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Human Resource Management

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Salient Tasks of Human Resource

Management Conducting job analyses

Planning labor needs and recruiting job candidates

Selecting job candidates

Orienting and training new employees

Managing wages and salaries

Providing incentives and benefits

Appraising performance

Communicating

Training and developing managers

Building employee commitment

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Salient Tasks of Human Resource

Management Handling Grievances and labour relations

Ensuring employee health and safety

Complying with all the requirements of law

Ensuring fairness and equity through appropriate policies and practices

Maintaining healthy and professional interface with Labour and other

Government Departments

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Personnel Mistakes

Hire the wrong person for the job

Experience high turnover

Have your people not doing their best

Waste time with useless interviews

Have your company in court because of discriminatory actions

Have your company cited by labor inspectors for unsafe practices

Have some employees think their salaries are unfair and inequitable

relative to others in the organization

Allow a lack of training to undermine your departments effectiveness

Commit any unfair labor practices

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Human Resource Management at

Work

Acquisition

Training

Appraisal

CompensatingLabor Relations

Health and Safety

Fairness

Human

Resource

Management

(HRM)

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Human Resource Management at

Work

What Is Human Resource Management

(HRM)?

The policies and practices involved in carrying out

the people or human resource aspects of a

management position, including recruiting,

screening, training, rewarding, and appraising.

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Human Resource Specializations

Recruiters

Human Resource

Development

Specialists

Employment/

Industrial Relations

Specialist

Training Specialists Job Analysts

Compensation

Managers

Human

Resource

Specialties

Employee Welfare

Officers

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Human Resource Managers Duties

Functions of

HR Managers

Line FunctionLine Authority

Implied Authority

Staff FunctionsStaff Authority

Innovator

Employee Advocacy

Coordinative FunctionFunctional Authority

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Basic HR Concepts

The bottom line of managing:

Getting results

HR creates value by engaging

in activities that produce the

employee behaviors that thecompany needs to achieve

its strategic goals.

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Line Managers HRM Responsibilities

1. Placing the right person on the right job

2. Starting new employees in the organization (orientation)

3. Training employees for jobs that are new to them

4. Improving the job performance of each person

5. Gaining creative cooperation and developing smooth workingrelationships

6. Interpreting the firms policies and procedures

7. Controlling labor costs

8. Developing the abilities of each person

9. Creating and maintaining department morale

10. Protecting employees health and physical condition

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Line Managers HRM Responsibilities

11. Retention of employees

12. Interview job applicants

13. Provide and communicate job performance ratings

14. Recommend salary increases

15. Carry out disciplinary procedures

16. Settle grievances

17. Investigate accidents

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The Changing Environment of


Globalization Trends

Technological Trends

Trends in the Nature of Work

Workforce Demographic Trends

Changes and Trends in

Human Resource

Management

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FIGURE 18 Effects CFOs Believe Human Capital Has on Business Outcomes

Source: Steven H. Bates, Business Partners, HR Magazine, September 2003, p. 49.

Reproduced with permission of the Society for Human Resource Management via

Copyright Clearance Center. 15

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Management Challenges for Indian

CEOs

A study among Indian CEOs identified thefollowing challenges:

Creating a high-performance culture

Retaining talent

Recruiting

Moving from a patriarchic and hierarchical

management style to a more team-based,informal organizational culture

Linking training with performance

Compensating knowledge workers

Building interpersonal relationships/managingSource: Aneeta Madhok, Similar Challenges cited by Robert

J. Grossman in HRs Rising Star in India, available athttp://www.shrm.org/india. 16

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The Strategic Management Process

Strategic Management

The process of identifying and executing the

organizations mission by matching its capabilities

with the demands of its environment.

Strategy

A chosen course of action.

Strategic Plan

How an organization intends to balance its

internal strengths and weaknesses with its

external opportunities and threats to maintain a-

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Business Vision and Mission

Vision

A general statement of an organizations intended

direction that evokes emotional feelings in

organization members.

