HRMIs that part of the Management which is

concerned with :-People at work

Their relationship with the organization

Human Resource Management

• Utilization of individuals to achieve organizational objectives

• All managers at every level must concern themselves with human resource management

• Five functions

• It helps to bring the people together and enable them to explore their talent in grow individually and contribute in the success of the organization .

3. Evolution of HRM in the west

(1) Industrial Revolution: a. Adam Smith: specialization and division of labor.b. Robert Owens: Pioneer of HRM, performance

appraisal and pay for performance (fair treatment of employees)

(2) Scientific management

Frederic Taylor: Father of scientific managementa. Definition: Systematic analysis and breakdown of work

into the smallest mechanical components and rearranging them into the most efficient combination.

b. Steps: Job analysis—selection—training—rewards.

(3) Industrial psychology

a. Hneri Fayol’s management functions: Planning, organizing, communicating, coordina- ting

and controlling.b. F. & L. Gilbreth’s principles of work simplification

(time and motion studies).c. Henry Gantt’s principles of work scheduling.d. Continuation of scientific management.

(4) Human behavior and relations

a. The Hawthorne Studies The happy workers are the most productive

workers. b. Max Weber: the Ideal Bureaucracy.

c. Affected by the theories of behavioral science and system theory.

(5) Three stages of growth of HRM

a. File Management (1900-1964):collecting and storing data of each employee.

b. Government Accountability (1964-1980): Compliance to government regulations.

c. Human Resource Management: • Treating human resource as an asset.• Emphasizing joint responsibilities of line managers

and staff managers.

1

Human Resource

Management

Human Resource

Development

Com

pens

atio

n

Staffing

Em

ployee and

Labor Relations

Safety and Health

Human Resource Management Functions

HRM is :-

• Planning , Controlling , Directing and organising of –

• Procurement ,Compensation ,Development , Integration ,maintenance of Human Resource with the aim that Individual , organizational and Societal objectives are fulfilled . (Flippo)

Objectives and Scope of HRM

• To provide well trained and well motivated employees

• To utilize the skills and knowledge of the employees efficiently and effectively

• To enhance job satisfaction of the employees • To develop and maintain Quality of work life• To maintain high moral motivation of the

employees

• To satisfy individual needs and group goals• To enhance Job satisfaction of the employees . •

FUNCTIONAL AREAS WITHIN HR

• EMPLOYMENT / STAFFING– RECRUITMENT– SELECTION

• TRAINING AND DEVELOPMENT – APPRAISAL– EDUCATION AND DEVELOPMENT

• COMPENSATION– SALARIES, WAGES AND BENEFITS– INCENTIVE PLANS

• EMPLOYEE RELATIONS– GRIEVANCE RESOLUTION– UNION RELATIONS

• HR PLANNING AND RESEARCH– FORECASTING– JOB ANALYSIS– ATTITUDE SURVEYS– VALIDATION STUDIES

Features of HRM

• People oriented • Action oriented • Individual oriented • Development oriented • Pervasive function • Development function • Interdisciplinary

• Future oriented • Challenging job• Staff function • Science as well as an art

Employment / Staffing • Staffing - Process through which organization ensures it always

has proper number of employees with appropriate skills in right jobs at right time to achieve organizational objectives

• Job analysis - Systematic process of determining skills, duties, and knowledge required for performing jobs in organization

• Human resource planning - Systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time .

• Recruitment - Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization

• Selection - Process of choosing from a group of applicants the individual best suited for a particular position and the organization

Training and Development

• Training - Designed to provide learners with knowledge and skills needed for their present jobs

• Development - Involves learning that goes beyond today's job; it has more long-term focus

• Career development - Formal approach used by organization to ensure that people with proper qualifications and experiences are available when needed

• Organization development - Planned process of improving organization by developing its structures, systems, and processes to improve effectiveness and achieving desired goals

• Performance management - Goal-oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization

• Performance appraisal - Formal system of review and evaluation of individual or team task performance

Compensation

• Direct Financial Compensation - Pay that person receives in form of wages, salaries, bonuses, and commissions.

• Indirect Financial Compensation (Benefits) - All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance.

