Human Asset Management Learning Guide

Contents

 

The foundations of evaluation and impact research

Check the availability and buy your books from our Bookshop.

Contact us here

Online Business School  for the delivery and management
of your own existing or the customised versions of our
programmes for in-class or global distance learning.

Teaching and Research Skills

 

Teaching Online

 

 

For further information

 

The Bookshop

Today's Videos

Rationale

Learning Outcomes

Teaching and Learning Resources

 

Learner Support

 

Related Workshops

 

Recommended Texts

Assignments, Assessments

 

Resources

Learning Centres

 

 

Human Asset Management

 

Rationale

 

 

 

 

Human resources is a term used to describe the individuals who comprise the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations. Human resources is also the name of the function within an organization charged with the overall responsibility for implementing strategies and policies relating to the management of individuals (i.e. the human resources). This function title is often abbreviated to the initials 'HR'.

 

Human Resource Management

 

Human resources is a relatively modern management term, coined as early as the 1960s - when humanity took a shift as human rights came to a brighter light during the Vietnam Era. The origins of the function arose in organizations that introduced 'welfare management' practices and also in those that adopted the principles of 'scientific management'. From these terms emerged a largely administrative management activity, coordinating a range of worker related processes and becoming known, in time as the 'personnel function'. Human resources progressively became the more usual name for this function, in the first instance in the United States as well as multinational or international corporations, reflecting the adoption of a more quantitative as well as strategic approach to workforce management, demanded by corporate management to gain a competitive advantage, utilizing limited skilled and highly skilled workers.

 

See also

 

 

Human Capital Drivers

 

Human Capital is a way of defining and categorizing peoples' skills and abilities as used in employment and as they otherwise contribute to the economy. Many early economic theories refer to it simply as labour, one of three factors of production, and consider it to be a commodity - homogeneous and easily interchangeable. Other conceptions of labor are more sophisticated.

 

See also

 

External links

What is Human Capital

 

Human Capital Management

 

Learning Outcomes

Programme Content and Learning Objectives

The content and objectives outlined represent a framework for the practice of Human Asset Management. Differences of academic and practical opinion must be taken account of and the objectives are not to be taken as exclusive or limiting.

After completing the programme the student should be able to:

1. Business Strategy and Planning;Organisation Context and Human Resource Planning

 

2. Job Design

 

3. Recruitment and Selection

Understand the importance of consultation, communication, information management, legal requirements, personnel specification and a variety of different selection methods, so as to be able to employ people who have the potential to make an effective contribution to the organisation's success, chosen in an atmosphere of equal opportunity, free from bias.

 

4. Induction and Appraisal

Implement effective introduction of employees into an organisation and, through appropriate forms of appraisal, limit induction crises and enable employees to become increasingly committed to the organisation's objectives.

 

5. Regular Appraisal

 

6. Administration and Equity

 

7. Bargaining and Negotiation

 

8. Communication

 

9. Working Environment

Understand the principles of health and safety legislation and of the impact on employee motivation and performance of a safe and healthy working environment.

 

10. Disciplinary, Grievance and Dismissal Policies and Procedures

Construct effective and fair disciplinary, grievance and dismissal policies and procedures, within legal requirements, meeting organisational objectives and values.

 

11. Motivation

Adapt and apply theories of motivation and relate them to other aspects of Human Resource Management (for example, improving supervisory management and working environment;team working;the structure and management of reward and improving organisational efficiency and effectiveness).

 

 

Today's Videos

Teacher Tube

 

 

 

 

Teaching and Learning Resources

 

Click on the titles below

Teaching and Learning Resources Tutorials Assignments Recommended Texts Workshops Discussion Forum Readings Learner Support Resources Staff Development Web Cases Case Studies

 

Human Asset Management

Tutorials

 

Readings

Human Relations Movement refers to those researchers of organizational development who study the behavior of people in groups, in particular workplace groups. It originated in the 1920s' Hawthorne studies, which examined the effects of social relations, motivation and employee satisfaction on factory productivity. The movement viewed workers in terms of their psychology and fit with companies, rather than as interchangeable parts.

