PEOPLE MANAGEMENT
Summary
International Business Management
2017-2018
,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
5. The HR cycle (Fombrun et al., 1984)
6. The role of HR – Ulrich’s model (1997)
CHAPTER 2 – Organisational structure
1. Vision, mission, values, goals and strategy
People Management 3
, 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
Summary
International Business Management
2017-2018
,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
5. The HR cycle (Fombrun et al., 1984)
6. The role of HR – Ulrich’s model (1997)
CHAPTER 2 – Organisational structure
1. Vision, mission, values, goals and strategy
People Management 3
, 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
