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Human Resource Managemen t

HR Introduction

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Human Resource Management

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Up sizing

Downsizing

Overhead ReductionEm pl oyee Em p owerment

Process Redesign

Portfo lio Rationa lization

Challenges Managers· Face

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Copyright © Houghton Mifflin Company. All rights reserved.

Top Challenges Identified by CEOs and Top HRProfessionals

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Hence the com p etition for the future is:O pp ortunity share and market share .

Com p etition for the future

is not p roduct versus p roduct or

p roduct versus business,

but com p any versus com p any

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Marketing of the out p ut is required for anorganization to survive .

Techno logy is required for an organization too p erate .

Finance is required for an organisation to exist .

But who contro ls these marketing or techno logy orfinance in the organisation.

It is the human resource who contro ls these.

Hence Management of Human Resource is the

most vita l function for any organisation

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How to deal with a human resource surplus situation?

Why? Consequences? Managing Survivors of

downsizingAutomation

Restr uct uring

Mergers

AcquisitionsCompetitive

Press ures

Cuts payroll expensesEliminates extra layersImproves f unctioning if

firm·s prod uct and

servi ce profile is goodShocks those left o ut

Shattering impa ct onemployee motivation andmorale if not managedproperly

Bitterness, anger, disbeliefand shock need to behandled properly

Give information as to whythe a ction had to be ta ken

Tell how it is going to helpthe firm and employees inthe long r un.

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Role of H R in a Virtual OrganizationA virt ual organisation is a networ k of companies or employees

connected by computers. Virt ual workers wor k from home,hotels, their cars, or wherever their wor k ta kes them. Thehuman resource f unction plays a unique role in a virt ualorganisation:

Psyc hological f it: The lack of fa ce-to-fa ce intera ction in a virt ualorganisation, virt ually compels HR professionals to determine thepsychological fit between different units initially.S ys tem al ignment: Given the lack of physi cal proximity, itbecomes even more criti cal that the organisation's mission, visionand measures be aligned and that all parties are familiar with theseissues; the HR f unction can play an important role in this tas k.Re cons ider rew a rd s : In a virt ual unit, very few permanentpositions exist. In many cases, the organisation will be staffed withworkers having different motivational for ces. So rewarding ea chentity in an effe ctive way be comes an important job.

Cont«

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Re cons ider s t aff ing n eed s : In a virt ual organization, most

employees work on a contra ct ual basis. Finding people withre quisite s kills, knowledge and motivation levels be comes animportant a ctivity.B uil d p a r t n er s hi p s : Virt ual, teams have to be b uilt from s crat chpaying attention to their unique re quirements. The concept ofemployment needs to be repla ced by the concept of 'partnership'espe cially when most tend to wor k independently away from thepermanent employees or owners of the organizationD eve lo p l e a der s : Leaders be come the major for ces for b uilding

tr ust, creating a mission and instilling a sense of belonging to theorganization. HR can play a major role in ens uring that leadersass ume these responsibilities and meet them in an effe ctive way.

Role of H R in a Virtual Organisation

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Human Resource Management

The p o licies, p ractices, and systems thatinfluence em pl oyees· behavior, attitudes,and p erformance.

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G oa ls of HRM

Attract, retain, and motivateDirect em pl oyee efforts toward goa ls oforganizationAssist in the deve lo p ment of thestrategic direction of the organizationProvide the organization a source ofcom p etitive advantageHe lp ensure lega l com pl iance

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Economic, Political and Social Challenges andHR

N ow-a-days, people, goods, capital and informationare moving around the globe as never before. Globalcompetition is ma king every firm to thin k in terms ofgaining an edge over rivals by prod ucing high qualitygoods at a very competitive pri ce. This is where the¶people· dimension comes into being. In centives,favourable wor k climate, team spirit, freedom to

thin k and act independently, and a host of other HRinitiatives are needed to keep talent from flyingaway.

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What H R Managers Can Do?U se workfor ce s kills and abilities in order to exploitenvironmental opport unities and ne utralize threats.

