Strategia zmian dla firmy EUROsport:

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HUMAN RESOURCE
MANAGEMENT
Human Capital Management
- introduction
Dr. Marian Krupa
agenda
1. Introduction to General Management (GM)
2. Human Resources Management (HRM) –
overview
3. HRM and Business Cycles
1. Introduction to
General Management
(GM)
Key Questions
 What is (HR) management?
 Who are (HR) managers?
 What do (HR) managers do?
 What is organization?
 Why study (HR) management?
?
What is management?
 Coordinating work activities so that they are
completed efficiently and effectively with and through
other people.
Robbins, Coulter,
Management,
Pearson/Prentice Hall,
USA 2005, p. 7.
 Wealth creating activity.
 The art of using human and material resources to
produce and market goods and services
Archer, An Introduction to Canadian Business, McGraaw-Hill Ryerson Ltd, Canada 1982, p. 450.
What is management?
Efficiency and effectiveness ?
Efficiency is „doing things right”.
Effectivness is „doing the right things right”.
Efficiency – ability to achieve high levels of output with a
given resources.
Effectivness performed efforts support the stated goals of
the business.
R. Schulteis, M. Sumner, Management Information Systems, Irwin, USA 1989, p. 68.
What is management?
 Objectives
 All about decisions
 Risk taking
 Problem solving
 Asking right questions
 Satisfying people
 Planning, organizing, directing & controlling
Robbins, Coulter, Management, Pearson/Prentice Hall, USA 2005, p. 9.
Who are managers?
Persons who are capable of asking right QUESTIONS!
What is management?
 Someone who works with and through
other people by coordinating their work
activities in order to accomplish
organizational goals.
Robbins, Coulter, Management,
Pearson/Prentice Hall, USA 2005, p. 5.
 Someone who works with people
through people for people.
What do managers do?
?
What do managers do?
 Make decisions – solve problems
 Take risk – create value
 Learn and teach others
 Deliver customers’ satisfaction
 Work and communicate with people
 Create and implemment business strategies
 Plan, organize, direct & control
What do managers do?
Managers Profiles?
 Functions
 Personality
 Roles (Mintzberg)
 Values
 Skills
 Experiences
What do managers do?
SKILLS
- Conceptual skills
?
- Communications skills
- Effectivness skills
- Interpersonal skills
Robbins, Coulter, Management,
Pearson/Prentice Hall, USA 2005, p. 12-13.
What is organization?
?
What is organization?
 Deliberate arrangement of people to
accomplish some specific purpose.
Robbins, Coulter, Management,
Pearson/Prentice Hall, USA 2005, p. 16.
 Every organization is defined by:
Purpose, Integration, Cooperation,
Border, Recurrence
A. Bednarski
What is organization?
?
The External
Environment
What is organization?
© Prentice Hall, 2002
What is organization?
2
1
4
?
3
Why study management?
 Passion – it is your hobby
 Vision, new business idea
 Business experience
 Universality of management
principles
 ?
Why study management?
© Prentice Hall, 2002
Rewards of Being a Manager
 create an environment that
allows others to do their best
work
 provide opportunities to think
creatively
 help others find meaning and
fulfillment
 meet and work with a variety of
people
© Prentice Hall, 2002
?
Why to work as a manager –
Why to be in the business?
BAD REASONS:
GOOD REASONS:
 No other choice
 Passion
 To be your own boss
 Access to the market
 To be a rich person
 Excellent new idea
 Personal savings
 Investment capital
 Tradition (family)
 Opportunity (?)
 ?
 ?
Planning labor needs and
production process
development
Practice
