Chap 16
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Zainab MuneebChap 16
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Zainab MuneebHuman Resource Management (HRM) Strategy Human Resource Management (HRM)
strategy refers to a long-term approach to managing an organization’s workforce. It aligns
HR policies with overall business objectives, ensuring that employees contribute effectively
to company goals. This strategy covers recruitment, employee training, motivation,
performance management, and workforce planning.
Hard HRM Hard HRM views employees as a resource similar to machinery or capital. The
focus is on efficiency, cost-cutting, and high productivity through strict control. Employee
training is minimal, and short-term contracts are common. This approach is often used in
businesses that require repetitive, standardized tasks.
Soft HRM Soft HRM treats employees as valuable assets, emphasizing long-term
development, job satisfaction, and motivation. Companies using soft HRM invest in
employee training, provide career development opportunities, and create a positive work
environment to retain staff and boost productivity.
Workforce Planning Workforce planning involves analyzing current and future staffing
needs. It ensures that the organization has the right number of employees with the necessary
skills at the right time. This process helps businesses prepare for expansion, changes in
market conditions, and technological advancements.
Flexible Employment Contracts Flexible employment contracts allow employees to work in
non-traditional ways, helping businesses adjust to changing demands. These contracts include
part-time work, remote work, and zero-hour contracts, where employees are only paid for the
hours they work.
Employee Performance Measures Employee performance is assessed using specific
indicators such as sales targets, customer satisfaction, project completion rates, and efficiency
levels. These measures help businesses identify high performers, improve productivity, and
decide on promotions or rewards.
Labor Productivity Labor productivity measures the efficiency of employees by calculating
the amount of output per worker. It helps businesses evaluate workforce effectiveness and
make improvements through better training, technology adoption, or process optimization.
Absenteeism Rate The absenteeism rate tracks the percentage of workdays lost due to
employee absences. High absenteeism can indicate job dissatisfaction, poor working
conditions, or health issues. Companies aim to reduce absenteeism by improving workplace
conditions and employee engagement.
Labor Turnover Labor turnover refers to the rate at which employees leave a company
within a certain period. High turnover can result in increased recruitment and training costs.
A low turnover rate suggests job satisfaction and effective HR policies.
Management by Objectives (MBO) MBO is a system where managers and employees set
specific, measurable goals together. Employees’ performance is then evaluated based on the
achievement of these objectives. This approach improves motivation and aligns individual
efforts with business strategy.
Performance Appraisal A performance appraisal is a formal evaluation of an employee’s
job performance, often conducted annually. It helps identify strengths, areas for
improvement, and opportunities for career development. Appraisals are linked to promotions,
salary increases, and training needs.
Training and Development Training improves employees’ skills for their current roles,
while development prepares them for future responsibilities. Businesses invest in training
programs to enhance productivity, reduce errors, and support employee career growth.
Autonomous Work Groups Autonomous work groups consist of employees who are given
control over their tasks and decision-making. This approach encourages teamwork,
innovation, and accountability, leading to higher motivation and efficiency.
Quality Circles Quality circles are small groups of employees who meet regularly to discuss
and resolve workplace problems. This participative approach helps improve efficiency,
product quality, and job satisfaction.
Financial Incentives Financial incentives are monetary rewards given to employees based on
their performance. These include bonuses, commissions, profit-sharing, and stock options.
Incentives are used to motivate employees and encourage higher productivity.
Job Enrichment Job enrichment involves redesigning roles to provide employees with more
responsibility, variety, and decision-making power. This method increases job satisfaction
and motivation by making work more meaningful.
Employee Share Ownership Schemes Employee share ownership schemes allow employees
to purchase company shares, giving them a financial stake in the business. This approach
aligns employees’ interests with the company’s success, promoting commitment and
productivity.
Impact of IT and AI in HRM Technology is increasingly used in HR management to
automate recruitment, track employee performance, and improve workforce management.
Artificial Intelligence (AI) assists in data analysis, decision-making, and employee
engagement strategies.
Work-Life Balance Work-life balance refers to the equilibrium between work
responsibilities and personal life. Businesses support work-life balance through flexible
working hours, remote work options, and wellness programs to enhance employee
satisfaction and productivity.
Ethical HRM Practices Ethical HRM ensures fairness, transparency, and compliance with
labor laws. It includes equal pay, non-discriminatory hiring, safe working conditions, and
respect for employee rights. Ethical HR policies contribute to a positive corporate reputation
and employee trust.