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HUMAN RESOURCE MANAGEMENT

Shrichand Bhambhani

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Pedagogy

PLP / Assignment

Surprise Quiz

Mid-Term Exam

Final Exam

Class Participation

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Take away my people, but leave my factories & soongrass will grow on the factory floors. Take away myfactories, but leave my people, & soon we will have anew and better factory.

Andrew Carnegie

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What is HRM?

Human people, us

Resource Assets/costs for organizations

Management co-ordination and control toachieve set goals. But humans, unlike other

resources in the context of work and management,cause problems.


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HRM is the study about people in anorganization-how they are hired, trained,motivated, compensated, and maintained.


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a strategic approach to managingemployment relations which emphasizes thatleveraging peoples capabilities is critical to

achieving sustained competitive advantage,this being achieved through a distinctive setof integrated employment policies, programsand practices


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PM vs HRM

There are two school of opinions prevailingbetween the difference between both.

Some experts assert there is no differencebetween human resources and personnelmanagement. The two terms can be usedinterchangeably, with no difference in meaning.

For those who recognize a difference betweenpersonnel management and human resources,the difference can be described as philosophical.
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Definition

Personnel Management - Personnel Management is basicallyan administrative record-keeping function, at the operationallevel. Personnel Management attempts to maintain fair termsand conditions of employment, while at the same time,efficiently managing personnel activities for individualdepartments etc. It is assumed that the outcomes from

providing justice and achieving efficiency in the management ofpersonnel activities will result ultimately in achievingorganizational success.

Human Resource Development - Human resourcemanagement is concerned with the development andimplementation of people strategies, which are integrated withcorporate strategies, and ensures that the culture, values andstructure of the organization, and the quality, motivation andcommitment of its members contribute fully to the achievementof its goals.

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PM and HRM

Personnel management is workforce centered, directed mainly at theorganizations employees; such as finding and training them, arranging forthem to be paid, explaining managements expectations, justifyingmanagements actions etc. HRM is resourcecentered, directed mainlyat management, in terms of devolving the responsibility of HRM to linemanagement, management development etc.

Personnel Management is basically an operational function, concernedprimarily with carrying out the day-to day people management activities.HRM is strategic in nature, concerned with assisting an organization togain sustained competitive advantage.

HRM is moreproactivethan Personnel Management. Whereas personnelmanagement is about the maintenance of personnel and administrative

systems.

HRM is about the forecasting of organizational needs, the continualmonitoring and adjustment of personnel systems to meet current and futurerequirements, and the management of change.

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Personnel Management & HRM

Personnel management can be considered as reactive, it providesconcerns and demands as they are presented. HRM is proactive,pertains to the continuous development of policies and functions forimproving a companys workforce.

Personnel management focuses on administrating employees. theprime focus of HRM is to build a dynamic culture.

Personnel management is independent from an organization. HRMforms an integral part of a company or an organization.

Personnel management is regarded to be more administrative innature. Personnel management basically deals with the employees,their payroll and employment laws. HRM deals with the management ofthe work force, and contributes to an organizations success.

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HRM and HRD

HRD is a sub section of HRM, i.e. HRD is a section withthe department of HRM.

HRM deals with all aspects of the human resources

function while HRD only deals with the development part.

HRM is concerned with recruitment, rewards amongothers while HRD is concerned with employee skills

development.

HRM functions are mostly formal while HRD functions canbe informal like mentorships.

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Why HRM??

Development and Growth of the organization

Creation of healthy culture in the Organization .

Maintenance of Human Resources


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HRM refers to the process whereby the employees

are continuously helped in a planned way to

Acquire or sharpen capabilities required to perform various tasksassociated with their present/future expected roles.

Develop their general capabilities as individuals so that they are ableto discover and exploit their own inner potential for their own and/ororganizational development purpose.

Develop an organizational work culture where: superior-subordinaterelationships, team work and collaboration among different units arestrong and contribute to the professional well-being, motivation andpride.

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Features of HRM

Strategic i.e. planned, deliberate, seeking to achieve setobjectives

Capabilities i.e. people or resources with potential (knowledge,

skills, attitudes) which can be developed to contribute toorganizational success.

Competitive advantage by tapping into and developing thesecapabilities organizations give themselves an edge over theirrivals

Integrated that the range of things under HRM (recruitment,selection of employees, their training and development, how theyare rewarded) is looked at together not as separate things.

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Core values of HRM

Human beings are the crucial aspects of everyorganization. The greater is the commitment of the humanresources the more successful is the organization.

