,People Management
CHAPTER 1 – Introduction
1. What?
PEOPLE MANAGEMENT:
§ Organisational structure/culture, leadership, motivation
§ Human Resource Management (HR cycle – “hire to
retire”)
§ HR communication (skill labs)
2. Why?
REASONS TO CARE ABOUT HRM:
§ Importance human capital/competitive advantage
§ Executing organisational strategy
§ Increase corporate profit
à example: a bank in Canada with 30 000 employees estimated it saved $7 million in one year by
executing an HR manager’s advice to install a computerized absentee-reporting system.
3. How HRM evolved
à How to manage workers is an age-old problem
§ Industrial revolution & mass production
§ => high productivity => need for management and structure
MOVEMENTS THAT SPARKED INTEREST:
a) Scientific management (Taylor)
§ What is the most efficient way to execute work?
§ Time-and-motion studies
§ Performance-related pay
b) Human relations
§ Hawthorne effect (the alteration of behaviour by the subjects of a study due their awareness of
being observed)
§ Impact social function work and social interaction
c) Industrial and organisational psychology
§ Study of individual differences employees
SOME CHANGES THAT TRANSFORMED THE PERSONNEL ADMINISTRATION TO AN HR
DEPARTMENT:
§ Need for self-actualisation
§ Rapidly changing technology
§ Globalisation
§ Employability & competency
§ Importance for P-O fit and branding
à Mechanistic and routine-oriented workforce to a knowledge based workforce
à Cost factor to a profit centre
People Management 2
, 4. Definition – In general
è HRM is the attainment of organisational goals in an efficient manner through:
§ Planning
§ Organising
§ Leading
§ Controlling human recourses
While respecting the reciprocal relationship between individual and organisation
=> HRM prevents, supports and cures.
MORE SPECIFIC:
à HRM is a specific approach to personnel management that:
§ Aims to acquire and maintain a competitive advantage
§ By strategically deploying engaged and competent employees
§ Using diverse HR techniques
, EXAMPLE: NATURA COSMETICS (BRASIL):
Vision: due to our corporate behaviour, the quality of the relations we establish and our products and
services, we will be a group of brands with strong local and global expression, identified with the
community of people committed to building a better world through a better relationship with themselves,
with others, with the nature of which they are a part.
Reason for being: Our reason for being is to create and sell products and services that promote
wellbeing/being well.
Our values:
§ Sustainable development
§ Environmental commitments
§ Economic commitments
§ Social and charity commitments
CASCADE OF GOALS: FROM ORGANISATIONAL TO INDIVIDUAL GOALS:
2. Organisational strategy & HR
è Strategic HRM=
§ External fit: alignment HR practices and organisational
strategy
§ Internal fit: alignment different HR practices
REALISING STRATEGIC ALIGNMENT:
I. Are corporate values implemented in HR practices
(as perceived by employees),
à Cultural audit = Organisational Effectiveness survey
II. Eliminate wastage and increase speed, quality and
accuracy.
è Need upgrade skills worker’s factory floor => training initiative
§ Assessing operational competence gaps (personal and team)
§ Training $16 100 (own curricula + partner)
§ Design: measure progress trainees
à Results:
§ ROI of 25.75% over 40-week period
§ Practice award from the American Society of Training and Development
EXAMPLE INTERNAL FIT: HR techniques that encourage and maintain autonomous work groups.
People Management 4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ibmfromhome. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.88. You're not tied to anything after your purchase.