Unit 1 - Indtn to HRM

8/7/2019 Unit 1 - Indtn to HRM

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Introduction to Human

Resource Management

To understand the need for human resourcemanagement.To identify the role of Human Resource Manager in an

organization.To become familiar with the changing functions of

HRM.To become familiar with the challenges faced by HR

Mana ers.

Unit

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Chapter 1 Introduction to HRM

Introduction

Competitiveness refers to a companys ability to maintainand gain market share in its industry. It is related tocompany effectiveness

Human resource management refers to the policies,practices, and systems that influence employees behavior,attitudes, and performance. Many companies refer to HRMas involving people practices"

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Definition of Personnel Management

Michael J.Jucius defined Personnel

Management as, the field of

management which has to do withplanning, organizing, directing and

controlling the functions of procuring,developing, maintaining and utilizing

a labor force.

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Objectives of HRM

Societal Objectives To be ethically and socially responsible

to the needs and challenges of the society while minimizing

the negative impact of such demands upon the organization.

Organizational Objectives To recognize the role of HRM inbringing about organizational effectiveness.

Functional Objectives To maintain the departments

contribution at a level appropriate to the organizations

needs. Personal Objectives To assist employees in achieving their

personal goals, at least insofar as these goals enhance the

individuals contribution to the organization.

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Functions of HRM

Operative Functions

Employment & Recruitment

Training & Development

Compensation

Benefits

Human Relations

Industrial RelationsHealth & Safety

Evolving challenges of

HRM

Managerial FunctionsPlanning

Organizing

Directing

Controlling

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Models of HRM

To understand the theoretical concepts in a betterway and its contribution to organizationaleffectiveness.

Provides an analytical framework for studyingHRM.

There are 4 models of HRM.

1. The Fombrun, Tichy and Devanna Model

2. The Harvard Model

3. The Guest Model and

4. The Warwick Model

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1. The Fombrun, Tichy and Devanna

Model

2. Human Resource

Development

1. SelectionOrganizational

Effectiveness3. Appraisal

4. Rewards

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Contd

The model focus only on 4 functions of HRM.

It is considered as an incomplete model.

It ignores all environmental factors that have an

impact on the HR functions.

It explains the significance of key HR functions

and their contribution to organizational

performance.

It emphasizes the interrelationship between the 4

functions of HR.

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2. The Harvard Model

1. Stakeholder

Interests

3. Human

Resource

Management

Policy Choices

4. Human

Resource

Outcomes

2. SituationalFactors

5. Long-term

Consequences

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6. Feedback

Loop

6. Feedback

Loop



3. The Guest Model

1. HRM

Strategies2. HRM Practices 3. HR Outcomes

4. Behavioral

Outcomes

5. Performance

Outcomes

6. Financial

Outcomes

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Contd

The model was developed by David Guest in the

year, 1997.

Considered as a superior model.

It begins with a HR strategy and when

implemented will result in certain outcomes.

It emphasizes the logical sequence of six

components given in the model.

The contribution of HRM to organizational

effectiveness is clearly explained in the model.

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The Warwick Model of HRM

1. Outer Context

3. Business

Strategy Content 4. HRM Context

2. Inner Context

5. HRM Content

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Contd

The model was developed by 2 researchers,

Hendry and Pettigrew of University of Warwick.

It focuses on 5 elements of HRM.

It maps the connection between the external and

environmental factors and explores how HRM

adapts to changes in the context.

It describes about aligning the external and

internal context to achieve performance and

growth.

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Competitive Challenges

Influencing HRM

Three competitive

challenges that

companies now face will

increase the importanceof HRM practices:

The Global

Challenge

The Challenge of

Sustainability

The Technology

Challenge

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The Sustainability Challenge

Sustainability refers to the ability of a company to survive and

succeed in a dynamic competitive environment

Stakeholders refers to shareholders, the community, customers,

and all other parties that have an interest in seeing that the

company succeeds

Sustainability includes the ability to:

deal with economic and social changes,

engage in responsible and ethical business practices, provide high quality products and services, and

put in place methods to determine if the company is meeting

stakeholders needs

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The changing structure of the economySkill demands for jobs are changingKnowledge is becoming more valuable

Intellectual capital refers to the creativity, productivity,and service provided by employees

Knowledge workers are employees who contribute tothe company not through manual labor but through a

specialized body of knowledgeEmpowerment means giving employees responsibility

and authority to make decisions regarding all aspects ofproduct development or customer service

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A learning organization embraces a culture oflifelong learning, enabling all employees tocontinually acquire and share knowledge

The psychological contract describes what anemployee expects to contribute and what thecompany will provide to the employee for thesecontributions

Alternative work arrangements includeindependent contractors, on-call workers,temporary workers, and contract company workers

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The Balanced Scorecard

The balanced scorecard gives managers the opportunity

to look at the company from the perspective of internal

and external customers, employees and shareholders.