 

Human Asset Management Systems

 

"The hallmark of human-relation theories is the primacy given to organizations as human cooperative systems rather than mechanical contraptions."

 

Barnard stressed the following:

1. Natural groups, in which social aspects take precedence over functional organizational structures

2. Upwards communication, by which communication is two way, from worker to chief executive, as well as vice versa.

3. Cohesive and good leadership is needed to communicate goals and to ensure effective and coherent decision making

(Managing Organizations, Wilson and Rosenfeld, Mcgraw Hill Book Company, London, p9)

 

Institutes where Human Relations is studied include:

1. The Tavistock Institute, co-publishers of the Human Relations journal

2. The Oasis School of Human Relations, Oasis Press publishes human relations books and manuals

Definition of Morale

See also

 

External links

 

Human Asset Management

One very important thing the human resources department does not do is tell other employees what to do on a day-to-day basis (except for those employed by the department itself). Those instructions are given by the managers of the different elements of the value chain. The human resources department helps to ensure that the organization has the people needed to allow the value-adding process to continue to function in accordance with the mission established by its main stakeholders.

Governance interrelations

The human resources department is also very much a support function. Like the finance department, it sets the policies and procedures that are to be followed with respect to employees by managers of the value chain, ensures that they follow those procedures, and keeps the ?human? score. It also assists with the acquisition and deployment of additional human resources when required. It usually consists of a small number of qualified specialists.

Like its financial counterpart, the HR department is also becoming increasingly powerful. In more and more cases, the overall head of this function reports directly to the chief executive, and is usually known as vice-president?human resources or personnel director.

 

 

Translating Human Capital into Superior Financial Performance

 

 

The Social System

Tutorials

 

Readings

Social system is a central term in sociological systems theory. The term draws a line to ecosystem, biological organisms, psychical systems and technical systems. They all form the environment of social systems. Minimum requirements for a social system is interaction of at least two personal systems or two persons acting in their roles.

 

 

See also

Social system design part 1: defining terms

 

Human Behavior is the collection of activities performed by human beings and influenced by culture, attitudes, emotions, values, ethics, authority, rapport, hypnosis, persuasion, coercion and/or genetics.

The behavior of people (and other organisms or even mechanisms) falls within a range with some behavior being common, some unusual, some acceptable, and some outside acceptable limits. In sociology, behavior is considered as having no meaning, being not directed at other people and thus is the most basic human action. Behavior should not be mistaken with social behavior, which is more advanced action, as social behavior is behavior specifically directed at other people. The acceptability of behavior is evaluated relative to social norms and regulated by various means of social control.

 

 

A model of human behaviour for sustainability

 

The behavior of people is studied by the academic disciplines of psychology, sociology, economics, and anthropology.

 

See also

 

External links

 

 

Social Risk Management (SRM) is a new conceptual framework assigned and designed by the World Bank [1]. The objective of SRM is to extend the traditional framework of social policy to the non-market based social protection of which its three primary strategies include prevention, mitigation, and coping. It is now well understood that social unrest is positively parallel to the poverty and assisting individuals, households and communities to elevate living standard above the poverty level will harmonize global economy and strengthen the social security.

 

Initiatives for Controlling Predictable Risk

 

Prevention strategies are the ones implemented before a risk event occurs. Some typical measures could be

1. In the labor market, SRM intervention targets on skill training or job function improvement to reduce the risk of un/under- employment or low wages which are probably man-made.

2. In the financial market, SRM emphasize on optimizing macroeconomic policies to reduce the shocks of financial crisis, such as oil price surges, or unpredictable market moves on currencies, indices and blue chip stocks.

3. For natural disasters and environment degradation, SRM are gear to deploy a networked pre-warning system or sustainable, renewable and environmental friendly eco-system to minimize the impact of the consequences, such as flooding, earthquakes, drought, global warming and soil salinity.

4. In health care, SRM focuses on the prevention of pan epidemic illnesses by implementing vaccination and public health education programs. Setting up rehabilitation centers to help drug addicts.

5. In the public social security, establishing a community-based insurance schemes to compensate pensioners, disability or chronic illness person's living expenses. Building up nursing homes for elderlies and setting up public housing for homelesses and orphans.

