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Human Resource ManagementPart I

SDM IMD, Term I, 2013

Faculty : Dr. Mousumi Sengupta

mousumi@sdmimd.ac.in

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Organizations are open systems and are,

therefore, influenced by the environment

(internal as well as external ), in which they

operate.

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External and internal factors influencingthe HRM function

External factors Internal factors

v Technological factors v Mission & Vision

v Economic challenges v Policies & Processes

v Political factors v Culture

v Social factors v Structure

v Legal and Governmental issues v Employees

v Other issues (e.g.; Trade Union , etc.)

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Most successful and influential

companies in IndiaThe India Index 2013 research has been conducted by Neilsen over a 10 week

period. A panel of over 100 opinion formers answered questions in two waves.

The panel is compiled of four stakeholder audiences: government, business,

media and civil society:

Tata Group

Google India

Maruti Suzuki

Apple

Delhi Metro Rail Corporation

State Bank of India

LIC India

Infosys Tech

Facebook

Mahindra Group

(Economic Times, 19 Feb 2013)

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From an organizational standpoint, effective HR

practices help in attracting and retaining talent, train

people for challenging roles, develop their skills andcompetencies, increase productivity and profits, and

enhance standard of living .

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DISTINCTION BETWEEN PERSONNEL MANAGEMENT (PM)

& HUMAN RESOURCES MANAGEMENT (HRM)

Dimension PM HRM

Point of View Compliance The psychological

contract based on

commitment

Perception Pluralist perspective A utilitarian

perspective

Outlook Cost-minimization Maximum utilization

Employment contract Careful clarity of

written contracts

Aim to go beyond

contract

Guide to management

action

Procedures Business need

Initiatives Piecemeal Integrated

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Evolution of the HRM Function

Concept What is it all about?

The Commodity

concept

Labor was regarded as a commodity to be bought and sold.

Wages were based on demand and supply. Government did

very little to protect workers.

The Factor ofProduction concept

Labor is like any other factor of production, viz, money,materials, land, etc. Workers are like machine tools.

The Goodwill concept Welfare measures like safety, first aid, lunch room, rest room will

have a positive impact on workers productivity

The Paternalistic

concept/ Paternalism

Management must assume a fatherly and protective attitude

towards employees. Paternalism does not mean merely

providing benefits but it means satisfying various needs of the

employees as parents meet the requirements of the children.

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The Humanitarianconcept

To improve productivity, physical, social and psychologicalneeds of workers must be met. As Mayo and others stated,

money is less a factor in determining output, than group

standards, group incentives and security. The organization is a

social system that has both economic and social dimensions.

The Human Resource

concept

Employees are the most valuable assets of an organization.

There should be a conscious effort to realize organizational goals

by satisfying needs and aspirations of employees.

The Emerging concept Employees should be accepted as partners in the progress of a

company. They should have a feeling that the organization is

their own. To this end, managers must offer better quality of

working life and offer opportunities to people to exploit their

potential fully. The focus should be on Human Resource

Development.

Evolution of the HRM Function

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Objectives of HRM

HRM aims at

Achieving organizational goals

Meeting the expectations of employeesDeveloping the knowledge, skills and abilities of employees

Improving the quality of working life

Managing HR in an ethical and socially responsible manner.

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WHO COMPLETES HR TASKS?

Line Managers

Human Resource

Managers

Outsourcing Firms

Technology interfaces

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Major HRM Functions

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Three dimensions HRM

HRM

Personnel Aspect

Recruitment, selection, placement, training,

appraisal, compensation, productivity.

Welfare Aspect

Working conditions, amenities, facilities, benefits.

Industrial Relations Aspect

Union-management relations, disputes settlement,

grievance handing, discipline, collective bargaining.

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Advantages of HR policiesv Delegation

v Uniformity

v Better control

v Standards of efficiency

v Benchmark

v Speedy decisions

v Coordinating devices

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Evaluating the impact of HR policies

The impact of human resource policies can be measured through their

outcomes:

v Commitment:how long an effective employee stays with a firm

v Competence:can be appraised through performance appraisal techniques

v Congruence:nature and frequency of grievances, disagreement, conflict

v Cost effectiveness: measured through human resource accounting

techniques

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Major roles played by HRM

v Administrative expert

v Operational role

v Employee champion

v Strategic partner

v Change agent

Cont

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Human Resource Management: Thestrategic aspect

Competitive advantage through people

Employer Branding.

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HRM challenges today:

vComposition & size of workforceBreaking down of glass ceiling

Workforce diversity

Downsizing & Rightsizing

v Employee expectationsLoyalty & commitment

Recognition and appreciation

v Changes in technology

v Life style changes

v Environmental challenges

Cont