Introduction to Human Resource Management_KM_1

8/2/2019 Introduction to Human Resource Management_KM_1

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Introduction to HumanResource Management

By

Dr. Kumkum Mukherjee


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What is Human Resource

Management?

HRM is the process of acquiring,

training, appraising, and compensatingemployees, and attending to theirlabour relations, health and safety, and

fairness concerns


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The Changing Role of HR:

The Strategic PartnerIn todays fiercely competitive

scenario, the human resource is the

only resource that lends thesustainable competitive advantageover other firms

Human resource becomes asset whenthey add value, are rare, inimitable andorganization oriented.


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Personnel

Function

Points of

Distinction

HRD

Maintenance oriented Orientation Development oriented

Independent functionwith sub-functions

Structure Interdependent parts

Reactive function Philosophy Proactive functions

Exclusive responsibilityof personneldepartment

Responsibility All managers areresponsible

Emphasis is onmonetary rewards

Motivators Emphasis is on otherhigher-order needs

Improved performanceas a result ofsatisfaction

Outcomes Better use of humanresources

Employee efficiency Aims Organizational

efficiency


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Human Resource

Management

Work Structure

Employee Relations

Staffing

Training & Development

Compensation


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Why is HR Management

Important to All Managers?It is because no one can afford to

Hire the wrong person for the job

Experience high turnover

Have people not doing their best

Waste time with useless interviewsHave the company taken to court

because of discriminatory actions


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Important to All Managers?

(Contd.)It is because no one can afford to

Have the company cited under occupational

safety laws for unsafe practicesHave some employees think their salaries

are unfair and inequitable relative to othersin the organization

Allow a lack of training to undermine adepartments effectiveness

Commit any unfair labour practices


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Important to All Managers?

(Contd.)

Apart from all the points discussed so

far, managing people is a centralconcern of every single manager inevery single organization


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Role of HRMService: Focuses on a wide variety of

routine and non-routine tasks, such asadministering tests, preparing reports,ensuring people get correct bonus/paymentor designing a new pay plan to improveproduct quality or delighting customers

Advocate: Advising fair treatment ofemployees

Business Partner/Change Agent:Understanding the business direction of thecompany and helping to initiate change forbetterment


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A Diagnostic Approach

to HRM

Assessing the situation

Planning and Setting the Objectives

Choosing among Alternatives

Evaluating Results


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Diagnostic Approach

Assess Conditions

Evaluate Results

Choose Activities

Set Objectives


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Line and Staff Aspects

of HRMFollowing concepts are required to note:

Authority: The right to make decisions,

direct others work, and give orders Line Manager: A manager who is

authorized to direct the work of subordinatesand is responsible for accomplishing theorganizations task

Staff Manager: A manager who assists andadvises line managers


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Functions of HR

ManagerA Line Function: The HR manager directs

the activities of the people in his/her owndepartment and in related service areas(canteen/ cafeteria), that is line authority

They generally may not have line authorityoutside HR area, they are likely to exertimplied authority

A Coordinative Function: HR managers alsocoordinate personnel activities, referred asfunctional control


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Functions of HR

Manager (contd.)Staff (assist and advise) functions: This is the

core HR function.

Helps CEO for strategy decisionsAssists in hiring, training, evaluating,

rewarding, counseling, promoting and firingemployees

Administers benefit programmes

Helps comply with EEO and safety laws


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Functions of HR

Manager (contd.)Handles grievance and labour relations

Provides up-to-date information on current

trends and new methods of problem solvingDefines how management should be

treating employees, make sure employeescan contest unfair practices, representsemployees interests within the framework


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Cooperative Line & Staff

HR Management (contd.)Some activities are done exclusively byHR people, such as:

Pre-employment Testing: 60%

College Recruiting: 75%

Insurance Benefit Administration: 86%

Exit Interview: 84%

Record Keeping: 88%


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Cooperative Line & Staff

HR Management (contd.)Some activities are split between Line

and HR (staff)

Employment Interviews

Performance Appraisal

Skills Training

Job Descriptions

Disciplinary Procedures


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The Changing Environment

of HR Management

HR Departments

responsibilities have gradually

become broader and morestrategic than what was before


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Measuring HRs Contribution

Metrics: A set of quantitativeperformance measures HR managers

use to assess their operationsIt is to note that some aspects of

performance are easier to measure

than some other


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The HR ScorecardHR functions and initiatives are judged onthe basis of whether they create value forthe company

Measure the HR functions effectivenessand efficiency in producing employeebehaviours needed to achieve thecompanys strategic goals

Highlights the causal link between HRactivities, the emergent employeebehaviour, and the resulting firm-wisestrategic outcomes and performance


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Benefits of HR Scorecard It reinforces the distinction between HR do-

ables and deliverables

It enables cost control and value creation

It measures leading indicators

It assesses HRs contribution to strategy

implementation

It lets HR professionals effectively manage theirstrategic responsibilities

It encourages flexibility and change


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Ethics and HREthical lapses in companies can put them

out of business (Satyam, Arthur Anderson,

PWC, Enron)HR managers need to be heavily involved in

implementing ethical laws includingworkplace safety, security of employee

records,employee theft, affirmative action,comparable work and employee privacyrights

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