Graph 1. The Technological Process
INPUT
Raw
materials
OUTPUT
Workplace
A
(12 pieces)
Workplace
B
(3 pieces)
Workplace
C
(6 pieces)
Workplace
D
(12 pieces)
Final
product
Table. Production costs – labor costs (salaries):
Work station
A
B
C
D
Rate [$/hour]
4
2
6
4
Labor hours
8
8
8
8
TOTAL:
Total [1 shift]
32 $
16 $
48 $
32 $
128 $
Table 2. Gantt’s Charts – real production performance
Time/h
Wrkstation
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
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17
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18
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22
-
25
25
25
25
25
0
0
0
25
25
25
25
25
0
0
0
0
100 100 100 100 100
0
0
0
100 100 100 100 100
0
0
A
%
B
%
C
%
0
0
50
50
50
50
50
0
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50
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0
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D
%
In Search of the New Economy
Universal / Contemporary
Management ?
In Search of the New Economy
PRIORITIES!
People
Money
Conflict
Ethics
Information
Value
Competition
Profit
Organizations
Communication
Technology
Skills
Management
Innovation
Decisions
Risk Transport
Planning
Motivation Culture
Taxes Recources Control
Capital
In Search of the New Economy
Knowledge
Illustration. Impact on the Knowledge Economy. [Source: Jürgen Kreuziger, Solutions for the Knowledge
Worker, The my SAP Business Intelligence Conference, Hamburg 2000].
In Search of the New Economy
Knowledge
Value
(Intangible)
Illustration . Evolution of Corporate Value. [Source: Jürgen Daum, Value Based Management
for the New Economy, The my SAP Business Intelligence Conference, Hamburg 2000].
In Search of the New Economy
Knowledge
Value
(Intangible)
Electronic
Market
E-commerce
Government-to-Business
(G2B)
All transactions between
companies and
government agencies
Business-to-Business
(B2B)
All transactions between a
company and its suppliers
E-Commerce
Business-to-Consumer
(B2C)
Electronic retailing
Consumer-to-Consumer
(G2C)
Electronic markets formed
Illustration. The New Economy is Radicly Altering Value Chains. Source: Jürgen Daum, Value Based
bymyWeb-based
auctionsConference, Hamburg 2000.
Management for the New Economy, The
SAP Business Intelligence
In Search of the New Economy
Knowledge
Value
(Intangible)
Electronic
Market
Customer/
Branding
Illustration. Value Networks Decapitalize the Traditional Business Model. [Source: Jürgen Daum, Value
Based Management for the New Economy, The my SAP Business Intelligence Conference, Hamburg
2000].
In Search of the New Economy
Knowledge
Value
(Intangible)
Electronic
Market
Customer/
Branding
Networking
(Global)
Illustration. The Big Picture of the e-Buisness in the XXI Century. [Source: Oliver Edinger, Managing External
Communities with mySAP Workplace, The my SAP Business Intelligence Conference, Hamburg 2000].
In Search of the New Economy
Knowledge
Value
(Intangible)
Electronic
Market
Customer/
Branding
Networking
(Global)
People
(Cultures)
http://www.sap.com
What makes the difference?
7 As
1. Ability to attract knowledge (Customer/Branding)
2. Ability to create VALUE from human innovation (CREATIVITY)
3. Ability to built long lasting business networking
4. Ability to think internationally / globally
5. Ability to communicate within cross-culture organizations
6. Ability to implement information technology
7. Ability to promote „human touch” environment
2. Human Resources
Management (HRM)
- overview
HRM – definition?
HRM – KEY FUNCTIONS: practices and polices you need to carry
out the people and personnel aspects of your management job.
?

