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“Importance of Human Resource Management ” Please use the learned knowledge, personal experience and creativity to solve above problems Please indicate the approach of problems, dare to differ CONTENT: I INTRODUCTION: Nowadays when people talk to a business, a director of loss-making, not due to lack of funds, lack of equipment, lack of space, etc they indicate that person is incompetent to operate work and lack of knowledge of human resources management or lack of experience in strategic human Limiting factor in most cases less effective doing is the lack of quality and strength of the administrator, not know how to exploit and mobilize human resources and unimaginable waste is about the human and material resources Thus, we can say HRM is a very difficult and complicated job, because it touches specific people with circumstances and aspirations, interests, emotions and cultures special American Professor, Dinock said: "HRM includes all of the measures and procedures apply to employees of an organization and resolve all cases occur related to a type of work that”; while Professor Felix Migro said that HRM is the art of selecting new employees and use former employees for power and quality of work of each person to reach the maximum can be So the success business not only is in having a good business plan but also enterprise know to manage human resource to implement that plan Not only is business but the organization or country is also indispensable to develop strategies for Human Resource Management II Approach the importance of Human Resource Management Currently, Vietnam Corporate only use average about 40% of human resource capacity that they own and this ratio is more difficult for explain in office staff The fundamental cause of this problem is weaknesses in the management of human resources What is difficulties and limitations that most of Business in Vietnam that Group IV often meet? Enterprises in developing countries have encountered similar problems or not? to respond for this problem, we will explore the views of the Human Sciences Management (HRM) The theory of HRM: The idea of personnel managers of administrator as are employees be reliable?, they like to work?, are they creative? it’s very important This has direct impact to the personnel decisions such as recruiting who? Training and retraining of anyone? Reward anyone? These points are also directly affected the atmosphere of collective psychology, the work efficiency The point system makes the doctrine or theory, one usually refers to: + Abraham Maslow theory of needs; + X & Y Theory of Douglas McGregor; + Z Theory of William Ouchi; + Two Factor Theory of Frederick Herzberg; + Expectation theory of Victor Vroom; + Point of Hackman &à Oldham 1.1- Abraham Maslow theory of needs The Maslow's hierarchy of needs was launched in 1943 in the article A Theory of Human Motivation is one of the important theory of the specific application in human resource management System level needs of Maslow is expressed as a pyramid The basic needs low-level fall at the bottom must be satisfied before thinking of the higher demands are placed on high A Maslow’s hierarchy is showed in levels of need: • First Level: The most basic needs is physiological: food, water, shelter, air to breathe, sleep-rest • Second level: safety needs: feeling assured, that guarantee physical security, employment, family, health and property • Third level: social needs or to exchange emotional and are under (love / belonging) - to be accepted, loved, a member of a group, it may calm the family, there trust dear friends Group IV Fourth level: respected needs, esteem: success, confidence, self respecting, • esteem, believe, recognized Fifth level: self-actualization needs: to creativity, to express the ability, to • espress themselves, personal development, self-improvement 1.2- X & Y of Douglas McGregor X & Y theory are two theories of modern human resource management initiated by Douglas McGregor (The MIT Sloan School of Management) in the 1960s He said that management strategies greatly influenced by the notion of human nature Theory X assumes that: + People nature hate work and always avoid work when circumstances permit + People like to be controlled, they will work weel when be controlled + They worked when there was force, punishment + They are passive, shirk responsibility when possible + They are selfish, think about theirself first, no ambition, the desire to advance So Theory X considered people inherently negative, so that management practices should be rewarded if want they work and punished when they not work The Theory X management are often negative behavior and extremism When any occurrence, the first thing they will that convert the responsibility or blame someone They think that employees work only for themselves and only influenced by money In any case, the employee shall be responsibility and the causes of such errors on the system objective, policies, lack of training are ignored or improperly handled necessary By theory X managers not trust anyone They believe in the closed & mechanical supervision, believe in the power of discipline Application of theory X: Having negatively and mechanical insight about people , namely the employees.But can still apply in some cases, particularly in manufacturing and services However, in fact seem Theory X is only partly true, but this theory has Group IV always been a classic theory, not to be missed for training and training on human resource management in all schools It also help many managers look back themselves to edit behavior accordingly However, McGregor think that in fact, at work, people can behave very different from what