CHAPTER 1
INTRODUCTION TO HUMAN RESOURCE MANAGEMENT
As human resources have become viewed as
more critical to organizational success, many organizations have realized that
it is the people in an organization that can provide a competitive
advantage. Throughout the book it will be emphasized that the people as human
resources contribute to and affect the competitive success of the organization.
Human Resource (HR) management deals with the “Design of
formal systems in an organization to ensure the effective and efficient use of
human talent to accomplish organizational goals. In an organization, the
management of human resources means that they must be recruited, compensated,
trained, and developed”.
A
basic concept of management states that manager works in organizations.
Organization has three basic components, people, purpose, and structure.
As we said that HRM is the management of
people working in an organization, it is a subject related to human.
For simplicity, we can say that it is the management of humans or people. it is a managerial function that
tries to match an organization’s needs to the skills and abilities of its
employees.
Human
resource management is the process of acquiring, training, appraising, and
compensating employees and of attending to their labor relations, health and
safety and fairness concern.
ü Let’s see what is meant by the three
key term:- human, resource, and management.
• Human (employees working in an organization)
• Resources (Human, Physical, Financial, Technical, Informational
etc)
• Management (Function of Planning, Organizing,
Leading & Controlling of organizational
Resources to accomplish goals efficiently and
effectively)
What is human resource management?
As we said that HRM is the management of people
working in an organization, it is a subject related to human. For simplicity,
we can say that it is the management of humans or people. HRM is a managerial
function that tries to match an organization’s needs to the skills and
abilities of its employees. Human Resource Management is responsible for how
people are managed in the organizations. It is responsible for bringing people
in organization helping them perform their work, compensating them for their
work and solving problems that arise.
Growing Importance of HRM
The success of organizations increasingly depends on people-embodied
know-how- the knowledge, skill, Attitude.
Nature of
HRM:
ü It involves procurement, development,
maintenance and management of human resource.
ü It helps to achieve individual,
organizational and social objectives.
ü HRM is a mighty disciplinary subject.
It includes the study of management psychology communication, economics and
sociology.
ü It involves team spirit and team
work.
HRM plays important role in creating organizations and helping
them survive. Our world is an
Organizational world. We are surrounded by
organizations and we participate in them as members,Employees, customers, and
clients. Most of our life is spent in organization, and they supply the goods
and services on which we depend to live. Organizations on the other hand depend
on people, and without people, they would disappear.
Factors Contributing to the Growing
Importance of HRM
a. Accommodation to workers' needs
Workers are demanding that
organizations accommodate their personal needs by instituting such programs as
flexible work schedules, parental leave, child-care and elder-care assistance,
and job sharing. The human resource department plays a central role in
establishing and implementing policies designed to reduce the friction between
organizational demands and family responsibilities.
b. Increased complexity of the
Manager’s job
Management has become an increasingly
complex and demanding job for many reasons, including foreign competition, new
technology, expanding scientific information, and rapid change. Therefore,
organizations frequently ask human resource managers for assistance in making
strategic business decisions and in matching the distinctive competencies of
the firm's human resources to the mission of the organization. Executives need
assistance from the human resource department in matters of recruitment,
performance evaluation, compensation, and discipline.
c. Legislation and litigation
The enactment of state laws has
contributed enormously to the proliferation and importance of human resource
functions. The record keeping and reporting requirements of the laws are so
extensive that to comply with them, many human resource departments must work
countless hours and often must hire additional staff. Four areas that have been
influenced most by legislation include equal employment, Compensation, safety, and
labor relations. An organization's failure to comply with laws regulating these
areas can result in extremely costly back-pay awards, class action suits, and
penalties.
d. Consistency
Human resource policies help to
maintain consistency and equity within an organization. Consistency is particularly
important in compensation and promotion decisions. When managers make
compensation decisions without consulting the human resource department the
salary structure tends to become very uneven and unfair promotion decisions
also may be handled unfairly when the HR department does not coordinate the
decision of individual manger.
