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Human Resources Management
According to Narayanmurthy, the success of Infosys was due above all to its ability to attract, develop , retain human capital’
Some Changes in the World of Business
•Knowledge Work Versus Assembly Line
•IT, IT, IT, IT, IT / Commuciation / Communication…..
•Service Industry
•Globalisation Quality, Customer, Competition
•Reduced Barriers to entry
•Talent Famine… Labour Imbalances
•Virtual Workplaces
What is HRM?
What is HRM?
Why is it important?
•People as important organisational resources
•Value from people – function of way they are managed
-At Organisation Level
-At the level of individual Managers
STRATEGY IN PEOPLE MANAGEMENT
HR Strategies Supporting Business Strategy
•Infy TCS leverage freshers
•Globalisation strategy of Infy – next slide
•L & T uses training / foreign assignments to manage attrition
•Mass Recruitment at ICICI
•Escorts – Trehan – retaining Nurses
•Upgrading Human Resources – Banks, Manufacturing Companies Go to
W W
Why did Infosys CFO move to HR in May 2006 ? His Goals…
ET 2/5/2006
•increase the bonding between the people and organisation by
•better communication
•Structuring so that managers will have more responsibility for people — delegation of authority and training.
•Globalise workforce rapidly. - more local hiring in US and Europe, take in more engineers and delivery people. Set up HR organisations in the US (Plano) and Europe(London).
Raise the number of expats in Banagalore
etc etc
Naik on Attrition at Larsen and Toubro - 2006
L&T attrition due to boom in infrastructure activities special human resource strategy to reduce attrition - 15 % design & engineering division-8.9 % construction - 10 % manufacturing-14 % IT/infotech division-12.5 % - whole company “… We would have been comfortable with a rate of below 5 per cent, but we have accepted the fact that attrition is here to stay," The company's HR strategy includes accelerating training, and giving Overseas opportunities
Relationship between business perfomance and personnel policy
Mark Huselid (USA) – 1995
• Data of 965 firms
• Related HR practices to
• Attrition
• Productivity
• Financial results
• Analysis showed 1σ in ‘index of work
practices’ accounted for 16 % increase in
productivity.
• Where people development is an actively
pursued strategy - the organisation performs
better
The Human Value of the enterprise – Andrew Mayo
• Human Capital Index (HCI – STARTED
1999) - set of measures quantifying
exactly which HR practices and policies
have the greatest correlation to
shareholder value.
• Concluded that Superior practices
precede shareholder value creation
Watson Wyatt Human Capital Index®: Human Capital As a Lead Indicator of Shareholder Value
Watson Wyat Study - 2002Asia Pacific Human Capital Index Survey
• review of the people practices and financial performance 500 publicly traded companies in 12 Asia Pacific countries
• Responses to a questionnaire – analysis + statistical correlation between responses and the financial performance
• Over a five year period, companies
• High HCI score - 107 % increase in shareholder value
• Medium - 38 %
• Low – decrease of 3 %
Source - HRM Text and Cases, K Ashwathapa
THE BEST COMPANIES TO WORK FOR(BT Survey - 2000)
• Egalitarian Work Practices
• Stock Options
• Information Sharing
• On going Upgradation of skills
• Learning Organisations - Knowledge
Management
• Empowerment
• Great Work Content
• Performance Driven Culture
• No Lay-off policy
Therefore HRM must be concerned with
HRM Must be concerned with
• attracting and retaining RIGHT people
• developing them to contribute -changing
mindsets
• motivating /engaging them to give their
best
• Ensuring the existence of factors facilitating
performance
• ensuring that human endeavour is
effective
Scope of HRMA Dynamic Interaction of …
• HR Planning
• Recruitment & Selection
• Development
• Managing and Assessing Performance
• Culture Building
• Participation & Involvement
• Motivation &
Reward
• Communication
• Correction
• Employee
Relations
• Employee
WelfareHRM versus Personnel Management
HRM VS PERSONNEL MANAGEMENT
• People are resources to be developed, respected and used with care versus people as an instrument / a factor of production
• Mutuality of interest versus organisation’s interest
• Proactive, strategic function versus reactive administrative stand alone function
• Based on support versus based on control
