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HRM Slides Part 1
HRM Slides Part 1
STRATEGIC HUMAN
RESOURCE
MANAGEMENT
MBA PROGRAMME
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OBJECTIVES
Understand the role of HR in the modern organization & the
manager’s role in HR matters
Perform the HR skills to attract and retain the best talent in the
organization
CONTENT
1.Introduction to SHRM 6.Performance Appraisal
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HOW TO ACHIEVE?
Interactive
learning
Teamwork
Individual Work:
-Read the
documents
-Prepare the
case studies
-Do exercises
Teamwork:
-at class-20%
FINAL
-HR Project-30% RESULT
Individual
Assignment-
40%
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1.INTRODUCTION
TO STRATEGIC
HUMAN
RESOURCE
MANAGEMENT
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KEY CONTENT
1. Evolution of HRM
2. HR Challenges
3. Strategic HRM & Culture
4. HR: sources of
competitive advantages
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EVOLUTION OF HRM
Individual
Marketer
Innovative
Line Managers'
Responsibility
Strategic
Managerial
Psychological
Legal
Administrative
Collective
Expertise
HR TODAY
“You can get capital and
erect buildings, but it
takes people to build a
business”
- T.J. Watson (founder, IBM)
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HR FUNCTION TRANSFORMATION
Decisions
Contribute to the
Services
improvement of
Provide efficient and
organizational
Control effective services to
decisions
Comply with norms and customers
TALENTSHIP
control management HUMAN
processes RESOURCES
PERSONNEL
• Cost • Investment
• Administrative • Strategic
• Collective • Individual/Group
• Static • Dynamic
• Mechanistic • Organic
• Short Term • Long Term
• Rigid • Flexible
• Quantitative • Qualitative
• Equality • Equity
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HR ROLE
Future/Strategic Focus
Processes People
Administrative Employee
expert relations expert
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80
81 82
70
78
60
69
50
59
40
30
30 27
20
24
10 15 16
9 11
7 5 2
0
Skilled HR Innovative HR Effective HR Training HR Commitment
Competent HR
Low Medium High
90
94 91
80
82
70 78
60
50
40
42 44
30 39
20 28
10
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40 15.00%
30
10.70% 10.00%
20 26
5.00%
10
0 0.00%
Yes, but only in the Yes, company has Yes, the HRM No, the HR
leaders' mindset invested & department function essentially
change continues to invest receives support in remains
in HRM terms of HR and administrative
financial resources
Number %
46.46% 45.00%
120
118 40.00%
80
91 30.00%
25.00%
60
20.00%
40 15.00%
10.00%
20
8.66% 8.10%
22 23 5.00%
0 0.00%
Number of leaders
Very good Good Average% Weak
Source : Eduviet, Vietnam Young Entrepreneurs Association, 2011
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120
134
40.00%
100
80 31.76% 30.00%
81
60
20.00%
40
20
3411.37% 10.00%
6 2.35%
0 0.00%
Very good Good Average Weak
Number of managers %
Source : Eduviet, Vietnam Young Entrepreneurs Association, 2011
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Processes People
HR
HR 2
Employees
5
2
2
Line Managers
HR Outsource
6
3
TODAY’S CHALLENGES
Internationaliza
-tion
Local/National
Authorities
New
Technologies
Clients/
Suppliers/
Competitors
HRM
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TODAY’S ORGANIZATION
Pyramid Projects Network
HEC Survey
o 63% of 18/30 years old work < 2
years for the same employer
o 81%, if not promoted, leave in 2
years
o 90% stay longer if they receive
more training
o 97% highly appreciate the
managers who trust them &
involve them in decision
making process
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TODAY’S HR TRENDS
Local
Culture
Corporate
Culture
Micro-unit
Culture
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Vietnam 70 20 40 30 57 35
France 68 71 43 86 63 48
Germany 35 67 66 65 83 40
USA 40 91 62 46 26 68
China 80 20 66 30 87 24
Russia 93 39 36 95 81 20
Source : G.Hoftede
CLAN ADHOCRACY
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Strategic Positioner
Capability
Credible Activist
Builder
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COMPETENCES
JOB/WORK DESIGN
SELECTION /
STAFFING
PERFORMANCE
APPRAISAL
COMPENSATION /
REWARDS
TRAINING /
DEVELOPMENT
EMPLOYEE
RELATIONS
SAFETY /
HEALTH/WELLNESS
EMPLOYEES (HR)
SUCCESS FACTOR
LESS IMPORTANT MORE IMPORTANT
IMPORTANT
MORE
ENTITLED EMPOWERED
EMPLOYEES (HR)
STAKEHOLDER
IMPORTANT
LESS
TRANSIENT STRUCTURED
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VALUE OF HRM
