Unit 1 perspectives in human resource management

MSM-MBA 2016-2017 Even semester

Unit 1: PERSPECTIVES IN HUMAN RESOURCE MANAGMENT

Prepared & Presented by ,

N. Ganesha Pandian,

Assistant professor,

Madurai School of management

References: John M Ivancewich, Human resource

Management, Tata Mc Graw Hill

Acad

emic

Year

201

6-20

17 E

ven

Sem

este

r Year I Semester II


Content • Evolution of human resource management

• The importance of the human factor

• Challenges

• Inclusive growth and affirmative action

• Role of human resource manager

• Human resource policies

• Computer applications in human resource

management

• Human resource accounting and audit


Case study

Story of Malden mills

Source: “Malden mills Senior Management Team”(January

27,2005), Corporate news; “The Mensch of Malden Mill”

(July 6, 2003),CBS News; Kathy Skala (March 1999), “

Balancing the Human equation”, Workforce, pp.54-59


Definition of Human Resource Management HRM

• Human resource management HRM specifically charged with

programs concerned with people – The employees

• It is the function performed in organizations that facilitates the most

effective use of people to achieve organizational and individual goals

Personnel, human resource management, industrial relations and employee development - All concerned about people


• Human resource management consists of numerous activities, including,

1. Equal employment opportunity (EEO) compliance2. Job analysis Human resource planning 3. Employee recruitment, selection, motivation and orientation 4. Performance evaluation and compensation 5. Training and development 6. Labour relations 7. Safety , health and wellness


Characteristics of HRM

Human Resource management HRM

• It is action oriented

• It is people oriented

• It is globally oriented

• It is future oriented


Evolution of Human Resource Management

• History traced back to England, where masons, carpenters, leather

workers and other craftsman organized themselves into guild

• Due to complexity of industrial society, there is a widening gap

between workers and owners

• Scientific management and welfare work represent two concurrent

approaches

• Hugo Munsterberg and his book Psychology and Industrial efficiency

initiated in 1913 the field of industrial psychology


• The drastic changes in technology, the growth of organizations, the

rise of unions and government concern and intervention concerning

working people resulted in the development of personnel department

• Another early contributor: Elton Mayo and Fritz Roethlisberger to

Human relations movement

• It started as a result of series of experiments conducted at the

Hawthorne facility of Western Electric in Chicago

• The purpose of study is to find the impact of illumination on workers’

productivity


• Peter F Drucker – made a statement that job of personnel was “

Partly a file clerk’s job, partly a housekeeping job, and partly

firefighting heading off union trouble”

• Personnel functions not only record keeping, but also in Strategic

management as Strategic HRM


Traditional HRM Vs Strategic HRMTraditional HRM Strategic HRM

Responsibility for human resources and management

Specialists Line managers

Objective Better performance Improved understanding and strategic use of human assets

Role of HRM area Responds to needs Lead, inspire, understand

Time focus Short-term results Short, intermediate and long-term

Control Rules, policies, position power Flexible, based on human resources

Culture Bureaucratic, top-down, centralization

Open, participative, empowerment

Major emphasis Following the rules Developing people

Accountability Cost centers Investment in human assets


Objectives of the HRM functions

1. Helping the organization reach its goal2. Employing the skills and abilities of the workforce efficiently 3. Providing the organization with well-trained and well-motivated

employees4. Increasing to the fullest the employee’s job satisfaction and self-

actualization5. Communicating HRM policies to all employees6. Helping to maintain ethical policies and socially responsible behavior 7. Managing change to the mutual advantage of individuals, groups,

the enterprise and the public


Nature of HRM

1. HRM Involves the Application of Management Functions and

Principles

2. Decision Relating to Employees must be Integrated

3. Decisions Made Influence the Effectiveness of an Organization

4. HRM Functions are not Confined to Business Establishments

Only


Features of HRM or characteristics or nature

1. HRM involves management functions like planning, organizing, directing and controlling

2. It involves procurement, development, maintenance of human resource

3. It helps to achieve individual, organizational and social objectives

4. HRM is a mighty disciplinary subject. It includes the study of management psychology communication, economics and sociology.

