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    HRPM PPT 1

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    temesgen yohannes
    This document provides an overview of human resource management (HRM) and performance management (PM). It discusses key concepts such as the definition of HRM, its objectives and major functions. The historical development of both HRM and PM are covered, from scientific management to the human relations movement. The internal and external environment that affects HRM is also described. Finally, the document defines performance and performance management, outlining their features and principles.

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    HRPM PPT 1

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    temesgen yohannes
    32 views26 pages
    This document provides an overview of human resource management (HRM) and performance management (PM). It discusses key concepts such as the definition of HRM, its objectives and major functions. The historical development of both HRM and PM are covered, from scientific management to the human relations movement. The internal and external environment that affects HRM is also described. Finally, the document defines performance and performance management, outlining their features and principles.

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    This document provides an overview of human resource management (HRM) and performance management (PM). It discusses key concepts such as the definition of HRM, its objectives and major functions. The historical development of both HRM and PM are covered, from scientific management to the human relations movement. The internal and external environment that affects HRM is also described. Finally, the document defines performance and performance management, outlining their features and principles.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    32 views26 pages

    HRPM PPT 1

    Uploaded by

    temesgen yohannes
    This document provides an overview of human resource management (HRM) and performance management (PM). It discusses key concepts such as the definition of HRM, its objectives and major functions. The historical development of both HRM and PM are covered, from scientific management to the human relations movement. The internal and external environment that affects HRM is also described. Finally, the document defines performance and performance management, outlining their features and principles.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 26

    Chapter One: Introduction to HR and PM

    1.1. Concept of HR
    • What is HR?

    • Human resources -among the fundamental resources of an organization

    • HRM is components of Management, it is the process of things getting done


    with and through other people.
    • HRM- defined as the utilization of human resources to achieve
    organizational objectives.
    • HRM tries to achieve both organizational objectives and emoloyee
    satisfaction and development
    Introduction...

     HRM is:-

     concerned with the people dimension of the organizational management


     pervasive activity, i.e universal activity

     The most important or critical elements of an orgns, since people make decision for
    resources

    1.2. Objectives of HRM


     Goal achievement

     effective utilization of human resources to ognal goals


     achieve social goal ( employment & meet social needs of employees)

     Structure maintenance- improved working r/ships, maintain better structure.


    Objectives...

    • Goal harmony- meet orgnal & employee goals, satisfy


    individual and keep morals
    • Productivity improvement-continuous develop employees to
    improve productivity
    • Promotes efficiency- avoids wastage & cost effective use of
    HR.
    1.3 Major Human Resource Management
    Functions
     The ff are elements of HRM

    a) Human Resource Planning (HRP)


    • reviewing human resource requirements to ensure that the required numbers of employees,
    with the required skills, are available when they are needed
    b) Recruitment
    • process of attracting individuals in sufficient numbers and encouraging them to apply for jobs
    with the organization

    c) Selection
    • Choosing from applicants that suit the position, important to identify best qualified

    d) Orientation
    • process of familiarizing new employees with the organization job, and work unit
    HRM Elements

    e) Training and Development


    • aim to increase employee's ability to contribute to organizational effectiveness

    • Training is designed to improve present work while development is for future work

    f) Compensation Administration
    • administration of every type of reward that individuals receive in return for their services

    g) Performance Evaluation
    • formal system of periodic review and evaluation of an individual's job performance

    h) Safety and Health


    • protecting employees from injuries caused by work-related accidents

    i) Promotions, transfers, demotions and separations

    k) Human Resource Research


    1.4.Historical Development: HRM and PM

    1.4.1. Historical Development of HRM


    • Selection,training and compensation were function of traditional personnel Mgt that disregard relations to
    each other
    • HRM the extension of this traditional Mgt system

     Schools of Thoughts

    i. ScientificManagement
    ii. humanRelationsSchool

    i) Scientific Management
    • it is classical schools of thought in management designed by FrederickW.Taylor

    • The aim was maximizing profits and minimizing costs of production by getting the most out of workers,
    Taylor disliked wastage and inefficiency
    • He formulated piece-rate pay system , one who meet & exceed target would get pay increment, in this way
    he introduced differential rate system.
    Basic principles of Scientific Management

