Intro Duction to Hrm

7/28/2019 Intro Duction to Hrm

http://slidepdf.com/reader/full/intro-duction-to-hrm 1/27

Introduction to

HRMSession 1

•Definition & concept of HRM•

History of HRM•Functions of HRM•HR Policies & Procedures•Emerging role of HRM•Role of HR Executives•Challenges to HR Professionals

•Strategic HRM



HRM- The Global

&

Indian Scenario

“There is no „magic‟ in the success of

Japanese companies in general andSony in particular.Their secret of success is simply the way they treatemployees.”

Akio Morita/ thefounder of

Sony Corporation,once said,



Definition & concept of HRM

• HRM is the function performed in anorganisations that facilitates the mosteffective use of people to achieveorganisational and individual goals.

(Ivancevich))

• HRM encompasses those activitiesdesigned to provide for and coordinate the

human resources of an organisation.

(Byars & Rue)



HISTORY OF HRM

• Scientific Management Approach –

Fredrick Taylor- (1911) – “One Best Way to Accomplish the task”

– Henry Fayol – Principles of Management

–Max Webber- Bureaucracy

– Economic Man gained popularity – which suggested thata worker was basically motivated by economic gain andthat financial incentives alone could maximise the

worker‟s output. –Piece –rate system – where workersgets higher pay for every unit of output that exceedsdaily output standard.



Proposed four principles of

Scientific Management that will

increase productivity:

•Replace old methods of how to do work with scientifically-based

work methods.

•They scientifically select and then train, teach, and develop theworkman, whereas in the past he chose his own work and trained

himself as best he could. .

•Cooperation of management and labour to accomplish work

objectives.

•Equal division of responsibilities between managers and workers.



UPS

•

Annual revenue : $8 billion• Employee strength: 1,50,000

• No. of packages: 12million per day

• Sorter:1124/hr • Error allowed: 1/2500

• Time allowances specified during 120 stops per day.

• Rate at which they have to walk : 3feet per sec.



HISTORY OF HRM

• Human Relation Approach

–

Elton Mayo- Hawthorne Studies (1924-1932)

– Result of the study suggested that employeeproductivity was affected not only by the way

the job was designed and rewards but alsocertain social and psychological factors.



Human Relation Approach

• It wasn‟t successful in increasing

productivity and improving jobsatisfaction.

– Based on oversimplified concept of humanbehaviour.

–

It didn‟t recognize individual differences. Eachemployee is unique and his wants and needsare also different. Something that motivatesone worker may not motivate another worker.

– The approach didn‟t recognize job structure.

– Approach also failed to recognize other factorssuch as career development, performancemanagement and job enrichment.



Human Resources Approach• Human Resources Approach

– Approach treats organisational goals and employees

needs as being mutual and compatible

• Human Resources Approach is based on number of principles:

– Employees are asset to an organisation – Policies, programs and practices must cater to the needs

of the employees.

– Necessary to create and maintain a conducive workenvironment to encourage the employees to develop and

harness their knowledge and skills for the benefit of theorganisation.



Human Resources Approach

Employee Motivation

Employee Performance

Org. Performance

Employee Rewards



Functions of HRM

• An effective manager should be able toutilize the resources in most efficientmanner:

– Individuals differ from each other in terms of values, attitudes and beliefs.

–

Stimulating and motivational factors are not thesame.

– The expectations of employees of today aremuch greater compared to yesteryears.

•

HRM functions can be broadly classifiedas:

– Managerial Functions

– Operative Functions



Managerial Functions

1. Planning

2. Organizing

3. Staffing

4. Directing5. Controlling



Management process

1. Planning

The process of establishing goals and asuitable course of action for achievingthose goals.

• Determining in advance Personnel/ HRprograms and changes that will be requiredfor achieving the goals.

• Forecasting the needs and attitude changethat will be desired.



Management process

2. Organizing:

The process of engaging two or morepeople in working together in astructured way to achieve a specific goalor set of goals.

– Arrange & allocate work, authority andresources among an organisation‟smembers

CEO

Manager – F&A Manager – HRD GM-Prod

ExecutiveExecutive



Management process3. Staffing:

This is the process of acquiring, developing &

retaining competent employees.

3. Leading:

The process of directing and influencing the

task-related activities of group members or anentire organisations.

4. Controlling:

The process of measurement and rectificationactivities to ensure that actual conform toplanned activities.



