Human Resource Management introduction (HRM Intro)

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    A Presentation

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    An organization is a coordinated unit of at least two people working

    together to achieve a common goal. It relies on the synergy that is

    created when people act together.

    Organizations are much more than merely a collection of individuals.

    An organization adds value through its operations. This dependsentirely on the factors of production that it deploys.

    People can move mountains! !

    Human resource is the what drives an organization. They add life to

    the otherwise dead factors of production and can help a business race

    ahead of others.

    As they say, in HRM the the output is greater than the sum of its

    inputs.

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    HRM is the peopleside of management.

    Human : - The most crucial aspect ofHRM. It defines HRMs relatedness toa person or group of persons. Human beings are the most un-predictable ofassets. This differentiates HRM from other managerial disciplines.

    Resource : - A source of aid or support that may be drawn upon whenneeded.

    Humans have an underlying potential, which is to come out if organizationsare to function. HR believes in this potential and do not see workers asliabilities.

    The task of a HR manager is to effectively utilize this potential.

    Management : - The charge of running a business.

    It is never a smooth ride for organizations. Often, they find themselves atcrossroads. It is no one but the humans themselves who are in-charge ofan organization. HRM is about managing the human elements of anorganization.

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    ` HRM is defined in terms of proactive approach to managing people in the org.

    Karen Legge has specified 3 elements ofHRM as follows; HR policies should be integrated with strategic business planning and used to

    reinforce appropriate culture.

    HR are valuable and a source of competitive advantage.

    HR policies can be tapped most effectively by mutually consistent policies whichpromote commitment and foster a willingness in employees to act flexibly in theinterests of the adaptive organization's pursuit of excellence.

    ` John Storeyhas specified 4 elements ofHR;

    A set of beliefs and assumptions.

    A strategic thrust embodying decisions about people management.

    The central involvement of line management.

    Dependence upon a set of levers to determine the employment relationships.

    ` Milkovich and Boudreau have defined HRM as follows;'HRM is a series of integrated decisions that form the employment relationship;their quality contributes to the ability of the organizations and the employees toachieve their objectives.

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    ` A pervasive force in the organization.

    ` Emphasis on it People orientation.

    ` Individualized in its approach.

    `

    Pro-active with a foresight.` Concerned with the Development of human resource.

    ` An integrative approach.

    ` Influential in the decision-making process.

    ` Extractions from behavioral and social science

    disciplines.

    ` Continuity in its mechanism.

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    A. PersonnelAspect: - This has everything to do with the job issues facing

    HRM. It is concerned with HRP, Recruitment, Selection, Placement,Transfer, Promotion, Training & Development, Remuneration, Incentivesand other related decisions that are directly contingent onto the workforce.

    B. WelfareAspect: - This facet ofHRM aims at facilitating the stay ofemployees within the organization. It enhances the retention ability of thebusiness besides meeting out various statutory criterions. This may dealwith the working conditions and the provision for amenities like canteens,creches, rest-rooms, transport & medical facilities etc. The primarypurpose of this aspect is the enhancement ofQWL.

    C. IndustrialRelationsAspect: - The nature of relations existing betweenvarious stakeholders within and outside of an organization comes as an

    are of interest to this aspect ofHRM. This may cover union-managementrelations, collective bargaining, grievance and disciplinary procedure,dispute settlement, etc.

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    HRM has undergone remarkable transformation over the years. It has come a

    long way. With a long road ahead, the future looks promising. This has beena result of evolving management practices and the changes in behavioralsciences from which HRM has been drawing heavily. The evolution ofHRMcan be traced as follows;

    The industrial revolution : - This resulted in unprecedented changes ofproportions never experienced before. Machines were brought in,

    technology progressed and jobs were fragmented. This gave effect tospecialization in work. Though efficiency increased, the job was stillmonotonous. The workers were exposed to exploitative practices due to theabsence of a protective cover. Workers were nothing more than acommodity or factor of production for the employer. The scene forHRMwas bleak.

    Scientific management : - The industrial revolution paved the way for ascientific outlook to management. F. W. Taylor is associated with thismovement. It believed that workers were to be matched with therequirements of the job they were to perform. Signs of hope forHRMappear but still very nave. More than the person, it was the output that wasof interest.

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    Trade unionism : - Gradually, Workers joined hands to protect against theexploitative tendencies of employers and the prohibitive, unfair labourpractices through unions. This gave way to the goodwillapproach and thepaternalisticapproach to personnel management(HRM). Unions tried to

    improve to the lot of workers through collective bargaining.

    Human relations movement : - The realization that besides rewards andthe way jobs were designed, there were several other social andpsychological factors that effected the employee productivity. This wasinspired by the humanitarianconcept of employee welfare. The 1930sand 40s saw several successful studies and experiments rationalizing theapproach. Significant of which was the Hawthorne experiments conductedby Elton Mayo and his colleagues.

    Human Resources approach : - Individual needs were stressed upon.This approach assumes that the job itself is the primary sourcesatisfaction to employees. It reflected a belief in the inherent goodwill of

    workers. It insisted that the chief task of a HR manager was to tap theunrealized human potential releasing work-satisfaction as a by-product.Employees are seen as the most valuable organizational asset in which toinvest.

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    HR is emerging as a strategic partner in the value-creation process of everyorganization. It is no longer seen as a side-bound function. Companies nowadaysinvest heavily in theirHR unit.