Created Value Resources
_
Management of
+ Strategic Processes
Administration of
_ Personnel
+
2.HR
STRATEGY &
ITS LINKS WITH
CORPORATE
STRATEGY
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KEY CONTENT
1. HR Strategy
2. HR Strategy aligned with
Corporate Strategy
3. How to change HR Strategy
while business Strategy
change
Integrated to
the Strategy
Integrated Coherent
in with other
operational functional
activities strategies
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WHERE
? DO WE
WANT TO
BE
WHERE
? ARE WE
NOW
Strategy
Develop Align personal
strategic goals linked to
leadership org. goals
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Dieago
There are three broad strands to the Organization and People Strategy:
1. Reward and recognition: use recognition and reward programmes to stimulate
outstanding team and individual performance contributions.
2. Talent management: drive the attraction, retention and professional growth
of a deep pool of diverse, talented employees.
3. Organizational effectiveness: ensure that the business adapts its organization
to maximize employee contribution and deliver performance goals.
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HR Evaluation& Control
Source : adapted from Role
Strategic Noe,of Hollenbeck,
HRM Gerhart & Wright, 2010 Prof CH
Besseyre des Horts
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Example: HaYen
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HR STRATEGIES
External
Bargain Laborer Free Agent
External/Cost HR Strategy External/Differentiation HR
Strategy
Labor Orientation
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HR STRATEGIES
Commitment
Maximizers
Resource Cost
Makers Minimizers
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IMPLEMENT HR Planning
Attract
HR Recruit &
Select
STRATEGIES: Organize
HR SYSTEM
Mobilize Compensate
HRM Evaluate
SYSTEM performance
Training
Develop
Career
Development
Employement
Relations
Maintain
Culture
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Formal &
Founder takes Founder delegates professional
approach on HRM: Strategic
HRM to key managers: approach on
responsibilities: -teamwork - Reinforce HRM:
-unformal organization organization
-professional &
organization -formal process & -Focus on key strategic HRM
-flexible procedure sustainables
competencies -increase
-concentrated & -expand commitment,
limited resources recruitment -long term rewards culture
-self-motivated: -professional HRM -career -increase business
high influence of depends on development sense, flexibility
founder’s profile leader’s strategy - Professional HRM and innovation
Practice Perception
Engagement
Expectation
Explanation
clarity
Behavior Attitude
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HRM TOOLS
-HR Planning
-HR Screening
-HRIS
-Job description
-Competency dictionary
-Workload assignment
HRM TOOLS
- 2P, 3 P Compensation & Benefits
- Hay method
- C&B based on results, on
productivity
-KPI
-PA rating scale
-PA on productivity
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HRM TOOLS
-Labor regulations
-Tương tác chính thống, không chính
thống
2. HR
PLANNING &
JOB ANALYSIS
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KEY CONTENT
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SUCCESSFUL
At Right At Right HR
Right PLANNING
People Place Time
•Environmental Scan •Situation – Past, •Mission & Vision •Performance •Performance Management
Present and Future Measurement
•Background •Significant Issues •Values / Guiding •Targets / Standards of •Review Progress – BSC
Information Principles Performance
•Situational Analysis •Align / Fit with •Major Goals •Initiatives and •Take Corrective Actions
Capabilities Projects
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HR PLANNING PROCESS
Strategic HR Demand HR Supply
Planning
Annual employment Existing employment
Technology forecasts requirements: inventory:
Economic forecasts • numbers Compared After application of
Market forecasts with
expected loss and
• skills
Organizational attrition rates
planning Investment • occupation
categories
planning Annual
operating plans If
Variances none End
If Surplus If Shortage
Layoff Overtime
Action
Retirement Recruitment
decisions
Termination Contractors
End End
Top
Management
supports
HR Planning
integrated with
corporate
strategic plan
Effective
communication
between line
managers & HR
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2. Forecasting 3. Analysis of
4.Development
1. Situation demand for the supply of
