HUMAN RESOURCE HUMAN RESOURCE MANAGEMENTMANAGEMENT

The Nature of ManagementThe Nature of Management

Management:Management: The science perspectiveThe science perspective The political perspectiveThe political perspective The control perspectiveThe control perspective The practice perspectiveThe practice perspective

The meaning of ‘management’

Management ProcessesManagement Processes

PlanningPlanning

OrganizingOrganizing

StaffingStaffing

Leading Leading

ControllingControlling

Why is HR important to all managers?Why is HR important to all managers?

Line and Staff Aspects of HRMLine and Staff Aspects of HRM Line managerLine manager

A manager who is authorized to direct A manager who is authorized to direct the work of subordinates and is the work of subordinates and is responsible for accomplishing the responsible for accomplishing the organization’s tasksorganization’s tasks

Staff managerStaff managerA manager who assists and advises line A manager who assists and advises line

managers.managers.

Line Managers’ HRM Line Managers’ HRM ResponsibilitiesResponsibilities

1.1. Placing the right person on the right jobPlacing the right person on the right job

2.2. Starting new employees in the organization Starting new employees in the organization (orientation)(orientation)

3.3. Training employees for jobs that are new to themTraining employees for jobs that are new to them

4.4. Improving the job performance of each personImproving the job performance of each person

5.5. Gaining creative cooperation and developing smooth Gaining creative cooperation and developing smooth working relationshipsworking relationships

6.6. Interpreting the firm’s policies and proceduresInterpreting the firm’s policies and procedures

7.7. Controlling labor costsControlling labor costs

8.8. Developing the abilities of each personDeveloping the abilities of each person

9.9. Creating and maintaining department moraleCreating and maintaining department morale

10.10. Protecting employees’ health and physical conditionProtecting employees’ health and physical condition

What is HRWhat is HRHuman resources has two meanings Human resources has two meanings

depending depending on the context:on the context:

The original use comes from the political The original use comes from the political economy and economics, where it is called economy and economics, where it is called labourlabour, one of the three main factors of , one of the three main factors of production. (production. (land, labour & capitaland, labour & capita))

The more modern usage within companies The more modern usage within companies and businesses refers to individuals in the and businesses refers to individuals in the company and the portion of the company's company and the portion of the company's organization that deals with organization that deals with personnel or personnel or staffstaff recruitment , training, record keeping recruitment , training, record keeping and other personnel issues.and other personnel issues.

Basic HR ConceptsBasic HR Concepts The bottom line of The bottom line of

managing: managing:

Getting resultsGetting results

HR HR creates value by creates value by engaging in activitiesengaging in activities that produce the that produce the employee behaviors that employee behaviors that the company the company needs to needs to achieve achieve its strategic goalsits strategic goals..

DefinitionDefinition The branch of organizational science that The branch of organizational science that

deals with the deals with the employment relationshipemployment relationship, , along with all the decisions, actions, and along with all the decisions, actions, and issues involved in that relationship. issues involved in that relationship.

A strategic approach to managing A strategic approach to managing employment relations which emphasizes employment relations which emphasizes that that leveragingleveraging people’s people’s capabilitiescapabilities is is critical to achieving competitive critical to achieving competitive advantage. This leveraging being achieved advantage. This leveraging being achieved through a distinctive set of through a distinctive set of integratedintegrated employmentemployment policies, programs and policies, programs and practicespractices

THE FOCUS OF HRM THE FOCUS OF HRM Businesses and organizations rely on Businesses and organizations rely on three major resourcesthree major resources physical resources, such as materials and equipmentphysical resources, such as materials and equipment financial resources, including cash, financial resources, including cash, credit,credit, and and debt &debt & human resources or workers. human resources or workers.

In its broadest sense, HRM refers to the In its broadest sense, HRM refers to the management of all decisionsmanagement of all decisions within within anan

organization that are related to people. organization that are related to people.

In practice, however, In practice, however,

HRM is a toolHRM is a tool used to try to make optimum use of human resources, to used to try to make optimum use of human resources, tofoster individual development, and to comply with government mandates.foster individual development, and to comply with government mandates.

Larger organizations typically have an HRM department and its primaryLarger organizations typically have an HRM department and its primaryobjective is making company goals compatible with employee goalsobjective is making company goals compatible with employee goalsinsofar as possible. insofar as possible.

Hence, for a company to attain its goals, it must have employees who will Hence, for a company to attain its goals, it must have employees who will help ithelp it

Attain them.Attain them.

HistoryHistoryKey principles & practices associated with HRM date back to the beginning ofKey principles & practices associated with HRM date back to the beginning ofmankind. mankind.