is outlined in theory X He has completed this review and naming them is the theory Y Theory Y consider human nature is positive, said: + Human nature likes to work and considere work as need + They have a sense self-examination, self-discipline, self-regulation when assigned the obvious work + Whether the ordinary person, also have sense of responsibility, self-esteem, acknowledge responsibility + Everyone has creativity, though little creativity and enthusiasm to make creative job is commissioned Management methods as theory Y is to believe in people, to arouse the internal forces, the self-awareness, namely: + Trust expanded responsibilities and obligations of the members of the organization + Promote self-governing, self-control of the working group + The sensible decentralization for working groups work initiative, self assessment, self control and promote the results + Create operation forms to help people work closely and creatively Theory Y is true in many cases The company uses employees with employ highly qualified and creative work as Apple, Microsoft, Google according to this theory and are trying to create work environments free and in perfect as possible However, just as Theory X, Theory Y is not absolute, it is used in combination will provide high efficiency This theory also suggests managers and always a classic lesson in modern personnel administration 1.3- Theory Z of William Ouchi William Ouchi was a Japanese immigrant in America He is a researcher management theory and professor of management at the University of California He began to study the management practices of Japanese firms since 1973 In 1981 Group IV he published in the U.S book "Theory Z - American factories how to deal with the challenge of Japan." Theory Z also known under the name "Japanese management style" and is popular throughout the world during the economic boom of the 1980s Asian countries Theory Z emphasis on increasing the loyalty of employees to the company by creating peace of mind and satisfaction for employees both in and out while working The core of this theory is so satisfying and increases for spirit employees to achieve productivity and quality in work Basic content of the theory that William Ouchi Z, namely: a Institutional management to ensure superior grasp of the situation fully subordinate Must facilitate employee participation decisions, promptly report the situation to superior, especially before making an important decision, should encourage employees directly engaged in production advance their recommendations and then decide by superior b Managers at grassroots level must have enough sufficient to handle the problems at the grassroots level, must have the capacity to reconcile and coordinate opinions of employees, promoting positive people, encourage them to brainstorm, make plans, their proposal Managers at local level must be sufficient to handle the problems at the grassroots level, the capacity to regulate and coordinate thoughts and opinions of employees, promoting positive people, encourage them to brainstorm, make plans, proposal theirself c Mid-level managers to perform the role of mutual agreement, revising and perfecting the grassroots opinion, promptly report to their superiors and give their recommendations d Enterprise must user employee in long time to have their peace of mind and increase their sense of responsibility, and shared enterprise glorious and difficult, sticking their destiny into the destiny of the enterprise e Managers must pay frequent attention to the welfare of employee, find ways for them to feel comfortable, creating harmony and affection, no gap between superiors and subordinates f Managers are not only interested in production tasks, but also to make employees feel their work is not dry, non-monotonic Group IV i Must pay attention to training employees, improve the practical work in all aspects of them g The observed expression of employee should not only be framed in a few aspects that must be observed in a comprehensive, in long time to have grounds accurate Application of Theory Z in practice: Theory Z has many similarities with the theory of "Soul management" In fact, the popularization Theory Z that has effect in impulse “Soul management” and thought of it Many Japanese companies support and practical application theory Z Bringing success for many Japanese companies and put Japan into a world power, as many Japanese companies become formidable opponents of the U.S The U.S company then had to look at the situation, this theory Z and seek to apply to compete with Japanese companies Theory Z also has basic weaknesses and create large inertia of Japanese companies; the Japanese company is trying to study and change since that time 1.4- Two Factor Theory of Frederick Herzberg Two-factor theory (Herzberg's Two Factor Theory or Motivation-Hygiene Theory Boby) given by Frederick Herzberg This theory is mainly based on the survey results and analysis of surveys conducted in Pittsburgh, Pennsylvania and has provided data to proposed two factors model: Demotivate factor: is the agent of the dissatisfaction of employees at work in any organization, it can be: + Mode, policies of the organization + The monitoring work is not appropriate + The working conditions not meet the expectations of employees + Wages and other remuneration contained inappropriate or various unfair factors + Relations with colleagues "have problems" + Relations with the level (superior, subordinate) did not achieve satisfaction Motivator factor: is agent's job satisfaction: + Achievement desired result + Recognition of the organization, leadership, colleague Group IV + Responsibility + Progress, advancement in career + Growth as desired Herzberg has