of plans for
Analysis human human
action
resources resources
Example of HR Planning
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1. SITUATION ANALYSIS
Strengths Weaknesses
+>50% young HR
- Recruitment based on
+Low Turnover rate relationship
+ High Commitment -Low capabilities to change
+ Experimented key - C&B not competitive
managers
Opportunities Threats
+Rich labour resource on the -New & strict labour
market regulations
+New projects on -Increase of competitors
infrastructures
Delphi Trend
technique projection
Nominal group
Econometric
technique
modeling
(NGT)
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Leader looks
for consensus
Participants write down all ideas that occur to them, keeping their lists
private at this point. Creativity is encouraged
The idea that ranks highest among the participants is adopted as the
group’s judgment
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Productivity ratios
Historical data are used to examine past levels of a productivity index (P):
Name Description
Personnel ratios Past personnel data are examined to determine historical relationships among
the employees in various jobs or job categories. Regression analysis or
productivity ratios are then used to project either total or key-group human
resource requirements, and personnel ratios are used to allocated total
requirements to various job categories or to estimate for non-key groups.
Past staffing levels (instead of work load indicators) are used to project future
Time series analysis
human resource requirements. Past staffing levels are examined to isolate and
cyclical variation, long-tem terms, and random movement. Long-term trends
are then extrapolated or projected using a moving average, exponential
smoothing, or regression technique.
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Regression Analysis
1. Statically identify historical predictor of workforce size
Example: FTEs = a + b1 sales + b2 new customers
500
400
300
200
100
0 10 20 30 40 50 60
Sales (thousands)
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Qualitative Quantitative
method method
Skills Turnover
Inventory analysis
Succession Markov
planning analysis
identify
determine assess longer Skills Inventory
which skills term recruitment, Consolidates basic
qualified
are present selection and information on all
employees
or lacking in training and employees within the
for different
the development organization
jobs
organizations requirements
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Succession planning
•Analyze demand for managers/professionals
1
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FOR EVERY 12 APPLICATIONS RECEIVED, ONLY 1 LOOKS PROMISING ENOUGH TO INVITE FOR AN
INTERVIEW
OF EVERY 5 PERSONS INTERVIEWED, ONLY 1 IS ACTUALLY OFFERED A POSITION IN THE
ORGANIZATION
OF EVERY 3 JOB OFFERS MADE, ONLY 2 ACCEPT THE POSITION
OF EVERY 10 NEW WORKERS WHO BEGIN THE TRAINING PROGRAM, ONLY 9 SUCCESSFULLY
COMPLETE THE PROGRAM
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Markov Analysis
• Mathematical technique
• Forecasts the availability of internal job candidates
• Assumes that the movement of personnel among
various job classifications can be predicted from past
movements
• Its use is restricted to very large organizations
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Increase
Increase Increase Buy back
overtime or
subcontracts productivity holidays
part-time
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JOB ANALYSIS
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Staffing
Tasks Responsibilities Duties
Training and
Development
Performance
Appraisal
Job
Descriptions Compensation
Job Safety and Health
Analysis
Job Employee and Labor
Specifications Relations
Legal Considerations
4-98
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Staffing
Career Training
Development &Development
JOB
ANALYSIS
Labor Relations Performance
Appraisal
Compensation
4-99
JOB
JOB JOB
REQUIRE
CONTENT CONTEXT Job position in
Job Objectives/ MENTS
the structure: Knowledge,
General Mission Power, Link with Skills, Ability
& Function other jobs
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ILLUSTRATIVE
HUMAN RESOURCE MANAGER
COMPETENCY MODEL
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Interview
JOB
ANALYSIS
METHOD
Critical Incident
Technique Observation
Task Analysis
Inventory
106
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Critical-Incidents Technique
• Critical-incidents technique identifies good and bad on-the-job
behaviors.