• Nonfinancial Compensation - Satisfaction that person receives from job itself or from psychological and/or physical environment in which person works.

Safety and Health

• Employees who work in safe environment and enjoy good health are more likely to be productive and yield long-term benefits to organization.

• Safety - Involves protecting employees from injuries caused by work-related accidents

• Health - Refers to employees' freedom from illness and their general physical and mental well being

Employee and Labor Relations

• Private-sector union membership has fallen from 39 percent in 1958 to 7.8 percent in 2005.

• Business is required by law to recognize a union and bargain with it in good faith if the firm’s employees want the union to represent them

• Is the function of HR to control workers, or to help them and act as their advocate?

• Resolving personnel grievances and disagreements fairly in both union and union-free environments

Human Resource Research

• Human resource research pervades all HR functional areas.

• Forecasting and Planning• Job Analysis• Attitude Surveys• Validation Studies• Compensation Surveys

HRM as Major System

HRM

Development Sub System

Administrative Sub System Preventive Sub

system

Administrative Sub System

• Recruitment • Induction • Placement • Working conditions • Wage and salary administration

Developmental Sub System

• Man power Planning • Performance appraisal • Staff welfare • Training and development • Career planning • Organizational Development

Preventive Sub System

• Grievance Handling • Industrial Relations • Discipline

Evolution of HRM (Indian Context )

• Beginning of 20th Century –Jobbers • 1931-Labour Welfare officer• After Independence –Personnel Management Shifted concern from welfare to higher

efficiency 1970 –HRM

• 1980 – New technologies and HRD • 1990- Human Values and Human Capital

Personnel to HRM Personnel Management HRM

Part of HRM Larger scope

Coping role – reactive Proactive

Maintenance and administrative function Plus developmental function

Routine Strategic

Earlier form Newer form

Inverted orientation Integrated

Procedure designed to achieve maximum efficiency

Procedure designed to reduce Human wastage

Employees treated as nuts and bolts who can be replaced

Employees treated as a part of the system

Functions of HRM

Managerial function Operative function

Planning Procurement

Organizing Development

Directing Compensation

Controlling Integration

Maintenance

Separation

Human Resource Executives, Generalists, and Specialists

Vice President, Human

Resources

Vice President, Industrial Relations

Manager, Compensation

Manager, Staffing

Manager, Training and Development

Benefits Analyst

Executive: Generalist: Specialist:

Traditional Human Resource Functions in a Large Firm

President and CEO

Vice President, Marketing

Vice President, Operations

Vice President, Finance

Vice President, Human

Resources

Manager, Training and Development

Manager, Compensation

Manager, Staffing

Manager, Safety and

Health

Manager, Labor

Relations

A Possible Evolving HR Organization Example

President and CEO

Vice President, Operations

Vice President, Strategic Human

Resources

Vice President, Finance

Director of Safety

and Health

Training & Development (Outsourced)

Compensation (Shared Service

Centers)

Staffing (more involvement of Line

Managers, etc)

Vice President, Marketing

Roles and Responsibilities of HRM

1. As a specialist - Should be a source of Information - Facilitator 2. As a change agent 3. As a controller 4. As a liaison man 5. As house keeper 6. As a fire fighter

Strategic role of HR

• Recruiting talented , experienced and deserving people well in advance

• Improved analysis and HR related cost • Stability and mobility of workforce employed • Organizational effectiveness • Untapped potential of HR

Recruitment

• It is the process of attracting potential employees for the organization

• It is a positive process ‘• It is to find the right man for the right job

Objectives of recruitment

• To meet the most ideal source of recruitment• Should be cost effective• Fair and accurate information to the

employees • Should conform to the changing needs of the

organization

Factors affecting recruitment

• The size of the company • Employment conditions around • Salary and perks offered • Working conditions • Stage of the organization

The sources of recruitment Internal source External source

Promotions Press advertisements

Transfers Educational Institutions

Employment agencies Individual applications

Recommendations

Recruitment at the factory gate

Techniques of recruitment

• Direct • Indirect• Third party • Internet

Steps in recruitment process

• Requisition for recruitment from other department

• Identifying the source of recruitment • Communicating the information about the

organization • Encouraging the employees to apply for the job • Evaluating the effectiveness of the recruitment

process .