5. It involves team spirit and team work.


Significance/importance/need of HRM

1. Objective

2. Facilitates professional growth

3. Better relations between union and management

4. Helps an individual to work in a team/group

5. Identifies person for the future

6. Allocating the jobs to the right person

7. Improves the economy


Scope of HRM

• Human Resource Planning

• Design of the Organization and Job Selection and Staffing

• Training and Development

• Organizational Development

• Compensation and Benefits

• Employee Assistance

• Union/Labour Relations

• Personnel Research and Information System


Functions of HRM


HR department operations

• HRM Strategy : A firm’s strategy is the pattern or plan that integrates

the major objectives, policies and procedures into a cohesive whole

• The objectives of an organization or department are the goals it

seeks to achieve – its reason for existence

• A policy is a general guide that expresses limits within which action

should occur.

• A procedure or rule is a specific direction to action. In large

organizations, procedures are put into manuals, usually called

Standard operating procedure


Challenges in HRM• Managing the Vision• Internal Environment• Changing Industrial Relations• Building Organizational Capability• Job Design and Organization Structure• Managing the Large Work Force• Employee Satisfaction• Modern Technology• Computerized Information System• Managing Human Resource Relations


EEO- Equal employment opportunity - an inclusive growth

• EEO programs are implemented by employers to prevent

employment discrimination in the workplace or to take remedial

action to offset employment discrimination.

Three main factors led to the development of EEO

1. Changes in societal values

2. Economic status of women and minorities

3. The emerging role of Government regulations


EEO Laws: Content

• Title VII of the 1964 Civil rights Act

1. Sexual Harassments

2. Pregnancy discrimination

3. “English only” rules

4. Religious minority

5. Age and gender discrimination

6. Equal pay

7. Persons with disabilities


Affirmative actions in organizations

• Affirmative actions defined as “ those actions appropriate

to overcome the effects of past or present practices,

policies or other barriers to equal employment

opportunity”

• Affirmative action may be

1. Voluntary or

2. Involuntary


Affirmative actions and Inclusive growth : Indian Context• Constitution provision for Reservation in services

The Constitution of India, based on which orders relating to reservations

in services for Scheduled Castes (SCs), Scheduled Tribes (STs) and other

Backward Classes (OBCs) have been issued by Department of Personnel

& Training and Ministries of Social Justice of Government of India

The provisions made in the Articles 16, 335, 338, 340, 341 & 342 of the

Constitution relate to reservation, protection and safeguards, in public

employment in respect of the persons belonging to the SCs/STs and other

backward classes.


The Preamble of our Constitution proclaims the resolution of PEOPLE OF INDIA to constitute India into a SOVEREIGN, SOCIALIST, SECULAR AND DEMOCRATIC REPUBLIC and to secure to all its citizens

RIGHT TO EQUALITY-Article 14Article 14 of the Constitution reads: “The state shall not deny to any

person equality before the law or the equal protection of the laws within the territory of India"

Safeguards for public employment- Article16Article 16 of the constitution provides for equality of opportunity for all

citizens in matters relating to employment or appointment to any office under the state


Reservation of government jobs (Articles 16(4), 320(4), 333 and 335)The above mentioned sections provides the reservation of government

services to OBC/SC/ST classified as poor segment given the opportunity of relaxation or concession in age limit, exemption from certain fee and likewise

Both central government and state government may separately legislate their own policies for employment or services in state or central organizations

Affirmative actions and inclusive growth is a major topic of concern in this changing social scenario.


Role of Human resource manager

• Human resources function as primarily administrative and

professional.

• HR staff focused on administering benefits and other payroll and

operational functions and as well as playing a part in the firm‘s overall

strategy


The primary responsibilities of Human Resource managers are:

• To develop a thorough knowledge of corporate culture, plans and

policies. To act as an internal change agent and consultant

• To initiate change and act as an expert and facilitator

• To actively involve in company‘s strategy formulation

• To keep communication line open between the HRD function and

individuals and groups both within and outside the organization

• To identify and evolve HRD strategies in consonance with overall

business strategy


According to Dave Ulrich HR play‘s four key roles.

