HUMAN RESOURCE MANAGEMENTPaper code: 2.23/5.83/3.23Preeti NigamFaculty, Rai University

Acknowledgements

These notes have been prepared from the books written by the following authors:V.S.P RaoSchwind, Das, Werther, Davis

Unit-IConcepts & Perspectives of HRM; HRM in changing environment, HRM functions, Role of HR Practitioners; HR Policies, Corporate objectives and Human Resource Planning.

People are DifferentHeterogeneousDifferent reactionsEducated (New Technology)Motivation level

DefinitionHuman resource may be defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner.

FeaturesPervasive ForceAction OrientedIndividually orientedPeople orientedDevelopment orientedIntegrating mechanismComprehensive FunctionAuxiliary ServiceInter-disciplinary functionContinuous function

Scope of HRMPersonnel aspect

Welfare aspect

Industrial relations aspect

MisconceptionsLack of expertiseAlienation from the mainstreamFascination with latest fadsLack of respect

Objectives of HRMTo contribute to organizational effectivenessTo be efficient and cost effectiveTo be responsive to lager societal concernsTo meet personal needs of its employees

Objectives of HRMTo help the organization reach its goalsTo employ the skills and abilities of the workforce efficientlyTo provide the organization with well trained and well motivated employeesTo increase to the fullest the employees job satisfaction and self-actualizationTo develop and maintain a quality of work lifeTo communicate HR policies to all employeesTo help maintain ethical policies and behavior

Importance of HRMEnterprise LevelRetain best people in the organization

Individual LevelPromotes team work and spiritExcellent growth opportunitiesWork with diligence and commitment

Society LevelEmployment opportunitiesScarce talents are put to best use

New Management PracticesBoundary less organizationEmployee empowermentDiminished corporate layersChanged power baseNew Manager a sponsor, a team leaderCommitment building

Role of HR ManagerChanging from protector and screener to the planner and change agentPlanning and implementing downsizing, restructuring and other cost cutting activities

HRM in IndiaStaticLegalisticRitualistic

History of HRMIndustrial RevolutionFragmented and Dull jobs, workers did portion of the job, workers were glorified machine tools, interests of workers not protected

Scientific ManagementTaylor advocated, work is broken down into smallest mechanical elements and rearranging them into efficient combination. Individuals should be matched physically and mentally to the requirements of the task. Piece rate system.

History of HRMTrade UnionismCollective bargaining, unfair labor practices, grievance handling, disciplinary procedures, pay and benefitsHuman Relations MovementHawthorne experiments by Elton Mayo demonstrated that employee productivity was affected not only by the way the job was designed and employee economically rewarded but also by certain social and psychological factors. Includes supervisory training programs, strengthen bonds between labor and management and counseling programs

History of HRMHuman Resources ApproachPet Milk theory that happy workers are productive workers or happy cows give more milk was rejected. Workers are unique with their own needs and motivation levels. This Approach assumes that job is the primary source of satisfaction and motivation to the employees. Emphasis on individual involvement in the decisions made in the organization.

Human Resources ApproachPeople do not dislike work if they have helped establish objectivesTheory Y- Most people can exercise a great deal more self-direction, self-control and creativity than are required in their current jobsManagers job is to use untapped human potential Manager should create a healthy, safe and convenient environmentManager should provide self-direction to the subordinatesExpanding subordinates influenceWork satisfaction

TerminologyManagementHRMEmpowermentHRDJob AnalysisEmployee Development

CaseDoes Sincerity pay?

Environmental ChallengesHuman Resource ManagementEconomic ChallengesTechnological ChallengesDemographic ChallengesSocietal ChallengesGovernment and Legal Challenges

Economic and Societal ChallengesEconomic ChallengesGlobal Trade ChallengeChallenge of Productivity ImprovementTechnological ChallengesComputerizationAutomationDemographic ChallengesIncreasing number of women in the workforceShift from Primary to Service jobsEducational attainment of workersEmployment of older workersMore part time workersUnemploymentCultural ChallengesProfessional Challenges

Steps in Dealing with Environmental ChallengesMonitor the environmentEvaluate the impactTake proactive measuresObtain and analyze feedback

Factors Influencing Personnel Function- RaoExternal

TechnologicalEconomicPoliticalSocialLocal & Govt. IssuesUnionsEmployers demandsWorkforce diversityInternal

MissionPoliciesOrganizational CultureOrganizational StructureHR Systems

Three Dimensions of Personnel ManagementPersonnel ManagementWelfare AspectWorking conditions, amenities, facilities, benefitsPersonnel AspectRecruitment, selection, placement training, appraisal, compensation, productivityIndustrial Relations AspectUnion-management relations, disputes settlement, grievance handling, discipline, collective bargaining

Functions of Personnel ManagementManagerial FunctionsPlanningOrganizingDirectingControllingOperative FunctionsEmploymentJob AnalysisHR PlanningRecruitmentSelectionPlacementInduction and Orientation

