Supervisors and managers can maintain discipline by reminding their employees about policies and rules. Because employee handbooks are widely used to do so, guidelines for their preparation and use are discussed next.

Approaches to Discipline The disciplinary system (Figure 1-6) can be viewed as an application of behavior modification for problem or unproductive employees. The best discipline is clearly self-discipline; when most people understand what is required at work, they can usually be counted on to do their jobs effectively. Yet some find that the prospect of external discipline helps their self-discipline. This philosophy has led to the development of the positive discipline approach. Figure 1—6 the Disciplinary System

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Human Resource Management POSITIVE DISCIPLINE APPROACH The positive discipline approach builds on the philosophy that violations are actions that usually can be constructively corrected without penalty. In this approach, the focus is on fact-finding and guidance to encourage desirable behaviors, instead of on using penalties to discourage undesirable behaviors. There are four steps to positive discipline.

1. Counseling: Counseling can be an important part of the discipline process, because it gives a manager or supervisor the opportunity to identify employee work behavior problems and discuss solutions. The goal of this phase is to heighten employee awareness of organizational policies and rules. Knowledge of disciplinary actions may prevent violations. The emphasis is similar to that on preventing accidents. Counseling by a supervisor in the work unit can have positive effects. Often, people simply need to be made aware of rules. 2. Written documentation: If employee behavior has not been corrected, then a second conference is held between the supervisor and the employee. Whereas the first stage was done orally, this stage is documented in written form. As part of this phase, the employee and the supervisor develop written solutions to prevent further problems from occurring. 3. Final warning: When the employee does not follow the written solutions noted in the second step, a final warning conference is held. In that conference the supervisor emphasizes to the employee the importance of correcting the inappropriate actions. Some firms incorporate a decision-day off, in which the employee is given a day off with pay to develop a firm, written action plan to remedy the problem behaviors. The idea is to impress on the offender the seriousness of the problem and the manager’s determination to see that the behavior is changed. 4. Discharge: If the employee fails to follow the action plan that was developed and further problem behaviors exist, then the supervisor will discharge the employee. The advantage of this positive approach to discipline is that it focuses on problem solving. Also, because the employee is an active participant throughout the process, employers using this approach are more likely to win wrongful-discharge lawsuits if they are filed. The greatest difficulty with the positive approach to discipline is the extensive amount of training required for supervisors and managers to become effective counselors. Also, the process often takes more supervisory time than the progressive discipline approach discussed next. PROGRESSIVE DISCIPLINE APPROACH Progressive discipline incorporates a sequence of steps into the shaping of employee behaviors. "Figure 1-7" Like the procedures in the figure, most progressive discipline procedures use verbal and written reprimands and suspension before resorting to dismissal. Thus, progressive discipline suggests that actions to modify behavior become progressively more severe as the employee continues to show improper behavior. For example, at one manufacturing firm, failure to call in when an employee is to be absent from work may lead to a suspension after the third offense in a year. Suspension sends a very strong message to an employee that undesirable job behavior must change or termination is likely to follow. Dr.Abd El Halim Hafez

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Human Resource Management An employee is given opportunities to correct deficiencies before being dismissed. Following the progressive sequence ensures that both the nature and seriousness of the problem have been clearly communicated to the employee.

Not all steps in the progressive discipline procedure are followed in every case. Certain serious offenses are exempted from the progressive procedure and may result in immediate termination. Typical offenses leading to immediate termination are as follows: • • • • • •

Intoxication at work Fighting Possession of weapons Theft Alcohol or drug use at work Falsifying employment application

Figure 1-7 Typical Progressive Discipline System

Human Resource Information Systems (HRIS) Computers have simplified the task of analyzing vast amounts of data, and they can be invaluable aids in HR management, from payroll processing to record retention. With computer hardware, software, and databases, organizations can keep records and information better, as well as retrieve them with greater ease. A human resource information system (HRIS) is an integrated system designed to provide information used in HR decision making. Although an HRIS does not have to be computerized, most are.