Selection

• It is a process of choosing the most suitable candidate from the lot

• It is a process of matching the qualifications with the job requirement

• It is a negative process

Selection process

• Initial screening • Application blank • Selection test • Employment interview • Medical Examination • Reference check • Final interview

Methods of selection

• 1)Tests• Apptitude test

– Mental test – Mechanical test2)Achievement Test

- Job knowledge test - Work sample test

• 3)Personality test – Objective test – Projective test – Situation test 4)Interest test

Methods of selections (cont..)

• Interviews – Formal interview – Informalinterview – Structured interview – Unstructured interview – Depth interview – stress interview – Group interview – Panel ointerview

IMPACT OF PERSONAL DIFFERENCES ON HRM

INDIVIDUAL SKILLS & ABILITIES

PERSONALITY

EXPECTATIONS AND ASPIRATIONS

MOTIVATIONEquity TheoryExpectancy TheoryReinforcement Theory

EQUITY THEORY (ADAMS 65)

• I compare my work outcomes (Om) with my perception of what others’ outcomes are (Oo). I also compare my work inputs (Im) with what I think others are contributing to their jobs (Io).

• If the relative ratio of my outcomes/inputs (Om/Im) is similar to the perceived outcomes/inputs (Oo/Io) of others at work, EQUITY exists and the organization is perceived to be “fair.”

(Om/Im) = (Oo/Io) I feel fairly treated (content)

POSITIVE & NEGATIVE INEQUITY

• If I believe my outcomes/inputs ratio is more generous than the outcome/input ratio of others, I feel guilty and over-rewarded. This is POSITIVE INEQUITY, and this perception may or may not motivate one to action.

(Om/Im) > (Oo/Io) I feel over-rewarded (guilty)

• If I think my outcomes/inputs ratio is less than the outcome/input ratio of others, I feel frustrated and under-rewarded. This is NEGATIVE INEQUITY, and this perception usually motivates one to act to resolve this “unfair” situation.

(Om/Im) < (Oo/Io) I feel under-rewarded (frustrated)

LIKELY RESPONSES WHEN INEQUITY IS PERCEIVED

• CHANGE MY OUTCOMES

• CHANGE MY INPUTS

• RECONSIDER THE PERCEIVED RATIOS

• CHANGE “OTHER’S” INPUTS OR OUTCOMES

• CHANGE COMPARISON “OTHER”

• LEAVE THE ORGANIZATION OR WITHDRAW

EXPECTANCY-VALENCE THEORYTHREE PERCEPTIONS

EXPECTANCY (E P)If I put forth effort (E), what’s the probability that I can achieve the performance objective (P)?

INSTRUMENTALITY (P O)If I achieve the performance objective (P), what’s the probability that a specific outcome (O) or reward will be given to me?

VALENCE (V)How much value (positive or negative) do I attach to receiving this outcome?

MOTIVATION (EFFORT) = (E P) x sum of [(P O)i(V)i]

REINFORCEMENT THEORY(SKINNER 72)

ASSUMPTIONS:The consequences of past actions will influence our future actionsWe repeat behaviors which lead to rewards and are satisfyingWe reduce behaviors which go unrewarded or lead to punishmentThus, tie valued rewards to desired behaviors in the workplace

TYPES OF REINFORCEMENTPOSITIVEAVOIDANCE (NEGATIVE)EXTINCTIONPUNISHMENT

SCHEDULES OF REINFORCEMENT

CONTINUOUS (every time)

INTERMITTENT (not every time)Fixed-RatioFixed-IntervalVariable-RatioVariable-Interval

CURRENT TRENDS IN HR

• EMPHASIS ON STRATEGIC PLANNING & SUCCESSION– VP of HR is a Strategic Manager, Management Succession Planning

• EMPHASIS ON COST-RELATED ISSUES / COST CONTROL– Global Competition, Outsourcing and Downsizing

• NEW SPECIALTIES EMERGING IN HR– HR Planning, International HR, Employee Assistance Programs

• PROFESSIONALIZATION OF HR MANAGEMENT– Professional HR Societies & HRCI (Certification Institute)

• THE INTERNET REVOLUTION– Electronic Recruiting, Records Management, and HRIS