HRM CONCEPT

PERSONNEL MANAGEMENT

Traditionally the term personnel management was used to refer to the set of activities concerning the workforce which included staffing, payroll, contractual obligations and other administrative tasks.

In this respect, personnel management encompasses the range of activities that are to do with managing the workforce rather than resources.

Personnel Management is more administrative in nature and the Personnel Manager’s main job is to ensure that the needs of the workforce as they pertain to their immediate concerns are taken care of.

Further, personnel managers typically played the role of mediators between the management and the employees and hence there was always the feeling that personnel management was not in tune with the objectives of the management.

PERSONNEL FUNCTIONS

1. The procurement function- obtaining of a proper kind and number of personnel necessary to accomplish an organization’s goals.

2. The development function- personnel development of employees, training.

3. The compensating function- securing adequate and equitable remuneration to personnel.

4. The Integration function- an “integration” of human resources with organization through job enlargement, job evaluation, variable compensation plans, disciplinary action programs.

5. The maintenance function- maintaining the physical conditions of employees (health and safety measures) and employee service programs.

HRM

Human resource management is concerned with the development and implementation of people strategies, which are integrated with corporate strategies, and ensures that the culture, values and structure of the organization, and the quality, motivation and commitment of its members contribute fully to the achievement of its goals.

Definition: HRM is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health & safety, and fairness concern.

HUMAN RESOURCE MANAGEMENT

With the advent of resource centric organizations in recent decades, it has become imperative to put “people first” as well as secure management objectives of maximizing the ROI (Return on Investment) on the resources.

This has led to the development of the modern HRM function which is primarily concerned with ensuring the fulfillment of management objectives and at the same time ensuring that the needs of the resources are taken care of.

In this way, HRM differs from personnel management not only in its broader scope but also in the way in which its mission is defined.

HRM goes beyond the administrative tasks of personnel management and encompasses a broad vision of how management would like the resources to contribute to the success of the organization.

CHARACTERISTICS OF HRM Human Resources are heterogeneous.(Different people, different

personalities, different needs, attitudes and values).

Human resources are dynamic and behave differently.(They react to the same situation in quite different ways).

HR are the most important element in an organization. The effective utilization of all other resources depend upon the quality of HR.

The term HR is wider than the term Personnel. HR include all dynamic components of all the people at all levels in the organization, whereas personnel means the employees working in the organization.

OBJECTIVES OF HRM To help organization attain its goals by providing well trained and well

motivated employees. To employ the skills and knowledge of employees efficiently and

effectively, i.e., to utilize HR effectively. To enhance job satisfaction of employees by encouraging and assisting

every employee to realize his full potential. To establish and maintain productive, self-respecting and internally

satisfying working relationship among all the members of the organization.

To bring about maximum development of individuals by providing opportunities for training and development.

To maintain high morale and good HR within the organization. To help maintain ethical policies and behavior inside and outside the

organization. To recognize and satisfy individual needs and group goals by offering

appropriate monetary and non-monetary incentives.

IMPORTANCE OF HRMAs managers none of us would like to make the following mistakes:

To hire the wrong person for the job. To experience high turnover . To find our people not doing their best. To waste time with countless and useless interviews. To be quoted under bad example of unsafe practices. To have some of your employees think their salaries are unfair and

inequitable relative to others in the organization. To allow a lack of training to undermine your department's effectiveness To commit any unfair labor practices .

HISTORY OF HRM

The Industrial Revolution

Trade Unionism

Scientific Management

Industrial Psychology

HR Movement

Behavioral Science

Employee Welfare

The Industrial Revolution: Development of Machinery, Linking power to machines, establishing factories etc.

Trade Union: Workers formed their unions to improve their lots so that management could be forced to redress grievances.

Scientific Management: F.W. Taylor: (a) development of a true science.(b) Scientific selection and training of workers.(C) Friendly cooperation between management and workers.(d)

Development of every worker to hid fullest potential. Industrial Psychology: It stressed on matching of employees skills

with job. Contributions made to analyze the jobs in terms of their mental and emotional requirement and development of testing devices.

HR Movement: Researches focused on the attitude and feelings of workers and their influence on productivity. The role of informal groups in industry were highlighted. It was suggested that interpersonal relationships should be improved.

Behavioral Science: Research in anthropology , sociology, psychology, etc. has provided the subject matter for HRM. Behavioral Science era led to the development of new techniques of motivation and leadership e.g., employee participation, 2 way communication, management by objectives etc.

