Olivers Market

Olivers Market

By g08n0496 | Studymode.com

HUMAN RESOURCE MANAGEMENT 2013

CH 1 – INTRODUCTION TO THE MANAGEMENT OF PEOPLE

Learning Outcomes

* Present an understanding of an organization as an open system * Describe the role of people in an organization

* Describe the role of a manager in an organization

* Explain the human resource management (HRM) function as a subsystem of an organization * Define HRM

* Advise on the role of HRM within an organization

1.1 Introduction

* People are a source of competitive advantage

* Competitors can have the same products, technology, capital markets…but they cannot have the same human talent * Competitors cannot copy intellectual capital

* Intellectual capital: the ability of employees to apply and transform their knowledge and understanding into something of value to their jobs and the organization * The global economy is increasingly based on knowledge work through the rendering of services rather than knowledge * Employees are central to attracting and retaining customers, leading to organizational success

* Internal work environment influences employees level of satisfaction, loyalty, and productivity * Customer loyalty through the repeat business and referrals is a critical requirement for the growth in revenue and profitability of an organization * Employees are central to attracting and retaining customers * Employees are central to organisational success

* Managers need to adopt an appropriate HR philosophy

* Managers need to clarify the strategic role of HR

* Managers need to implement systems, processes and policies that create the right context for people to fulfill their potential Effective management of people:

* Results oriented

* Quality of workplace, job satisfaction, amenities and benefits are crucial for maximum effectiveness * Importance of teamwork

* Give employees responsibility for growth and responsibility of the organization * See to needs of staff

* Create exciting learning experiences

* Importance of training and development

* Create ownership attitudes amongst staff

1.2 Organisations

* Organization: an arrangement of people in a systematic structure of jobs and authority, guided by processes, systems, policies, and procedures to accomplish some specific purpose over time * Take in resources – factors of production – (inputs) and transform them into products and services demanded by society (outputs) * People are also a critical resource in this system

* Employees activate the transformation process by applying their knowledge, ability, and skills and are compensated for their effort * An organization is part of an external environment

* A system consists of a set of interrelated and interdependent subsystems and elements * Open system interacts with the environment

* Together with finance, production and marketing, the HRM function is one of the subsystems within an organization and is typically organized into a department * Feedback is important as it can help correct and change performance

The success of a business can be examined in terms of efficiency, effectiveness, adaptability, and congruence (or ‘fit’) Efficiency

* Efficiency measures compare the inputs of a system with those of the outputs * Higher output, relative to input = more efficient system * Can be measured in terms of profitability costs (inputs) and sales revenue (output) * HRM challenge is to develop measures of efficiency of employees, which can be monitored and thereby guide management action

Effectiveness

* Is the system fulfilling its purpose?

* Determined by comparing the outputs of the system with the outputs it intended to produce * Need to compare the planning stage of managerial activity with output attained

Adaptability

* The entity needs to adapt to its external environment to at least survive * External environment is characterized by global ultra-competitive markets, rapid change, and uncertainty * PESTL

* Strategic planning is the management tool here

* Strategic planning:

* Determining strategic objectives for the business

* Conducting analysis of the external environment