6. productivity
A measure of the efficiency of
a person, machine, factory, system,
etc., in converting inputs into
useful outputs.
Improving productivity has always been a
live issue for managements. As the
profitability of an organization mostly
depends on improvement in productivity
therefore, managers are always striving to
find ways for achieving the target of
improved productivity.
7. productivity
The greater the output per individual, the higher the organization's
productivity.
Two important factors that affect individual productivity are ability and
motivation. Employee ability, competence in performing a job, can be
improved through a hiring and placement process that selects the best
individuals for the job. It can also be improved through training and career
development programs designed to sharpen employees' skills and prepare
them for additional responsibilities.
Motivation refers to a person's desire to do the best possible job or to
exert the maximum effort to perform assigned tasks. Motivation energizes,
directs, and sustains human behavior.
A growing number of companies recognize that employees are more likely
to choose a firm and stay there if they believe that it offers a high quality
of work life (QWL).
9. Employee Empowerment
Employee empowerment is giving employees a
certain degree of autonomy and responsibility for
decision-making regarding their specific
organizational tasks. It allows decisions to be
made at the lower levels of an organization where
employees have a unique view of the issues and
problems facing the organization at a certain
level.
10. Advantages to Employee
Empowerment
Employee empowerment provides some distinct
advantages. Employee empowerment should
lead to increased organizational responsiveness
to issues and problems.
Another advantage of employee empowerment
should be an increase in productivity.
It should also lead to a greater degree of
employee commitment to organizational goals
since employees can take some degree of
ownership in the decisions made toward goal
achievement.
11. Disadvantages to Employee
Empowerment
Employee empowerment is not without some
disadvantages. It can lead to decreased efficiency
because decisions may not be uniform and
optimized for organizational goals.
It can also create problems with coordination
throughout the organization because decisions are
decentralized and not managed at the top.
Manager and employee relationships can become
tense as the boundaries of authority can be
blurred.
13. Brain Drain
A situation in which many educated or
professional people leave a particular place or
profession and move to another one that gives
them better pay or living conditions.
OR
The departure of educated or professional
people from one country, economic sector, or
field for another usually for better pay or living
conditions
14. How to stop Brain Drain
— Provide better job opportunities irrespective
of caste, creed, race or nationality.
— Promote people on merit alone.
— Provide attractive salaries to highly qualified
people on the basis of their qualifications and
experience.
— Improve the quality of our universities and
bring them at the level of universities in Europe
and America.
— Provide adequate research facilities..
15. ****Ethics and Social
Responsibility
Ethics -- A set of moral principles or values
that governs the conduct of an individual or
a group.
Social Responsibility -- on the other hand,
is the obligations a business has over and
above its legal responsibilities to the
wellbeing of employees and
customers, shareholders and the
community as well as the environment.
(Individual Challenges)
16. Common ethical
issues
Here are some common ethical issues that may
arise in human resources:
— Honesty in recruitment
— Diversity
— Fair pay & decent working environment
— Job security
— Access to ongoing training
— Fairness in performance reviews
— Confidentiality
— Sensitivity at termination
17. Some social responsibility issues include:
— Going above and beyond legal
requirements for health and safety
— Services during termination e.g.
counselling, career advice, extra
training
— Benefits e.g. child minding facilities,
fitness and wellbeing facilities
Social Responsibility
Issues
18. Types of Social
Responsibility
Economic – the duty of managers, as
agents of the company owners, to maximize
stockholder wealth
Legal – the firm’s obligations to comply with
the laws that regulate business activities
Ethical – the company’s notion of right and
proper business behavior.
Discretionary – voluntarily
assumed by a business
organization.
3-18
19. (Individual Challenges)
*****Job insecurity
Job insecurity is a chronic job stressor which
impacts on the well-being of employees.
Employee job insecurity has a detrimental
effect on the organization. Employees who
experience job insecurity are less supportive
of organizational goals and do not make an
effort to deliver quality work. Holm and
Hovland (1999) point out that job insecurity
results in an increased employee turnover
rate.