 

Mitigation strategies focus on reducing the probability of inpact that the risk event will bring and have brought. Common practices maybe

 

Coping strategies are designed to relieve the impact of the risk event once it has occurred. The typical examples are

 

 

Main Sources of Risks (adapted from Holzmann and Jorgensen, 2000 )

 

  Micro
(idiosyncratic)
Meso
<-------->
Macro
(covariate)
Natural   Rainfall
Landslides
Volcanic eruption
Earthquakes
Floods
Drought
Tornados
Health Illness
Injury
Disability
Food poisoning
Pan epidemics
Food poisoning
Pan epidemics
Life-cycle Birth
Old age
Death
   
Social Crimes
Domestic violences
Drug addiction
Terrorism
Gangs
Civil strife
War
Social upheaval
Drug addiction
Child abuses
Economic Unemployment
Harvest failure
Unemployment
Harvest failure
Resettlement
Blue chip company collapsing
Financial or currency crisis
Market trading shocks
Administrative & Political Ethnic discrimination Ethnic conflict
Riots
Chemical & biological mass destruction
Administrative induced accidents & disasters
Political induced malfunction
on social programs
Coup
Environmental   Pollution
Deforestration
Nuclear disasters
Soil salinities
Acid rains
Global warming

 

 

The Technical System

Tutorials

 

Readings

In economics, Productivity is the amount of output created (in terms of goods produced or services rendered) per unit input used. For instance, labour productivity is typically measured as output per worker or output per labour-hour. With respect to land, the "yield" is equivalent to "land productivity". As Henry Hazlitt explains in Economics in One Lesson, increasing production reduces prices, and therefore goods become more widely available. Automobiles, for example, were initially hand made and only available to the wealthy. As productivity increased, and the price of automobiles fell, they became widely available to the general population.

 

The Impact of the National Minimum Wage

 

See also

 

External links

 

Job Enrichment in organizational development, human resources management, and organizational behavior, is the process of giving the employee a wider and higher level scope of responsibilitiy with increased decision making authority. This is the opposite of job enlargement, which simply would not involve greater authority. Instead, it will only have an increased number of duties (Motivation and Work Behavior by Richard M. Steers and Lyman W. Porte, 1991; pgs 215m 322m 357, 411-413, 423, 428-441 and pg 576). The terminology used to refer to job enlargement is perhaps in the non-scientific management of personnel labeled "multi-tasking". This perhaps is a violation of one of the key principles of human achievement, namely, concentration of effort (Andrew Carnegie, 1953; How to Raise Your Own Salary; pp 235 to pp244; Napoleon Hill and Annie Lou Norman Hill). One can perhaps manage and work on a vareity of projects and still practice concentrated effort (Attorney and American Writer Napoleon Hill, 1979; 1995; The Law of Success; Chapter XI; pp 1 to pp77 Success Unlimited: A Division of W. Clement Stone), but multitasking as it is in the present used is so out of hand that it often prevents an employee from getting done with any thing. Unrully multi-tasking may be a less effective type of job enlargement.

The current practice of job enrichment stemmed from the early work of Frederick Herzberg in the 1950s and 60s on job satisfaction (Feder 2000, Mione 2006). Hackman and Oldham later refined the work of Herzberg into the Job Characteristics Model (Hackman & Oldham 1976), which forms the basis of job enrichment today (Mione 2006).

 

Job Characteristics Model

 

Job enrichment, as a managerial activity includes a three steps technique:

 

1. Turn employees' effort into performance:

a) Ensuring that objectives are well-defined and understood by everyone. The overall corporate mission statement should be communicated to all. Individual's goals should also be clear. Each employee should know exactly how she fits into the overall process and be aware of how important her contributions are to the organization and its customers.

b) Providing adequate resources for each employee to perform well. This includes support functions like information technology, communication technology, and personnel training and development.

c) Creating a supportive corporate culture. This includes peer support networks, supportive management, and removing elements that foster mistrust and politicking.

d) Free flow of information. Eliminate secrecy.

e) Provide enough freedom to facilitate job excellence. Encourage and reward employee initiative. Flextime or compressed hours could be offered.

f) Provide adequate recognition, appreciation, and other motivators.

g) Provide skill improvement opportunities. This could include paid education at universities or on the job training.

h) Provide job variety. This can be done by job sharing or job rotation programmes.

i) It may be necessary to re-engineer the job process. This could involve redesigning the physical facility, redesign processes, change technologies, simplification of procedures, elimination of repetitiveness, redesigning authority structures.

