Challenges For Human Resource Department

THE CHALLENGES IN HUMAN RESOURCES MANAGEMENT Prateek Goel

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HUMAN RESOURCES MANAGEMENT Human

Resources Management

(HRM) The process of managing human resources (human capital and intellectual assets) to achieve an organization’s objectives.

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NEED FOR HRM Staffing

the organization Designing jobs and teams Developing skillful employees Identifying approaches for improving their performance Rewarding employee success

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Challenges and Human Resources Management The

most pressing competitive issues facing firms: 1. 2. 3. 4. 5. 6.

Going global Embracing new technology Managing change Managing talent, or human capital Responding to the market Containing costs

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CHALLENGE 1: GOING GLOBAL

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Challenge 1: Going Global Globalization

◦ The trend toward opening up foreign markets to international trade and investment Impact

of globalization

◦ “Anything, anywhere, anytime” markets ◦ Partnerships with foreign firms ◦ Lower trade and tariff barriers NAFTA, EU, APEC trade agreements WTO and GATT 1–6

Challenge 1: Going Global (cont’d) Outsourcing

work Corporate Social Responsibility ◦ The responsibility of the firm to act in the best interests of the people and communities affected by its activities

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Challenge 1: Going Global (cont’d) Impact

on HRM

◦ Issues: Identifying capable managers and workers Developing foreign culture and work practice training programs. Adjusting compensation plans for overseas work

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Challenge 1: Going Global (cont’d)

Workforce

diversity

◦ Different geographies, cultures, laws, and business practices

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Challenge 2: Embracing New Technology

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Challenge 2: Embracing New Technology Knowledge

Workers Knowledge-Based Training

Online instruction “Just-in-time” learning via the Internet on company intranets

Influence of Technology in HRM Human

Resources Information System (HRIS) ◦ Benefits: Store data. reconfigure data organizational knowledge. Easier communications. administrative costs

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Most Common HR Information Systems Applications  Payroll       

Benefits administration Benefits enrollment Recruiting—applicant tracking Personnel administration Training and development Employee self-service Manager self-service

HRM IT Investment Factors  Ability

to upgrade

 Compatibility

with current systems

 Availability

of technical support

 Time

required to implement and train staff members to use HRIS

 Initial

and annual maintenance costs

 Training

time required for HR and payroll

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Coping up with IT Efficient

IT Department Proper training Upgrading OAS Tracking new developments

Copyright © 2007 Thomson SouthWestern. All rights reserved.

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Challenge 3: Managing Change

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Challenge 3: Managing Change Mergers

and acquisition Diversification of an organization Organization design Changes in strategy Change in management team

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Reactive

response Response that occurs after external forces have already affected the performance.

Proactive

response Response initiated to take advantage of targeted opportunities Copyright © 2007 Thomson SouthWestern. All rights reserved.

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Challenge 3: Managing Change (cont’d)

Why

Change Efforts Fail:

◦ Not establishing a sense of urgency. ◦ Not creating a powerful coalition to guide the effort. ◦ Lacking leaders who have a vision. ◦ Lacking leaders who communicate the vision. ◦ Not removing obstacles to the new vision. ◦ Declaring victory too soon. 1–19

Challenge 4: Managing Talent, or Human Capital

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Challenge 4: Managing Talent, or Human Capital Human

Capital

◦ The knowledge, skills, and capabilities of individuals that have economic value to an organization.

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Challenge 4: Managing Talent, or Human Capital(cont’d) Importance

of Human Capital or

Talent ◦ Based on company specific skills. ◦ Can be expanded through development. ◦ There is a demonstrated relationship between better talent and better business performance. ◦ Talent is rapidly increasing the source of value creation. 1–22

Challenge 4: Managing Talent, or Human Capital(cont’d) Human

Capital, if not retained

◦ High attrition rate. ◦ Loss of valuable human asset. ◦ Loss of secret information.

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Challenge 4: Managing Talent, or Human Capital Managing

◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦

Human Talent through-

Putting right people in right job. Employee Reward program. Career development program. Performance based bonus. Loyalty bonus. Giving voice to knowledge Bank. Employee recreation. Gifts at some occasion. Regular survey or feedback. 1–24

Challenge 5: Responding to the Market

MARKE T 1–25

Challenge 5: Responding to the Market Total

◦ ◦ ◦ ◦

Quality Management (TQM)

set of principles understanding customer needs doing things right continuous improvement.

Six

Sigma

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Challenge 5: Responding to the Market (cont’d) Reengineering

and HRM

Requires that managers create an environment for change. Depends on effective leadership and communication processes. Requires that administrative systems be reviewed and modified.

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Challenge 6: Containing Costs

Challenge 6: Containing Costs Downsizing

◦ The planned elimination of jobs (“head count”). ◦ Layoffs Outsourcing

◦ Contracting outside the organization to have work done that formerly was done by internal employees.

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Challenge 6: Containing Costs (cont’d) Employee

Leasing

◦ The process of dismissing employees who are then hired by a leasing company Off

shoring

◦ The business practice of sending jobs to other countries.

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Challenge 6: Containing Costs (cont’d) Hidden

Costs of Layoff

◦ Severance and rehiring costs ◦ Accrued vacation and sick day payouts ◦ Pension and benefit payoffs ◦ Potential lawsuits from aggrieved workers ◦ Loss of institutional memory and trust in management ◦ Lack of staffers when the economy rebounds 1–31

THANK YOU

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