20. Job insecurity #2
Job insecurity can be conceptualized as the
overall concern about the future of one’s job.
It comprises two components, namely the
recognition of threats to job security and the
concern about these threats. The likelihood
of job loss refers to the cognitive aspect of
job insecurity, while the fear of job loss is
related to the affective aspect thereof. The
cognitive appraisal of the future situation,
whether certain or uncertain, triggers
emotions based on the meaning connected
to the potential job loss.
21. ******Matching People and
organizational research
Matching People and Organizations Research suggests
that HR strategies contribute to firm performance most
when the firm uses these strategies to attract and retain the
type of employee who best fits the firm's culture and overall
business objectives. For example, one study showed that
the competencies and personality characteristics of top
executives could hamper or improve firm performance,
depending on what the firm's business strategies are. Fast-
growth firms perform better with managers who have a
strong marketing and sales background, who are willing to
take risks, and who have a high tolerance for ambiguity.
However, these managerial traits actually reduce the
performance of mature firms that have an established
product and are more interested in maintaining (rather than
expanding) their market share.
(Individual Challenges)
22. Matching people and
organizational research #2
Other research has shown that small
high-tech firms benefit by hiring
employees who are willing to work in
an atmosphere of high uncertainty,
low pay, and rapid change in
exchange for greater intrinsic
satisfaction and the financial
opportunities associated with a risky
but potentially very lucrative product
launch
23. Organizational
Challenges
Organizational Challenges – concerns that
are internal to a company – effective
mangers identify these issues and deal with
them before they become a major issue for
the company. This requires a company be
proactive rather than reactive when dealing
with HR issues
#Cost controlling
##Improving Quality
###Distinctive competency/capability
####Restructing
24. #Cost controlling
If your business is under pressure to reduce
costs, you’re probably feeling it in the HR
department, which has historically been seen
as a cost center, not a profit center. In both
boom and bust cycles, it’s more important
than ever to control HR costs.
Human resource costs constitute a significant
portion of the total operating costs in many
industrial organizations. An overview of
various types of human resource costs is
given in the following Table
26. Methods for Controlling the Costs
of Human Resources
The four methods used to control the costs
of human resources are as follows:
1. Management by Objectives (MBO)
2. Ratio Analysis
3. Personnel Productivity
4. Personnel Reports and Budgets.
27. ##Improving quality.
The second way to gain a competitive advantage is
to engage in continuous quality improvement. Many
companies are implementing total quality
management (TQM) initiatives, which are programs
designed to improve the quality of all the processes
that lead to a final product or service. In a TQM
program, every aspect of the organization is
oriented toward providing a quality product or
service.
28. ###distinctive
competency/capability
A distinctive competency is a competency unique to a
business organization (or a competency superior in
some aspect than the competencies of other
organizations) which enables the production of a
unique value proposition in the function of the
business. A distinctive competency is the basis for the
development of an unassailable competitive
advantage. The uniqueness differentiates this
competency from all others, whether a core
competency or simply a competency.
29. Sources of distinctive
competency
Distinctive competencies, the basis for competitive
advantage, can come from technology, industry
position, market relations, cost, business processes,
manufacturing processes, people, customer
satisfaction, or just being first.
The insightful integration of complementary elements
of the business model is the strongest form of
competitive advantage known. This is because it is so
difficult for competitors to understand and even more
difficult to replicate, especially when the business
model elements of value, purpose, vision, culture, and
identity are intertwined in a powerful business
solution.
30. Examples of distinctive
capability
Toyota has a distinctive
competency in lean manufacturing.
GE has a distinctive competency in
management development.
31. ####Restructuring
Restructuring is the corporate management term for
the act of reorganizing the legal, ownership,
operational, or other structures of a company for the
purpose of making it more profitable, or better
organized for its present needs. Other reasons for
restructuring include a change of ownership or
ownership structure, demerger, or a response to a crisis
or major change in the business such as
bankruptcy, repositioning, or buyout. Restructuring may
also be described as corporate restructuring, debt
restructuring and financial restructuring.