 

2. Link employees performance directly to reward:

 

3. Make sure the employee wants the reward. How to find out?

 

See also

 

 

The Administrative System

Tutorials

 

Readings

Leadership Capital is the term given in the Ideal leadership model for the six competencies that constitute the leader's ability to direct an organization forward in a positive direction. The model identifies these six critical capabilities under three dyads as measured by a leadership assessment using leadershipmetrics. The philosophical dyad is composed of the leader's vision and values – the framework which the leader uses in all his or her operations. The personal dyad consists of wisdom and courage – the processes used in problem solving, decision-making, and implementation of strategy. The interpersonal dyad is made up of the leader's trust and voice – those aspects of interrelating with followers and causing them to desire the path that the leader is directing.

 

Examining effective and ineffective transformational project leadership

According to the Ideal Leadership theory, failures in leadership are the result of anti-leadership, or the opposite or extreme of the leadership capital elements. The ideal leader is one who has the right balance in all six competencies and continues to increase this capital. The various leadership conditions give leaders an opportunity to lead their organizations forward.

Tuckman forming storming norming performing model

See also

 

External links

 

Performance Appraisal is a method by which the performance of an employee is measured (generally in terms of quality, quantity, cost and Time). The roots of Performance Appraisal can be found in Frederick Winslow Taylor's time and motion study. Performance appraisal is a part of career development.

Performance appraisals are a regular review of employee performance within organizations.

Generally, the aims of a scheme are:

 

 

What is 360 Degree Feedback?

 

A common approach to assessing performance is to use a numerical or scalar rating system whereby managers are asked to score an individual against a number of objectives/attributes. Employees are also allowed the oppurtunity to assess the person (manager) at the same time. this is known as 3600 appraisal

The most popular methods that are being used as performance appraisal process are:

  1. Management by objectives (MBO)
  2. 360 degree appraisal

 

 

Behavioural Effectiveness

Tutorials

 

Readings

Communication allows people to exchange thoughts by one of several methods. There are auditory means, such as speaking or singing, and nonverbal, physical means, such as body language, sign language, paralanguage, touch or eye contact.

 

Modes of Communication

 

As developed below, communication happens at many levels (even for one single action), in many different ways, and for all beings, and some machines. Many or all, fields of study dedicate some attention to communication, so when speaking about communication it is very important to be sure about what kind of communication one is speaking about, mainly: what type of things are communicated, between what agents and with what kind of results.

 

See also

 

External links

 

Conflict Management refers to the long-term management of intractable conflicts. It is the label for the variety of ways by which people handle grievances -- standing up for what they consider to be right and against what they consider to be wrong. Those ways include such diverse phenomena as gossip, ridicule, lynching, terrorism, warfare, feuding, genocide, law, mediation, and avoidance. Which forms of conflict management will be used in any given situation can be somewhat predicted and explained by the social structure -- or social geometry -- of the case.

Conflict management is not the same as "conflict resolution." The latter -- conflict resolution -- refers to resolving the dispute to the approval of one or both parties, whereas the former -- conflict management -- concerns an ongoing process that may never have a resolution. For example, gossip and feuds are very common methods of conflict management, but neither entails resolution.

The scientific study of conflict management (also known as social control) owes its foundations to Donald Black, who typologized its elementary forms and used his strategy of pure sociology to explain several aspects of its variation. Research and theory on conflict management has been further developed by Allan Horwitz, Calvin Morill, James Tucker, Mark Cooney, M.P. Baumgartner, Roberta Senechal de la Roche, Marian Borg, Ellis Godard, Scott Phillips, and Bradley Campbell.

