hrm-1(int)

Chapter 1

Introduction to HRM

1Maksuda Hossain,FBA,EU

Topic covered

• Definition• Uniqueness of HRM• Function• HRM vs. personnel management• Line vs. staff authority of HRM• External influencing affecting HRM• Problems of HRM in BD• Means to solve problems of HRM in

BD2Maksuda Hossain,FBA,EU

Related terms

• Human resources: Human resources is the set of individuals who make up the workforce of an organization, business sector or an economy.

• Human capital: Human capital typically refers to a more narrow view; i.e., the knowledge the individuals embody and can contribute to an organization.

Maksuda Hossain,FBA,EU 3

Definition of HRM

• Human Resource Management is the set of organizational activities directed at attracting, developing and maintaining an effective work force.

---- Ricky W. Griffin

• The policies and practices one needs to carry out the ‘people’ or human resource aspects of a management

position, including recruiting, screening, training, rewarding and appraising. ---- Gray Dessler

• The overall purpose of HRM is to ensure that the organization is able to achieve success through people.


Uniqueness of Human Resources

• Only HRs appreciates over a periods, but other physical resources depreciate. Though the price of a physical resource reduces after a period of time the value of human resource increases because the more time spends the more experience a human resource can achieve.

• HRs alone can produce output larger than input. The more input (knowledge, skill) is injected to an employee he can return more than the input. Because he has the ability to add more knowledge, experience with the previous one.

• HRs provide utility value to each one of physical resources. Because no physical resource can work without the help of human resources.

• Flexibility of an organization depends more on people than on any technical factors. Because we can purchase a new machine for more flexible work but it is people without whom the result of flexibility cannot be get.


Basic Functions of HRM

HRM

Acquisition

Development

Motivation

Maintenance


Basic functions of HRM• Acquisition: to acquire committed and efficient people HR manager

first of make HR planning. Based on the planning employees are recruited. And at last from the recruited employees selection is undertaken.

• Development: selection of good employees do not ensure that highest performance. To get better results from the employees organization needs to deliver training and development activities to the employees so that they can work efficiently and utilize skills and efficiency to a large extent.

• Motivation: after making human resources skilled and efficient, organization wants to retain them for a ling time. By applying motivational means this purpose can be fulfilled. Salary, benefit etc. are various motivational means.

• Maintenance: the last basic function of HRM is to maintain the people in the organization so that they can devote themselves whole heartedly keeping good relationship with management. Maintenance includes maintaining safety and healthy workplace, good communications between managers and employees, and employee Relations


HRM vs. Personnel Management


HRM Personnel Management1. HRM is responsible for managing a workforce as one primary resource that contribute to the success of the organization.

1. PM is more administrative (traditional & routine) in nature and deals with pay role, employment law and handling related risks.

2. HRM treats employee as social/ psychological being which is used for the benefit of an organization, its employees and the society as a whole.

2. PM treats employees as a tool which is expendable and replaceable.

3. HRM is Profit centered & considered as an asset. 3. PM is Cost centered & considered as a liability.

4. It is concerned with all manager & employees. 4. It is concerned primarily with hourly, operational & clerical employees and labors.

5. Broad in scope. 5. Limited in scope .

6. Makes strategic decisions. 6. Makes operational decisions.

7. Coordinate all human resources activities, like training, development, staffing, equal employment opportunity etc.

7. Does not coordinate all HR functions.

Line vs. Staff authority of HRMAuthority: Authority is the right to make decisions, to direct the work of others, and to give orders pertaining to the work; it refers to the rights inherent in a managerial position to give orders and expect the orders to be obeyed. Authority is related to one's position and ignores personal characteristics. When a position of authority is vacated, the authority remains with the position.

Line authority:•Empowered to direct work of the people assigned to them. Directly responsible for accomplishing departmental goals & corporate objectives without consulting anyone. It is the employer-employee authority relationship that extends from top to bottom.• Line Managers' Human Resource Management Responsibilities are: Placement, Orientation, Training, Improving job performance, Gaining creative cooperation, Interpreting policies and procedures, Controlling labor costs, Developing employee abilities, Creating and maintaining departmental morale, Protecting employees' health and physical condition etc.