32. Restructuring
The restructuring of Human Resources is
difficult as it always include the changes in
the job profiles of HR employees and it
includes the changes in the organizational
structure of Human Resources and it affects
the way, how employees do the job.
33. Restructuring
When planning the restructuring of HR, it
is always important to find the strong
project managers, who will be able to
minimize the damages caused by the
constant and quick changes in the HR
Processes and HR Procedures. The strong
project managers are able to manage and
drive the process side of the HR.
The restructuring of Human Resources is
not simple, but it can bring huge benefits.
34. Environmental
Challenges
Environmental challenges refer to
forces external to the firm that are
largely beyond management’s control
but influence organizational
performance. They include: rapid
change, the internet revolution,
workforce diversity, globalization,
legislation, evolving work and family
roles, and skill shortages and the rise
of the service sector.
35. Environmental
Challenges
Environmental Challenges: forces external to a firm – influence
behavior but largely beyond management’s control
@Rapid Change
@@workforce diversity
@@@Technological changes
@@@@Legislation
@@@@@Skill Shortage
@@@@@@Globalization
@@@@@@@Family Role
36. @Rapid Change
Many organizations face a volatile
environment in which change is nearly
constant. If they are to survive and
prosper, they need to adapt to change
quickly and effectively. Human resources
are almost always at the heart of an
effective response system.
37. @@workforce diversity
Similarities and differences
among employees in terms of age, cultural
background, physical abilities and disabilities,
race, religion, sex, and sexual orientation is
called workforce diversity.
38. @@@Technological changes
The world has never before seen such rapid
technological changes as are presently occurring in
the computer and telecommunications industries.
One estimate is that technological change is
occurring so rapidly that individuals may have to
change their entire skills three or four times in their
career. The advances being made, affect every area
of a business including human resource
management.
39. @@@@Legislation
The main function of the HR department
is to ensure the organization is fully
aware of any relevant legislation.
All policies and procedures should be in
line with current legislation.
Legislation is continually being updated
which makes this an ongoing task for
every organization
40. The Main Areas Of Legislation
1- equal opportunities
2- employment protection
3- Health & Safety
41. @@@@@Skill Shortage
Insufficient supply of appropriately qualified
workers available or willing to work under
existing market conditions is known as skill
shortage.
42. Causes of Skill Shortage
Globalization
Credentialism
Responses to skill shortage
Business responses
Government responses
43. @@@@@@Globalization
Globalization is an influential modern topic that
highlights the growing interdependence between
different countries worldwide, necessitating
managers to appropriately incorporate this trend
within their strategies.
The speed of modern globalization is often
attributed to
technological developments in communication and
transportation, tasking managers with appropriately
leveraging these technologies internally.
44. Globalization #2
Managers must understand that some processes can be
performed universally and internationally, while others
must be done in a localized fashion to adhere to each
specific region's tastes and customs.
·Critics of globalization cite the way in which it motivates
an international culture over established domestic ones,
as well as the negative environmental effects that result
from business expansion.
·Being mindful of the potential opportunities in a global
economy, along with knowledge of how to localize and
sidestep the negatives in an international marketplace,
can capture large value for effective managers.
45. @@@@@@@Family Role
More and more companies are introducing "family-friendly"
programs that give them a competitive advantage in the labor
market. These programs are HR tactics that companies use to hire
and retain the best-qualified employees, male or female, and they
are very likely to payoff. For instance, among the well known
organizations firms, half of all recruits are women, but only 5% of
partners are women. Major talent is being wasted as many women
drop out after lengthy training because they have decided that the
demanding 10- to 12-year partner track requires a total sacrifice of
family life. These firms have started to change their policies and are
already seeing gains as a result. Different companies have recently
begun offering child-care and eldercare referral services as well to
facilitate women workers as well as are introducing alternative
scheduling to allow employees some flexibility in their work hours.
