MHC ASSIGNMENT

MHC Assignment

Table of Contents

Introduction2

Part I2

Role of HR Manager2

Introduction2

Analyzing the macroenvironment4

HR Practices for Competitive Advantage6

Conclusion10

Part II11

Introduction11

Discussion11

Pay & Benefits13

External Competitiveness14

Pay & Compensation Policy15

Conclusion17

References19

MHC Assignment

Introduction

Human Resource Management (HRM) is a planned approach to managing people effectively for performance. It aims to establish a more open, flexible and caring management style so that staff will be motivated, developed and managed in a way that they can give of their best to support departments missions.

Part I

Role of HR Manager

Introduction

Most organizations face external contexts that are complex, dynamic and increasingly global. This makes the context increasingly difficult to interpret. To cope with often incomplete and ambiguous contextual data, and to increase their understanding of the general external context, organizations engage in a process called 'external environmental analysis'. All managers, including HR managers, need to be aware of the importance of scanning the external context in a systematic way.

A number of models exist that can help managers in analysing the external environment. Such models provide a framework to identify external opportunities and threats. Opportunities arise when an organization can take advantage of conditions in its external environment to formulate and implement strategies that enable it to improve performance. Threats arise when conditions in the external environment endanger the integrity of the organization's activities. An organization's external environment has two major parts:

macroenvironment

industry

The macro environment is composed of social, economic, political and technological elements in the broader society that can influence an industry and the organizations within it. The industry environment is the set of factors that directly influences an organization and its actions and responses. Managers have to analyse competitive forces in an industry's environment in order to identify the opportunities and threats confronting an organization. A popular framework for doing this is Michael Porter's 'five-forces' model. This model identifies five competitive forces that shape industry's profit potential (as measured by the long-term return on investment): (1) the bargaining power of suppliers, (2) the threat of new entrants, (3) the threat of product substitutes, (4) the bargaining power of buyers and (5) the intensity of rivalry among established organizations within an industry.

Within most industries, there are groups of organizations in which each member follows the same basic strategy as others in the groups but follows a different strategy from that of firms in other groups. These groups of organizations are referred to as strategic groups

Analyzing the macroenvironment

To increase their understanding of the macroenvironment and to help develop a 'strategic plan', human resource managers can engage in a process called 'external environment analysis'. This process typically includes four activities:

Scanning-identifying early signals of macroenvironment changes and trends

Monitoring-detecting meaning through ongoing observations of macro- environmental changes and trends

Forecasting-developing projections of anticipated outcomes based on monitored changes and trends

Assessing-determining the importance of macroenvironmental changes and trends for the organization's strategic plans.

Step 1: Identify potential opportunities

Scan the macroenvironment around your own organization or an organization you are studying. Consider economic, technological, legal, political, social, demographic and global trends.

Step 2: Identify potential threats

Scanning the macroenvironment, potential threats that can endanger the ...