Employee welfare: With the dawn of welfare era, scope of HRM increased. It is not only concerned now with recruitment, selection, and training of employees. It manages employee benefits programmes and industrial relations system in industry.

EVOLUTION OF HRM The commodity concept The factor of production concept The paternalistic concept (Fatherly figure) The Humanitarian concept(Employees right to be protected by

employer as human being) The HR Concept (Valuable assets) The Emerging Concept (Employees are considered as partners in

the industry)

LINE & STAFF ASPECT OF HRM Line manager:- Gives Orders Staff Manager:- Gives Advice

HR Managers’ Duties

A line function

Staff function (assist and

advise)

A coordinate function

THE HARVARD MODEL OF HUMAN RESOURCE MANAGEMENT

MAJOR FUNCTIONS OF THE HRM

Training and Development

Staffing

Motivation

Maintenance

FUNCTIONS OF HRM

Managerial Function

Operative Function

Planning

Organizing

Directing

Controlling

Procurement

Development

Compensation

Integration

Maintenances

PROCUREMENT

Job Analysis

Recruitment

Separation

Induction

Promotion

Transfer

HR Planning

Selection

Placement

DEVELOPMENT

Performance Appraisal

Executive Development

Training

Career Planning & Development

COMPENSATION

Job Evaluation

Bonus & Incentives

Wage & Salary Administration

Payroll

INTEGRATION

Motivation

Grievance Redressal

Job Satisfaction

Collective Bargaining

Conflict Management

Employees’ Partiicipation

Discipline

MAINTENANCE

Health

Social Security

Safety

Welfare Schemes

HR Records

HR Research

HR Audit

EMPLOYMENT / STAFFING Staffing - Process through which organization ensures it always has

proper number of employees with appropriate skills in right jobs at right time to achieve organizational objectives.

Job analysis - Systematic process of determining skills, duties, and knowledge required for performing jobs in organization.

Human resource planning - Systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time .

Recruitment - Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization.

Selection - Process of choosing from a group of applicants the individual best suited for a particular position and the organization .

JOB ANALYSIS The process whereby jobs are investigated in sufficient

detail to enable(a)recruitment of people (b)assessment of the performance of people who are already working.

Job analysis identifies the following information:

Detailed breakdown of the duties involved in a position. Skills, knowledge, attitudes and experience a person

should bring to the position. Environment condition of the job.

JOB ANALYSIS IS OF TWO FORMS:

Job Description Critical skills required for the job Tasks or performance standard, Responsibilities and disciplinary procedures Service condition of the job Pay rates

Job Specifications Describes the requirements of the person for the job Abilities Educational qualifications Special physical and mental skills Training Experience and others

RECRUITMENT Initial attraction & screening of applicants.

Internal Sources Job Posting Succession Plans Referrals

External Sources Ads Job Placement Agencies Internet Placement through Colleges and Universities

SELECTION

Application Evaluation Methods of Selection: Interviews Tests Background Investigations Medical Tests

Hiring

This is the process of appointing the person selected for a particular job.

Induction

•Introducing the employee to the organization and the organization’s culture.

•Introducing the employee to his/her job.

TRAINING & DEVELOPMENTEmployee training Designed to assist employees in acquiring better skills for their current

jobs. Employee development Designed to help organization to ensure that it has the necessary talent

internally for meeting the future human resource needed.

Organization Development

Deals with facilitating system–wide change in the organization. Career development Designed to assist employees in advancing their work lives. However, it

is a responsibility of the individual, not of the organization (employee centered).

TRAINING AND DEVELOPMENT Training - Designed to provide learners with knowledge and skills

needed for their present jobs

Development - Involves learning that goes beyond today's job; it has more long-term focus

Career development - Formal approach used by organization to ensure that people with proper qualifications and experiences are available when needed

Organization development - Planned process of improving organization by developing its structures, systems, and processes to improve effectiveness and achieving desired goals

Performance management - Goal-oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization

Performance appraisal - Formal system of review and evaluation of individual or team task performance

MOTIVATION An employee’s intrinsic enthusiasm about and drive to accomplish work.

Maintenance-retention of productive employees

Welfare Administration Medical facilities Canteen facilities Housing facilities Transport facilities Recreation facilities Loan facilities Educational facilities Various Incentive schemes/clear view of retirement benefit

HEALTH AND SAFETY ADMINISTRATION Employees who work in safe environment and enjoy good health are

more likely to be productive and yield long-term benefits to organization.