 

See also

 

External links

Conflict Management Articles - A collection of Conflict Management Articles

Peace Forge -A wiki dedicated to best practices in peace and conflict resolution

Search For Common Ground - One of the world's largest non-government organisations dedicated to conflict resolution

CUNY Dispute Resolution Consortium- The Dispute Resolution Headquarters in New York City.

Conflict Management Model

 

Employee Relationship Management

Tutorials

 

Readings

The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union.

Labor relations is an important factor in analyzing "varieties of capitalism", such as neocorporatism (or corporatism), social democracy, and neoliberalism (or liberalism).

 

Employee Relationship

 

Labor relations can take place on many levels, such as the "shop-floor", the regional level, and the national level. The distribution of power amongst these levels can greatly shape the way an economy functions.

Another key question when considering systems of labor relations is their ability to adapt to change. This change can be technological (e.g., "What do we do when an industry employing half the population becomes obsolete?"), economic (e.g., "How do we respond to globalization?"), or political (e.g., "How dependent is the system on a certain party or coalition holding power?").

Governments set the framework for labor relations through legislation and regulation. Usually, employment law would cover issues such as minimum wages and wrongful dismissal.

Industrial relations is the equivalent term in Australia, though in recent years the term workplace relations has also become common. This has become a prominent issue of late as the Liberal Government introduced WorkChoices to gear the Australian economy for the future.

 

See also

 

External links

 

Invested in your people

 

 

 

Performance Modeling

Tutorials

 

Readings

 

Staff Performance Assessment Model

 

The Job Characteristics model (JCM) proposed by Richard Hackman and Greg Oldham in 1976 is a very influential model which attempts to address how a core set of job characteristics impact a number of psychological states, leading to specific related outcomes in the work environment.

The five core job characteristics include: skill variety (SV), task significance (TS), task identity (TI), autonomy (A) and feedback (F). The psychological states included in the model are meaningfulness of work, responsibility for outcomes and knowledge of results. Outcomes consist of high intrinsic motivation, high job performance, high job satisfaction and low absenteeism/turnover.

 

The Importance of the Critical Psychological States in the Job Characteristics Model

According to Hackman & Oldham’s model, skill variety, task significance and task identity are used in the work environment to stimulate meaningfulness and produce outcomes of both or either high intrinsic motivation and high job performance. Therefore, if employees feel they are fully utilizing a variety of their skills (SV), their job affects many people to a great extent (TS) and they are allowed to complete the task from beginning to end (TI), it is likely they will perceive the job as meaningful, leading to high job performance and/or high intrinsic motivation. The presence of autonomy in the workforce leads to the psychological state of felt responsibility for outcomes, resulting in high job satisfaction. Thus, if employees are able to determine the method or approach in which the work is accomplished (A) they feel responsible for the end product and are therefore more satisfied with what they have accomplished, less likely to quit (turnover) and also more likely to attend work (low absenteeism). Autonomy is contrasted by being told what to do and the manner in which to do it. The last core job characteristic, feedback produces a psychological state in which employees develop knowledge of their results, producing outcomes similar to autonomy (high job satisfaction, low turnover/absenteeism). In other words, knowing how you are performing and being aware that superiors know how you are performing (F) leads to more job satisfaction, less absenteeism and turnover.

 

 

Investing in Human Capital

Tutorials

 

Readings

Labour Productivity is defined by the OECD to be "the ratio of a volume measure of output to a volume measure of input" OECD Manual: “Measuring Productivity; Measurement of Aggregate and Industry-Level Productivity Growth.” (2002) Volume measures of output are normally GDP or GVA (Gross Value Added), expressed at constant prices i.e. adjusted for inflation. The three most commonly used measures of input are: hours worked; workforce jobs; and number of people in employment. Measured labour productivity will vary as a function of both other input factors and the efficiency with which the factors of production are used (total factor productivity). So two firms or countries may have equal total factor productivity (productive technologies) but because one has more capital to use, labour productivity will be higher.

Output per worker corresponds to the "average product of labour" and can be contrasted with the marginal product of labour, which refers to the increase in output that results from a corresponding (marginal) increase in labour input.

