MANJULA-HRM CH1

8/4/2019 MANJULA-HRM CH1

1/72

HUMAN RESOURCESMANAGEMENT

MBA 1009


2/72

PSM/ DOMS/ UOM/ CH1 2

INTRODUCTION TO HRM

A company that loses all its

equipments but retains the skills and

know-how of its workforce could be backin business relatively quickly, but one

that loses its workforce, while keeping

its equipment, will find it much more

difficult to recover.

-Becker, Huselid, Ulrich (2001). The HR

Scorecard


3/72


Contd My main job was developing talent.

I was a gardener providing water and

other nourishments. Ofcourse, I hadto pull some weeds too.

- Jack Welch, former CEO of GE in an

interview with Business Week


4/72


Contd The employee at Taj is viewed as an asset and

is the real profit center. He or she is the very

reason for our survival. The creation of the Taj

People Philosophy displays our commitment to

and belief in our people. We want an

organization with a very clear philosophy,

where we can treasure people and build from

within.

- Bernard Martyris , Senior Vice-President, HR,

Indian Hotels Company Ltd.,


5/72


Contd..

Unlike a factory which churns out goods,FedEx as a service company has onlypeople-couriers to pick up and deliver

goods and document, customerrepresentatives and sales executives. If wehire the right people, train them, equipthem and manage them properly, they willprovide service that will satisfy customers

and in turn those customers will reward uswith business after business that generatesprofits.

- Malcolm Sullivan, MD, FedEx (South Pacific)


6/72


Contd The most important mission for a Japanese

manager is to develop a healthy relationshipwith his employees, to create a family-like

feeling within the corporation, a feeling thatemployees and managers share the same fate.Those companies that are most successful inJapan are those that have managed to create ashared sense of fate among all employees,what Americans call labor and management,and the shareholders.

- Akio Morita, Founder of Sony Corporation inhis biography, Made in Japan.


7/72

P

SM/ DOMS/ UOM/ CH1 7

HUMAN RESOURCE MANAGEMENT It is a management function concerned with

hiring, motivating and maintaining people in anorganization.

It may be defined as : A strategic approach tomanaging employment relations whichemphasizes that leveraging peoplescapabilities is critical to achieving sustainable

competitive advantage, this being achievedthrough a distinctive set of integratedemployment policies, programmes andpractices. (Bartton & Gold, 2007)


8/72

P


PM AND HRM

1) Is PM and HRM essentially the sameor different concepts?

2) Is there a difference between HRMand HRD?


9/72

P


HRM,PM & HRD

HRM is a broad concept, Personnelmanagement (PM) and human resourcedevelopment (HRD) are a part of HRM.

HRM differs from PM both in scope andorientation.

PM has limited scope and an invertedorientation.

HRD is more concerned with trainingand development, career planning anddevelopment, and OD.


10/72

P


DIFFERENCES BETWEEN HRM &PM

DIMENSION PERSONNEL MANAGEMENTHUMAN RESOURCE

MANAGEMENT

Employment ContractCareful delineation of written

contractsAim to go beyond contract

Rules Importance of devising clear rulesCan do outlook, impatience with

rule

Guide to management

actionProcedures Business need

Behaviour referent Norms/customs and practices Values/mission

InitiativesPiecemeal Integrated


11/72


Contd..DIMENSION

PERSONNEL

MANAGEMENT

HUMAN RESOURCE

MANAGEMENT

Speed of decision Slow Fast

Management role Transactional Transformational leadership

Communication Indirect Direct

Prized management skills Negotiation Facilitation

Conditions Separately negotiated Harmonisation


12/72


Contd..DIMENSION

PERSONNEL

MANAGEMENTHUMAN RESOURCE MANAGEMENT

Labour managementCollective-bargaining

contractsIndividual contracts

Job categories and

gradesMany Few

Job design Division of labour Team work

Conflict handling Reach temporary truce Manage climate and culture

Focus of attention for

interventionsPersonnel procedures

Wide-ranging cultural, structural and

personnel strategies


13/72


ContdDIMENSION PERSONNEL MANAGEMENT

HUMAN RESOURCE

MANAGEMENT

Respect for

employees

Labour is treated as a tool which is

expendable and replaceable

People are treated as assets to

be used for the benefit of

an organization, itsemployees and the

society as a whole

Shared InterestsInterests of the organization are

uppermostMutuality of interests

Evolution Precedes HRMLatest in the evolution of the

subject


14/72


OBJECTIVES OF HRM

Personalobjectives

Functional

objectives

Organisational

objectivesSocietal objectives


15/72


Societal objectives To be ethically and socially

responsible to the needs and

challenges of the society whileminimizing the negative impact ofsuch demands upon the organization.