• Job agents are asked to generate a number of statements that
describe behaviors they consider particularly helpful or harmful
for accomplishing work
• Each statement includes a description of the situation and the
actions that determined whether the outcome was desirable
or undesirable
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Source: Michael G. Aamodt, Robert J. Keller, Krista J. Crawford, and W. Kimbrough, 1981
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4.
RECRUITMENT
& SELECTION
CHALLENGE OF RECRUITMENT
Top job functions that companies are
concentrating recruitment efforts:
60%
Top Talents
are rare 55%
50%
High 40%
awareness
on the 30%
35%
value of
intellectual
capital 20%
Lack of Talent 20%
people will limit the
10%
organizational
growth & success
0%
Marketing Technical/Industry Sales/Business
Specialist Development
114
Source: Watson, 2014
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CHALLENGE OF RECRUITMENT
18.00%
15.90% 16.10%
16.00% 15.50%
13.90%
14.00% 13.60%
12.70%
12.00%
11%
10.40%
9.90% 10%
10.00% 9.30%
9%
8.00%
6.00%
4.00%
2.00%
0.00%
High Tech Pharma Financial Services Insurance Manufacturing Overall
Average Median
Source: Watson, 2014
115
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RECRUITING STRATEGIES
Broad skill scope strategy
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119
RECRUITMENT PROCESS
Review Job
Job opening description &
HR Planning
identified Job
Specification
Define Select
process of sources & Specify Job
Recruitment methods of Requirements
Advertising recruitment
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RECRUITMENT METHODS
Costs
Head-Hunters
External Advertising
Competitors
Schools
Associations
Social Media
Employees/Friends referrals
Succession Planning
Rehiring
121 Effectiveness
122
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QH = (PR + HP + HR)/N
Productivity where
Costs
QH = quality of recruits hired
PR = average job performance
ratings of new hires
HP = percent of new hires
promoted within one year
Quality Time HR = percent of new hires
retained after one year
N = number of indicators used
123
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SELECTION STRATEGIES
Long-term Generalists
Short-term Generalists
knowledge concerning how of special skill or ability.
things are done in a specific This is most often associated
organization. with the Bargain Laborer HR
Beneficial for organizations strategy.
using the Loyal Soldier HR The objective is to identify and
strategy. hire employees to produce
HR strategy is focused on low-cost goods and services.
keeping employees once To selection people who can
they are hired perform simple tasks that
require little specialized skills
SELECTION STRATEGIES
Long-term Specialists
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127
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Organizati
Job
on based-
based-fit is concerned with
fit
seeks to match an how well the
individual’s individual’s
abilities and characteristics
interests with the match the
demands of a broader culture,
specific job values, and norms
of the firm
129
SELECTION METHODS
Structured Interviews
Unstructured Interviews
Interview
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131
Example
Question: “The performance of one of your direct reports has changed for the worse. At your annual
salary meeting you have to explain to him that he will not receive an increase in salary but his
colleagues will. How do you behave?”
Standard answer 1 (0 points): “I tell the employee that I myself would be willing to increase his salary, but
the company policies do not allow for any salary increases”.
Standard answer 2 (2 points): “I tell the employee that his performance has worsened and thus he would
not receive any salary increase”.