    1) The development of a true scienceof management to get a best method to perform a task
    2) The scientific selection of workers to get best suited to the task

    3) Friendly cooperation between management and labour


    4) A division of responsibility between management and labour
    • Taylor believes scientific Mgt benefits both management and workers, employees motivated by economic rewards if it
    is related to performance
     Basically scientific Mgt focuses on:
     Techniques of production
     The most efficient method
     Rigid rules of performance
     Using the shortest time possible
     Workers productivity/efficiency
     minimum cost of production hence maximum profit
     Highly refined tools and materials
     Training and closer supervision,
    ii) The Human Relations Movement

    • Focuses on the human element in the work place (designed by Elton Mayo)
    • The movement started as a reaction against scientific Mgt
    • labour is not a commodity to be bought and sold
     Human Relations Mov't concludes:
     Work is a group activity, recognition, security,and a sense of belonging is more important than
    physical rewards
     Employees are not only economic units or factors of production, informal r/ship is also
    essential
     Communicationisthelifebloodofanorganization

     information must flow freely, up,down,and horizontally via formal & informal networks
     Participative decision making, this increase satisfaction and morale
    1.4.2 Historical Development of PM

    • PM must have started when the 1st employer employeed the 1st employee.
    It is possible to say PM is as old as Mgt
    • PM goes from trait- based performamnce appraisal to development based
     Trait-based PA system

     Behavioral-based PA system (M by O)
     Result-oriented PA system and;
     Performance management
    1.4.2.1. Performance Management Philosophy

    • The term used in 1970s but recongnized in the latter half of 1980s.
    • Emphasizes the agreement of objectives and development needs and the
    importance of self-assessment and self-development
    • Positive and forward-looking which regard development as joint duties of a
    worker and manager
    • Not only measure results but also analyses the behaviors that contributed to
    those results
    • Provides more opportunities for individuals to discuss their work problems and
    aspirations with their managers
    1.5. The Environment of HRM

    • Internal and external environmental environmental factors affect HRM. The


    orgn has little or no control of the external environment.
    • The environment of an organization consists of the conditions, circumstances,
    and influences that affect the organization's ability to achieve its objectives.
     The External Environment

    • It is consists of everything outside anorganization that might affect it

    • The external environment determine the values, attitudes, and behavior that
    employees bring to their jobs
    • The external environment has two layers: General and task environment.
    The Environment...

     The General Environment: consists of the nonspecific dimensions, these includes the ff.
    1. The Economic Environment:
    • The economic variables include unemployment, demand and supply, inflation, interest rates, the labour
    market, and others

    2. The Technological Environment


    • includes advances in sciences as well as new developments in products, processes, equipment, machinery
    and other materials that may affect an organization. Advancement in technology would have implications
    of training and reduce law skill workersand increase high skill workers.

    3. The Socio-Cultural Environment


    • Involves customs, values, and demographic characteristics of the society, how employees feel about the
    orgns and social concerns are becoming more concern than economic for todays employees.
    The Environment...

    4. The Political-Legal Environment


    • Made up of the laws and regulations within which an organization
    conducts its affairs. Human resource managers must follow all laws and
    government regulations.
    5. The Physical Environment
    • Includes climate, terrain, and other physical characteristics of the area in
    which the organization is located.
    • It can help or hinder ability to attract and retain employees, Housing and
    living costs can vary from one location to another
    The Environment...

     The Task Environment

    • These are specific environmental conditions.


    • The Customers
    • The Suppliers
    • The Regulators
    • The Owners
    • The Competitors
    • The Partners
    The Environment...

     The Internal Environment


    • Exists within an organization, these includes:
    • Mission: It is reason for its existence
    • Policy: provide direction in decision making, for example these could a policy:
     To encourage all employees to achieve as much of their human potential as possible
     - To provide compensation that will encourage a high level productivity in both quality and quantity

    • Organizational Culture: Organizational culture is a system of shared values, beliefs, and habits within an
    organization that interacts with the formal structure to produce behavioral norms. These can be:
    • The organization's management
    • The organization's employees

    • The organization's structure


    • The organization's rules and procedures etc.
    1.6. PERFORMANCE MANAGEMENT

    • What is Performance?

