Strat rect planning spr 2012
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This document discusses the strategic role of human resource management. It begins by noting that in today's knowledge economy, employees are as powerful as consumers were in the past. It then outlines several questions around how an organization can develop a committed and competent workforce, adapt to environmental changes, balance labor and capital needs, plan HR deployment for the future, build incentives, and safeguard company interests. The next section discusses HR principles around value creation, emphasis on performance and competence, equal opportunity, and a long-term perspective. Finally, it explains the importance of human resource strategy in defining opportunities/barriers, prompting new thinking, developing commitment to action, establishing long-term priorities, and providing strategic focus for managing business and talent.
Strat rect planning spr 2012
- 1. STRAT ROLE OF HRM In an era when intellectual capital is mightier than other physical or financial capital, the employee is as powerful as the consumer was in the age of materialism. Diedre Maken ,2000 1
- 2. STRATEGIC ORIENTATION------- HRM Committed and competent work force. How? Adapt to changes in environment. How? Balance between capital and labor. How? Planned HR deployment for the future. How? Building incentives. How? Safeguarding company interests. How? 2
- 3. HR PRINCIPLES-LG Philosophy HR Principles Policies Source of 5Different fields of Creating value for Value creation Creativity & Autonomy HR Policies customers through Organization management based on esteem for human System Emphasis on Performance Recruiting dignity. Development competence based rewards Foundation Equal Long-term Evaluation opportunity Perspective Compensation We hold the following to be our guidelines for managing human resources. Creativity & An individual’s creativity is the source of creating value. We respect diversity and autonomy so that each can Autonomy exercise his/her own creativity to the full extent . Emphasis on We have adopted competence as the most important criterion for making personnel decisions. competence Performance Rewards based on performance are essential for human motivation. based rewards Performance results will be fairly evaluated and rewarded accordingly. Equal opportunity Equal opportunity builds trust between people. We ensure everyone an equal opportunity regardless of gender, race, age, religion or nationality. Maintaining a long-term perspective is the foundation of our human resource policies. Human resource Long-term programs should be designed with a long-term perspective and implemented with dedication and persistence. Perspective 3
- 4. WHY HUMAN RESOURCE STRATEGY • Define opportunities and barriers for achieving business obj. • Prompts new thinking about issues. • Develop sense of urgency and commitment of action. • Estb selected long term courses on priority basis. • Dev strategic focus for managing business and managing talent. 4
- 5. Strategy implementation Emergent strategies HR practice Recruitment Job analysis Strategy formulation Training Job design Performance Selection External Management Development Analysis Labor Pay structure Opportunities Relations Incentives Threats Employee Benefits relations Firm Performance Mission Goals Strategic Human Resource Productivity Choice Needs Quality Skills Profitability Behaviors Culture Human resource Actions Human resource Internal Behaviors Capability Analysis Results Skills Strengths (Productivity, Abilities Weaknesses absenteeism, Knowledge turnover) Strategy 5 evaluation
- 6. Roles of HR Manager • Strategic Partner • Administrative Expert • Employee Advocate • Change Agent 6
- 7. Roles and competencies Change agent Negotiations Strategic Communications Partner Overcoming Data-based Resistance to decision-making change Legal compliance Contract Counseling Administration Developing E-HRM & HR teams Information Administrative expert systems Employee advocate 7