An individual is a whole person. He brings all aspects of his

personality, attitudes, traits and behavior to the work place.

People represent the organization. Building, equipment andother resources productive only because being handled byeffective humans.

People vary in abilities, nature, personality, religion etc. andare influenced by social economic and environmentalfactors.

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Core values of HRM

Human resources have to be acquired, developed and motivatedto give higher performances and also must be retained.

Success of an organization depends upon the satisfaction oforganizational needs and employees needs.

There are various levels of hierarchy in an organization. Thepeople who manage (i.e., the managers), and people who work(subordinates). The effective coordination and commitmentbetween managers and subordinates is essential for

organizational success.

Healthy relationships with consumers, shareholders,entrepreneurs, governments and suppliers.

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HRM OBJECTIVES

Employee job satisfaction, self-Actualization and

motivation

Employee effectiveness and efficiency

Improved quality (innovation & Creativity)

Cost-effectiveness and competitiveness

Rewards and incentives linked to career growth

Recognition of human resource issues at the strategic

level

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Philosophy of HRM

HRM is climbing up the peak of humanitarianism withits distinct policies and programs. HRM insists onmutuality.

Mutuality is the common feeling felt by one anotheras you are all aware the organization where themutuality exists will flourish and grow.

Quid-pro-quo

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Functions of HRM

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Key Functions

Human Resource Planning

Recruitment & Selection

Compensation & Benefits

Performance Appraisals

Training & Development

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Learning Objectives

Understand the importance of Human ResourceManagement to the organization

Appreciate the key functions associated with Human

Resource Management

Implement a Human Resource Planning Process

Understand the importance of Recruitment andSelection

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Learning Objectives

The main types of Compensation and BenefitsSystems

Implement an effective Performance AppraisalProcess

Understand the function of Training and Developmentand its importance to the organization

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Human Resource Planning

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Planning

Planning is a process that involvesgathering information that would enablemanagers and supervisors make sound

decisions. The information obtained is also utilized

to make better actions for achieving the

objectives of the Organization.

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What is Human Resource Planning?

An effort to anticipate future businessand environmental demands upon theorganization and to provide personnel to

fulfill that business and satisfy thatdemand

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A systematic analysis of HR needs inorder to ensure that correct number ofemployees with the necessary skills are

available when they are required.


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Why HR Planning??

The number of people required in a specific time frame & theavailability of talent.

Early indications of potential requirement or retentiondifficulties.

Surpluses or deficiencies in certain grades or functions.

Availability of suitable qualified & experienced successors.

To meet expansion programs

To meet challenge of a new & changing technology & newtechniques of production and to train them as per requirement.

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Both recruitment and selection are the two phases of theemployment process. The differences between the two are:

1. Recruitment is the process of searching the candidates foremployment and stimulating them to apply for jobs in the

organisation WHEREAS selection involves the series of stepsby which the candidates are screened for choosing the mostsuitable persons for vacant posts.

2. The basic purpose of recruitments is to create a talent pool of

candidates to enable the selection of best candidates for theorganisation, by attracting more and more employees to apply inthe organisation WHEREAS the basic purpose of selectionprocess is to choose the right candidate to fill the variouspositions in the organisation.

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3. Recruitment is a positive process i.e. encouraging more andmore employees to apply WHEREAS selection is a negativeprocess as it involves rejection of the unsuitable candidates.

4. Recruitment is concerned with tapping the sources of human

resources WHEREAS selection is concerned with selecting themost suitable candidate through various interviews and tests.

5. There is no contract of recruitment established in recruitmentWHEREAS selection results in a contract of service between the

employer and the selected employee.

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Basis Recruitment Selection

Meaning It is an activity of establishingcontact between employers andapplicants.

It is a process of picking upmore competent and suitableemployees.

Objective It encourages large number ofCandidates for a job.

It attempts at rejectingunsuitable candidates.

Process It is a simple process. It is a complicated process.

Hurdles The candidates have not to crossover many hurdles.

Many hurdles have to becrossed.

Approach It is a positive approach. It is a negative approach.

Sequence It preceeds selection. It follows recruitment.

Economy It is an economical method. It is an expensive method.

Time Factor Less time is required. More time is required.


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Compensation

"Employee compensation refers to all forms of pay going toemployees and arising from their employment." The phrase 'allforms of pay' in the definition does not include non-financialbenefits, but all the direct and indirect financial compensations.