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Human Resource Management Purposes of an HRIS An HRIS serves two major purposes in organizations. One relates to administrative and operational efficiency, the other to effectiveness. The first purpose of an HRIS is to improve the efficiency with which data on employees and HR activities is compiled. Many HR activities can be performed more efficiently and with less paperwork if automated. When on-line data input is used, fewer forms must be stored, and less manual record keeping is necessary. Much of the reengineering of HR activities has focused on identifying the flow of HR data and how the data

Can be retrieved more efficiently for authorized users. Workflow, automation of some HR activities, and automation of HR record keeping are the key to improving HR operations by making workflow more efficient. The second purpose of an HRIS is more strategic and related to HR planning. Having accessible data enables HR planning and managerial decision making to be based to a greater degree on information rather than relying on managerial perception and intuition. For example, instead of manually doing a turnover analysis by department, length of service, and educational background, a specialist can quickly compile such a report by using an HRIS and various sorting and analysis functions. HR management has grown in strategic value in many organizations; accordingly, there has been an increased emphasis on obtaining and using HRIS data for strategic planning and human resource forecasting, which focus on broader HR effectiveness over time, therefore I am listing hereunder the common modules of HRIS : Value Enhancers •

Human Resource Planning

•

Recruitment and Selection (Job Application)

•

Personnel Administration

•

Benefits Administration

•

Training

•

Performance Appraisal/Evaluation

•

Leave Administration

•

Skill Inventory

•

Medical History

•

Accident Monitoring

a. Human Resource Planning: This module will maintain information on manpower requirement at different functional and geographical Dr.Abd El Halim Hafez

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Human Resource Management locations of the company, the eligibility criteria, tenure of requirement and the urgency of the requirement. b. Recruitment & Selection: This module will maintain information on applications received for different positions, short listing of applications at each stage of recruitment and list of selected candidates for each position. This will also maintain an applicant inventory for different skills.

c. Personnel Administration: This module will maintain the following information of the employees. •

Name, address, date of birth of each employee

•

Joining dates of each employee

•

Addresses – permanent, temporary, local, of next of kin

•

Date wise ranks and designations held

•

Employment history of each employee

•

Qualification, experience, training received, papers published etc.

d. Benefits Administration: This module will maintain information on the benefits the company provide to their employees and the related information. List of benefits and eligibility criteria •

Categories (statutory, short term, long term, special and occasional)

•

Benefits received by each employee

•

Date of receipt of the benefit, period, closing date

•

Statutory leave

•

Special benefit to individual employees e.g. children’s education allowance, housing, library, medical allowance etc.

•

Loan facilities

e. Training: This module will maintain the list of training institutes and training programmes useful to the company, the training programmers' undergone by each employee and related information. •

Names, addresses, contact persons of institutes

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Human Resource Management •

Programmers' offered by each institute Course fee of different courses

•

Eligibility criteria specified by the training institutes

•

Employees sponsored for different programmers'

•

Expenditure details for different programmers'

•

Training programmers' undergone by each employee.

HRIS reports on institutes offering a particular training programme or programme category, course fee comparison statement for a particular programme, total expenditure incurred by the company during a particular period on a particular training programme or programme category, employees who have undergone a particular training programme or employees who have not undergone a particular training programme can be generated. f. Performance Appraisal/Evaluation: This module will maintain information on performance appraisal of each employee. The information those will be maintained are as below. •

Appraiser of each employee

•

Appraisal verifier of each employee

•

Appraisal data of each employee.

HRIS reports on employees whose appraisal reports have not been received during a particular period, employees with particular appraisal rating, appraisal comparison of a particular employee over a specified period of time, appraisal comparison of an employee group undergoing an HR improvement exercise before and after the exercise etc. can be generated. g. Leave Administration: This module will maintain leave entitlement of different categories to each employee, leave availed, input hours etc. HRIS reports on leave statement of a particular employee on a particular date, total un-availed leave of a particular category of a group of employees, employees availing leave frequently, employees not availing leave or availing leave below a specified number of days in a year can be generated. h. Skill Inventory: This module acquires the data fed through other modules and generates HRIS reports on the list of skills available with the company, a particular unit of the company, list of people possessing particular skill etc.

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Human Resource Management i. Medical History: This module will maintain medical examination records of all employees. HRIS reports on specific health conditions of employees, health record of an employee over a period of time, employees having frequent health problems; record occupational diseases etc. can be generated. j. Accident Monitoring: This module will maintain will maintain record of accidents in the plant, the date and time of accident, area and section of accident, accident victims, causes of accident, severity of accident, losses inflicted etc. HRIS reports on accidents in a particular area or particular section, accidents in a particular shift, total losses due to accidents during a specified period etc. can be generated.