Conducting job analysis

Planning labor needs

Selecting, recruiting job candidates

Orienting and training new employees

Managing (negotiating) wages and salaries

Appraising performance, providing incentives and benefits

Communicating

Training, developing, building employee commitment
G. Dessler, Human
Resources Management,
Prentice Hall Int., New
Jersey, USA, p. 2.
HRM – definition?
Why is HR management Important to Business?
G. Dessler, Human Resources
Management, Prentice Hall Int., New
Jersey, USA, p. 2.

Hire a wrong person for a job

Experience high turnover

Find your people not doing their best

Waste time with useless interviews

Have your company taken to court because of your
discriminatory actions

Have your company cited under national occupational safty
law for unsafe practices
HRM – definition?
Why is HR management Important to Business? (2)

Have some of your 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

?
G. Dessler, Human Resources Management, Prentice Hall Int., New Jersey, USA, p. 3.
Method and techniques
of HR Management
Method
METHOD - a particular way of doing sth: a
reliable / effective / scientific method of
data analysis.
- A new way of solving the problem
- The best solution for arriving at an accurate
prediction of the costs.
Oxford Advanced Genie
Technique
TECHNIQUE - a particular way of doing sth,
especially one in which you have to learn
special skills.
Oxford Advanced Genie
Principle
PRINCIPLE –
 a moral rule or a strong belief that influences your
actions;
 a belief that is accepted as a reason for acting or
thinking in a particular way;
 a general or scientific law that explains how sth
works or why sth happens.
Oxford Advanced Genie
Methodology
METHODOLOGY - a set of methods
(techniques) used to perform a particular
activity.
Oxford Advanced Genie
Scientific method
SCIENTIFIC METHOD - In science in general,
method is a codified series of steps taken to
complete a certain task or to reach a certain
objective, see also algorithm, methodology.
http://en.wikipedia.org
Scientific method
SCIENTIFIC METHOD - Scientists use observations,
hypotheses, and logic to propose explanations for
natural phenomena in the form of theories.
Predictions from these theories that can be
reproducibly tested by experiment are the basis for
developing new KNOWLEDGE (technology).
http://en.wikipedia.org
Methods and Techniques
- definition
Method vs Technique:
Method
Level of perception
Technique
X
Model (theory)
X
Concept, principle, rule
X
X
Means
X
X
Tools
X
X
Procedure
X
X
„Best practices”
 Means – the way that any given problem can be solved – concept implemetation – e.g. a table, graph.
 Tools – physical thing that implements the mean – e.g. a paper, pencil, computer, software, calculator.
Methods and Techniques
of HR Management
http://www.valuebasedmanagement.net
ISHIKAWA
Diagram
ISHIKAWA diagram
ISHIKAWA diagram is a graphical
method (technique) for finding the
most likely causes for an undesired
effect.
The method was first used by Kaoru
Ishikawa in the 1960s.
http://en.wikipedia.org
ISHIKAWA diagram
ISHIKAWA diagram the fishbone
diagram is a technique used in a root
cause analysis.
Because of its shape, it is also known
as the fishbone diagram.
http://en.wikipedia.org
ISHIKAWA diagram
http://silosandsmokestacks.org
ISHIKAWA diagram
MANAGEMENT
PURCHASING
Lack of competent
translator
Low level of IT support
Management is not interested in
complaints monitoring
Resources
Problems with business
partner’s communication
Work overload
PERSONNEL
Lack customers’ needs
knowledge
Low level of product
quality
Unappropriate
transport
Lack of product
knowledge
Holidays
Late orders
fulfilment
Lack of monitoring of
sales
Others
SALES
Partner
Loyalty
Late deliveries by
foreign partners
MARKET
Problems
with
SALES
?
ISHIKAWA diagram
Road map description / procedure:
1. Define the problem (100%)
2. Present key factors of the problem (weights/%)
3. Define detail characteristics of all key factors
4. Deliver the solution for any given problem
5. Present your diagram graphicly
Communication and HRM
ISHIKAWA Diagram
– Voyant Technologies case
PROJECT – questions?
Communication barriers at Voyant
1. What barriers to communication were evident at Voyant?
2. What other communication barriers likely existed?
3. What and why were the structural changes important to
the success of the communication changes?
Robbins, Coulter, Management, Pearson/Prentice Hall, USA 2005, p. 927.
Project
ISHIKAWA DIAGRAM - cause & effect
0%
0%
0%
Communication
barriers
0%
0%
0%
0%
Project
ISHIKAWA DIAGRAM - cause & effect
20%
100%
MARKETING
25%
LOGISTICS
FINANCE
10%
5% a
5% f
5% k
25% b
25% g
25% l
35% c
35% h
35% m
5% d
5% i
5% n
30% e
100%
30% j
100%
30% o
KEY problem
100%
5% p
100%
5% x
100%
5% qq
100%
25% r
25% y
25% rr
35% s
35% z
35% tt
5% t
5% xx
5% vv
30% w
30% zz
30% bb
25%
INNOVATION
15%
PRODUCTION
5%
ADMINISTRATION
3. HRM
and
Business Cycles
How Business cycles impact HR decisions?
1. What is the level of employment?
2. What is a strategy of wage increase?
3. What is the training policy?
4. What is nonfinancial benefits package strategy?
Business Cycles –
background
Background
A free market economy does not grow at a constant rate.
It goes through a series of booms and busts called the
business cycle.
http://www.cssd.ab.ca
Background
http://www.digitaleconomist.com/
Background
http://ingrimayne.saintjoe.edu/
Background
http://www.hm-treasury.gov.uk
Background
The key questions ?
What makes the economy to fluctuate?
What are the main reasons for that?
How business cycles impact HR decisions?
Business Cycles basic definitions
Definitions
Business Cycles – expansions and contractions in
the volume of economic activity.
Bronfenbrenner, Sichel, Gardner, Economics, Houghton Miffilin Company Boston, 1987, p. 184
The Business Cycle (economic cycle) refers to the
ups and downs seen somewhat simultaneously in
most parts of an economy.
http://en.wikipedia.org/wiki/Business_cycles
Background
The Business Cycle refers to the continuous ebb
and flow of business activity that occurs around any
long-term trend after seasonal patterns have been
removed.
Lipsey, Purvis, Steiner, Economics, Harper & Row, New York 1985, p. 552
Background
The Business Cycle model consists of four stages:
• Recession
• Depression
• Recovery
• Prosperity (Growth)
Business Cycles
(Joseph Schumpeter)
Recession Depression
http://en.wikipedia.org/wiki/Image:Business_cycle_01.png
Recession