MAKING PEOPLES LIFE BETTERBY UNLEASHING THE

POWER OF CUMMINS

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Business Vision and Mission

Mission

Spells out who the company is, what it does, and

where its headed.

MOTIVATIONG PEOPLE TO ACT LIKE OWNERS

WORKING TOGETHER

EXCEEDING CUSTOMER EXPECTATIONS BY ALWAYS

BEING FIRST TO MARKET WITH THE BESTPRODUCTS

PARTNERING WITH OUR CUSTOMERS TO MAKE

SURE THAT THEY SUCCEED

DEMANDING THAT EVERYTHING THAT WE DO 20

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Types of Strategies

Diversification

Strategy

Geographic

Expansion

Strategy

Vertical

Integration

Strategy

Corporate-Level

Strategies

Consolidation

Strategy

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Types of Strategies (continued)

Cost Leadership Focus/Niche

Business-Level/

Competitive Strategies

Differentiation

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FIGURE 38 Relationships Among Strategies in Multiple-Business Firms

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Strategic Human Resource

Management

Strategic Human Resource Management

The linking of HRM with strategic goals andobjectives in order to improve business

performance and develop organizational cultures

that foster innovation and flexibility.

Involves formulating and executing HR systemsHR

policies and activitiesthat produce the employee

competencies and behaviors that the company needsto achieve its strate ic aims.24

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FIGURE 36 Linking Company-Wide and HR Strategies

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FIGURE 52 Linking Employers Strategy to Plans

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Planning and Forecasting

Employment or Personnel Planning

The process of deciding what positions the firm

will have to fill, and how to fill them.

Succession Planning

The process of deciding how to fill the companys

most important executive jobs.

What to Forecast?

Overall personnel needs

The supply of inside candidates 27

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Forecasting Personnel Needs

Managerial Estimate Scatter Plotting

Forecasting

Tools

Trend/

Ratio Analysis

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Delphi

TechniqueMarkov Model

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FIGURE 53

Determining the

Relationship Between

Hospital Size and

Number of Nurses

Note: After fitting the

line, you can project how

many employees youll

need, given your

projected volume.

Size of Hospital(Numberof Beds)

Number ofRegistered

Nurses

200 240

300 260

400 470

500 500

600 620

700 660

800 820

900 860

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Using Computers to Forecast

Personnel Requirements

Computerized Forecasts

Software that estimates future staffing needs by:

Projecting sales, volume of production, and personnelrequired to maintain different volumes of output.

Forecasting staffing levels for direct labor, indirect

staff, and exempt staff.

Creating metrics for direct labor hours and three sales

projection scenariosminimum, maximum, and

probable.

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Drawbacks to Traditional Forecasting

Techniques

They focus on projections and historical

relationships.

They do not consider the impact of strategicinitiatives on future staffing levels.

They support compensation plans that

reward managers for managing ever-largerstaffs.

They bake in the idea that staff increases

are inevitable. 31

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Forecasting the Supply of

Inside Candidates

Manual Systems

andReplacement

Charts

Qualification

Inventories

Computerized

Information

Systems

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FIGURE 54

Management

Replacement Chart

Showing Development

Needs ofPotential Future

Divisional Vice

Presidents

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Forecasting Outside Candidate Supply

Factors affecting Supply of Outside

Candidates General economic conditions

Expected unemployment rate

Sources of Information

Periodic forecasts in business publications

Special Reports of the Government/ Study

Grou s34

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Strategies to handle

Shortages/ surpluses

35

SURPLUSES

Freeze hiring

No replacement againstseparations

Offer VRS Reduce working hours Leave of absence Across the board paycuts

Layoff Reduce outsourced work Employee training

Switch to variable pay Expand operations

SHORTAGES

Recruit permanent employees

Postpone retirement

Rehire retirees

Attempt reducing staff turnover Employ current staff on overtime

Subcontract work

Hire temporary employees

Redesign job process

Source: Reproduced from K Aswathappa, Human Resource Management , 6th edition, Fig. 4.7, p. 109

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