Standard answer 3 (4 points): “ I tell the employee that I am worrying about his worsening performance
and explain to him the correlation between performance and his personal income. I am discussing with
the employee what could be the reason for the bad performance and how he could improve it again. I
promise that his loss of salary will be compensated if he would successfully improve his performance
during the year to come. 132
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Example
Question: “You most likely did support one of your colleagues at work in certain
situations. How did you recognise that he or she did need your help? What did you
do to help him or her?”
Standard 2 (2 points): Situation in which the colleague asked explicitly for support, the
support was only immediate and did not further qualify the colleague
Behavioural
• Research has shown that past behaviour is often the best indicator
of future performance. Asking behavioural questions enables you
to obtain evidence of how the candidate is likely to carry out a
task or exhibit a skill in the future
Probing
• Example: “That's interesting, can you tell us more about what you
did?”
• You may need to follow up your initial set question if you wish to
pursue a particular point further to obtain fuller information
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STAR MODEL
136
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STAR TECHNIQUE
Explore the opportunities and experience in this one competency :
“Give me a brief overview of the different opportunities you have had to communicate.”
STAR TECHNIQUE
Situation or Task
• Describe the situation that you were in or the task that you needed to
accomplish
• You must describe a specific event or situation, not a generalised description of
what you have done in the past. Be sure to give enough detail for the
interviewer to understand. This situation can be from a previous job, from a
volunteer experience, or any relevant event
Action you took
• Describe the action you took and be sure to keep the focus on you. Even if you
are discussing a group project or effort, describe what you did - not the efforts
of the team. Don't tell what you might do, tell what you did
Results you achieved
• What happened? How did the event end? What did you accomplish? What
did you learn?
Can also be used by interviewee to prepare himself/herself for the interview
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140
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RETURN ON HR INVESTMENTS
141
142
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5. TRAINING &DEVELOPMENT
CHALLENGES OF TRAINING
120 40.00%
30.00%
80
25.00%
60 20.00%
6319.69%
13.75% 15.00%
40
44
10.00% 10.00%
32
20
5.00%
0 0.00%
Yes & good implementation Yes but not good implementation No yet, in process of building plan No yet
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CHALLENGES OF TRAINING
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Satisfied Higher
customers Retention
T&D
Employee Adaptation
Performance to changes
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Top Management
support
Internal Issues
Technological
advances
Market
Complexity
TRANSFE-
REPETITION RENCE
RELEVANCE
150
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EMPLOYEES: HR
MANAGER:
Determine
Design,
Cooperate
Support
Engage
Inform, Train,
Evaluate Evaluate
T & D COSTS
Visible Hidden
Costs Costs
Development Trainee
Costs Compensation
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T & D PROCESS
ORGANIZATION PERSON
AL ANALYSIS TASK ANALYSIS ANALYSIS
A process used Which involves process used to
to identify identifying the identify who
characteristics tasks performed needs training
of the by trainees and and what
organizational the knowledge characteristics
environment and skill of those
that will necessary to individuals will
influence the perform the influence the
effectiveness of tasks effectively effectiveness of
training training
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+ ? ?
? ?
-
- + Urgent
Performance
Survey
Appraisal
Reports
Test
Analysis
Team Issues
Analysis
156
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- Benjamin Franklin
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Program Evaluatio
T&D
Program Structure T&D n Criteria
Support
Duration Location &
Instruction resources
Methods
Methods
161
162
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FACTORS TO CONSIDER
FOR SELECTING T&D METHODS
Learning
Objectives
Attitude &
Pedagogic Ability of
al Method learners
T&D Method
Complex
Time of level of
learning content
Scope of Practice
learning levels
163
• Participan
t Selection • Feedback
• Physical & mechanis • Enthusiasm
psycholog Learning m • Pedagogic
Learn ical Context • Communic Trainer al Methods
ers preparatio ation & Skills
n • Physical • Preparatio
• Need to Supports n
learn
164
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165
KIRKPATRICK MODEL
Level Evaluation Dimension Key Issues Tools
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Feedback to Trainers
Feedback to Learners
84