Demand for goods and services is falling down

Production and employment is falling as well

Households’ income is decreasing

Profits of business activity are smaller / many bankruptcies

No more investment to new venture

Stock in warehouses is growing

General economic instability

Falling Currency

Falling consumers’ confidence

HR?
Depression

Demand for goods and services is falling down even further

Production and employment is on a minimum level

Households’ income is low – no credit consumption

Profits of business activity are very low / even more bankruptcies

All new ventures and investments are very risky

Stock in warehouses are empty

General economic pessimism

Low value of the currency

Low consumers’ confidence

HR?
Trough (bottom)

High unemployment – low inflation (deflation)

Production on a minimum level of its capacity

Profits are very low

General economic performance – stable indicators

General lack of confidence

HR?
Recovery

Demand for goods and services is still very low, however there are some signs
in the rises of retail sales

Production and employment is on a minimum level

Households’ income is low – some credit consumption

Profits of business activity are low / no more bankruptcies

All new ventures and investments are becoming very attractive

Stock in warehouses is rising - some economic optimism

Rising value of the currency

Rising level of new investments – new technology

Expatiations become more favorable as a result of increases in production,
sales and profit
Prosperity / Growth

Demand for goods and services is rising dramatically – rapidly disappearing
stock has to be replaced by only new investments and hiring

üHouseholds’ income is high – heavy credit spending

Profits of business activity are very high

All new ventures and investments are becoming even more attractive with
low risk level

Stock in warehouses is falling and at the certain point - rising

Very big general economic optimism

Stabilizing value of the currency

Increase of demand above supply level generates inflation (increase of price
for consumers’ and productions’ goods and services
Peak (boom)

High degree of utitlization of existing capacity

Labor shortages – significant rise of wages

Shortages of strategic raw amterials (oil, steel, energy)

Significant raise of inflation

Crash on a stock market !!!
Historical data on
Business Cycles
Historical Data
www.angelfire.com
Historical Data - USA
http://www.phschool.com
BUSINESS CYCLES
and
HRM
Practice
Indicators
1.
GDP (GNP) Economic Activity
2.
Sales (Outlet Stores)
3.
Warehouse (Stock level)
4.
Investments (Factories)
5.
Inflation Rate (Price stability)
6.
Bank Rates % (Central Bank Rate)
7.
Unemployment (Job Market)
8.
Wages (Personal Income)
9.
Consumers’ Optimism
10.
Stock market (Earnings/Value)
11.
Oil Price (Raw materials)
12.
Gold price (Strategic / Risk)
13.
Currency (Exchange Rate)
?

Business Cycle – practice test
Indicators
GDP (GNP)
Economic Activity
Sales
(Outlet Stores)
Warehouse
(Stock level)
Investments
(Factories)
Inflation Rate
(Price stability)
Bank Rates %
(Central Bank Rate)
I – RECESSION
II – DEPRESSION
III – RECOVERY
IV – GROWTH
(Crisis/Contraction)
(Slump)
(Expansion)
(Boom)









?












?

Indicators
Unemployment
(Job Market)
Wages
(Personal Income)
Consumers’
Optimism
Stock market
(Earnings/Value)
Oil Price
(Raw materials)
Gold price
(Strategic / Risk)
I – RECESSION
II – DEPRESSION
III – RECOVERY
IV – GROWTH
(Crisis/Contraction)
(Slump)
(Expansion)
(Boom)


?

?











?
?
?
?




Indicators
Currency
(Exchange Rate)
I – RECESSION
II – DEPRESSION
III – RECOVERY
IV – GROWTH
(Crisis/Contraction)
(Slump)
(Expansion)
(Boom)




Indicators
GDP (GNP)
Economic Activity
Sales
(Outlet Stores)
Warehouse
(Stock level)
Investments
(Factories)
Inflation Rate
(Price stability)
Bank Rates %
(Central Bank Rate)
Unemployment
(Job Market)
Wages
(Personal Income)
Consumers’
Optimism
Stock market
(Earnings/Value)
Oil Price
(Raw materials)
Gold price
(Strategic / Risk)
Currency
(Exchange Rate)
I – RECESSION
II – DEPRESSION
III – RECOVERY
IV – GROWTH
(Crisis/Contraction)
(Slump)
(Expansion)
(Boom)









?












?



?

?











?
?
?
?








How Business cycles impact HR decisions?
1. What is the level of employment?
2. What is a strategy of wage increase?
3. What is the training policy?
4. What is nonfinancial benefits package strategy?