    The workforce has gained higher flexibility at the workplace. Jobs are no lonerrobotic but exciting and engaging. Employees get a feeling ofspace.

    Employees are increasingly being seen as the face of the company.

    LEAN and MEAN organizations have taken over.

    There has been a tremendous change in the composition of workforce. This hascome as a challenge but has also provided room for innovation.

    Outsourcing of several critical organizational functions.

    Heightening careerism among employees.

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    Pointsofdistinction Personnel

    Management

    Human Resource

    Management

    Focus Employee relations Partnerships with internaland external customers

    Role of HR Transactional change

    follower and respondent

    Transformational change

    leader and initiator

    Initiatives Slow, reactive andfragmented.

    Fast, proactive and

    integrated

    Time horizon Short-term Short, medium & long-term(as required)

    Control Bureaucratic-roles, policies,procedures

    Organic flexibility

    Job Design Tight division of labor,specialization

    Broad and flexible

    Keyinvestments Capital, products People, knowledge

    Accountability Cost centre Investment centre

    Responsibility for HR Staff specialists Line managers

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    Enlargement in the size of the workforce.

    Heterogeneity comes as a challenge to contemporary HR personnel.

    Employee expectations have gone over the roof as employers outpaceeach other in meeting them out.

    Technological changes have been in the drivers seat of organizations.Technology has revolutionized the workplace.

    Life-style changes are bound to effect the now complex workmechanisms.

    Environmental changes stand as a major challenge to those seekingcareers in HR. They are to gain prominence over the coming years.

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    HRM serves as a catalyst to the attainment of the organizational goals.

    HRM also aims at the efficient utilization of the KSAs of its workforce.

    HRM provides the organization with well-trained and well-motivatedemployees meeting out the need of the hour.

    HRM facilitates the attainment of fuller job satisfaction and self-actualization.

    HRM also acts as a communication medium within the organizationchannelizing the flow of information.

    HRM seeks to benefit the society in a responsive manner as the workforceemerges out of it.

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    As the work sphere forHRM widens, HR managers will be acquiring newerroles and functions. AHR manager unlike in the past, now performsseveral functions which are contingent to the robustness of theorganization as a whole. The importance of such functions is beingincreasingly realized. In a nutshell, the HR manager performs thefollowing functions;

    1. Procurement Functions : - The HR management serves as an inroadto the organization for those seeking employment. This function covers

    Job analysis.

    Human resource planning.

    Recruitment.

    Selection.Placement.

    Induction and Orientation.

    Internal mobility.

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    2. Development Function : - it is the process of improving, moulding,changing and developing the skills, aptitude, attitude and values basedon present and future requirements. This function includes

    Training.

    Executive Development.

    Career planning and Development.

    Human resource Development.

    3. Motivation and Compensation : - It is a process which inspires

    people to give their best to the organization through the use of intrinsicand extrinsic rewards. This function includes

    Job design.

    Work scheduling.

    Motivation.

    Job evaluation. Performance Appraisal.

    Compensation Administration.

    Incentives and benefits.

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    4. Maintenance : - It aims at protecting and preserving the physical

    and psychological health of employees through various welfare

    measures. This includes

    Health and Safety. Employee welfare.

    Social security measures.

    5. Integration function : - This tries to integrate the goals of an

    organization with employees aspirations through various employee-oriented programmes. This includes

    Grievance redressal.

    Discipline.

    Team and Teamwork.

    Collective bargaining.

    Employee participation and involvement.

    Trade Unions and employee associations.

    Industrial relations.

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    Personnel policies guide action. They offer the general standards or

    parameters based on which decisions are reached. They serve as aroadmap for managers on a number of issues such as recruitment,selection, etc. Important features of personnel policies can be outlined asunder;

    It is derived from the personnel objectives of an organization.

    It summarizes the past experience in the form of useful guidelines that

    help managers to speed-up the decision making process. It help in delegation of decision-making responsibility to subordinates.

    It helps in accurate prediction of actions and decisions of others.

    Personnel Programmes

    Policies do not include detailed statements but are implemented byprocedures. Procedures are action guidelines. Personnel programmesare complex set of goals, policies, procedures, rules, steps to be taken,resources to be employed and other elements necessary to carry out agiven course of action.

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    1. Originated policies: - These are established by top managementdeliberately to as to guide executive thinking at various levels.

    2. Appealed policies: - These are formulated to meet the requirements

    of certain peculiar situations which have not been covered by earlier

    policies.

    3. Imposed policies: - These are forced under pressure from externalagencies such as government, trade associations and unions.

    4. Generalpolicies: - they reflect the basic philosophy and priorities of

    the top management in formulating the broad plan for mapping out the

    organizations growth chart.

    5. Specific policies: - These policies cover specific issues such ashiring, rewarding and bargaining.

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    Related to objectives of the organization.

    Policies should be easy to understand.

    Precision holds the key to the success of the policy.

    The policy should be stable as well as flexible as and whenrequired.

    Policies should be based on sound facts and should be verifiable.

    Policies should be just, fair and equitable.

    Periodic review of the policies.

    Policies should be attainable.

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    Personnel policies lay down the standard framework which governthe functioning of the organization. A stepwise formulation of

    personnel policies is necessary for bringing in efficiency into the work

    ofHR management.

    1. Identifying the need.

    2. Collecting data.

    3. Specifying alternatives.

    4. Communicating thepolicy.

    5. Evaluating thepolicy.

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    forapatientandattentive listening.