External links

 Labor Productivity Modeling for Steel Fabrication and Erection Projects

 

Looking to the Future

Tutorials

 

Readings

Change Management is a structured approach to change in individuals, teams, organizations and societies that enables the transition from a current state to a desired future state.

 

 

See also

 

 

 

Recommended Texts

 

Evaluating Human Capital Evaluating Human Capital

The CIPD

Pages: 80 Published: October 2002
ISBN: 0852929749

Check the availability and buy your books from our Bookshop.

 

Investing in Human Capital

Investing in Human Capital -
A Capital Markets Approach to Student Funding

Miguel Palacios Lleras
University of Virginia
Foreword by Nicholas Barr
London School of Economics and Political Science

Check the availability and buy your books from our Bookshop.

 

Contemporary Labour Economics

Contemporary Labor Economics, 7th Edition

Campbell R McConnell, University of Nebraska, Emeritus 
Stanley L Brue, PACIFIC LUTHERAN UNIVERSITY 
David Macpherson, FLORIDA STATE U-TALLAHASSEE

©2006, ISBN 0072978600

Check the availability and buy your books from our Bookshop.

 

 

HR Optimization: From Personnel Administration to Human and Organizational Capital Development HR Optimization: From Personnel Administration to Human and Organizational Capital Development

Author: Richard Bellingham, Ed.D.

Check the availability and buy your books from our Bookshop.

 

Resources

 

Human Capital Optimization

 

 

 

 

People

Process Management Cycle & Roles

 

 

US Department of Interior Mission

 

 

Strategic Human Capital Mangement

 

Managing Talented People

 

Case Studies

Wal-Mart

Several groups have criticized Wal-Mart's policies and/or business practices, including community groups, grassroots organizations, labor unions,[1] religious organizations,[2][3] and environmental groups. In particular, several labor unions have specific concerns regarding the company's anti-union stance, as well as several employee relations issues. Other areas of concern include the corporation's extensive foreign product sourcing, treatment of employees and product suppliers, environmental practices, the use of public subsidies, the impact of stores on the local economies of towns in which they operate,[4][5][6] and the company's security policies.[7]

In 2005, labor unions created several organizations to confront these issues, including Wake Up Wal-Mart (United Food and Commercial Workers) and Wal-Mart Watch (Service Employees International Union). By the end of 2005, Wal-Mart launched Working Families for Wal-Mart to attempt to counter the criticisms of the other two groups. Additional efforts to counter criticism include launching a public relations campaign in 2005 through their public relations website,[8] as well as several television commercials. The company retained the public relations firm Edelman to respond to negative media attention,[9] and has started interacting directly with bloggers by sending them news, suggesting topics for postings, and even inviting them to visit their corporate headquarters.[10]

In August 2006, the company initiated a voter education program by sending a letter to its 18,000 Iowa associates about the decision of a few elected leaders and candidates for office to attack the company at union-funded publicity events in the state.[11] They also plan to send similar letters to associates in other key states, including South Carolina, New Hampshire, and Nevada, and to invite various candidates to tour their stores and meet associates.

Several independent critics have suggested that Wal-Mart is a success in the system of free enterprise because it sells products at low prices that people want to buy, satisfying customer's needs, but at the same time their lower prices draw customers away from established business, "hurting the community."[12][13] Others argue that Wal-Mart is attacked simply because it is a "leader of the Fortune 500 list," "the largest employer in America," and a "free-market success story."[14]

 

See also

 

External links

 

Wal-Mart Stores, Inc.

Key People: Sam Walton | David Glass | Lee Scott | Jim C. Walton | Bud Walton | S. Robson Walton | Douglas Daft

Assets: Amigo Supermarkets | ASDA | Sam's Club | Wal-Mart Discount Stores | Wal-Mart Neighborhood Market | Wal-Mart Supercenter | Walmex
See Also: Criticism of Wal-Mart | History of Wal-Mart | List of assets owned by Wal-Mart Stores, Inc. | List of Wal-Mart brands

Annual Revenue: $288 billion USD (10% FY 2005) | Employees: 1.7 million | Stock Symbol: NYSEWMT | Website: www.walmartstores.com