- 8. STRATEGIC ORIENTATION • Proactive Vs Reactive • Narrow Vs Broad • Informal Vs Formal • Loosely tied Vs Closely Tied • Inflexible Vs Flexible 8
- 9. STRAT CHOICES- RECRUITING • Make or Buy? • Degree of Tech sophistication in recruiting? • External recruiting or internal? • Untapped labor utilization? • Degree of Affirmative Action Plan? • Flexibility in HR force? 9
- 10. Firm Strategy- HR Relationships • Growth/Expansion • Aggressive hiring, promotion • Retrenchment • Layoffs, termination, ,early retirement. • Diversification • Staff configuration, promotions • Mergers/Acquisition • Corporate Acculturation, layoffs • Reassignment, layoffs • Divestiture • Decentralized hiring • Differentiation • Cost reduction, wage cuts • Low Cost Producer • Hiring specialized personnels, • Luxury/Quality special compensation pkgs 10
- 11. Examples of Organizational Strategies and Associated Human Examples of Organizational Strategies and Associated Human Resource Strategies Resource Strategies CORPORATE EXAMPLE HUMAN RESOURCE STRATEGIES STRATEGY Retrenchment Layoffs, Wage Reduction, Productivity, Increases, Job GM Redesign, Renegotiated, Labor Agreements. (Cost Reduction) Aggressive Recruiting and Hiring, Rapidly Rising Wages, Growth Intel Job Creation, Expanding Training and Development. Managed Turnover, Selective Layoff, Organizational Renewal Chrysler Development, Transfer/Replacement, Productivity, Increases, Employee Involvement. Kentucky Specialized Job Creation, Elimination of other Jobs, Niche Focus Fried Specialized Training and Development. Chicken Selective Layoffs, Transfers/Placement Job Acquisition GE Combinations, Orientation and Training, Managing Cultural Transitions. 09/21/12 21:31 11
- 12. TAHA WAHAB SYED SHIRAZ RAZA NAQVI SOURCE:PAKISTAN ECONOMICAL SURVEY 12 2005-06 12
- 13. FORECASTED POPULATION & LABOR FORCE FOR PAKISTAN INTERNATIONAL POPULATION RANK: 06TH POPULATION : 171 MILLION GROWTH RATE : 1.51% LABOR FORCE : 54.92 MILLION EMPLOYED LABOR : 51.87 MILLION UNEMPLOYED LABOR : 3.05 MILLION SOURCE:PAKISTAN ECONOMICAL SURVAY 13 2005-06
- 14. LABOR FORCE BREAK DOWN (MILLION) YEAR TOTAL RURAL URBAN 2004 45.76 31.07 14.69 2005 46.82 31.79 15.03 2006 47.67 32.37 15.3 2009 50.79 35.54 15.25 SOURCE:PAKISTAN ECONOMICAL SURVAY 14 2005-06
- 15. FORECASTED POPULATION & LABOR FORCE PROVINCIAL DISTR OF WORKFORCE/ GENDER (IN MILLION) AREA TOTAL MALE FEMALE5.05 PAKISTAN 54.92 42.44 12.48 PUNJAB 33.04 24.18 8.86 SINDH 13.46 11.31 2.15 BLN 2.17 1.90 .27 KP 6.25 5.05 1.20 SOURCE:PAKISTAN ECONOMICAL SURVAY 15 2005-06
- 16. FORECASTED POPULATION & LABOR FORCE FOR PAKISTAN (AREAWISE POPULATION) (% SHARE) YEAR TOTAL RURAL URBAN 2004 100 67.90 32.10 2005 100 67.90 32.10 2006 100 67.90 32.10 SOURCE:PAKISTAN ECONOMICAL SURVAY 16 2005-06
- 17. FORECASTED LABOR FORCE PROJECTIONS (INCREASING 0.94 MILLION PER YEAR) (MILLION) YEAR TOTAL 2006 47.67 2010 51.46 2015 56.18 2020 60.89 SOURCE:PAKISTAN ECONOMICAL SURVAY 17 2005-06
- 18. FORECASTED POPULATION & LABOR FORCE FOR PAKISTAN UNEMPLOYED LABOR FORCE (MILLION) YEAR TOTAL 2006 3.66 2010 4.29 2015 5.08 2020 5.87 SOURCE:PAKISTAN ECONOMICAL SURVAY 18 2005-06
- 19. FORECASTED POPULATION & LABOR FORCE FOR PAKISTAN UNEMPLOYED LABOR FORCE (IN % OF LABOR FORCE) YEAR TOTAL 2006 07.68 2010 08.34 2015 09.04 2020 09.63 SOURCE:PAKISTAN ECONOMICAL SURVAY 19 2005-06
- 20. FORECASTED POPULATION & LABOR FORCE FOR PAKISTAN OTHER SECTOR (EMPLOYED LABOR FORCE) (% OF employed LABOR FORCE) YEARS AGRICULTURE MINING & CONSTRUCTION MANUFACTURING 2006 2010 44% 13% 6.3% 2015 2020 SOURCE:PAKISTAN ECONOMICAL SURVAY 20 2005-06
- 21. FORECASTED POPULATION & LABOR FORCE FOR PAKISTAN OTHER SECTOR (EMPLOYED LABOR FORCE) (% OF employed LABOR FORCE) YEARS TRANSPORT SERVICES OTHERS 2006 2010 5.5% 13.7% 2.3% 2015 2020 SOURCE:PAKISTAN ECONOMICAL SURVAY 21 2005-06
- 22. FORECASTED POPULATION & LABOR FORCE EMPLOYMENT STATUS BY CLASS/REGION- 2008-09 (IN MILLION) STATUS TOTAL URBAN RURAL EMPLOYERS .47 .34 .13 SELF 17.06 4.59 12.47 EMPLOYED UNPAID 14.45 1.75 12.7 FAMILY HELPERS EMPLOYEES 17.96 8.18 9.78 TOTAL 49.94 14.86 35.08 SOURCE:PAKISTAN ECONOMICAL SURVAY 22 2005-06