Operative Functions

They are related to specific activities of HRM :

1. Employmenti. Job Analysis: It is the process of determining and

recording all the pertinent information about a specific job, including the tasks involved, the knowledge andskill set required to perform the job successfully.

ii. Human Resources Planning

iii. Recruitment

iv. Placement

v. Induction

2. Human Resource Developmenti. Performance Appraisal

ii. Management Development

iii. Career Planning & development



Operative Functions

They are related to specificactivities of HRM :

3. CompensationI. Job Evaluation

II. Wage & Salary administration

III. IncentivesIV. Fringe Benefits

4. Employee Relationsi. Designing & implementing a fast & suitable

grievances management systemii. Enhancing quality of work life & personal life

of the employees

iii. Enforcement of policies and procedures



HR Policies & Procedure

• HR policies define the role of HRdepartment in an organisation.

• Polices are set of guidelines thatdetermine the way in which employees areto be treated in the organisation

• They are based on the org. objectives, org.culture and the external environment

• HR policies helps in :

– Maintaining uniformity in administrationacross units and departments in theorganisation.



Policy & Objectivies:• Performance Appraisal System:• Policy & Objectives:

–

Objective assessment of performance and competence of employees for the purpose of determining their:

– Salaries

– Increments, Rewards.

– Transfer, Promotion & Separation

– Potential Assessment and Career Planning

– Training and development needs

• Procedure & Responsibility :

– It is the responsibility of HR Department to initiate actions for:

• Devising appropriate appraisal system and get themapproved.

• To train the line managers to appraise their employeesobjectively.

• To devise forms and instruments for employees appraisalperiodically.

• Use appraisal for Salary rise, rewards, promotion , training

and development and career planning.



ECC's HR Policy

•Sustain motivated and quality work force through appropriate

and fair performance evaluation, reward and recognitionsystems

•Maintain a quality Human Resource Management System tomeet the international standards as per ISO 9001. Plan, design,train, equip and motivate the department staff to meet thisstandard of expectation.



Reliance Energy’s HR Policy

Align HR Policies to achieve

organizational and business goals

with firm belief that "Our Employeesare our Future".

Have empowered and accountable

employees to take decisions in

response to emerging challengesand opportunities in a competitive

environment.

f



Emerging role of HRM

• Human Resources – A competitiveAdvantage

– Business has become knowledge based,service oriented, competitive and moredynamic in this new age. The quality of humanresources has become an essential factor in

determining the success of any organisation.

• Human Resource Accounting

– Today, criticality of the contributions of humanresources have been acknowledged.

– HRA is the measurement of cost and value of people for an organisation.

R l f HR E ti



Role of HR Executives

Role

Service

Provider

Auditor

Executive

Consultant

Facilitator



Serious People Care : Cadbury

“Our philosophy is to create brands that people love

and make Cadbury a fun place to work,” explains HRDirector Radhakrishnan Menon.

To formalize this commitment, Cadbury brings inexternal consultants to measure their People Care Index(PCI) every year. A leadership objective, PCI is used toassess and challenge the organization‟s „people first‟

agenda. “We would like this vision to touch every partof the organization – be it the operator, the sales team,thefrontline or the managers.

Ch ll t HR P f i l



Challenges to HR Professionals

• Worker Productivity

– Prerequisites for survival - world-class quality,flexible manufacturing, shorter productdevelopment cycle

– Revamp of organisation structure and culture

•

Quality Improvement – Every company has to strive to improve its

quality –sustain - GE

• The Changing attitude of workforce

– Employee loyalty – Flexible work hours

– Working from home

Ch ll t HR P f i l



Challenges to HR Professionals

• The Impact of the government

– Economic reforms introduced -1991

• Quality of Work Life

– Extent to which an employee‟s work meets his

professional needs. Sense of achievement,

security – Work more rewarding, encouraging employee

participation, team building and reducingemployee anxiety.

•

Technology and Training – Rapid & radical tech. development has forced

org. to incorporate this development

– Banks

SHRM



SHRM

• Strategic human resource managementhas been defined as „ the linking of

human resources with strategic goalsand objectives in order to improvebusiness performance and developorganizational culture that foster innovation and flexibility „.

• Strategic HR means accepting the HRfunction as a strategic partner in theformulation of the company‟s strategies aswell as in the implementation of those

strategies through HR activities such asrecruiting, selecting, training and rewardingpersonnel.

Intro Duction to Hrm

Documents

Transcript of Intro Duction to Hrm