16/72


Organizational Objectives To recognize the role of HRM in

bringing about organizational

effectiveness.

To make sure that HRM is not astandalone department, but rather ameans to assist the organization withits primary objectives.


17/72


Functional Objectives To maintain the departments

contribution at a level appropriate to

the organizations needs.

The departments level of servicemust be tailored to fit theorganization it serves.


18/72


Personal Objectives

To assist employees in achieving theirpersonal goals, at least in so far as

these goals enhance the individualscontribution to the organization.


19/72


HRM-FUNCTIONSHRM OBJECTIVES

Societal Objectives

SUPPORTING

FUNCTIONS

Legal Compliance Benefits

Union-management

relations


20/72


Contd.Organizational

Objectives Human Resource

Planning

Employee Relations

Selection

Training andDevelopment

Appraisal Placement

Assessment


21/72


ContdFunctional Objectives Appraisal

P

lacement

Assessment


22/72


ContdPersonal Objectives Training and

Development

Appraisal

Placement

Compensation

Assessment


23/72


QUALITIES OF A GOOD HR

MANAGER Fairness and firmness Communication Skills Tactfulness and resourcefulness Sympathy and consideration

Knowledge of labour and other terms Broad social outlook Competence

(Creative thinking, analytical thinking, reasoningobjectively, Problem Solving and Decision MakingAbility)

Leadership- Ability to inspire, motivate and persuade Personal Integrity Academic Qualifications


24/72


EVOLUTION OF HRM IN INDIAPERIOD DEVELOPMENTSTATUS

OUTLOOK EMPHASIS STATUS

1920s-1930s Beginning Pragmatism of capitalists

Statutory,welfare,

paternalism

Clerical

1940s-1960s Struggling forrecognition

Technical,legalistic

Introductionoftechniques

Administrative

1970s-1980s Achievingsophistication

Professional,legalistic,

impersonal

Regulatory,conforming,

impositionof standardson otherfunctions

Managerial

1990s Promising Philosophical Humanvalues,productivity

throughpeople

Executive


25/72


HRM MODEL Nine HR areas identified by ASTD1. Training and Development2. Organization and Development3. Organization/ Job Design

4. HRP5. Selection and Staffing6. Personnel Research and Information Systems7. Compensation/Benefits8. Employee Assistance

9. Union/Labour RelationsThese nine areas have been termed spokes of thewheel in that each area impacts on the HR outputs:QWL, productivity, and readiness for change.


26/72


HRM COMPONENTS

Acquisition HRP Recruitment-

internal & external Employee

socialization

Maintenance

Safety and health Employee/Labour

relations

Development Employee training Mgt. Development Career Development

Motivation Job Design Performance

Evaluations

Rewards Job Evaluations Compensation/Benefits Discipline


27/72


FUNCTIONS OF HRMFUNCTIONS OF HRM

Managerial Operative

Procurement

Development

Motivation

&Compensation

Maintenance

Integration

Emerging issues


28/72


Managerial Function Planning

Organizing

Leading

Controlling


29/72


Operative Functions

1)P

rocurement Functions Job Analysis

HR Planning

Recruitment Selection

Induction & Orientation

Internal Mobility


30/72


2)Development Functions Training

Executive Development

Career Planning & Development Human Resource Development


31/72


3) Motivation & Compensation Job Design

Work Scheduling

Motivation Job Evaluation

Performance Appraisal

Compensation Administration Incentives & Benefits


32/72


4) Maintenance Functions Health & Safety

Employee Welfare

Social Security Measures


33/72


5) Integration Functions Discipline

Teams and Team Works

Collective Bargaining Employee Participation &

Empowerment

Industrial Relations

Trade Unions & EmployeeAssociations


34/72


6) Emerging Issues

Personal Records

HR Accounting

HR Audit HR Research

HR Information Systems

Stress Management & Counseling International HRM


35/72


IMPORTANCE OF HUMANRESOURCES MANAGEMENT

The Strategic Nature

Every organization is comprised of people

Knowledge based economy-People dependent

Hiring and keeping good people is critical tothe success of every organization (TalentAcquisition and Retention)

Harnessing employee commitment and keepingthe workforce engaged

Changing Roles of HR:HR as a change agent

HR as innovator

HR as a strategic partner


36/72


Does HR really create value?