e. Expertise
Now days there exist sophisticated
personnel activities that require special expertise. For example, researchers
have developed complex procedures for making employee-selection decisions;
statistical formulas that combine interviews, test scores, and
application-blank information have replaced the subjective interviews
traditionally used in making selection decisions. Similarly, many organizations
have developed compensation systems with elaborate benefits packages to replace
simple hourly pay or piece rate incentive system
f. Cost of Human Resource
Human resource activities have become
increasingly important because of the high cost of personal problem. The
largest single expense in most organizations is labor cost, which is often
considerably higher than the necessary because of such problems as absenteeism
tardiness and discrimination.
Why are we concerned with HRM?
1. Helps you get results - through
others.
Different managerial techniques help
mangers to direct the performance of employees in desirable direction in order
to achieve the organizational objectives. Through the efforts of others working
in an organization,managers get things done that require effective human
resource management.
2. Helps you avoid common personnel
mistakes Qualified
HR mangers utilize organization resources in such a way that helps to avoid
common personnel mistakes like the following…
1. Hiring the wrong person for the job
2. Experiencing high turnover
3. Finding employees not doing their
best
4. Having your company taken to court
because of your discriminatory actions
5. Having your company cited under
federal occupational safety laws for unsafe practices
6. Allowing a lack of training to
undermine your department’s effectiveness
7. Committing any unfair labor practices
3. helps you to gain Competitive
Advantage
Among all the resources possessed by
the organizations it is only Manpower or the Human resources that create the
real difference. Because all organizations can have the same technology, they
can possess same type of financial resources, same sort of raw material can be
used to produce the goods and services but the organizational source that can
really create the difference is work force of the organization. Therefore they are
the main sources of innovation creativity in the organizations that can be used
as a competitive advantage. In today’s competitive environment, these are the
people which can create competitive advantageous for the organizations. The
world around us is changing. No longer can we consider our share of the “good
Life” given. If we are to maintain some
semblance of that life, we as individual, as organizations, as society will
have to fight actively for it an increasingly competitive global environment.
If organizations are able to mange its work force efficiently/effectively this
will be beneficial for all stakeholders (Organization, Employees and Society).
THE VALUE OF PEOPLE
Manager’s ad economists traditionally have seen
human resource management as a necessary expense, rather than a source of value
to their organization. Economic value is usually associated with capital
equipment technology and facilities. However in the changing corporate
environment more and more organizations are awakening to the importance of
human capital as the next competitive advantage. (Competitive advantage is a position of a company in a
competitive landscape that allows the company earning return on investments
higher than the cost of investments. Competitive advantage should be relevant,
unique, and sustainable).human capital ( an organizations employees, described
in terms of their training experience judgment, intelligence, relationships and
insight)
A barrier to business expansion is not only availability of
financial capital but also access to talent-that is human capital.in summary
people are crucial to organizational success and the human and intellectual
capital of an organizations workforce provides and opportunity for substantial
competitive advantage. “as the resident people experts’ HR leaders are ideally
suited to advice their organization on the best means for realizing their
objectives. Decisions such as whom to hire, what to pay, when training to offer and how to evaluate
employee performance directly affects employee’s motivation, engagement and
ability to provide goods and services that customers value. Companies that
attempt to increase their competitiveness by investing in new technology and promoting quality throughout the
organization also invest in state of the art staffing training and compensation
practices these types of practices indicate that employees are viewed as
valuable investments.
The concept of a human resource management implies the
employees are resources of the employer.as a type of resource ,HUMAN CAPITAL
meant the organizations employees described in terms of their training,
experience ,judgment ,intelligence and relationship and insight-the employee
characteristics that can add economic value to the organization.in other words
whether it manufactures bicycles or forecast’s the weather, for an org to
succeed at what it does, it needs employees with certain qualities, such as
particular kinds of skills and experience. This view means employees in todays
organizations are not interchangeably ,easily replaced parts of a system but
the source of the company success or failure.by influencing who works for the
org and how those people work,HRM therefore contributes to such basic measures
of an organizations success as quality profitability and customer satisfaction
fig 1.2 shows this relationship.
