HR POLICY AND FUNCTIONS

8/7/2019 HR POLICY AND FUNCTIONS

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HR POLICY AND

FUNCTIONS

Chapter 1


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DEFINITION

Human resource management is the art ofmanaging human workforce in an organization

in an optimum manner which is beneficial to the

employee as well as the organization in achievingthe organizational goal.


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EVOLUTION OF HRM


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HISTORY

Human Resource Management Managing People

Deals with understanding the problems of the

people and their Management.Royal Commission on Labour (1929) Govt of

India

Labour Officer (1931) (employment,Dismissal, working conditions, housing, medical,recreational activities).


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Reason for transition

(PM HR Manager)

Increasing labour cost

Periodic stoppage of work (strike)

Government legislation (law)

Changes in production and distribution methodologies

Information technology Strategic use of employees contribution


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DIFFERENCE BETWEEN

PM & HRMPERSONNEL MANAGEMENT HUMAN RESOURCE MANAGEMENT

Management of people Management of employees knowledge,

attitudes, abilities, talents, creative abilities

and skills/competencies

Traditional, routine, maintenance-oriented,

administrative function

Continuous, on-going development function

aimed at improving human processes

Less important auxiliary function

(independent function with independent

sub-functions) cost centre

Strategic management function (systems

thinking approach) Profit centre

Reactive, responding to demands as andwhen they arise

Proactive, anticipating, planning andadvancing continuously

Responsibility of the personnel department Concern for all managers in the organization

and aims at developing the capabilities of all

line managers to carry out the human

resource related functions


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DIFFERENCE BETWEEN

PM & HRMPERSONNEL MANAGEMENT HUMAN RESOURCE MANAGEMENT

Scope is narrow with a focus on

administering people

Views the organization as a whole and lays

emphasis on building a dynamic culture

Recruitment, selection and administration of

manpower

Satisfy the human needs of the people at

work that helps to motivate people to maketheir best contribution

Motivators in PM are compensation,

rewards, job simplification and so on

Work groups, challenges and creativity on

the job as motivators

Employee is treated as an economic unit as

his services are exchanged for wages/salary

Employee in HRM is treated not only as

economic unit but also a social andpsychological entity

Treats employee as a commodity or a tool or

like equipment that can be bought and used

Employee is treated as a resource and as a

human being

Preserves information and maintains its

secrecy

Communication is one of its main tasks

(vertical, lateral and feedback type

communication)


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DIFFERENCE BETWEEN

HRM & HRDHUMAN RESOURCE MANAGEMENT HUMAN RESOURCE DEVELOPMENT

Subset of the entire management processes

of an organization

Subset of HRM

Scope of HRM is wider Scope of HRD as compared to HRM is

narrower

Emphasizes that employees, their abilities

and their attitudes -used effectively and

efficiently to achieve organizational as well

as employees' goals.

HRD emphasizes mainly on training and

development , career development,

counseling, updating latest technology,

mentorship and thus its employee skilldevelopment

Takes care of all the human - to motivate to

achieve organizational goals

Focuses on upgrading the skills and

competencies -performance of the

employees on the job


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Objectives of HRM To help the organization reach its goals (through reconciliation of individual

goal with the Organisation)

To ensure effective utilization and maximum development of human

resources by respecting and satisfying their needs.

To achieve and maintain high morale among employees.

To provide the organization with well-trained and well-motivated employees

to increase their performance .

To increase to the fullest the employee's job satisfaction and self-actualization. To develop and maintain a quality of work life.

To develop overall personality of each employee in its multidimensional

aspect.

To inculcate the sense of team spirit, team work and inter-team collaboration.


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Scope of HRM

1. Personnel aspect - This is concerned with manpower

planning, recruitment, selection, placement, transfer, promotion, training

and development, layoff and retrenchment, remuneration, incentives,

productivity etc.

2. Welfare aspect - It deals with working conditions and amenities such as

canteens, creches, rest and lunch rooms, housing, transport, medical

assistance, education, health and safety, recreation facilities, etc.3. Industrial relations aspect - This covers union-management relations,

joint consultation, collective bargaining, grievance and disciplinary

procedures, settlement of disputes, etc.


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HRM Functions

Organizational

Behaviour

Personnel

Management

Industrial

relations &

Labour

Legislations


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Organizational Behaviour

Focus on the behaviour of the employees (individual,group and total organisation).

Motivation

Job satisfaction

Communication

Supervision

Inter and Intra group behaviour

Organisational Development

Structures and Designs


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Personnel Management

Policy Formulation and Implementation on

Human Resource Planning

Recruitment and Selection Training and Development

Performance and Potential Appraisal

Promotions

Transfers

Quality of Work Life

Compensation Management


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Industrial Relations and Labour

Legislations

Union-Management Relationship

Union Structure

Collective Bargaining

Grievance Handling

Discipline Management

Implementaion of various Labour Legislations.