- 23. PAKISTANI DIASPORA • Expand & upgrade skill/job capacity. • “Young workforce” dilemma will last up-to 2050. • Urbanization increased 7 fold. In 2030, 50% pop ratio will be urban. • 7 million Pak living abroad. Remits $ 8 bill annually. • Expand NAVTEC, SDC & CWA • Close monitoring of Key Indicator for Labor Markets (KILM). 23
- 24. RECRUITING TRENDS IN PAKISTAN 24
- 25. Changes in environment • 1. Labor force • 2. Social changes • 3. Technology • 4. Competitive forces • 5. Govt Regulations • 6. Globalization 25
- 26. WHERE DID JOBS OCCUR? DAWN EBR: 21-27 NOV PAPER AND i II III IV TOTAL QTR DAWN 2009 43 43 180 256 519 DAWN 2010 166 63 130 NA - NEWS 2009 66 127 22 32 247 DIFF - 47% 26
- 27. JOBS BY LEVEL ??? • ENTRY LEVEL 25% • MIDDLE LEVEL 33% • SENIOR LEVEL 44% 27
- 28. JOBS BY SECTOR??? • BANKING 1% • PUBLIC SECTOR ON HIGH • TELECOMM 10% • MANU 50% 28
- 29. THE PAKISTANI SCENARIO COPING WITH BRAIN DRAIN. UNEMP NUMBER PREPONDEROUS EFFECT ON EACH VACANCY EVERY CANDIDATE NOT A SERIOUS CANDIDATE. ANCHORED TO THE HOMETOWN. JOB ASSURANCE FOR TECHNOCRATS. MIDDLE MANAGEMENT GROUP BELIEVES IN HORIZONTAL MOBILITY. TESTS ARE UNSTRUCTURED AND UN VALIDATED. EVERY VACANCY IS NOT ADVERTISED A BIRD IN HAND IS WORTH TWO IN THE BUSH. 29
- 30. PERSONAL CRITERIA FOR PRE- QUALITIES & QUALIFICATION ATTITUDES Knowledge & skills (including potential) RELEVANT FOR CRITERIA FOR REECRUITMENT & EXPERIENCE IMPACT UPON NEXT SELECTION CRITERIA EDUCATION 30
- 31. RETENTION • Employee retention refers to policies and practices companies use to prevent valuable employees from leaving their jobs. 31
- 32. DUAL CAREER PATH SYSTEM • A dual-career-path system enables employees to remain in technical career or move into a management career path. 32
- 33. Ma y-0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 0 4 Ju l-0 Se 4 p- 0 No 4 v-0 Ja 4 n-0 Ma 5 r- 0 Ma 5 y-0 5 Ju l-0 Se 5 p- 0 No 5 v-0 Ja 5 n-0 Ma 6 r- 0 Ma 6 y-0 6 (Source: ROZEE.PK) Ju l-0 Se 6 p- 0 No 6 v-0 Ja 6 n-0 Ma 7 r- 0 Ma 7 y-0 7 Pak Companies Recruiting on the Web
- 34. Obtaining Greater Employee Commitment and Performance for maximum results Talat Naseer GlaxoSmithKline 34
- 35. The reality • Your company is a short stop • Globalization • Skill shortages • Dynamic work and corporate environments • Mergers and Acquisitions • Outsourcing and off shoring 35
- 36. Developing a commitment strategy • Developing Ownership • Communication Programs • Leadership Development 36
- 37. HUMAN CAPITAL Represents the human factor of the organization; the combined intelligence, skills and expertise that gives the organization its distinctive character. The human elements of the organization are those that are capable of learning, changing, innovating and providing the creative thrust which if properly motivated can ensure the long-term survival of the organization. Bontis 1999 37
- 38. HUMAN CAPITAL INDEX • HR practices can lead to 30% increase in the shareholders value creation. – total reward and accountability 16.5 % – Congenial, flexible work force 9% – Recruiting and retention excellence 7.9 % – Communication integrity 7.1% Watson Wyatt research in 2001 38
- 39. AIM OF HRM • Increase organizational effectiveness. • Manage Human Capital. • Inculcate Knowledge management • Devise reward management. • Harmonize Employee relationships. • Reduce gap between reality and rhetoric. 39
Editor's Notes
- #14: HRM SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06
- #15: HRM SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06
- #16: HRM SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06
- #17: HRM SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06
- #18: HRM SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06
- #19: HRM SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06
- #20: HRM SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06
- #21: HRM SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06
- #22: HRM SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06
- #23: HRM SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06
- #34: 09/21/12 2.21Dolphin.ppt $1.2 Billion per month in the Silicon Valley area alone! $1 Trillion rupees is 10 kharab rupees, roughly times the Pakistan military yearly budget.
