AN INTRODUCTION TO

“MANAGING
MANAGING PEOPLE
PEOPLE”
 THE SEQUENCE

† HRM—an introduction (concept & practice)

† Gallup on “Great Managing”
† Employee Value Proposition
† “Wheel of Migration”
† Peter Principle/Parkinson’s
Principle/Parkinson s Law/Adhocracy
† “All Stars Team”—compatibility versus ability
† Greiner’s Model of organizational
g g
growth
† Re-hire policies
† Employee Engagement—Job satisfaction
† HR in practice—HR Metrics
 AN INTRODUCTION

† “In a highly competitive global economy, where the

other factors of production—capital, technology, raw
materials and information—are
information are increasingly able to be
duplicated, the caliber of the people in the
organization will be the only source of competitive
advantage…”

Allan Halcrow
Halcrow, Editor
Editor, Personnel Journal
 The 12 Elements of Great Managing
(Gallup)

† I know what is expected of me at work

† I have the materials and equipment I need to do my work right
† At work, I have the opportunity to do what I do best every day
† In the last seven days, I have received recognition or praise for doing
good work
† Myy supervisor,
p , or someone at work,, seems to care about me as a p person
† There is someone at work who encourages my development
† At work, my opinions seem to count
† The mission or purpose of my organization makes me feel my job is
important
† My associates or fellow employees are committed to doing quality work
† I have a best friend at work
† In the last six months, someone at work has talked to me about my
progress
† This last year, I have had opportunities at work to learn and grow
 The Employee Value Proposition

The Employee Life Cycle:

Attract

Develop Reward

Motivate
 THE EVOLUTION OF HRM

† The Industrial Revolution of the 18th century—

substitution of steam power and machinery for time
consuming
i h
hand-labor
d l b

† Taylor and Scientific Management

† Elton Mayo & Fritz Roelthisberger—the Hawthorne

studies

† Maslow’s Hierarchy of human needs and X and Y theories

of McGregor

† Robert Owen and the personnel reforms—Father of

Personnel Management
 The Nature of HRM

HRM considers the following:

† Being service-oriented from profit-oriented

† Considering issues such as productivity, salaries &

benefits, absenteeism, recruitment, training, layoffs, etc

† Planning for challenging, realistic and specific goals for

the HR

† Emphasizing the strategic importance of HR

 THE WHEEL OF MIGRATION
(The Business Context)

† Migration of products & services

† Migration of TALENT

† Migration of capital (availability of venture capitalists—

mobilizing funds for idea generation is possible today)

† Migration of business processes

(If H-1, H1-B visas are restricted, US companies move to
India. If nurses’ visa is restricted, London patients will
move to Chennai)

† SWOT becomes TWOS

Environment of Global Human Resource Management

EXTERNAL ENVIRONMENT
Unions Society

Techno
INTERNAL ENVIRONMENT
ns
gal Consideration

ology
Marketing Operations

Unanticipated
Eve
Leg

ents
HRM
1
Economy

Sh
Other

hareholde
Finance Safety and Functional
Areas
Health

ers
Customers ©Competition
2008 by Prentice Hall Labor Market14-9
 Behaviors Driven by HR

¾ Recruitment and Turnover

¾ Commitment to Organization
g
o Loyalty
o Effort
¾ Innovation
¾ Attitude towards customers
¾ Ability to do the job (skills)
 INTELLECTUAL BASIS FOR HR

¾ ECONOMICS: compensation/incentives

¾ SOCIOLOGY: group norms

¾ PSYCHOLOGY: motivation

¾ POLITICAL SCIENCE: the environment

 HRM Consists of:

¾ Job analysis
¾ Human resource planning
¾ Recruitment, selection,
l motivation, and
d
orientation
¾ Training and development
¾ Performance evaluation and compensation
¾ Labor relations
¾ Safety, health, and wellness, and

Equal employment opportunity (EEO) compliance

 The ALL STARS TEAM

† How to manage “talent” in an All Stars Team?

† “Talent” and “Organizational Commitment”
† “Compatibility” and “Ability”
† The Key Parameters:
* T
Talent
l t (i
(individual
di id l ability)
bilit )
* Organization capability

† Identify “zone of indifference”

 STRONG COMPATIBILITY
STRONG COMPATIBILITY
HIGH ABILITY
LOW ABILITY
Promotions need to be Average
Need totobeexcellent performers
well taken care of
Currently good performers
worked out carefully otherwise or with great potential
the organisation may
but little
the tend
they to bepotential
promoted to for development,
development change &
lose good people
fortheir
development/higher
own incompetence tasks higher tasks

In Which
High

Quadrants
+/- +/+ Do
Compatibility
Your Personnel
HJA & PPA
-/- -/+
Fit?
Low
Ability
High

