MANAGING HUMAN RESOURCES
Let Us See !
1. Who conceives the idea of setting up an organization?
2. Who sets up the infrastructure of the organization?
3. Who recruits, selects and employs the staff in the organization?
4. Who does planning, organizing, leading, and controlling in the organization?
5. Who operates the machines in an ‘industrial organization’ or provides services in a ‘service organization’?
6. Who sells the products and services?
7. Whose skills, abilities, aptitudes offer a competitive advantage to the organization?
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It is all human beings !
Manage them Well
• ‘Human Beings’ also known as ‘Human Resources’ in the organizational context, have to be managed properly if we want to increase the efficiency and effectiveness of the organization
• Human beings are the most important ‘input’ for an organization.
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Three indispensable Elements of Organizational Functioning
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InputTransformation
ProcessOutput
through
Raw Material
Human Beings
Output & Services offered by another organization
Consumer Goods
Human Beings
Services provided by the Organization
Technology
Hardware
Capital Investments
Management-Worker Relationship
Orientation of the Top Management
The overall attitudes and orientation of the top management determines
• The nature of transformation process
• The Input-Output relationships
• The effectiveness and efficiency of the organization
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Two Extreme Philosophical Orientations
The top management often tends to adopt any one of the two extreme philosophical orientations:
1. Rational System Model:
• Taylor’s Scientific Management Theory
• Weber’s Bureaucratic Theory - Impersonal in approach. No importance given to feelings
2. Social System Model:- Human Relations Approach
• Hawthorne Studies
• Workers’ participation
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Evolution of HRM (I)
• 4th Century BC: References to systematic management of resources and regulating employer-employee relations found in Kautilya’s Arthashastra
• 1929: Formal beginning of HRM functions in India with the setting up of Royal Commission of Labour
• 1931: Commission recommends appointment of Labour Welfare Officers for employee selection, dismissal and grievances
• 1940s-1950s: Indian Institute of Personnel Management and National Institute of Labour Management set up
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Evolution of HRM (II)
* 1960s-1970s:
- growth in business, competition, size of industry
- need to attract and retain people
- welfare officers start performing HR functions
- welfare officers renamed Personnel Managers
* 1980s-1990s:
- Increasing recognition of the contribution of human resources to the survival and competitive advantage of the organization
- Personnel functions renamed HR functions
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HRM Function Today
Today HRM function can be seen as the amalgam of:
• Organizational Behaviour
• Personnel Management
• Industrial Relations and Labour Legislation
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Organizational Behaviour
Industrial Relations and
LabourLegislation
Personnel Management
Differences between HRM and Personnel Management (I)
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Dimension PM HRM
Employment Contract Careful delineation of written contract
Aim to go beyond contract
Rules Importance given to devising clear rules
Impatience with rules
Managerial task vis-à-vis Labour
monitoring nurturing
Initiatives piecemeal integrated
Differences between HRM and Personnel Management (II)
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Dimension PM HRM
Management Role Transactional Transformational
Communication Indirect Direct
Prized management Skill Negotiation Facilitation
Selection Separate managerial task
Integrated, key task
Pay Fixed Grades Performance related
Differences between HRM and Personnel Management (III)
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Dimension PM HRM
Job design Division of labour Team work
Conflict – handling Reach temporary truce Manage climate andculture
T & D Controlled access to courses
Learning companies
Attitude towards Enployees
Labour is treated as a tool
People are treated as assets
Shared interests Organization important Mutuality of interests
Process Involved in HRM
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Process Involved in HRM (I)
A – StaffingStep I : Identifying the organization’s mission and strategyStep II: Identifying job requirements of the organizationStep III: Identifying individuals with relevant skills, abilitiesStep IV: Obtain adequate pool of applicants – for wider choiceStep V: Short listingStep VI: Assessing through screening and interviewsStep VII: Offer of jobStep VIII: Ensure that the selected candidates accept the job offer
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Process Involved in HRM (II)
B – Training and Development
Why T and D? – To help the employee adapt to the new surroundings
How is it Done? – Through Socialization ProcessPhase I – Orientation of the new employee to rules, regulations
and goals of the organizationPhase II – Familiarity with requirements of the job as per goals of
the organizationPhase III – Shaping and reformulating the employees to make
them fully productive in a short time
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Elements of Phase III
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Employee Training
Organization Development
Career DevelopmentEmployee
Development
The Motivation Function
Performance in an organization is a function of two factors:-
1. Ability – so we can hire the ‘right person’ for the ‘right job’
2. Willingness or motivation to do the job
How can HR manager motivate the employees to perform in accordance with their capabilities?
Design the job properly
Making necessary tools available
Create a level of respect between management and workers
Set performance standards for each employee
Establish a link between employee compensation and performance
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The Maintenance Function
What should the HR manager do to retain the productive employees?