The balanced scorecard should be used to:Link human resource management activities to the

companys business strategy.

Evaluate the extent to which the human resource function is

helping the companys meet its strategic objectives.Measures of human resource practices primarily relate to

productivity, people, and processes.

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The Balanced Scorecard

Customer

Internal

Innovation

and Learning

Financial

How do customers see us?

What must we excel at?

Can we continue to improve

and create value?

How do we look to

shareholders?

Time, quality, performance,service, cost.

Processes that influence customer

satisfaction, availability of

information on service and/ormanufacturing processes.

Improve operating efficiency,

launch new products, continuous

improvement, empowering of

workforce, employee satisfaction.

Profitability, growth, shareholder

value.

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Customer Service and

Quality Emphasis

Total Quality Management (TQM) is a company-wideeffort to continuously improve the ways peoples,machines, and systems accomplish work

Core values of TQM include:designing methods and processes to meet the needs of

internal and external customersall employees receive training in quality

promotion of cooperation with vendors, suppliers, andcustomersmanagement gives feedback on progress

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Customer Service and

Quality EmphasisMalcolm Baldrige National Quality Award

established in 1987 to promote qualityawareness, to recognize qualityachievements, and to publicize successful

quality strategies. ISO 9000:2000

quality standards adopted worldwide.Six Sigma process

system of measuring, analyzing,improving, and controlling processes oncethey meet quality standards.

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Changing Demographics

Diversity of the Workforce

Internal labor force is the labor force of currentemployees.

External labor market includes persons actively

seeking employment.The U.S. workforce is becoming increasingly diverse.

WomenMinorities

Disabled workersImmigrants

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Managing a Diverse Workforce

To successfully manage a diverse workforce, managers

must develop a new set of skills, including:

Communicating effectively with employees from a wide

variety of cultural backgrounds.Coaching and developing employees of different ages,

educational backgrounds, ethnicity, physical ability, and

race.

Providing performance feedback that is based on objectiveoutcomes.

Creating a work environment that makes it comfortable for

employees of all backgrounds to be creative and innovative.

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Legal and Ethical Issues

Human resource managers must

satisfy three basic standards for their

practices to be considered ethical:

HRM practices must result in thegreatest good for the largest number

of people

Employment practices must respect

basic human rights of privacy.Managers must treat employees

equitably and fairly

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The Global Challenge

Companies are finding that to survive they must compete ininternational markets as well as fend off foreigncorporations attempts to gain ground in the U.S.

Every business must be prepared to deal with the globaleconomy. This is made easier by technology.Off shoring refers to the exporting of jobs from developed

countries to less developed countries.

Many companies are entering international markets byexporting their products overseas, building manufacturingfacilities in other countries, entering into alliances withforeign companies, and engaging in e-commerce

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The Technology Challenge

Technology has reshaped the way

we play, plan our lives, and where

we workThe overall impact of the Internet

The Internet has created a new business

model e-commerce in which

business transactions and relationshipscan be conducted electronically.

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M ti C titi Ch ll


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Meeting Competitive Challenges

Through HRM Practices 28

M ti C titi Ch ll


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Meeting Competitive Challenges

Through HRM Practices 29


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EVOLUTION

The field of HRM is the crystallization of variety of historicaland contemporary factors:

The industrial revolution

Scientific managementTrade unionism

Human relations movement

Human resource approach


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I. The industrial revolution

During this period machines were brought in,technologymade the progress left the workers dull, boring and

monotonous jobs.

Government did very little to satisfy the workers.

Workers were considered as machines.


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III. Scientific Management

To improve the efficiency and a speed F W Taylor advocatedscientific management.

Scientific management is nothing but a systematic analysis and

breakdown of work into smallest elements and rearranging them

into possible efficient combination.Taylor argue that the person selected for the job should fit for the

job and not to be overqualified.

The employees should be trained to meet the pre-specified by the

method.A differential piece rate system was also advocated by taylor to

provide an incentive for employees to follow the detailed

procedures specified by the supervisor.