Employ innovative reward plans that re cognize employeecontrib utions and grant enhan cements.Ind ulge in continuous quality improvement thro ugh TQM and HRcontrib utions (training, development, counselling, coaching et c.).U tilize people with distin ctive capabilities to create unsurpassed

competence in an area (Xerox in photo copier, 3M in adhesives,Telco in tr ucks, Britannia in bis cuits, N estle in coffee,McDonald·s in fast foods, et c.).Decentralize operations and rely on self managed teams todeliver goods in diffi cult times (Motorola is famo us for short

product development c ycles. It has quickly commercialized ideasfrom its resear ch labs).Lay off wor kers in a smooth way, explaining fa cts (IBM, Kodak,Xerox, AT&T, Steel and Textile firms in India et c.) to unions,workers and other affe cted gro ups. HR generally plays a key role,

these days, in planning and implementing corporate downsizings,and then in maintaining the morale of the remaining employees.

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Political factorsPolitical stability

Formation of new politi cal partiesInfl uence of politi cians over Prod uctivity linked wageagreementsPolitical parties sympatheti c to trade unionism

Opposition to VRS s chemes, downsizing operations,restr uct uring exer cises.Freedom to show the door to unwanted people

Social factorsConducting b usiness in a so cially relevant and responsibleway.Hire qualified people or hire inexperien ced local people andtrain them to avoid tro uble?Helping economically poor people, unemployed,underprivileged ones, et c.

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I nternal Environment and H R

Organisations are also infl uenced by a variety ofinternal fa ctors relating to strategy, culture,str uct ure et c.

Mission and StrategyInternal Poli ciesOrganizational Culture

Organization str uct ureHuman resource systems

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Designing Appropriate H R SystemsI ssue Focus onN at ure of employment : Job/Career

Recruitment : Internal/external/both

Sele ction : Merit/other considerations

Training and employee : 6 months/yearlydevelopment a ctions Regular/irreg ular/need based

Degree of parti cipation : Top down/bottom up

In centives : Individ ual merit/gro up outp ut

Job se curity : Lifelong employment/need-based jobs

Employee welfare : Be a model employer (offer those thatare needed by law.)

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Ro le of HR

Strategic Partner

Em pl oyee Cham p ion

Change Agent

Administrative Ex p ertConscience Ro le

Counse lor

Mediator

Sp okesman

Prob lem So lver·s Ro le

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Coverage of HRM

Personne l IR HRD ODADMN

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Functions of HRM

When an organisation estab lishes, then regardinghuman resources it does the fo llowing functions:

Acquisition, Induction and De pl oyment

Motivation, Utilization and Com p ensationEva luation and Feedback

Deve lo p ment

Motivation, De pl oyment (If Required) and Reuti lization

Retention

Se p aration

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As a line manager how wi ll you p erform these HR functions?

Acquisition, Induction and De pl oyment

Job Ana lysis = Job Descri p tion + Job S p ecification

Forecasting Vacancies

Recruitment

Se lection

App ointment

Induction

De pl oyment

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Motivation, Utilization and Com p ensation

HR Strategy

G ood Inter p ersona l Re lationsOrganisationa l Cu lture

Regu lar Work

Work pl ace Feedbacks

Stress Management

Disci pl inary Activities If Required

Com p ensation and Benefits

SafetyIndustria l Re lations

Medica l Services

We lfare Activities

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Eva luation and Feedback Persona l App raisa lPotentia l App raisa l

HR ResearchDeve lo p ment

TrainingTa lent Enhancement and Ta lent Management

MentoringCareer P lanning

Motivation, De pl oyment (If Required) and Reuti lization

New Task Job Rotation

Job EnrichmentPromotion

Transfer

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Retention

Severa l Em pl oyee Bonding Activities

Em pl oyee Stock O p tion P lans

Performing Cu ltureG rievance Hand ling

Recreation

Protection and SecurityEm pl oyee Counse ling

Se p aration

Vo luntary Se p aration

Resignation

Retirement

Retrenchment

Exit Interviews

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HRM·s History

Human Va lues;Techno logy and

Productivitythrough Peo pl e

Phi loso p hica lExecutivePromising1980-90

Regu latoryConformance;Im p osition ofStandards on

Other Functions

Professiona l Lega listic;

Im p ersona l

Manageria lIm p ressing withso p histication

1970-80

Introduction ofTechniques

Technica l/ Lega listic

AdministrativeStrugg ling forRecognition

1940-60

StatutoryWe lfare /

Paterna lism

Em p hasis

Pragmatismof Ca p ita lists

Out look

C lerica l

Status

Bargaining

Deve lo p ment

1920-30

Period