Deloitte & Touch (2002) study titled as Creating Shareholder value through Peopleclearly demonstrated that an organizationsHuman Capital practices represented as much

as 43% of the difference between your marketvalue and your competitors.

Watson Wyatt (1999) Worldwide study onHuman Capital Index involving over 400

companies revealed that superior humanresource practices explained up to 30%increase in shareholder value.


37/72


Contd..

Hewitt Associates joint study with MichaelTracey led to their publishing the book entitled

Double Digit Growth which again documentshow carefully crafted HR practices can

contribute to the double digit growth of thecorporations. Stanford Professor Jeffrey Peiffers work

published in his seminal book titledCompetitive Advantage through People is yetanother testimony that HR practices cancontribute to the top and bottom line ofcorporations which can be measured andmonitored.


38/72


CHALLENGES OF HRM

ENVIRONMENTAL CHALLENGES Rapid Change Internet Revolution

Workforce Diversity Globalization Legislation Evolving Work and Family Roles

Skill shortages and the rise in theKnowledge Sector Changing Demographics of Employees


39/72


Challenges of HRM-Contd

ORGANIZATIONAL CHALLENGES Competitive Position- Cost, Quality,

or Distinctive Capabilities Decentralization Downsizing Organizational Restructuring Self-Managed Work Teams Organizational Culture

Technology Outsourcing Data Security Changing Attitude towards Unions


40/72


Challenges of HRM-Contd

INDIVIDUAL CHALLENGES

Matching people and organizations

Ethics and Social Responsibility

Productivity

Empowerment

Brain Drain

Job Insecurity

Changing Employee Expectations

Work Life Balance

EFFECTIVENESS OF HRM


41/72


EFFECTIVENESS OF HRMOUTCOMES- Four Cs Model-Researchers at HBS

Commitment

Competence

Congruence

Cost-Effectiveness


42/72


HRM POLICIES A policy is a plan of action. It is a statement of

intention committing the management to ageneral course of action.

HR policies provides guidelines for a widevariety of employment relationships in theorganization. These guidelines identify theorganizations intentions in recruitment,selection, promotion, development,

compensation, organization, motivation andotherwise leading and directing people in theworking organization. They serve as road mapfor employees and management.


43/72


AIMS OF HRM POLICIES

To enable an organization to fulfill or carryout the main objectives of generalemployment policy.

To ensure employees are informed of thesepolicies and secure their co-operation intheir attainment.

To provide such conditions of employmentand procedures as will enable all theemployees to develop a sincere sense ofunity with the enterprise and to carry outtheir duties in the most willing and effectivemanner.


44/72


Contd..

To provide an adequate, competent and trainedemployees for all levels.

To protect the common interests of all the parties andwork in synergy.

To encourage consultative participation of employees. To create mutual faith among the employees andmanagement through leadership.

To ensure training and development of employees. To ensure organizational justice both procedural and

distributive.

To harness employee commitment (organizationalcommitment as well as job commitment) andinvolvement.

To keep the work force motivated through variousefforts.


45/72


OBJECTIVES OF HRM POLICIES

General Objectives- Expresses thetop managements basic philosophyof Human Resources.

Specific Objectives- Refers to thevarious activities of HR like staffing,training, development, salary

administration, motivation, employeeservices and benefits, employeerecords, labour relations, HR researchetc.,


46/72


NEED FOR HR POLICY

The management is required to examine itsbasic convictions in the wake of policies ofother organizations.

Healthy HR policies help in creating a brandimage of the business enterprise in the eyes ofits stakeholders and benchmark it.

Can help an organization become an employerof choice.

Established policies ensure consistenttreatment of all employees.

Favouritism and discrimination can beeliminated or minimized.


47/72


Contd

Promotes organizational stability. Act as control guides for delegated

decision-making.

Encourages definite individual decisions. Policies serve as standards or measuring

yards for evaluating employeeperformance.

Healthy policies promotes employeeengagement, commitment, loyalty andinvolvement.


48/72


PRINCIPLES OF HR POLICIES

Principle of individual development Principle of scientific selection Principle of free flow of communication

Principle of participation Principle of fair remuneration Principle of dignity of labour Principle of labour-management co-

operation Principle of team spirit Principle of contribution to national

prosperity


49/72


ESSENTIAL CHARACTERISTICS OFA HEALTHY HR POLICY

The policies should be definite,positive, clear and simple tocomprehend.

Policies should be stable, but notrigid.

Policies should be in written form.

Policies should be in sync with theobjectives, philosophies and valuesthat the organization wants to build.


