Shrm

SHRM Environmental Context of HR personnel, Diversity, PEST Factor, Internal Resources as Strategies Chirag Patel Harshdeep Singh Deepak Rao Nilay Shah Ishu Sharma Namita Shah

A model of SHRM External environment Competition, government regulation, technology, market trends, economic

Corporate strategy

Employee separation

Laws regulating employment

Staffing

Training

HR strategy Business unit strategy

Culture, structure, politics, employee skills, past strategy

Internal environment

HR planning, design of jobs & work systems, what workers do, what workers need, how jobs interface with others

Performance management

HRIS

Compensation

Labour relations

Model to look at… Political Forces

Economic Forces

Cultural Forces

Mission and Strategy

FIRM Organization Structure

HRM

Work organization Organization of work that Decentralizes decision making; Often uses team-based production; Work is typically enlarged and enriched

Staffing Careful emphasis on recruiting & selection Focus on fit with the organization

Security Formal or informal employment guarantees Internal labor markets

Pay systems

HR Person

Training Emphasis on training for job skills, basic skills, business skills, and interpersonal skills; Training that also builds strong culture through orientation and socialization programs; Job rotation

The use of incentive pay frequently at group, unit and organizational levels; Efficiency wages pay above the market rate

Democracy and participation Sharing of information to support decentralization 4

DEMOGRAPHIC TRENDS Many of the major demographic trends for the future are relatively well known. Nonetheless, these massive changes in demography have important implications for human resource management. Major changes include an aging workforce, the boom age glut, the bust labor shortage, increased racial diversity, and greater feminization of the workforce.

TRENDS IN THE UTILIZATION OF HUMAN RESOURCES The Internet, e-mail, fax machines, cable modems, personal computers, other forms of telecommunications, that have allowed many workers to work off-site by telecommuting. Some also have been able to relocate geographically while continuing to perform the same work for their employers via telecommunications technology.

HR department roles Does the HR function affect the success of an organisation? HR policies Critical policy issues – – – –

Employee influence Personnel flow Reward system Work systems

Communication Downward – New employee orientation – Bulletin boards – Communication meetings – Newsletters – Employee handbooks

• Upward – Suggestions programmes – Complaint procedures – Electronic mail – Attitude surveys – Open-door meetings

Current issues & challenges Worker productivity Quality improvement Downsizing, delayering & decruiting The changing workforce Global economy The impact of government Quality of working life Technology and training

Challenges facing HR managers Internal macro environment

External macro environment Critical people issues

External micro environment

Internal micro environment

Fully developed HRIS database Succession planning

Career development & planning

Skills inventory HR planning & forecasting

DATABASE

Compensation administration

Future use

Training & development Affirmative action Personnel module Corporate, Biographical, Historical, Company/ HR policies

Position control •Benefits •Health claims

Health & safety

Applicant tracking

Managing diversity A planned systematic and comprehensive managerial process for developing an organisational environment in which all employees, with their similarities and differences, can contribute to the strategic and competitive advantage of the organisation, and where no‑one is excluded on the basis of

What is diversity? Recognition of the groups of people who share such common traits – Primary dimensions – Secondary dimensions

Stereotypes & prejudices

– Stereotype – a fixed, distorted generalisation about the members of a group: it is not generalisation – Prejudice – processing our stereotypes in such a way to reinforce your own sense of superiority to members of that group

Factors that affect turnover Employee turnover General Economic trends

Local labour market

Demographic factors

Job security Personal mobility

Three major components of Effectiveness “Doing the right things”

The production process

Resource market

Labour, material and capital

Conversion

Inputs

Goods and services

Outputs Utilisation & efficiency “Doing things right”

Market needs

Herzberg’s two-factor theory Hygiene needs

Hygiene factors: - job environ- More money, better ment supervision, good working conditions etc creates demand for

Motivator needs

+ job opportunities allow workers to achieve

Level of job dissatisfaction

Level of job performance

Motivators: Achievement, responsibility, growth, work itself, recognition

Level of job satisfaction

Using Internal Staffing Methods Employee dissatisfaction Increasing concerns with job security Changing employee attitudes and concerns Employment equity issues Labour union presence

Advantages of internal staffing Maintain closer control over the skills & work habits acquired by their existing employees. Gradually prepare employees to fill complicated or critical positions without overburdening their capacity to learn. Employers do not have to spend time orienting the new incumbents to the business environment or to standardise operating procedures. Have more detailed information about the abilities, aptitudes and work habits of internal employees.

CONTD… Employee satisfaction and commitment. Fulfil hiring goals and timetables specified in employment equity actions. Employees placed in the best interests of both the organisation and the individual. Can contribute to the organisation's bottom line.

PEST factor Political Environment Social Technology

Thank You