Safety - Involves protecting employees from injuries caused by work-related accidents.

Health - Refers to employees' freedom from illness and their general physical and mental well being.

Employee assistance programs Medical Dental Accidental Educational Retirement

COMPENSATION

Direct Financial Compensation - Pay that person receives in form of wages, salaries, bonuses, and commissions.

Indirect Financial Compensation (Benefits) - All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance.

Nonfinancial Compensation - Satisfaction that person receives from job itself or from psychological and/or physical environment in which person works.

MAINTENANCE It is concerned with protecting and promoting the physical and

mental health of employees. For this , several types of fringe benefits such as housing, medical aid, educational facilities, conveyance facilities etc. are provided.

Social security measures are provided such as; PF, Pension plans, gratuity, maternity benefits disablement allowances, group insurance etc.

The Changing Environment of HRM

GLOBALIZATION TREND

Companies dealing across the nation : Sony, Apple, Nike, Mercedes Benz, Infosys, TCS etc.

More Globalizati

on

Make employees

more productive

Do things better &

Less Expensive

More Competiti

on

More pressure

to be world class

GLOBALIZATION BRINGS BOTH BENEFITS AND THREATS.

Benefits to the consumer: Variety of products and services at low cost (Ex: From computer to car).

Threat: More competent and knowledgeable people required, Outsourced from other countries.

Ex: Indian IITS, Engineers move abroad for projects.

TRENDS IN THE NATURE OF WORK

High- Tech Job: Ex-Skilled machinist required.

Service Jobs: More intellect people required.

Knowledge work and Human Capital: The knowledge, education, training, skills, and expertise of a firm’s worker.

(Management Guru Peter Drucker predicted several years ago, “ the center of gravity in employment is moving fast from manual and clerical workers to knowledge workers”).

Nature of work and facilities provided.(Ex: Same Software implication in two different banks but results came different ).

Work Force Demographic Trends: Age, Education, Family Background.

THE CHANGING ROLE OF HRM

Strategic HRM

Creating High-Performance Work system

Managing technology

HR POLICIESWhat is a Policy:

A policy is a predetermined course of action established as a guide toward accepted objectives and strategies of the organization.

A vision is formulated, business processes are analyzed, and policy and procedure systems to support the vision are born. As policies and procedures are written, approved, published, and implemented, the company’s vision is articulated.

WHY DEVELOP A POLICY MANUAL Policy manuals are developed to help staff and management teams run

the organization.

In best use situations, policies play a strategic role in an organization.

They are developed in light of the mission and objectives of the company and they become the media by which management’s plans, rules, intents, and business processes become documented and communicated to all staff.

Carefully drafted and standardized policies and procedures save the company countless hours of management time.

The consistent use and interpretation of such policies, in an evenhanded and fair manner, reduces management's concern about legal issues becoming legal problems.

OBJECTIVES To provide fair, acceptable & efficient leadership

To provide an opportunity for expansion & voice in management

To strengthen & appreciate the human assets continuously by providing training & developmental programs

To provide facilities & conditions of work & creation of favorable atmosphere for maintaining stability of employment

To attain an effective utilization of human resources in the achievement of organizational goals, etc

VARIOUS TYPES OF POLICIESEmployment Policies

These are the policies that guide hiring practices, orientation of new employees, compliance with employment laws, and confidentiality.

Employment Status & Records

These are the policies that define such issues as employment classifications, access to personnel files and guidance on how background checks and performance reviews are to be performed.

Employee Benefits

These are policies that explain employee benefits such as insurance, vacations, holidays, leave, and employee reimbursements.

Payroll

These are policies that are related to salary and wage administration including deductions, pay advances, and time keeping.

Workplace Guidelines These policies are quite varied and their purpose range from defining

certain work arrangements such as flex time and telecommuting to offering guidelines on the use of company assets and record retention.

Employee Conduct These policies are guidelines that control employer behavior and conduct

on the job. The mainstay of this section is a code of conduct but also important are policies regarding substance abuse, smoking, harassment, and workplace violence.

E-Policies These policies guide staff in the use of the organization’s information

technology. Policies defining acceptable and prohibited activities and use of e-mail and the Internet make up a majority of these policies

THAN

K YOU