Benefits

Employees today are not willing to work only for the cash alone,they expect 'extra'. This extra is known as employee benefits.Also known as fringe benefits, Employee benefits are non-financial form of compensation offered in addition to cash salaryto enrich workers lives.

Compensation & Benefits

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Performance Appraisal

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Performance Appraisal

Performance Appraisal is a systematic description of jobrelevant strengths and development needs of anemployees actual performance relative to establishedstandards.

It is a process to control employee work behaviors andoutputs through providing feedback on performance.

Performance management the process through whichmanagers ensure that employees activities and outputscontribute to the organizations goals.

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Uses for Performance Appraisal

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Purpose of Performance Management Strategic Purpose means effective performancemanagement helps the organization achieve its business

objectives.

Administrative Purpose refers to the ways in whichorganizations use the system to provide information forday-to-day decisions about salary, benefits, andrecognition programs.

Developmental Purpose means that it serves as abasis for developing employees knowledge and skills.

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Training is the formal and systematic modification ofbehavior through learning which occurs as a result ofeducation, instruction, development and plannedexperience.

A process of altering employee behavior and attitudes ina way that increases the probability of goal attainment.

Training refers to a planned effort by a company tofacilitate employees learning of job-relatedcompetencies


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Learning is the processing and assimilation of whatwe hear, see or experience that alters or improvesour knowledge, skills and attitudes.

Development is any learning activity, which isdirected towards future needs rather than presentneeds, and which is concerned more with careergrowth than immediate performance.

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The combination of kSAs is behaviour. If someonetrains us, or we learn something new or different, it isour behaviour that is affected.

Training is active - it is conscious and planned - it

does not just happen. Training is something you do. Learning is something

that happens. Learning should be the major outcomeof training.

Training is successful if learning occurs.

Training, Learning & Development

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Distinction between Training and

Education

Training Education

Application Theoretical orientation

Job Experience Classroom learning

Specific Tasks General concepts

Narrow perspective Broad perspective

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Purpose of Training

To increase productivity and quality

To promote versatility and adaptability to new methods

To reduce the number of accidents

To reduce labor turnover

To increase job satisfaction displaying itself in lowerlabour turnover and less absenteeism

To increase efficiency

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Importanceof T & D

Maintain skill levels

Advance skill and knowledge to improve

Performance (efficiency)

Service delivery (error rate) Profitability (productivity, manpower)

Integrate new technologies into work

Establish standards for work practices

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Benefits of Training - Individuals

Do job more efficiently learn newmethods

Professional approach to work,

engaged in best practice routines

Personal satisfaction felt valued

Recognised qualification to add to CV

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The Challenges of HRM

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The Challenges of HRMThere is an old joke that goes.. The organization of

the future will be so technologically advancedthat it will be run by just one person and a dog.The person will be there to feed the dog, and thedog will be there to make sure that the persondoesnt touch anything.

In the past, observers feared that machines mightone day eliminate the need for people at work. Inreality, just the opposite has been occurring.

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Competitive advantage belongs to companies thatknow how to attract, select, deploy, and developtalent.

Competitive Advantage Through People

People always been central to organization.

Today even more central role in building a firms competitiveadvantage.

In knowledge-based industries, success increasingly dependson people-embodied know-how. This includes the kSAs

imbedded in an organizations people.

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The Challenges of HRMCompetitive Advantage Through People

A firms success is based on establishing a set of core competenciesintegrated knowledge sets within an organization that distinguish itfrom its competitor and deliver value to customers.

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For achieving competitive advantage through people : The Resources must be of value Value is increased when

employees find ways to decrease costs, provide something unique tocustomers. Empowerment programs, total quality initiative, andcontinuous improvement efforts.

The Resource must be rarepeople are a source of competitiveadvantage when their skills, knowledge, and abilities are not equallyavailable to competitors. Microsoft and other firms hire and train thebrightest employees in order to gain advantage over competitors.

The Resources must be difficult to imitate when employee

capabilities and contributions cannot be copied by others. (teamwork)

The Resources must be organizedwhen employees talents can becombined and deployed to work on new assignments at a short notice.


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Competitive Challenges and HRM

Going Global

Embracing technology

Managing Change

Developing human capital

Responding to the market

Containing Costs


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Challenge 1 Going Global

In order to grow and prosper, many companies are seekingbusiness opportunities in global markets.

Impact of Globalization

Globalization trend toward opening up foreign markets tointernational trade and investment

Approximately 70% to 85% of the US economy today is affectedby international competition.

Eg China, US, India..

Effect of Globalization on HRMFinding competent individuals that understand, geographies,cultures, laws, and business practice.