TST
WEAK COMPATIBILITY
WEAK COMPATIBILITY
LOW ABILITY
HIGH
G ABILITY
Keeping too many
Below average of these
performers Work frustration, job
Not
otpeople
much
ucthey
can
ca be done
do e except
e cept Tend
Below to be outshined/
average to average
However
However, will
mayaccumulate
be competent Effective job-realignment
job
constraints
t i t realignment
andd even
outperformed
performers due
but to
duetotosustain
along
team theirof
who
years efficiency
cannot
performing can bring vast
redundancy
current
improvement
may result
job-mismatch
drive the have great potential
the company
same taskfurther
 Larry Greiner’s
Greiner s Model of
Organizational Growth

† Larry Greiner has developed a 5-stage model

of organizational growth:

¾ Growth through creativity

¾ Growth through direction
¾ Growth through delegation
¾ Growth through coordination
¾ Growth through
g collaboration
¾ Growth through alliances
 Greiner’s Curve of
Evolution & Revolution
 MAJOR ISSUES IN GLOBAL HRM
(The changing environment of HRM)

† Developing an understanding of the cultural

environment of human resource management

† Developing an understanding of the political

and legal environment of human resource
management

† Developing an international human resource

management strategy

† Virtual Teams
 THE FUTURE HR FUNCTION
(The challenging nature of HRM)

† “In India & China, the HR function has shifted from being
administrative to strategic”—D Ulrich

† Best source of “future talent” is “current talent”

o Do we re
re-hire
hire already left employees?
o Any ways to retain low-performing employees?

† Why people join an organization:

¾ Opportunities
¾ Culture
¾ Compensation
¾ Relationships
 THE CHALLENGE

† Dangers of excessive growth—quality suffers

† The paradox: if growth slows down, leadership is found

wanting!!!

† Therefore, to create value:

* Growth
* leadership
* organization branding
* competition
* cultural diversity
* (g)localization

† The question of INTEGRITY: fastest way to get fired in

GE for NOT sharing knowledge/information
GE,
 VITAL QUESTIONS

† Am I able to serve my employee: connect with him/her?

† Do I address employee issues rather than organization

issues?

† Do I enable my employee to have VOICE? (Dave Ulrich)

* Vision
* Opportunity
* Incentive, Impact
* Communication,
Communication Community
* Entrepreneurship (flexibility in terms of work)
 RETAINING TALENT

† COMPETENCE: today & tomorrow

† Assign people to different work and make them “stretch”

(thro’ training, thro’ experience)

† COMMITMENT: refer to VOICE

† The gap between CEO’s and average employee pay:

* USA—220:1 (was 80:1)
* Europe—15:1
Europe 15:1
* Japan—9:1
* UK—8:1
UK 8:1
 The role of HR in Managing People

† Workforce measurements

† Measurements of performance

† Measurements of the impact of HR policies on

performance

† Measurements of the effectiveness of managers

† HR’s role in enhancing job engagement and commitment

The Employee Proposition Model
 HR METRICS

† HR Metrics focuses on critical tools HR

professionals need, to make a tangible
connection between the firm’s talent base and
its sustainable strategic success

† Links HR strategy with business strategy

† The value add: HR Metrics decide not only on

what
h t to
t llook
k at,
t but
b t also
l how
h t tune
to t its
it
methodology to get the kind of information the
firm can use
 HR in PRACTICE (Questions)
† Percentage
P t off employees
l administered
d i i t d an employment
l t test
t t
before selection

† Percentage of employees whose jobs have been formally

defined

† Percentage of employees who are administered attitude

surveys on a regular basis

† Average number of days an employee received training in the

last 12 months

† Percentage of employees covered under formal appraisal

system
 SOME HR METRICS…
METRICS

† Overall workforce productivity: the dollar value of

the increased workforce productivity between 2009 &
2010

† Employee
p y Engagement:
g g the % of employees
p y who
“look forward to coming to work” everyday (from survey
results)

† Recruiting: the number of days key positions were

vacant, the dollar value of a bad hire in key positions

† Retention: preventable turnover in key jobs (thro’

sample exit surveys)
 SOME MORE…
MORE

† Manager Satisfaction: managers asked to rate specific

business functions contributing to their satisfaction, and also
increase in productivity

† Compensation & Benefits: % of top performing employees

that resigned for compensation related reasons

† Employee Relations: % of employees that improved on at

l
least
t one appraisal
i l rating
ti within
ithi one year

† Trainingg & Development:

p % of employees
p y that report
p
excellent training opportunities among the top three reasons
they accepted the job
 AND EVEN MORE…
MORE

† Generalist Activities: employee referral rates, as an

indication of employees’ willingness to recommend
others
o e s too the
e firm

† HR Goals Met: % of top priority HR goals that were

met or exceeded during the year

† Overall HR Costs: dollar spend on HR costs for every

d ll off revenue generated
dollar t d

The learningg for organizations:

g
* Employees should be allowed to leave if the costs to
retain exceeds the costs to replace
 A ti
Action Pl
Planning
i iin HRM

† Action: What will be done?

† Resources: What resources are required?

† Responsibility: Who will do it?

† Timing: When will it be done?

† Tracking: Who will follow up, how and when?