Fundamental of Human Resources Management UNITAR Fellowship Program for Afghanistan Final Workshop December 10, 2012, MoF Kabul

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1 Fundamental of Human Resources Management UNITAR Fellowship Program for Afghanistan Final Workshop December 10, 2012, MoF Kabul Presented by Musa Kamawi UNITAR Honorary Faculty Member 1

2 Contents Introduction to HRM Functions Why is HR Management Important Line Manager HR Responsibilities HR And Competitive Advantage High Performance Work System Aligning Strategy 2

3 Introduction to HRM 1. Two questions: Does it matter? 2.Why does it matter? What is HRM? Organization s methods and procedures for managing people to enhance skills and motivation Activities to enhance the organization s ability to attract, select, retain and motivate people 3

4 HR Functions: What We ll Be Looking At Planning Performance Evaluation Legal Compliance Employee and Labor Relations Staffing Training And Development Monitoring Performance Reward Systems 4

5 Why is HR Management Important to All Managers All managers are, in a sense, HR managers, since they all get involved in activities like recruiting, interviewing, selecting and training. HR management is important because managers don t want to make the following mistakes: Hire the wrong person for the job Experience high turnover Have your people not doing their best Wa s t e t i m e w i t h u s e l e s s interviews Have your organization taken to court because of discriminatory actions Have some employees think their salaries are unfair and inequitable relative to others in the organization. Allow a lack of training to undermine your department s effectiveness Commit any unfair labor practices 5

6 Line Managers HRM Responsibilities Placing the right person on the right job Starting new employees in the organization (orientation) Training employees for jobs that are new to them Improving the job performance of each person Gaining creative cooperation and developing smooth working relationships Interpreting the organization policies and procedures Controlling personnel cost Developing the abilities of each person Creating and maintaining department morale Protecting employees health and physical condition 6

7 What a manager should know about? Equal opportunity and Affirmative action Employee health and safety Handling grievances 7

8 Consider HR s rebirth Don t consider resource as expense Don t make human resources the focal point of cost cutting. Avoid talent retention to became talent rationalization. Think about the capacity development based on the needs and avoid training became a discretionary expense 8

9 Human Resources and Competitive Advantage The basic idea: establishing and maintaining competitive advantage through people. Competitive advantage: Valuable, rare, inimitable, non substitutable Achieved not through strategy, but strategy implementation 9

10 Competitive Advantage Through People Viewing the work force as an asset, not an expense The result: Harder work, from increased involvement and commitment Smarter work, through enhanced skills and competence Lower overhead, by pushing responsibility downward High performance work systems 10

11 High-Performance Work Systems: The Seven Practices 1. Employment security 2. Selective hiring 3. Self managed teams and decentralized decision making 4. High compensation, based on organizational performance 5. Extensive training 6. Reduced status distinctions 7. Extensive information sharing (both financial and performance) 11

12 Aligning Strategy and HR Determine the organization s strategy Determine the competencies needed to carry out the strategy Examine current management practices Determine congruence Do the current practices work to enhance needed competencies? Are the current practices internally consistent? 12

13 External Influences on HRM Economic conditions Legal requirements and constraints Demographics Technology 13

14 General Economic Conditions Global economy ú Lower wage levels vs. quality and productivity ú Ethical issues and political considerations Domestic factors ú Move from manufacturing economy to service / information economy 14

15 Legal Requirements and Constraints Government is now an intermediary in the relationship between employers and employees. Legal requirements and constraints are usually a reflection of social attitudes and opinions 15

16 Demographics Supply of labor (number of people, skills, etc.) New skills needed, but are they present in workforce? Basic skills availability? Different needs of different groups in the population Increasing number of women in paid workforce Dual-earner families Family friendly benefits Aging population 16

17 Technology New jobs; old jobs vanish Need for new skills Need for continuous skills development Managing the HR function Data management Employee communications 17

18 18

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