Hrm is critical to the success of an org,
because human capital has certain qualities that make it valuable. interms of
business strategy, an org can succeed if it has a sustainable competitive
advantage( is better than competitors
something and can hold that advantage over a sustained period of time)
therefore we can conclude that org need the kind of resources that will give them such an
advantage. HR have these necessary qualities:
·
HR are valuable. High quality employees provides a needed service
as they performance many critical functions
·
HR are rare in the sense that a person with high levels of the
needed skills and knowledge is not common.an org might spend months looking for
a talented and experienced manager or technician
·
Hr can’t be imitated.to imitate hr at a high performing
competitor, you would have to figure out which employees are providing the
advantage and how. Then you would have to recruit ppl who can do precisely the
same thing and setup the systems that enable those people to imitate your
competitor.
·
HR have no good substitute’s. When people are well trained and
highly motivated, they learn, develop their abilities and care about
cutomers.it is difficult to imagine another resource that can match committed
and talented employees.
These qualities imply that HR have
enormous potential.an org realizes this potential through its approach to HCM
that is how it practices HRM
Effective mgt of HR can form the
foundation of a high performance work system- an org in which technology,
organizational structure, people and processes all work together to give an
organization an advantage in the competitive envrionemnt.as technology changes
how organizations manufacture.transport,communicate and keep track of
information,hRM must ensure that the organization s has the right kinds of
people to meet the new challenges.maintaing a high performance work system
might include development of training programs, recruitment of people with new
skills sets and establishment of reward for such behaviors as teamwork,
flexibility and learning.
HR Management Activities
The central focus for HR management must
be on contributing to organizational success. As Figure 1—4 depicts, key to
enhancing organizational performance is ensuring that human resources
activities support organizational efforts focusing on productivity, service,
and quality.
Productivity: As measured by the amount
of output per employee, continuous improvement of productivity has become even
more important as global competition has increased. The productivity of the
human resources in an organization is affected significantly by management
efforts, programs, and systems.
The amount of output per unit of input (labor, equipment, and capital). There are many
different ways of measuring productivity. For example, in a factory productivity might be
measured based on the number of hours it takes to produce a good, while
in the service sector productivity might be
measured based on the revenue generated by an employee divided by his/her salary.
E.G number of
cars over a specified period. example: productivity = (number of cars
produced) ÷ (manhours to produce these).
Quality: The quality of products
and services delivered significantly affects organizational success over the
long term. If an organization gains a reputation for providing poor-quality
products and services, it reduces its organizational growth and performance. An
emphasis on quality requires continuous changes aimed at improving work
processes. That need opens the door for reengineering the organizational work
done by people. Customer value received and satisfaction become the bases for
judging success, along with more traditional HR measures of performance and
efficiency.
Service: Because people frequently
produce the products or services offered by an organization, HR management
considerations must be included when identifying service blockages and
redesigning operational processes. Involving all employees, not just managers,
in problem solving often requires changes in corporate culture, leadership
styles, and HR policies and practices.
FIGURE 1—4 Management Activities
Producticity planning,equal
employment O,M,S,C,S,O G,E,C,P,S,L,ET
Quality
staffing,HRD,C&B,H.S.S
Service
Employee & labour R/S
To accomplish these goals, HR management
is composed of several groups of
interlinked activities. However, the
performance of the HR activities must be done
in the context of the organization, which
is represented by the inner rings in Figure
1—4. Additionally, all managers with HR
responsibilities must consider external
Environmental forces—such as legal,
political, economic, social, cultural, and technological
Ones—when addressing these activities.