commented that the cause is to bring satisfaction in work content, and causes of dissatisfaction in the work environment He has concluded: Normal factors: Will not bring more enthusiasm, but if unavailable, the employee will be dissatisfaction and less enthusiasm in work Encouraging factors: Will promote the employee to work more energetically, but if unavailable, they still work normally Since then, Herzberg advises managers that they should note the two different levels of attitude employee and not confuse the encourage measures, and pay attention the normal measures first 1.5- Expectations Theory of Victor Vroom Expectations theory is a very important theory in the theory of human resource management, in addition to the theory of Abraham Maslow needs Expectations Theory by Victor Vroom - Professor of Business Administration Yale School and scientist Ph.D degrees at the University of Michigan, that an individual will act in a certain way based on the expectations of a certain results or the attractiveness of individual results This model was launched by V Vroom in 1964 Expectations theory of V Vroom was built by the formula: Attraction x Expectance x Means = Encouragement a- Attraction (award) = appeal to a certain target (award for me is?) b- Expectance (performamne of work) = employee's belief that if hard work, the task will be completed (I have to work hard, how hard to reach the goal?) c- Means (faith) = employee's belief that they will get rewarded when completing tasks (Will people know and evaluate my efforts?) The product of these factors is encouragement This is the source of power that the leader could use to steer the collective achievement of the goal When an employee wants promotion, the promotion has a high valence for that employee If an employee believes his work hard as well as scheduled everyone will appreciate, this means that employees have high expectations However, if the Group IV employee knows that company will recruit people from outside sources to fill vacancies or put into management positions rather than promotion of the company from the ground up, that employee will be low means level and it will be hard to encourage employees to work better The expectation theory cycle have steps: Effort => Completed => result To achieve the best results can use measures: 1- Increased expectations from attempting to complete the work + Choose the suitable employee for the job + Training employees + "Cast" clearly in work + Provide all the necessary resources + Mentoring, monitoring and actively collect feedback 2- Increased expectations from accomplishment to effectively + To measurement the working process correctly + Describe the results of good and bad work + Explain and apply incentive structure as a result of the work 3- Increase the satisfaction level + Ensure that the value rewards (physical and mental) + Differentiation reward + Minimize the difference in satisfaction level results V Vroom’s model then be amended and supplemented by a few others, including academics Porter and Lawler (1968) the expectations theory with the main point is during the process of formation and promote motivation, there are four basic elements, namely: encouragement, effort, effectively and reward The manager always expected that the cycle is always ongoing and not want to happen any event that cause to cut the cycle 1.6- Point of Hackman & Oldham The job itself has the essential characteristic of it Characteristics that may make the job itself exists a inner motivation, and employee will be stimulated to increase productivity depends on each task itself So to increase the significance of the work, need to: - Increase diversity and enhance the importance of the work Group IV - Turn the task into an opportunity for employee - To hand over authority for employee - Feedback mechanism quickly and directly to employees Application of theory to reality human resource management There is no universal theory, each theory has its place The theory of human resource management should be applied flexible in reality In the expansion of social democracy, promote citizen responsibility to high degree, requiring leaders implement solutions waking conscience, judgment and common sense of the member in the organization First of all, leaders well the following: Know to use fort of human Not to treat unfair (close, distant, heavy, light) with subordinate 3- To trust in subordinate 4- To respect subordinate, appreciate the fruits of them 5- Use right talent of employee 6- Do not miss to improve the knowledge and capacity 7- To settle well the concerns of subordinates 8- Think together subordinate when listening to their reflection 9- Affirmation timely the achievement of subordinates 10- to unite subordinate when they have opinions about leaders 11- Before many people, not drive subordinate to into deadlock 12- Prestige, does not promise arbitrarily 13- Not to contend for merits when have achievement, not pass to the buck when commit defect 14- Do not consider oneself as who a favors 15- To support the work of direct subordinates 16- Do not discard power when the subordinate does not complete the task The model of strategic human resource management: Manpower has always been considered a factor to creat the success of the business A business can have modern technology, better quality service, stable infrastructure, but lack labor force that businesses hardly viable long term and build competitive advantage It can be said of man made differences between enterprises However, if you just focus on develop manpower that does not align it with the Group IV general principles and goal of the enterprise, all efforts to promote the performance of employees will be useless wastage Until now, there