- #36: Your company is a short stop Be very clear in your mind that your company is a stepping stone for many of your high potential and talented employees. Just as you use your employees to get better results and performance for the company, they use you to develop themselves, gain experience and exposure and use this base as a jump to the next position or the next company. The employment contract is two way. A WIIFM on both sides. Globalization Some of the positive effects of globalization is that it helps a company to up their standards of work, helps them to learn faster from companies that are getting it right, helps develop skills and competencies that can be transferred to virtually any corner of the globe. Some of the downsides for companies of globalization is that employees now are more technically and environmentally aware, they have more choices and options, they have removed the blinders that we thought we had put on them, The focus has moved from “ you are lucky you have a job with us” to “ you are lucky we choose you to work with”. Skill Shortages There is skill shortage in all sectors. With economic development and investment come more jobs, however are we prepared for this upsurge. Are our universities aware of the kinds of competencies that are needed and in which sectors? Unless the two are married and are working in congruence, the gap between demand and supply of good skill will continue to widen. Dynamic work and corporate environments Standards have changed, compliance has become a huge area in most corporations even local ones, as local companies often export their goods, and they also need to comply now with global compliance standards, policies and legislation, both in terms of employment conditions and in terms of quality of goods. Countries that are low cost manufacturing centers like China and India are now forces to reckon with as they are starting to become centers of excellence and will continue to take the business away from us. Mergers and Acquisitions This is a reality and the buzzword of the day is Execute or be executed. Just some example of mergers and acquisitions. GW and SB to GSK RBS and ABN AMRO ABN AMRO and Prime bank Standard Chartered and Grind lays SCB taking over Union Bank Union Texas and Amoco taken over by BP ICI being bought over by AZKO Nobel And most recently Tate Motors are bidding for Jaguar and Land Rover owned by Ford Motors
- #37: Developing Ownership A sense of belonging is enhanced if there is a feeling of ownership among employees, not just in the literal sense of owning shares (although this can help) but in the sense of believing they are genuinely accepted by management as key stakeholders in the organization. This concept of ownership extends to participating in decisions on new developments and changes in working practices that affect the individuals concerned. They should be involved in making those decisions and feel that their ideas have been listened to and that they have contributed to the outcome. Communication Program It may seem to be strikingly obvious that commitment will only be gained if people understand what they are expected to commit to, but managements too often fail to pay sufficient attention to delivering the message in terms that recognize that the frame of reference for those who receive it is likely to be quite different from their own. Managements expectations will not necessarily coincide with those of employees. And, in delivering the message, the use of different and complimentary channels of communication such as newsletters, briefing groups, videos and notice boards is often neglected. Leadership Development Commitment is enhanced if managers can gain the confidence and respect of their teams, and development programs to improve the quality of leadership should from an important part of any strategy for increasing commitment. Management training can also be focused on increasing the competence of managers in specific areas of their responsibility for gaining commitment, such as performance management.