These external considerations Are especially important when HR activities must
be managed internationally
The HR activities for which a brief
overview follows are:
FUNCTIONS AND RESPONSIBILITIES OF HRM DEPARTMENT
In all but the smallest organizations a HR department is
responsible for the functions of HRM. on average an organization has one HRM
staff person for every 100 employees served by the department however this
ratio may vary widely across organizations. Another general guideline is that a
specialized HRM role is often created when an organization has reached the size
of approx. 40 employees.table1.1 details the responsibilities of HRM department
these responsibilities’ include the practices introduced in fig 1.1 plus two
areas of responsibility that support those practices
1)
establishing and administering HRM policies
2)
Ensuring compliance with legal r requirements.
Although the HRM dept has responsibility for these areas many of requirement are performed by supervisors or
other inside or outside the organization.no two HRM dept have precisely the
same roles ,because of differences in org sizes and characteristics of the work
force, the industry and managements
values.in some companies., the HRM dept
handles all the activities listed in table1.1.in others it may share the roles
and duties with managers and supervisor of other depts such as finance
operations or information tech.when managers and supervisor actively perform a
variety of HRM activities the HRM dept usually retains responsibility for
consistency and compliance with all legal requrenment.in some companies the HRM
dept actively advises top mgt.in others the dept responds to top level
management decisions and implements staffing training and compensation
activities in light of company strategy and policies.
Let’s take a look at an overview of the HRM funcitons and
some of the options available for carrying them out.HRM involve both the
selection of which options to use and the activities related to
implementations. Later chapters will explore each function in greater details
1. ANALYZING AND DESIGNING JOBS
To produce their given product or service (or set of products
or services) companies require that a number of tasks to be performed. the
tasks are grouped in various combination to form jobs, ideally the tasks should
be grouped in a ways that help the organization to operate efficiently and to
obtain people with the right qualifications to do the jobs well. This function
involves the activities of job analysis and job design.
·
job
analysis is the process of getting detailed information about jobs
·
Job
design is the process of defining the way work will be performed and the tasks
that a given job requires.
2. Recruiting and hiring employees
On the basis of job analysis and job
design an organization can determine the kinds of employees it needs. With this
knowledge it carries out the function of recruiting and hiring employees.
Recruitment is the process through which the org seeks applicants for potential
employment. Selection refers to the process by which the org attempts to
identify applicants with the necessary knowledge skills abilities and other
characteristics that will help the org achieve its goals.an org makes selection
decisions in order to add employees to its workforce, as well as to transfer
existing employees to new positions.at
At some organizations the selection
process may focus on specific skills such as experience with a particular
programming language or types of eqioments.at others selection may focus on
general abilities such as the ability to work as a part of a team or find
creative solutions. The focus an org
favor’s will affect many choices, from the way the org measures ability ,to the
questions it asks in interviews, to the places it recruits. Table 1.2 lists
employability skills, attitudes and behavior’s needed to participate and
progress in today’s dynamics world of work.HRM professionals also provide
guidance related to redeploying employees, termination and outplacement. TABLE
1.2
3. TRAINING AND DEVELOPING EMPLOYEES
Although organization base hiring
decisions on candidates existing qualifications, most orgs provide ways for
their employees to broaden or deepen their knowledge skills and abilities.to do
this orgs provide for employee training and development. Training is a planned
effort to enable employees to learn job related knowledge, skills,and
behviour.for example any orgs offers safety training to teach employees safe
work habits. Development involve acquiring knowledge skills and behavior’s that
improve employees a ability to meet the challenges of a variety of new or
existing jobs, including the client and customer demands of those jobs.
Development programs often focus on preparing employees for management
responsibility.