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IV. Trade Unionism

Workers join hands to protect the rights of employeesagainst the exploitative action of the employers.

Unions are trying to resolve the problems through the

collective bargaining, pay and benefits, disciplinary actions

etc.


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VI. Human relations movement

The famous Hawthorne experiments conducted by EltonMayo demonstrated the employee productivity was affected

by the way the job was designed and the manner in which

the employees were rewarded.

The human relation movement led to the implementation of

the behavioral science techniques in the company.

The movement also influence the growth of the trade

unions during late 1930s and 1940s.This give the right to the employee to bargain with the

employer.


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V. Human resources movement

During early 60s people are considered as a collection of uniqueindividuals.

What motivates one person may not motivate another.

Being happy may are may not enhance the productivity and thus

slowly employees are considered as the valuable assets. The people do not inherently dislike the job and if they are helped they want to achieve

them.

More people have a great deal of self control, self-direction and creativity than required.

Manager should encourage to participate fully in all important matters.

Work satisfaction may improve by using the employees full potential.


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Evolution of concepts of HRM

Earlier- The more concern is given to work design. Middle part of century- Emphasis is based on the

availability of managerial professional and employee

productivity.

Recent part- Demand for technical professional, increased

concern to TQM and renewed emphasis on productivity.

Commodity concept - Labor is regarded as the commodity. Wages wered id d b d th d d d l


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decided based on the demand and supply.

Factor of production concept - Workers are like machine tools.

Goodwill concept - Workers safety will have a positive impact onproductivity

Paternalism

The Humanitarian concept - To improve productivity through meeting physical,

social and psychological needs of the worker mustbe met.

The Human resource concept - Employees are considered as the assets. Thereshould be cautious effort to realize organizationalgoals through satisfying individual need.

The emerging concept - Employees should be considered as a partner of thecompany. They should feel that they are in family.


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Evolution in India

Early phaseIt had its origin at 1800 B.C. Kautilya in India made reference to various HRM

concepts.

Legal phaseAfter 1920 India had its earliest root of HRM. The royal commission of 1931 insists for the appointment

of the labor officer to protect workers interests. It was madecompulsory by the Factories act 1948.

In 1950 IIPM and National institute of labour managementcame into existence,


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Welfare phase During 1960s the scope of personnel management is expanded.

In this period the human relation of west had a considerable influence overthe Indian organization.

Development phase

In 1960s and 1970s the HR professional focused more on the developmentaspects of human resource.

HRD comes to existence.

During 90s organizational restructuring and cost cutting effort havestarted in a big way which force companies to focus on service quality,customer satisfaction etc.

Issue of managing workforce diversity is seemed to be a great challenge.


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Nature

Pervasive force-Present at all levels of management Action oriented- It will focuses attention on solving people problem.

Individual oriented-It helps to encourage and motivate people.

People oriented- To help to achieve good results in present and enhance people in

future.

Future oriented- To achieve future goals a with competent and well motivated

work force.

Development oriented-To enhance productivity by training process.

Integrating mechanism-It will tries to build relationship between people across

various department.

Comprehensive function-The impact of decisions on people.

Auxiliary service-It will assist and advice people to perform effectively.

Multi-disciplinary function and Continuous function.


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Scope

Personnel aspect-Recruitment, selection, Training,Motivation, Compensation, Productivity etc..

Welfare aspect- Working condition, Health and safety,

education, Recreation facilities etc.

Industrial relation aspect- Trade union, Settlement of

disputes etc..

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HRIS

In order to conduct audit concrete information is neededwhich will helps to forecast the future.

Manpower planning needs a lot of information.

Definition:-

A Human Resource Management System (HRMS,

EHRMS), Human Resource Information System (HRIS), HR

Technology or also called HR modules, or simply "Payroll",

refers to the systems and processes at the intersectionbetween human resource management (HRM)

and information technology.


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Objective:-To offer an adequate, comprehensive and ongoing

information system.

To supply up to date information

To offer data security and personal privacy.

Need:-

Cost of manual work.

Chance of errors.

Fragmentation.

Difficult to analyse.

Setting up HRIS:

Plan


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Plan

Design

Implement

EvaluateComputerized HRIS:-

Data collection:

Payroll & benefits

Performance appraisal

Training & developmentRecruitment & selection

Employment & job data

Report generation

Unit 1 - Indtn to HRM

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