INTERDISCIPLINARY NATURE OF HRM
• Industrial Psychology - People at work• Social Psychology - How people affect one
another• Organisation Theory - why organisations exist,
how they function• Organisation Behaviour - causes of individual
and group behaviour- use of knowledge in organisations
• Law• Political Science• Economics
Place of HR department in Organisation Chart
Place of HR Department in an Organisation
O rg an isa tion C h art o f a M an u fac tu rin g O rg an isa tion
Vice PresidentM arketing & Sales
Vice PresidentM anufacturing
Vice PresidentR & D
Vice PresidentC om m ercial
V ice PresidentH R
C EO
Organisation Chart of an Advertising Agency
C lientServicing
C reative
PR Film s
M edia Studio
Finance
H R
System s
Language
Adm in
D irector -B om bay Office
Structure of an HR Department
© Geometric Limited | www.geometricglobal.com
Human Resource Team - Geometric
Corporate HRRishi Agarwal
PLM InstituteHemant Shah
Global Resourcing &
StaffingRavikumar D
Vice President, HRRajiv Singh
3DPLMVandana G
BombaySonalika Johri
PuneNidhi Jang
BangaloreShabri A
Location HRDelivery Center
3DPLMShivani Ayre (Mumbai)Smita / Neha/Sajiri (Pune)
PuneSholy/ Anuprita/PayalAditi / Krupa/Lata
BombayBindu / PratibhaTejaswini
BangalorePrathibha VFenil M
Geometric EngineeringMike Pelki
BangaloreShabri A/Nidhi
Comp & Ben<Vacant>
PoliciesSujata Rai
Capability Building
Naaz Mushrif
India Recruitment
Kamal Dunani
HR Functions
• Personnel Administration• Recruitment / Selection /
Performance Evaluation• Training and Development• Compensation and Benefits• Industrial Relations• Welfare
Change ChampionsCulture buildingCommunication
Org Image
Whose job is HRM?
Actual roles vary from Company to Company
Whose Job is HRM?A Shared Responsibility
Recruitment and Selection - ( some roles)
• Functional Specialist’s Role
• HR Functionary’s Role
ROLE OF HR FUNCTIONARY
• Business Partner• Problem Solver• Service Provider - develops HR
Systems, Policy• Innovator• Enabler/ Coach / Change Agent• Consistency Monitor• Guardian of the Organisation’s
values regarding people
Managing HR, Bohlander & Shell
COMPETENCIES OF A HR MANAGER
• Business Mastery
• HR Mastery
• Change Mastery
• Personal Credibility
What is Policy - Some HR Policies
Examples of HR Policy
• Hiring on MERIT, disregarding gender,
source,
• Terms of employment
• Medical Assistance
• Values and Ethics
• Training and Development
• Employee contact with customersWhy Policy?
WHY IS HR POLICY NEEDED?
• Ensures due consideration to Human Resources
• Consistency of treatment
• Ensures continuity of action
• Serves as a standard of performance
• Sound policy builds employee motivation
• Sound policy helps resolve conflicts
• Permits delegation and planning
FEATURES OF SOUND POLICY
• Definite, clear in writing
• Stable, not rigid.
• Consistent with organisation’s aims
• Regard needs of all important
stakeholders
• Consistent and uniform
• Capable of being evaluated
• Indicate scope of discretion
The End
WHAT IS HRM?
• Concerned with managing people
• individually
• group
• Across the organisation
• Aimed at getting better organisation
results through people
That being so - it must be concerned with…
DEFINITIONS
• Strategic and a coherent approach
• to the management of an
organisation’s most valuable assets
• can be regarded as
• a set of inter related activities
• with an ideological and
philosophical underpinning.
Why Strategic - HRM versus Personnel Management
Actual roles vary from Company to Company
Recruitment and Selection -
Functional Specialist’s Role• Assist Job analyst understand
duties of people• Explain to HR the future needs
and the type of people required• Perhaps – screen bio –data• Perhaps – develop technical test• Interview candidates and
decide on whom to select
Actual roles vary from Company to Company
Recruitment and Selection
HR Functionary’s Role• Write Job Description & Job
Specification• Develop Sources of recruitment• Send interview communication• conduct initial screening
interviews and refer feasible candidates to supervisor
• Arrange medical tests• Issue appointment letter
IBM – FROM bt 20/5/07
When IBM got a big SAP Implementation project in China it scanned operations across 160 countries and 1,35,000 employees in global services division and finally zeroed in on Atanu Ghosh in the Bangalore office because he had a track record of handling similar complex cases
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