4. MANAGING PERFORMANCE
Managing HRM include keeping track of how well
employees are performing relative to objectives such as job descriptions and
goals for a particular positions. The process of ensuring that employee’s
activities and output’s match the organizations goals is called performance m
management. The activities of performance management include specifying the
tasks and outcomes of a job that contribute to the organizations success. Then
various measures are used to compare the employee’s performance over some time
period with the desired performance. Often rewards- the topic of the next
section are developed to encourage good performance.
5. COMPENSATION AND REWARDS
Planning pay and benefits involves
many decisions often complex and based on knowledge of a multitude of legal
requirement.an important decision is how much to offer in salary or wages as
opposed to bonuses, commissions and other performance related pay. Other
decision involve which benefits to offer from retirement plans to various kinds
of insurance to other more intangible rewards such opportunities for learning
and personal growth. All such decisions have implications for the organizations
bottom line, as well as for employee motivation
Administering pay and benefits is
another big responsibility organizations needs systems for keeping track of each
employees earnings and benefits. Employees need information about their health
plans and retirement’s plans and other benefits. Keeping track of this involves
extensive record keeping and reporting to management, employees and others,
while ensuring compliance with all applicable legislation.
6. MAINTAIN POSITIVE EMPLOYEE AND LABOR
RELATIONS
Organizations often depend on HRM
professionals to help them identify and perform many of the tasks related to
maintain positive relations with employees. This function often includes
providing for communication’s to employees.
In orgs where employees belong to
union, labor relations entails additional responsibilities. The org
periodically conducts collective bargaining to negotiate an employment contract
with union memebers.the HRM dept also maintains communication with union
representatives to ensure that issues are resolved as they arise.
7. ESTABLISHING AND ADMINISTERING HRM
POLICIES
All the HRM activities described so
far re require fair and consistent decisions and most require substantial
record keeping. Orgs depends on their HRM dept to help establish
policies related to hiring, discipline and promotions and benefits and the
other activities of HRM
All aspects of HRM require HRM
professionals to collect and safeguards information. From the preparing of
employee handbooks to processing job applications, performance appraisals,
benefits enrolment and government mandated reports, handling records about
employees requires accuracy as well as sensitivity to employee privacy
8. ENSURING COMPLIANCE WITH FEDERAL AND
PROVINCIAL LEGISLATION
Some gov have laws and regulations
concerning the treatment of employees. These laws govern such matters as human
rights and employment equity, employee’s safety and health, employee’s
compensation and benefits and employee privacy. Most managers depend on HRM
professional’s to help them keep up to date and on track with these
requirements. Ensuring compliance with laws requires that HRM professionals
keep watch over a rapidly changing legal landscape.
HR Management in Transition
The field of HR management is undergoing
transition because organizations
themselves are changing. As a result, the
terminology in the field is in transition.
Traditionally called personnel
departments, many of these entities have been renamed
human resource departments. But more than the name
has changed as HR
management continues to be the “people”
focus in organizations.
HR
as Employee Advocate
Traditionally, HR has been viewed as the
“employee advocate” in organizations.9 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.10 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. 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.11 Another facet of employee advocacy is to
ensure that fair and equitable treatment is given to people regardless of their
personal background or circumstances. 12 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. 13 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—5 depicts, 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 are seen primarily as clerical and lower-level administrative
contributors to the organization.
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
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 administered. 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.Cost-effective as well
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. 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
issues.15 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
HR Management Challenges
The environment faced by HR management is
a challenging one; changes are occurring rapidly across a wide range of issues.
A study by the Hudson Institute, entitled Workforce 2020, has
highlighted some of the most important workforce issues. From that and other
sources, it appears that the most prevalent challenges facing HR management are
as follows:
1. Economic and
technological change
2. Globalization of business
3. Workforce availability
and quality concerns
4. Demographics and
diversity issues
5. Organizational restructuring
The environment faced by human resource is
challenging one; changes are occurring rapidly across a wide range of issues.