• Strategic Partner Role-Turning strategy into results by building

organizations that create value;

• Change Agent Role- making change happen, and in particular, help

it happen fast

• Employees Champion Role—managing the talent or the intellectual

capital within a firm

• Administrative Role—Trying to get things to happen better, faster

and cheaper


HUMAN RESOURCE POLICIES

• Predetermined established guideline towards the attainment of

accepted goals and objectives.

• Personnel Polices refer to principles and rules to conduct which

“Formulate, redefine, break into details and decide a number of

actions ” that govern the relationship with employees in the

attainment of organizational objectives.

• Personnel Polices are those that individual have developed to keep

them on track towards their personnel objectives


Aims and objective of Personnel polices

• Enable the organization to carry out the main objectives • Awareness of items in policies and to secure the co operation • Sense of unity with the enterprise • Provide competent , adequate and trained personnel for all levels and

types of management • To protect the common interest of all parties • Recognize the role trade unions in the organization. • Efficient consultative service. • Management leadership • Delegating the human relations


Specific Policies

• Hiring – factors like reservation , martial status,

• Terms and conditions – compensation policy , hours of work,

overtime , promotion , transfer, etc

• Medical assistance - sickness benefits

• Housing, transport, and other allowances.

• Training and development

• Industrial relations


Coverage of HR Policies

• Travel Pay

• Work Records

• Temporary & Casual

• Appointments

• Workweek & Pay

Periods

• Compensation

• Pay Advances

• Sick Leave

• Voting

• Worker's Compensation

• Labor Relations

• Probation

• Grievance Procedure

• Ethical Conduct

• Sick

• Employee Discipline

• Pay bands


Formulating Policies

• Five principle source for determining the content and meaning of policies

• – Past practice • – Prevailing practice in the rival companies • – Attitudes and philosophies of the founders (Top level Management • – Attitudes and philosophies of middle level management. • – Knowledge and experience from handling personnel problems


Computer applications in HRM

Human source Information System (HRIS)

Human Resource Information System is a systematic way of

storing data and information for each individual employee to aid

planning , decision making and submitting of returns and

reports to the external agencies.


Purpose of HRIS

• Storing information and data for each individual employee for future

references

• Providing basis for planning, Organizing , Decision Making,

Controlling and other Human resources function.

• Meeting daily transactional requirements- marking present / absent ,

and granting leave.

• Supply data and submitting returns to government and other statutory

agencies


Applications of HRIS

• Personnel

Administration

• Salary Administration

• Leave / absence

recording

• Skill Inventory

• Medical History

• Accident Monitoring

• Performance Appraisal

• Training and

Development

• HRP

• Recruitment

• Career Planning

• Collective Bargaining


Steps in Implementing HRIS

1. Inception of Data

2. Feasibility Study

3. Selecting a project team

4. Defining the requirements

5. Vendor analysis

6. Contract Negotiations

7. Tailoring the system

8. Collecting data

9. Testing system

10. Starting up

11. Running in parallel

12. Maintenance

13. Evaluation


Benefits of HRIS

• Higher speed of retrieval of information • Reduction in duplication • Ease in classifying and reclassifying • Effective decision making • Higher accuracy of information • Fast response of quires • Improve quality of people • Better work culture • Systematic procedures • Transparency


Human Resource Accounting & Audit

• Accounting for people as an organizational resource. It involves

measuring the costs incurred by business firms and other

organizations to recruit, select, hire, train and develop human assets.

It involves measuring the economic value of people to the

organization


Basic Information of HR

• Number of Employees

• Categories

• Grades

• Total Value of human resources

• Value per employee


HR Acquisition

• Number of employees acquired during the year • Cost of Acquisition • Levels for which they were acquired • HR Development • All information pertaining to HRD activities of the organization • HR maintenance • Cost related to HR maintenance. • HR Separation • Cost related to HR Separation, attribution rate. • Details of benefits provided to the employees


Various Methods of HR Accounting

• Non- Monetary Measurement• Monetary Measurement

• Non- Monetary Measurement• Capitalization of Historical Cost • Replacement Cost Method • Opportunity Cost method • Economic Value Method • Present Value Method


HR Accounting

• Developing skill inventory • Performance Appraisal• Assessing the individual capacity for development • Attitude survey • Subjective Appraisal


End of Presentation

Unit 1 perspectives in human resource management

Education

Transcript of Unit 1 perspectives in human resource management