• Ensure a safe and healthy working environment
• Design employee assistance programmes – help them deal with stressful life situations
• Operate appropriate communication programs
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HRM Functions in Practice
Employment – How to get the right people for the right job?
What does the HR manager do?
1. Advertise correctly – clear specification
2. Sorts through resumes and weeds out the ones not meeting specifications
3. Forwards the shortlisted resumes to the line manager for review
4. Calls, screens, tests and interviews the candidates tipped by the line manager
5. Fixes final interview of suitable candidates with the line manager
6. Prepares job-offer letter and, if required, convinces the candidate to accept the job once the hiring decision is made by the line manager.
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Training and Development
Conduct / organize training and development sessions to:-
1. Enhance employees’ personal qualities for maximising organizational productivity
2. Facilitate career development of employees
3. As an ‘internal change agent’ help employees cope with ‘change’
This ‘change’ can be at different levels:-
a. Cultural change – change in the philosophy, values, organizational orientation or organizational structure
can result in – new job assignments, lay-offs, team involvement etc.
b. Change in procedures and policies- e.g. new policy to stop discrimination against minorities or to stop sexual harassment
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Compensation and Benefits
HR manager decides upon compensation on the basis of:-
1. Job ranking – higher the job rank more the compensation
2. Job rating – higher the worth of the job, more the compensation
Job ratings are determined by :-
Skill
Job-responsibility
Effort
accountability
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Employee Relations
Employee Relations
1. Non-union setting. Direct dealing with employees
2. Grievance handling by talking directly to the employees
3. Open communication
Labour Relations
1. Involves ‘dealing with labourunions’
2. Specific grievance redrassalprocedure involving management, union and wronged employee-procedure detailed in labour management contract
3. Communication through unions
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Employee relations are different from Labour relations.
Communication Program to Improve Employee Relations
Fundamental elements of communication programme
1. Top management’s commitment
2. Effective upward communication
3. Communicating information that is crucial for the employees’ job
4. Allowance for feedback-through surveys, suggestion box, word-of-mouth assessment etc.
5. Providing information sources to supervisors – for effective handling of ‘frontline’ questions.
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Emerging HR Functions
Reasons for changing HR functions
• Increasing organizational size and complexity
• Transition from traditional to professional management
• Changing social and cultural norms
• Globalization of industry
• Availability of information technology
So HR manager has to be more creative to:-
• Satisfy human (employee) aspirations
• To provide the competitive edge to the organization
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The Changing HR Functions
Assessment Centres – A mechanism to identify potential for growth
Essential features of Assessment Centre
Situational tests, presentations, group discussions, structured interviews etc.
Many assessors
Independent evaluation and report
Identification of job-related strengths and weaknesses
Benefits of assessment centre
1. Early identification of supervisory/managerial potential
2. Provides sufficient time for training for new position
3. Helps identify training and development needs
4. Provides opportunity for organization to review its HRM policies
5. Assists in target development
6. Guides in career development
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Empowerment
Empowerment provides greater freedom and discretion to
employees to make decisions and solve problems
Benefits of Employee Empowerment
Empowerment helps the employees to:-
1. Develop mutual trust
2. Share information liberally
3. Become team players
4. Release their full potential to contribute to the organization
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Kanter’s Study
Kanter studied one major electronic company in 1979
The company initiated two programmes to increase effectiveness of supervisors:
• Traditional competency training
• Structural change situation
Structural change situation involved:
• Empowering supervisors by increasing their flexibility
• Access to resources
• Connection with higher level officials
• Control over working conditions
Results:- Change in supervisory behaviour much more rapid in 2nd situation
Indian Examples – Shri Ram Group, Reliance Industries Ltd.
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Job Enrichment
Job enrichment entails providing discretion, flexibility and variety to the
job. The concept was given by Hackman and Oldham (1975). The characteristics of job enrichment are:
• Skill variety
• Task identity
• Task significance
• Autonomy
• Feedback from job
• Feedback from others
• Dealing with others
However ‘skill variety’ and ‘autonomy’ are the most important predictors of organizational effectiveness
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Parity and Justice
• Ensuring that constitutional and legislation guarantees regarding parity and justice to each individual are not violated/ignored
• General awareness about rights increasing, so are the PIL cases
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Downsizing and Rightsizing
Downsizing – reducing the workforce
Rightsizing – Aligning the workforce to organizational needs
Purpose: to improve efficiency, productivity, competitiveness (core employees retained to operate the system)
Reasons for downsizing:-
• Mergers and acquisitions/sell offs
• To reduce costs and enhance revenue
• Modernisation or upgradation of technology – less dependence on manual work
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HR Information System
It provides information about:
• Duties and responsibilities of every job in the organization
• Skills possessed by every employee
• Future human resource needs of the organization
• Current productivity of human resources
• Identification of training needs
HRIS – retrieves, processes and analyses this information speedily – helps making quick and correct decision for the efficiency of the organization
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