50/72


Contd.

Consider the interest of all itsstakeholders.

Policies should encourage a two-way

communication process. It should be progressive and consistent

with professional practice andphilosophy.

It must make a measurable impactwhich can be evaluated.

It has to be uniform in perspective.


51/72


WHY SHOULD HR POLICIES BE INWRITING?

Writing policies makes a commitmenton the part of an organization toadhere to it.

It ensures uniformity of application.

Minimizes favoritism anddiscrimination.

Earns the loyalty and enthusiasm ofemployees as they are assured oforganizational fair play and justice.


52/72


Contd.

It brings accountability on part of themanagement as well the employees.

Writing helps to improve thecorporate brand image.

Provides something concrete onwhich to base an appeal in case of a

dispute or conflict.


53/72


HR POLICY-TYPES/CATEGORIES

General Policies

Equal Opportunity & EmploymentPractices

Compensation

Benefits Management

Management Development andTraining

Disclosure


54/72


General Policies

Equal treatment specifically prohibitdiscrimination on the basis of race,sex, colour, national origin, religion,age, political affiliations, veteranstatus, disability etc..

Alcohol and other drugs- Not allowed

to drink or take other drugs whileworking


55/72


Equal Opportunity & EmploymentPractices

Hiring

Workplace harassment

Types of employment and workinghours

Retention of employees


56/72


Compensation

Pay norms

Absence

Variable and base pay


57/72


Benefits Management

Perks

Medical Claims

Profit Sharing

Holiday Packages etc.,


58/72


Management Development &Training

Training to develop new skills & adaptnew technology

Educational Programme

Career DevelopmentP

rogramme


59/72


Disclosure

Data Security

Maintain each employee personalrecord


60/72


HUMAN RESOURCE PLANNING

HRP is the process by which anorganization ensures that it has theright number and kinds of people, atthe right time, capable of effectivelyand efficiently completing those tasksthat will help the organization achieve

its overall objectives.


61/72


IMPORTANCE OF HRP

Future personnel needs

Part of Strategic planning

Creating highly talented personnel

International Strategies

Foundation ofPersonnel functions

Increasing investments in human resources

Resistance to change and move Other benefits


62/72


Factors affecting HRP

HRP

Org. growthcycle andplanning

Types andStrategy

of org.

Timehorizons

Type and qualityof forecastinginformation

Nature of

jobsbeing filled

outsourcing

EnvironmentalUncertainties


63/72


Steps involved in HRP process

Mission formulating

Establishing Corporate Goals andObjectives

Assessing current human resources

Estimating supplies and demand forlabour

Matching demand with current -supplies of labour-Results inrightsizing and outsourcing decisions


64/72


Human Resource Inventory

HRIS- A computerized system thatassists in the processing of HRMinformation.

Succession Planning- Replacementchart- Individual managers skillsinventory


65/72


Special case in HRP: Retrenchment

Outplacement

Layoffs

Leaves of Absence without pay

Loaning

Work sharing

Reduced work hours

Early Retirement Attrition


66/72


JOB ANALYSIS

It is a systematic exploration of theactivities within a job. It is a technicalprocedure used to define a jobs duties,

responsibilities and accountabilities.

This analysis involves the identificationand description of what is happening onthe job, the knowledge and skillsnecessary for performing them and theconditions under which they must beperformed.


67/72


Job Analysis Methods

Observation Method

Individual Interview Method

Group Interview Method Structured Questionnaire Method

Technical Conference Method

Diary Method Position Analysis Questionnaire


68/72


Purpose of Job Analysis

Job Description- States what the jobholder does

Job Specification- States minimumacceptable qualifications that theincumbent must possess to perform

job successfully

Job Evaluation-Specifies the relativevalue of each job in the organization


69/72


The job analysis informationhierarchy

Element

Task

Duty

Position

Job

Job Family

Occupation Career


70/72


71/72


Contd

Position Analysis Questionnaire- Developed byresearchers at Purdue University- Involves 194elements within 27 division job dimensions and fiveoverall job dimensions.

Dimensions-1) Having decision-making/communication/social

responsibilities

2) Performing skilled activities

3) Being physically active/related environmental

conditions.4) Operating vehicles/equipment.

5) Processing information.


72/72


Contd..

CATEGORY

1. Information Input

2. Mental Processes

3. Work output

4. Relationships withother persons

5. Job context6. Other job

characteristics

NO. OF JOB ELEMENTS

35

14

49

36

1941

Documents

MANJULA-HRM CH1