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Challenge 2

Embracing New Technology The introduction of advanced technology tends to reduce the

number of jobs that require little skill and to increase thenumber of jobs that require considerable skills.

This move is from touch labor to knowledge workers, whereemployees responsibilities expand to include a richer array ofactivities such as planning, decision making, and problemsolving.

Influence of Technology in HRM

Use of technology to manage HRM called Human ResourcesInformation System (HRIS)

HRIS computerized system that provides current andaccurate data for purposes of control and decision making.


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Three major components

The operational impactautomating routine activities, alleviatingthe administrative burden, reducing costs, and improving productivityinternal to the HR function itself. (payroll processing, maintainingemployee records, administering benefits programs)

The Relational impact it enhances service by providing linemanagers and employees with remote access to HR databases,supporting their HR related decisions, and increasing their ability toconnect with other parts of the corporation. (scanning resumes,tracking application information)

The transformational impact expanding the scope and function ofthe HR depart. (training, on-line performance evaluation, employeesself-learning)


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Challenge 3: Managing Change

Due to technology, globalization of competition and markets, andworkforce demographics, CHANGE in today's businessworld is inevitable.

Types of Change

Reactive-change that occurs after external forces havealready affected performance

Proactive-change initiated to take advantage of targetedopportunities.


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Managing Change Through HR

Responsibilities change

job assignments changework processes change


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Challenge 4: Developing Human CapitalThe idea that organizations compete through people

highlights the fact that success increasingly depends onan organizations ability to manage Human capital.

Human capitalthe economic value of knowledge, skills,

and capabilities.

Human Capital and HRM

Human capital is intangible and elusive and cannot bemanaged the way organizations manage jobs, products,

and technologies. One of the reasons for this is that employees, not the

organization, own their human capital.


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Human Capital and HRM

If valued employees leave a company, they take their human capitalwith them, and any investment the company has made in trainingand developing those people is lost.

To build human capital in organizations, managers must continue todevelop superior knowledge, skills, and experience within theworkforce.

Staffing programs focus on identifying, recruiting, and hiring the bestand the brightest talent available.

Training programs complement these staffing practices to provideskill enhancement, particularly in areas that cannot be transferred toanother company if an employee should leave. (What is transferableskills?)


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Challenge 5: Responding to the Market

Meeting customers expectations is essential for any organization.

Focusing on internal management issues, managers mustalso meet customer requirements of quality, innovation,variety, and responsiveness.

These standards separate the successful and unsuccessfulcompanies:

Who well does a company understand its customers needs?

How fast can it develop and get a new product to market?

How effectively has it responded to special concerns?

Faster, better, cheaper..


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Challenge 5: Responding to the Market

Organizations use several approaches to address this very crucial issues:

1. Total Quality Management (TQM)

2. Six Sigma

3. Reengineering

TQM, Six Sigma, Reengineering, and HRM

TQM is a set of principles and practices whose core ideas includeunderstanding customer needs, doing things right the first time, andstriving for continuous improvement.

Six Sigmaa statistical method of translating a customers needs intoseparate tasks and defining the best way to perform each task in

concert with the others.Reengineering has been described as the fundamental rethinking and

radical redesign of business processes to achieve dramaticimprovements in cost, quality, service and speed. (ISO 9000+)


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Challenge 6: Containing Costs

Investments in reengineering, TQM, human capital, technology,globalization, and the like are all very important for organizationalcompetitiveness.

Yet, at the same time, there are increasing pressures on companies tolower costs and improve productivity to maximize efficiency.

Labor costs are one of the largest expenditures of any organizationOrganizations have tried a number of approaches to lower costs:

Downsizing, outsourcing and employee leasing, and productivityenhancement.

1) Downsizingthe planned elimination of jobs.

Other ways of downsizing besides direct layoffs: Early retirements

Sweetened voluntary separation program

Sabbaticals

Severance packages


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Challenge 6: Containing Costs

Outsourcing contracting outside the organization to have work donethat formerly was done by internal employees.

Employee Leasing Process of dismissing employees who are thenhired by a leasing company (which handles all HR related activities)and contracting with that company to lease back the employees.

Impact on HR:

Increasing morale especially if you know your work is onlytemporarily

Increasing productivity level

Managing contracting companies Legal issues with temporary workers


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Task

Group - A

To make a PPT on Role ofDemographic factors in HRM

Group - B

To make a PPT on Line Managers &HR Dept

HRM-1-08 Sep 11

Documents

Transcript of HRM-1-08 Sep 11