Leadership in the Context Of Management Many business people would contend that “management” and “leadership” is the same thing, as many of the roles associated with a manager are similar to those expected of a leader. There is certainly considerable overlap, and textbooks often use the words “manager” and “leader” as if they are interchangeable. Writing in the 1980s, Warren Bennis perhaps captured the difference between management and leadership with his statement that “American businesses are over-managed but under-led”, suggesting that a more inspirational attitude should be adopted by modern entrepreneurs. Tom Peters and Robert Waterman built on this shortly afterwards, suggesting that managers needed to be “facilitators” and “creators” rather than “controllers” or, in their words, “traffic cops”.

What is a Leader? An organization needs people who can direct staff towards the achievement of certain objectives. These people we call “leaders”, and it is their responsibility to complete tasks with the assistance of the group of staff at their disposal. All managers and supervisors are leaders, because they need to motivate their team to achieve agreed objectives. The task may vary from planning and carrying out a major restructuring of the company’s organization, to ensuring that the day’s work in a high-street outlet is processed and balanced. There is no one correct way of effective leadership. It cannot be guaranteed that, because an individual has certain characteristics, he will be a good leader. Charismatic leaders, who have the ability to drive people willingly through difficult times (e.g. Churchill in World War II) have innate natural talents. Of course, it is not sufficient just to possess these abilities - they must be used effectively and developed over time. Most leaders need to work at their skills and, by training and experience, build up the necessary qualities.

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Human Resource Management Formal and Informal Leaders Managers in industry and commerce are appointed by the organization to have authority over groups of workers. The workers have no say in who the leader is but they have to work under him or her. Such a leader will be the formal leader of the group - the leader chosen and appointed by the management as part of the formal organization. This does not mean, though, that this formal leader is also the informal leader of the group. Often, a group throws up informal leaders who are different from the formal leaders. Moreover, a group may change its leader according to the situation. For example, if there are few problems and all is going well, a likeable and easy-going leader who is technically expert at the “non management” part of his job may be acceptable. However, if times change and management tries to enforce the rules to the letter and to change the technical nature of the work performed by the group, then a different type of leader may be appointed by the group. This informal leader may be a much stronger personality, perhaps less competent technically, but who is not afraid to offend people and will resist the management’s demands for the sake of the group. A group can thus have two leaders - the formal leader and the informal leader; it is to the benefit of the management if these two types of leader are combined in one person. This depends, of course, on the management’s being aware that there are informal leaders, and being able to do something about it. In the army, for example, non-commissioned officers are selected from men who are and seem likely to be informal leaders. The formal position of a leader does not therefore mean that he necessarily does lead. Leadership is a combination of the: • • • •

Position of leader Personality of the leader Situation at the time

Recognizing, then, that a group may have more than one leader at a time, and that the formal leader may not lead in all things at all times, let’s define the (formal) leader as: The person who is responsible for motivating a group of individuals to perform the tasks required by the organization within the constraints laid down. Power and Leadership Power is most simply defined as the ability of a person to influence the beliefs, attitudes, actions or behavior of others. It is a critical concept related to our study of leadership. The nature of power in societies in general, and in organizations in particular, has been considered by writers for many years. Three key early approaches were those of Max Weber, Emile Durkheim and Vilfredo Pareto: Weber undertook empirical studies of institutions as diverse as the military, the Church, governments and businesses. He concluded that social organizations were founded on hierarchy, authority and bureaucracy. Weber suggested that the core bases of institutions were clear rules, unambiguous tasks and discipline. Dr.Abd El Halim Hafez