Functions of Personnel ManagementHuman Resource DevelopmentPerformance AppraisalTrainingManagement DevelopmentCareer Planning and DevelopmentOrganization DevelopmentCompensationJob EvaluationWage and salary administrationIncentivesBonusFringe benefitsSocial security measures

Functions of Personnel ManagementHuman relationsEffectiveness of Human resource ManagementOrganization healthHuman resource auditing, audit and research

Personnel PolicyBrewster and Richbell defined Personnel policies as a set of proposals and actions that act as a reference point for managers in their dealings with employees. Personnel policies constitute guides to action. They furnish the general standards or bases on which decisions are reached. Their genesis lies in an organization's values, philosophy, concepts and principles.E.g. equal employment opportunity to minorities

ProceduresProcedures are action guidelines. They are derived from policies.

Advantages of Personnel PoliciesDelegationUniformityBetter controlStandards of efficiencyConfidenceSpeedy decisionsCoordinating devices

Obstacles in Administering Personnel PoliciesReluctant managersConflicts in policy specially employmentDifficult to review and updateFreedom to managers dangerous

Characteristics of Personnel PolicyRelated to objectivesEasy to understandPreciseStable and flexibleBased on factsAppropriate numberJust, fair and equitableReasonableReview

Coverage of Personnel Policies- Michael ArmstrongSocial responsibilityEquityConsiderationQuality of Work LifeEmployment policiesPromotion policiesDevelopment policiesRelations policies

Line and Staff RelationshipsLine Relationships exists between superior and subordinate. Line refers to those positions of an organization which have responsibility, authority and are accountable for accomplishment of primary objectives.

Line and Staff RelationshipsStaff RelationsWhen positions are created to secure advice, guidance, information, help or assistance, counseling etc. in the process of attaining organizational goalsStaff authority is advisory. A staff manager helps serve, investigate, plan, solve special problems, supports line effort, provides ideas and has special expertise.

Personnel Management- Line or StaffThe personnel management is a line management responsibility but a staff function. Personnel managers perform the various functions of personnel management viz. employment, training, development, wage and salary administration, motivation, grievance redressal, workers participation in management, collective bargaining etc. Also personnel managers perform certain staff functions relating to management of personnel like advising, assisting, guiding, suggesting, counseling and providing information to line managers.

Human Resource PlanningThe process of getting the right number of qualified people into the right job at the right time.

ObjectivesForecast personnel requirementsCope with changesUse existing manpower productivelyPromote employees in a systematic manner

BenefitsReservoir of TalentPrepare people for futureExpand or contractCut costsSuccession Planning

HRM at Different LevelsNational levelSectoral LevelIndustry LevelUnit levelDepartmental levelJob Level

The Process Of HRPForecasting the demand for Human resourcesPreparing Manpower InventoryDetermining Manpower GapsFormulating Manpower Plans

Human Resource Planning (contd)Small Business and HR Planning IssuesAttracting and retaining qualified outsidersManagement succession between generations of ownersEvolution of HR activities as business growsFamily relationships and HR policies

HR Planning Process

Manpower Plan: StrategiesRecruitment PlanRedeployment PlanRedundancy planTraining PlanProductivity PlanRetention PlanControl Points

Benefits of HR PlanningBetter view of the HR dimensions of business decisionsLower HR costs through better HR management.More timely recruitment for anticipate HR needsMore inclusion of protected groups through planned increases in workforce diversity.Better development of managerial talent

Responsibility for HRPProf. Geisler outlined the responsibilities-Assist and counsel operating managers to plan and set objectivesCollect and summarize manpower data keeping long run objectives and organizational interests in mindMonitor and measure performance against the plan and keep top management informedProvide proper research base for effective manpower and organizational planning

Problems in HRPAccuracySupportNumbers game

Indian OrganizationsInadequate recordsImproper retrieval systemsNon-computerized personnel informationCurrent technologies and knowledge not put to use optimallyChanges in labor marketDifficulties in forecasting resignations, deaths, turnovers etc.

GuidelinesObjectivesTop Management SupportManpower InventoryHuman Resource Information SystemCoordination

Suggested Readings:Dessler, Gary, Human Resource Management, Pearson Education Asia, New Delhi.Rao, V.S.P., Human Resource Management-Text & Cases, Excel Books, New Delhi.Ramaswamy, E; Managing Human Resources, Oxford University Press, New DelhiIrancevich, John, Human Resource Management, Irwin/McGraw Hill.Casio, Wayne F; Managing Human Resources, McGraw Hill Inc.Subba Rao, P; Essentials of Human Resource Management & Industrial Relations, Text, Cases & Games, Mimbai, Himalaya Publishing House.Mondy R.W; Noe, R.M., Premeaux, S.r. and Mondy J.B; Human Resource Management, Prentice Hall Inc.Saiyodain, Human Resource Management, TMH, N.Delhi.Aswthappa, Human Resource Management, TMH, N.Delhi.