are many definitions of human resource management model, and these definitions show more understanding of human resource management model Miles & Snow (1984) suggested that human resource management model is "a human resource system to meet the needs of business strategy." Write & MacMahan (1992) see it as "the characteristics of the act relating to human resources in order to create conditions for achieving enterprise business goals." From these two definitions describe human resource management model as a management field "backwards" impact in which human resource management is seen as tools to implement the strategy, to see it as a "pioneer" task in which human activities can help shape business strategy Definitions by Guest (1987) and Boxall & Dawling (1990) introduced a more comprehensive, more clearly the relationship between HRM and business strategy They think that human resource management model is "the integration of HRM policies and actions with business strategy This integration is expressed in three sides:(1) binding to the human resource policies and strategies together, (2) build complementary policies and encourage commitment, flexibility and quality of work of employees, and (3) internationalizing the role of the charge of the region " The emphasis on the importance of integration between human resources management with business strategy showing specific approach towards building of human resource management model Many models have been developed to integrate and these models are classified into three groups: (1) general model (shown relationships between the inside and external factors) (2) organizational model (shown relationships between inside the business), and (3) concretized model (point out the specific personnel that is suitable with inside conditions and outside the enterprise) 2.1 General model: In this group can review some models are best known include Harvard model (Beer, Spector, Lawrence, Mills & Walton, 1985) and Colins model (1994) Harvard model is considered a major turning point in the process of forming the Group IV 10 concept of human resource policies It presents four projects for development policiy: (1) influence on personnel, (2) rotation of personnel, (3) the system of rewards / penalties, and (4) the system work Harvard model requires the participation of all stakeholders who have interests related to the implementation process and the results of the personnel policy However, it does not highlight the process of developing and implementing HRM policies Meanwhile, Colins (1994) using the system frame to describe the relationship between elements are crucial to the human resource management model This model identified several key elements associated with the creation the integration inside and outside, including mission, strategy, organizational structure, culture, characteristics of labor and personnel policies The effect from the integration between human resource management policies with business strategy as income, market share, product quality, company image, creativity, productivity, professional ethics and turnover The weakness of this model has not answered questions which strategic & human resource policy is suitable for a business strategy or organizational structure specific In addition, it also not highlight the need for close relationships between organizations that have responsibility for HRM policy planning with other organizations and strategies in the enterprise 2.2 Organizational model: Representing for this group model is the model of 5ps Schuler (1992) This model gives a detailed picture of human activity takes place within the enterprise It focuses on the intrinsic relationship between the strategic needs of business and five of operating personnel are formed from five English words: “Philosophy”, “Policies”, “Programs”, “Practices” and “Process” By defining five of above operations, this model showed complex interactions of human activities necessary for the formation and growth behavior of individuals and groups to meet the strategic needs of business These needs are expressed through outputs, vision and goal of business strategy Schuler said that efforts to successfully implement human resource management model should start from identifying the business needs strategy and analyze systematically the impact of those needs for above five operation human resource Group IV 11 management The link between strategy and human resource management operation can be strengthened by encouraging the participation of employee in the process of defining their roles Moreover, the managers involved in the process of human resource management model should have the ability to analyze and systematize the determination of needs and design strategic HR activities The process of human resource management model also provides an opportunity for HR to participate in the process of building the business strategy However, Schuler did not specify when is a specific personnel policies suitable for the overall development strategy of the business 2.3 Concretized model: Dowling and Schuler (1990) built a model which mention to the type of personnel policy is suitable to encourage the necessary behaviors to reach the goal of the competitive strategy According to Dowling and Schuler, competitive strategy is divided into three types: strategies to improve the quality, reduction cost price strategies, and creative strategies: Creative strategies and activities of human resource management: - Need the active participation of employee - Analysis of shallow career - Mobilization of external resources - Many professional development opportunities - Apply the criterion on the process and results - Application of long-term criterion - Applying