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Human Resource Management Durkheim believed that the establishment of values and norms in groups was crucial in controlling the conduct of people in organizations. Pareto saw society as a series of related systems and subsystems which would be affected by internal and external influences. Central to his theory was that it was the task of the ruling classes to maintain social systems by providing the appropriate leadership. This idea is closely allied to the belief which still exists among some modern commentators that leaders are born, not made. This is a theme which we will explore further later. In the study of management we are mainly concerned with legitimate power. It is most usually observed in those who occupy certain positions in organizations and society as a whole. The position of the person defines his or her power to others. Power can be observed at many levels. To an owner-proprietor, power evolves from the ownership of resources; in public service, power may be laid down by statute, which is in turn based on the rights of those who make the laws to use the power vested in them by the electorate. Power may be rooted in the knowledge or skills of an individual. The clearest example of this is a barrister representing a client, or a college lecturer teaching students. Referent power is that which arises from the personal characteristics or even charisma of an individual. You can see this in many historic examples, such as the ability of Martin Luther to accelerate the Reformation, or fanatical cult leaders who can bring about mass suicides. The power here is based on the belief of people in the person. Note that in both these examples neither would have much legitimate power. Referent power manifests itself today, for better or worse, in individuals as diverse as rock stars, sporting heroes, some politicians (such as Nelson Mandela) and some businessmen. This perhaps partially explains

the enormous modern preoccupation with entrepreneurs such as Richard Branson of “Virgin” and Anita Roddick of “The Body Shop”. Power can arise from the ability of individuals to confer rewards. These might be financial rewards or less quantifiable ones, such as the power to enhance or disrupt a production process. Your examiner for this course has such power! Finally, coercive power is that which is based on the ability to not only reward, but also to punish. When a worker fears dismissal due to failure to meet standards or from having committed a misdemeanor, this is based on the perception of coercive power. Power in organizations, demonstrated by the right to take decisions and exercise discretion, and is most often determined by legitimate power, which is in turn based on the position of the individual. At the same time, referent power can be observed vividly in both project groups and informal groups when certain individuals come to the fore. The Manager as Facilitator Managers have a duty to develop individuals and teams for the benefit of the organization's effectiveness. This is one of the crucial elements of effective leadership (the functional leadership model). Proactive managers set not only targets for output of their divisions or departments, but also people management targets. In this way the manager facilitates performance as well as development and continuous learning. In what ways may the manager act as a facilitator for the enhancement of performance? We consider here some of the general techniques for working with others such that they are empowered, informed and enabled to perform effectively. In the next sections, we examine three specific techniques in more detail. Dr.Abd El Halim Hafez

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Human Resource Management Problem-solving The manager can assist the process of problem-solving and hence decision-taking by involving the team. He should encourage the team to come up with their own solutions and, where possible, their own working methodologies. This practice can reap rich rewards, as people achieve a greater sense of ownership by being more involved. This process is not about abdication. The manager should not just leave the team to get on with the job and ignore the consequences. To facilitate solutions in an effective way the manager should support and monitor the team’s progress, intervening whenever necessary yet keeping sufficient “distance” to avoid charges of interference. Delegation of Authority Earlier in the course we considered the benefits (as well as some of the risks) of delegation. Herzberg’s theory teaches us that by giving people the ability to do things we provide the basis for motivation. Only by then giving them the opportunity to put their capabilities into practice can we truly motivate people to achieve. Effective delegation is a skill which can only partially be taught. It is something which managers learn to do better by putting it into practice. Appraisal As we have seen, the annual performance appraisal is an ideal opportunity for the manager to facilitate positive development of the individual. By reviewing the person’s current and potential future capabilities, a plan can be formulated to maximize the person’s contribution to the organization as well as make work a learning and growth experience. The manager should agree targets mutually with the appraiser and then support and monitor that person’s progress in attaining those results. Although the appraisal interview is the starting point, it should not be regarded as the only time at which the manager is involved in personal development of his staff. This should be an on-going feature of the role of the manager. Training Every line manager has a training responsibility. Some of this can be achieved by formal training programmers, including signing off competencies. A further tool is coaching and counseling, which we shall consider later in course. Communication To achieve business results, effective communication is vital. This is often one-to-one, but also on a team basis. Again, this is a topic we shall examine in more detail later in the course.

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Human Resource Management Brainstorming Brainstorming is a creative technique used to generate ideas from a small team (typically up to10 persons). A brainstorming session has the following characteristics: Preparation _ A time should be set for the brainstorming session and a time limit for the length of the meeting. _ The group assembles to develop ideas on a specific issue - this can be new products or services, or potential solutions to problems affecting their work.

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