    • What is PM?
     Performance: the act or process of carrying out a given task. It is
    fulfillment of ones duty.
     Performance Management : Has different meanings as per various
    scholars. It is a systematic approach to performance improvement
    through an ongoing process of planning, monitoring, measuring,
    appraising and developing organizational as well as individual
    performances . It is means of getting better results .
    1.6.1. Feature of PM

    • Strategic focus: broader issues facing in the env’t.


    • Integrating process: links various aspects of the firm.
    • Holistic: embracing approach to manage performance. Synergy is highly
    important.
    • Result & behavior orientated: not only results see behaviors contributing results.
    • Continuous process: is not one time event.
    • Focuses on Development: create continuous individual & orgnal learning
    env’t.
    • Involvement, communication and consensus:
    1.6.2. Principles of PM

    • Align individual performance with mission, vision & objective of the orgn.

    • Common objectives; clear what to achieve commonly, agreed goals& standards .


    • Open, positive, constructive discussion.
    • Joint responsibility of managers & employees
    • short & long term focus
    • Reward & dev’t for better performance
    • Consistency; fair treatment

    • Ethical issues; respect individual , transparency, equity, fairness, mutual respect .


    PM...

    • According to Lockett (1992), performance management aims at


    developing individuals with the required commitment and
    competencies for working towards the shared meaningful objectives
    within an organizational framework.
    • Performance management frameworks are designed with the objective
    of improving both individual and organizational performance by
    identifying performance requirements, providing regular feedback and
    assisting the employees in their career development.
    PM...

    • Its focus is on enabling goal clarity for making people do the right things in the
    right time.
    • It may be said that the main objective of a performance management system is to
    achieve the capacity of the employees to the full potential in favor of both the
    employee and the organization, by defining the expectations in terms of roles,
    responsibilities and accountabilities, required competencies and the expected
    behaviors.
    • The main goal of performance management is to ensure that the organization as a
    system and its subsystems work together in an integrated fashion for accomplishing
    optimum results or outcomes.
    Objectives of Performance Management

    1. To enable the employees towards achievement of superior standards of work performance.


    2. To help the employees in identifying the knowledge and skills required for performing the job
    efficiently as this would drive their focus towards performing the right task in the right way .
    3. Boosting the performance of the employees by encouraging employee empowerment,

    motivation and implementation of an effective reward mechanism.


    4. Promoting a two way system of communication between the supervisors and the employees for
    clarifying expectations about the roles and accountabilities, communicating the functional and

    organizational goals, providing a regular and a transparent feedback for improving employee
    performance and continuous coaching.
    Objectives...

    5. Identifying the barriers to effective performance and resolving those


    barriers through constant monitoring, coaching and development
    interventions.

    6. Creating a basis for several administrative decisions strategic planning,


    succession planning, promotions and performance based payment.

    7. Promoting personal growth and advancement in the career of the


    employees by helping them
    in acquiring the desired knowledge and skills.
    1.6.3. Benefits of PM

     General Benefits;

    • Provide clear guidance & direction


    • Clarify expectations

    • Create linkage

    • Serve as a control tool

    • Known priorities

    • Helpful for sustainable improvement

    • Increase motivation & comitment

    • People development
    1.6.4. Specific Benefits

     For employees

    • Known roles & objectives

    • Continuous support for better performance

    • Motivation & develop creativity


     For Managers

    • Clarify performance & behavioral expectation


    • Provide framework how to review performance

    • Prove team & individual performance

    • Helpful to support underperformers


    • To render non-financial benefits etc.
    Specific Benefits

     For the Organization

    • Align orgnal, individual & team objectives


    • Improve whole performance

    • Improve performance & commitment

    • Improve training & dev’t process

    • Create learning orgnal

    • Enlarge skill base

    • Used for career planning

    • Continuous improvement
    Specific Benefits

     For Customers

    • Quality of product and service


    • Consideration of interests
    • Involvement and input
     For the public in general
    • Efficient utilization of public resources
    • Economic and social advancement
    • Better moral values and qualities

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