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Categories of HR FunctionsLine Functions Staff Functions

(advisory Functions)

HR Department activities Assisting other Managers in performing their

(hiring and retaining employees) duties without creating human problems

HR Planning

Job Analysis

Recruitment and Selection

Induction training

Performance and Potential Appraisal

Internal mobility

Training and development

Compensation Management

Union Management

Motivational Schemes, etc.

Educate Managers on issues such as

Harassment Conducing surveys on various issues Employment of special group employees

helping in setting up compensation

packages dealing with indiscipline Others problems of managing Human

Resources

(ensures smooth flow of activities in the Orgn)


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Hall Mark of HR Policies

Policies are designed Management of the people in the Orgn, ensure parityand justice to all employees.

HR Policies are governed by Labour Laws.

Indian Constitution Promises social, economical and political justice and

equality to status and opportunity.

Articles of Indian Constitution that influence HR activities are

Article 16 (equality in education and employment)

Article 24 (Prohibition of Child Labour) Article 39 (equal pay for equal work)

Article 43 (to provide living wages)

Article 43a (participation of workers in Management)


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Roles of HR Manager

Business and Strategic Partner

Employee Advocate

Change Champion


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Assessment Centre (Procedure not a location)

Employees are not contended by just having a job, but growth and individualdevelopment is required.

It uses variety of techniques to evaluate the employees (promotions /supervisory positions)

Use situational test to observe specific job behavior. (assessors do SWOTanalysis)

Elements required for an Assessment Centre: (IPMA InternationalPersonnel Management Association)

Job analysis to determine attributes, skills, abilities, etc. Multiple Assessment Technique must be used Job related Simulations

Multiple Assessors (thoroughly trained) must be used for each assessee

Systematic Procedure should be used to record observations

Assessors must prepare report (as discussion / using statistical techniques)


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Benefits of Assessment Centre

Helps to identify supervisory / managerial potential early, provide

lead time for training before occupying new position

Identify T&D needs

Training to assessor, helps to know Organisation little better

Opportunity for the Orgn to review HRM Policies.

GSKstarted its assessment centre recently: (3 functions)

Selection of candidate and confirming their potential Assist in Target development

Guides in career development


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Assessment Tools (used by GSK)

Simulation

Structured interview

Presentation


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Empowerment (USA 1970) Redistribution of power in work setting (liberate the range of thought

and action)

Providing greater freedom and discretion to employees

Develop mutual trust

Liberal sharing of information

Become team player

A Major electronic company launched 2 programs to increase theeffectiveness of the supervisor.

Traditional competency training Empowering (flexibility, access to resources, control

over working conditions)

Employee can be empowered after training and adding responsibility

and accountability. Eg. Reliance Industries Ltd.


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Job Enrichment(Hackman and Oldham 1975)

Job needs to satisfy the inner desire of actualization & satisfaction.

Providing discretion, flexibility and variety of job to increase the

employees willingness to contribute.

7 Characteristics:

Skill variety

Task variety

Task significance

Autonomy

Feedback from job

Feedback from others

Dealing with others


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Parity and Justice

Fairness in the treatment of job.

According to the Preamble of Indian Constitution Sovereign,

Socialist, secular, democratic republic - promises social,

economic and political justice, liberty of thought, expression,worship, equality of status, opportunity and dignity of individual.

(Article 14, 15, 16, 24, 39, 41, 43a).

HRM approach has to be

Flexible

Innovative

Constantly responding to the challenges of the environment


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Downsizing / Rightsizing

Activities undertaken by the management to improve efficiency,

productivity and competitiveness of organisations by reducing the

workforce.

To workout the irreducible number of core employees required tooperate the system.

Large staff increase cost, inhibits speed, create road blocks in

responding to challenges , curtails innovation and creativity.

Smaller number of well trained employees + good infrastructure =

increase the effectiveness at work.


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Reasons for Downsizing / Rightsizing

Mergers, acquisitions and sell off

To reduce labour cost and to enhance revenue (cutting down salary

/ wages bills)

Modernization and upgradation of technology, less manual work.

Multitasking

Eg: Tata Steel 78,276 (Jan 1994) reduced to 50,910 (Oct 2000)

under Early Seperation Scheme


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Human Resource Information System

Defined as a composite of database, computer applications, hardware

and software that are used to collect, record, store, manage, deliver and

manipulate data for Human Resource Management.

Systematic way of sorting data and information for each employee, to aidin planning, decision making and report generation.

Requirements of HRIS:

Duties and responsibilities of every job in the organisation

Skills possessed by every employee Future human resource needs of the organisation

Current productivity of human resources

Identification of training needs


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Documents

HR POLICY AND FUNCTIONS