It appears that the most prevalent challenges facing HR management are as
follows:
1. Economic and technological change:
Several economic changes have occurred
that have altered employment and occupational patterns in the United States. A
major change is the shift of jobs from manufacturing and agriculture to service
industries and telecommunications. This shift has meant that some organizations
have had to reduce the number of employees, while others have had to attract
and retain employees with different capabilities than previously were needed.
Additionally, pressures from global competitors have forced many U.S. firms to close
facilities, adapt their management
practices, and increase productivity and
decrease labor costs in order to become more competitive. Finally, the
explosive growth of information technology, particularly which linked to the
Internet, has forced many changes throughout organizations of all types.
2. GLOBALIZATION
A poor product or service will not survive
today because of the nature of globalization. Markets have been
liberalized throughout the world. The European communist block has imploded
providing vast new
Potential markets. Trading agreements
through the World Trade Association have allowed goods to be marketed in most
countries with tariffs and barriers eliminated or vastly reduced. The
Asian/Pacific region has grown at an extraordinary pace, especially China,
providing a vast range of competitive or alternative goods for the world market
at lower prices. This competition has led to organizations taking far more care
of their labor costs by either increasing productivity, eliminating wasteful bureaucracies
and jobs which add no value, or outsourcing to cheaper suppliers. All of these
actions affect the way people are employed. Handy (1994) created a new equation
for success _ 1⁄2 workforce, paid twice as much, producing three times as much.
With increased competition, organizations are finding that a good product or
service
3. Workforce Availability and Quality
In many parts of the United States today,
significant workforce shortages exist due to an inadequate supply of workers
with the skills needed to perform the jobs being added. In the last several
years news reports have regularly described tight labor markets with
unemployment rates in some locales below 3%. Also, continuously there are
reports by industries and companies facing shortages of qualified, experienced
workers. Jobs with extreme supply shortages for several years have included
specialized information systems technicians, physical therapists, plumbers, air
conditioning repair technicians, and many others. Consequently, HR professionals
have faced greater pressures to recruit and train workers.
4. Demographics and Diversity
The U.S. workforce has been changing
dramatically. It is more diverse racially, women are in the labor force in much
greater numbers than ever before, and the average age of the workforce is now
considerably older than before. As a result of these demographic shifts, HR
management in organizations has had to adapt to a more varied labor force both
externally and internally. The three most prominent dimensions of the demographic
shifts affecting organizations are highlighted next.
5. Organizational
Restructuring
Many organizations have restructured in
the past few years in order to become more competitive. Also, mergers and
acquisitions of firms in the same industries have been made to ensure global
competitiveness. The “mega-mergers” in the banking, petroleum, and
telecommunications industries have been very visible, but mergers and
acquisitions of firms in many other industries have increased in recent years.
As part of the organizational changes, many organizations have “rightsized”
either by (1) eliminating layers of managers, (2) closing facilities, (3)
merging with other organizations, or (4) outplacing workers. A common
transformation has been to flatten organizations by removing several layers of
management and to improve productivity, quality, and service while also
reducing costs. As a result, jobs are redesigned and people affected. One of
the challenges that HR management faces with organizational restructuring is
dealing with the human consequences of change. The human cost associated with
downsizing has been much discussed in the popular press: a survivor’s mentality
for those who remain,
unfulfilled cost savings estimates, loss
of loyalty, and many people looking for new jobs.
Whereas many large firms have cut jobs by
reducing their workforces, many smaller firms have continued to create jobs.
This is particularly true in hightechnology industries, such as software
development. These entrepreneurial firms are faced with growth, while trying to
attract sufficient workers with flexible capabilities and to conserve financial
resources. More discussion on HR’s role in organizational restructurings is
found in Chapter 2, focusing on strategic HR planning. Consequently, in both
large and small organizations the management of HR activities is crucial.
ASSIGNMENT: - 5 marks (group assignment)
1.
Functions of management
(planning,organizing,staffing,leading,controlling)
2.
Types of managers
3.
Managerial skills
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