Staff authority: •advise & assist line managers in accomplishing basic goals. The suggestion given by the staff advisor to the line managers may or may not be accepted by the latter.•As organizations get larger and more complex, line managers find that they do not have the time, expertise, or resources to get their jobs done effectively. They create staff authority functions to support, assist, advice, and generally reduce some of the informational burdens they have.•Some examples of the HR responsibilities of staff managers include assistance in hiring, training, evaluating, rewarding, counseling, promoting, and firing of employees, and the administering of various benefits programs.•HR managers are generally staff managers


External influences affect HRM

• Going global• Embracing new technology• Managing change• Managing talent human capital• Containing costs


GOING GLOBAL……

• In competitive business arena companies & managers have to maintain a balance between global organizations as well as managers

Training & development program for understanding foreign cultures & practices

HR managers must adjust compensation plans of employees working abroad to ensure that they receive fair & equitable pay where living costs differ

Retaining the employees in the face of cultural shock


EMBRACING NEW TECHNOLOGY….• Organizations are using technology/software

application in recruitment, selection, pretest of applicants

• This is called Human Resource Information System (HRIS)

• It has following problems need to be addressed while implementing computerized HRIS:– It can be expensive in terms of finance and manpower

requirements.– It can be inconvenient and threatening to those who are not

comfortable with computers. It needs a large scale of computer literacy.

• Following issues are to be considered in applying HRIS:– Flexibility– Compatibility– User friendliness– Implementation– Budget


MANAGING CHANGE……• 2 types of change: proactive change & reactive change• Proactive changes are initiated by managers of fast growing

businesses to take advantages of targeted opportunities.• Reactive changes occur when external environment has already

affected the organization.• Managers need a good leader, training & development program,

communicating vision& removing obstacles to path of vision to adjust the change.


MANAGING TALENT OR HUMAN CAPITAL...

• When employees leave a company they take their capital (skill, experiences) with them

• They need» Training & development» Opportunities to develop their job (work

freedom, challenging work)» Ensuring the employees that job duties &

requirements are flexible enough to allow growth & learning


CONTAINING COSTS……….

• Sometimes there is an increasing pressure to lower costs & improve productivity to maximize efficiency

• There are some approaches to do this:

» Downsizing» Outsourcing» Off shoring» Employee leasing


• Downsizing:–Planned elimination of jobs–To meet shareholders expectations as well as to

reduce direct costs without compromising their quality of production some jobs/positions are need to remove

• Outsourcing:–Hiring employees from outside the organization

for doing the tasks that are not possible by the internal employees–Companies often hire advertising firms to handle

promotion; law firms to handle legal issues etc.


• Off shoring/global sourcing:–Off shoring describes the relocation by a company of a

business process from one country to another for tax or production or labor purposes– Research identified that 40-60% on labor costs can be

saved by off shoring to the countries India, Mexico, Russia, Brazil, China

• Employee leasing:– Temporary leasing– Permanent leasing


Problems of HRM in Bangladesh

• Lack of skilled HR manager: in many organizations in Bangladesh there is a lack of skilled HR manager with educational background of HRM. The reason behind it that many of the managers think that employees with any educational background can do HR activities though it is not true.

• Absence of HR planning: to recruit and select employees organizations must need a HR planning. But most of the organizations avoid this because of high cost and availability of candidates.

• Lack of career planning & program: most of the human resources in developing country complete their studies without proper career planning. Lack of employment opportunities make them to do so. As they have no planning regarding their career it force them to do tasks whatever they get whether it match their educational background and personality or not.

• Absence of proper evaluation: in the organization as well as in labor market political influence and bureaucracy limit to evaluate an employee fairly. Maksuda Hossain,FBA,EU 18

Problems of HRM in Bangladesh

• Lack of motivation: in our country motivation means increased salary, bonus, incentives, loan facilities etc. But most of time they fail to motivate employees. Organizations should introduce a working environment where employees can work with creativity, environment without inner politics, appreciation letter etc. when they do better as a tool for motivation.

• Absence of good relationship between labor and management: if we look at our garment sector we easily find that a suitable relationship is absent between labors and management. Though it is impossible to earn profit without labors our management cannot do work with labors in harmony.

• Negative political influence: in Bangladeshi HRM negative political influence is a dangerous issue. To develop HR plan, to select an employee, to give promotion– all these branches of HRM are influenced by politics negatively and it becomes impossible to take free and fair decision by a manager.


Way to Overcome the problems of HRM in

Bangladesh• Reduce political intervention on

private fields• Reduce political intervention &

bureaucracy in making decision• Implementation of law & regulatory

system properly.• Change mind regarding corruption


hrm-1(int)

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