the criteria of the objects in the same group - Apply the labor insurance policies - Apply a variety of preferential policies - Average wages - Training more - Building coperation relationships between managers and employees Strategies to improve the quality and the HRM activities: - Need the active participation of employee - Analysis of shallow career - Mobilization a number of external resources Group IV 12 - Few professional development opportunities - Apply the criteria on the results - Applying short-term criterion are essentially - Applying the criteria of the objects in the same group - Apply a recruitment criteriion - Apply some preferential policies - Average wages - Training more - Building coperation relationships between managers and employees Reduction cost price strategies and the HRM activities: - Need little participation of employee - Analysis of deep professional - Mainly use of inside resources - Few professional development opportunities - Apply the criterion on the process and results - Application of short-term criterion - Applying the criterion for personal use is key - Restrictions apply labor insurance policy - Fewer preferential policies - The salary on the rank - Few training - Building traditional relationship managers - the employee They think that the accuracy of the competitive strategy is under influence of the stages in the life cycle of the business The life cycle is divided into three main stages: (1) start and development phase: strategy emphasizing creation and new product development of human resources These are creative minded person, with a spirit of cooperation, long-term oriented, dare to take risks and have a high sense of responsibility (2) The highest stage of development and go down: strategic is to reduce current production costs down as low as possible focus on boosting production Group IV 13 and reducing costs, while difficult for human resource management is how to attract and retain people who actually have the capacity ' (3) recovery period: the restoration of business done by cutting costs, it can through reduction or development employee and improve product quality In addition, some models also mention the specific relationships between a number of models of strategic management of human resources and business strategy as a model of Dunphy & State (1992, 1994) which requires businesses to build their organization to match its environment, also known “change the business organizations programe”, a deciding factor to which kinds of strategies and personnel policies that is best suited to business strategy In summary, human resource management model required an enterprise to build the goals, strategy and human resource policies suitable with its business strategy These factors create conditions to develop the skills necessary to meet the demands, requirements that the general objectives of the proposed business In addition, it also create a framework that human needs in a business is assured The most important thing is the business determines the role of human resource management in their development strategies, which use the best suitable model of human resource management to achieve success Function of HRM: To go to the definition of human resource management, the main thing is to understand how the human resource managers perform the principal function and meaning of the implementation of this function for the organization With this approach, we use the definition “Human Resource Management is to design policies and implement activity area to make people contribute the most effective value for the organization, including such areas as human resource planning, analysis and design job, recruiting and selection, performance evaluation, training and development, remuneration, health and safety personnel, and labor interelations” The activities of human resources management depends on the size and needs of the organization Human Resource Management is classified into the following activities: • Group IV Human Resource Planning 14 • Analysis and design work • Recruitment and selection • Performance evaluetion • Training and Development • Remuneration Challenges of Human Resource Management and its importance They are entering the 21st century with the great challenges of human resource management In the last century the function of human resources management essentially focuses on operations that has personnel property The change happen due to many factors such as the impact of changes the nature of the economic environment and government, to take from new organizational forms, global competition and aware of the nowadays organization is the major force implementation of social objectives The main impact factors make human resource management to shift into the strategy function that is restructuring companies, global competition, slow growth, the diversified forces labor, the desire of employee and the role of organizations in the implementation of social purposes - Restructuring companies Two recent decades witnessed great changes in operations of restructured organizations Restructuring is a continuity for the effects to create competitiveness The administrators in the 1990s to create competitive advantage by finding solutions to new markets or may be looking for competitive advantages by scale Today there are changes in creation competitive advantage, which is focused on the restructuring, challenges posed clearly for human resource management Restructuring strong impact to the levels of the organization and with its employees In the process, employee care about their role in the "new organization" For such effects to employee, human resource management becomes a key activity for the success of the organization - Global competition Group IV 15 Trends in long-term effects, mainly for human resources professional is the globalization of the economy As the response of the international competitive environment is increasing, many joint venture was established - Slow growth Slow growth as a result of market changes and competitive factors Previously, employees enter the organization and then accrue new skills and create opportunities for their success Nowadays employee have to prepare yourself for the adaptation to the new working environment and the challenges of instability of employment, the inadequacies in acquiring knowledge, practicing new skills - The diversified forces labor The main challenge of human resource management is changing the nature of place of work Figure 1.1 below describe the Marilyn Loden and Judy Rosener’s model of the diversity variables, devide into core and secondary diversity variable The core variables are age, income, status, social trends, physical ability, ethnicity and gender Income Work content Maritial status Age Social Physical trends ability education Race Ethnicity Sexual Family situation Religion Geographical position Hình 1.1 - Marilyn Loden and Judy Rosener’s model of the diversity variables The process of diversification of human resources is taking place more dramatic Many people have had the notion that most organizations use the experience curve as a means to diversify human resources However, the continuous improvement Group IV 16 does not make the experience curve become important vehicles for diversification of human resources Today many companies use conversion work measures and transfer work place as training and development of human resources The shift to higher positions in business requires employees with knowledge and experience in different roles in different units within the organization The challenge of human resource management in quickly development of technology, older people in the organization can be difficult to update new knowledge, new skills training - The desire of employee Along with the increase of intellectual standards and professional skills of the people, values and expectations of employees has changed The percentage of university graduates in the labor force increased to make them occupy many different positions in the organization And so the influence of employees on business processes is increasing The desire of the employee that the information revolution to improve the quality of life Trends desired have time for family care is popular with every passing day and more and more people working at home by the improvements in communications and computer technique, and that greatly affect the progress human resources management - The role of organizations in the implementation of social purposes In recent decades, the organization tends to become the promotion department for the achievement of social goals The government's policy has effect for organizations in ensuring that the requirements on equality, requires no discrimination in recruitment, remuneration and promotion employee as well as in practice human resource management in general The state policy, particularly the rules of labor law more effective in operation in human resource management of organizations Human Resource Management is a Human Management Science so it has no common denominator for all cases, it requires that managers have to evaluate each individual the human resources case to consider application of the theory and management model And no theory or model HRM is error that is only wrong Group IV 17 applications Human Resource Management is an important link to integrate resources to business activities in accordance with rotation (strategy) of the business and not far difference from the overall rotation III CONCLUSION: After study and analyzing the formation and development trend of human resource management, we can conclude that: human resources has always been considered a factor makes success of enterprise, a business can have modern technology, good service quality, robust infrastructure, but without strategic human resource management, the enterprises can hardly exist long and build competitive advantage This means that a business wants to succeed, they need to see human resources management is the core of the business, being aware of the importance of human resource management, the leaders, consultants of business must have plan to build and develop human resources for their business as trends of modern human resources managemnet The construction, development human resources in enterprises follow the trend of modern human resource management will help business not become obsolete, increasing competitiveness, creativity and strong development include in the difficult economic environment or deficient other resources to achieve business plans and objectives that already set / REFERENCE DOCUMENT 1/ Classic models of management - Marcel Van Assen, GerBen Van DerBerg, Pacil PietersMa; 2/ HRM – John M Ivancevich 3/ Trần Kim Dung – HRM – HCMC general publisher 5/Personel management: some of importance problem - J Storey Group IV 18 ... suitable model of human resource management to achieve success Function of HRM: To go to the definition of human resource management, the main thing is to understand how the human resource managers... that human resource management model is "a human resource system to meet the needs of business strategy." Write & MacMahan (1992) see it as "the characteristics of the act relating to human resources... theory of needs The Maslow's hierarchy of needs was launched in 1943 in the article A Theory of Human Motivation is one of the important theory of the specific application in human resource management