Mechanisms were developed for the Mechanisms were developed for the selection of tribal leadersselection of tribal leaders, e.g: & knowledge, e.g: & knowledgewas recorded and passed on to youth about safety, health, hunting, and gathering. was recorded and passed on to youth about safety, health, hunting, and gathering.

More advanced HRM functions were developed as early as 1000 and 2000 BCMore advanced HRM functions were developed as early as 1000 and 2000 BCe.g. e.g. Employee screening testsEmployee screening tests have been traced back to 1115 B.C. in China. have been traced back to 1115 B.C. in China.

And the earliest form of industrial education, And the earliest form of industrial education, the apprentice systemthe apprentice system, was started, was startedin ancient Greek and Babylonian civilizations before gaining prominence duringin ancient Greek and Babylonian civilizations before gaining prominence duringmedieval times. medieval times.

Since the inception of modem management theory, the terminology used toSince the inception of modem management theory, the terminology used todescribe the describe the role and function of workersrole and function of workers has evolved from has evolved from "personnel" to"personnel" to"industrial relations" to "employee relations" to "human resources.""industrial relations" to "employee relations" to "human resources."

While all of these terms remain in use, While all of these terms remain in use, "human resources""human resources" most accurately most accuratelyrepresents the view of workers by represents the view of workers by contemporary management theorycontemporary management theory : as : as valuablevaluableresources managed in the same manner as other valuable resourcesresources managed in the same manner as other valuable resources, according to, according tothe authors of the authors of Human Resource Management.Human Resource Management.

Cont…..Cont…..The need for an organized form of The need for an organized form of

HRM emerged during the HRM emerged during the industrial industrial revolutionrevolution, as the manufacturing , as the manufacturing process evolved from a cottage process evolved from a cottage system to factory production. system to factory production.

As the As the Economy shiftedEconomy shifted from an from an agricultural economy to an industrial agricultural economy to an industrial economy, economy, companies were forcedcompanies were forced to to develop and implement effective ways develop and implement effective ways of of recruiting and keeping skilled recruiting and keeping skilled workersworkers. .

Human ResourceHuman ResourceManagementManagement

Attract and Attract and orient new orient new employeesemployees

EffectiveEffectivecompensationcompensation

systemssystems

EffectiveEffectiveworkwork

environmentenvironment

Compliance & Compliance & proceduresprocedures

EffectiveEffectiverelationshipsrelationships

HRM ActivitiesHRM Activities

HumanHumanResourceResource

ManagementManagement

OrganizationalOrganizationalObjectivesObjectives

PersonalPersonal(Employee)(Employee)

ObjectivesObjectives

SocietalSocietalObjectivesObjectives

Objectives of HRMObjectives of HRM

FunctionalFunctionalObjectivesObjectives

ObjectivesObjectives

To create and utilize an able and motivated workforce, to To create and utilize an able and motivated workforce, to accomplish the basic organizational goals.accomplish the basic organizational goals.

To establish and maintain sound organizational structure To establish and maintain sound organizational structure and desirable working relationships among all the members and desirable working relationships among all the members of the organization.of the organization.

To secure the integration of individual or groups within the To secure the integration of individual or groups within the organization by coordination of the individual and group organization by coordination of the individual and group goals with those of the organization.goals with those of the organization.

To create facilities and opportunities for individual or group To create facilities and opportunities for individual or group development so as to match it with the growth of the development so as to match it with the growth of the organization.organization.

To attain an effective utilization of human resources in the To attain an effective utilization of human resources in the achievement of organizational goals.achievement of organizational goals.

Cont…..Cont…..

To To identify and satisfy individual and group needsidentify and satisfy individual and group needs by providing by providing adequate and equitable wages, incentives, employee benefits and adequate and equitable wages, incentives, employee benefits and social security and measures for challenging work, prestige, social security and measures for challenging work, prestige, recognition, security, status.recognition, security, status.

To To maintain high employees moralemaintain high employees morale and sound human relations by and sound human relations by sustaining and improving the various conditions and facilities.sustaining and improving the various conditions and facilities.

To To strengthen and appreciate the human assets continuouslystrengthen and appreciate the human assets continuously by by providing training and development programs.providing training and development programs.

To To consider and contribute to the minimization of socio-economic consider and contribute to the minimization of socio-economic evilsevils such as unemployment, under-employment, inequalities in such as unemployment, under-employment, inequalities in the distribution of income and wealth and to improve the welfare the distribution of income and wealth and to improve the welfare of the society by providing employment opportunities to women of the society by providing employment opportunities to women and disadvantaged sections of the society.and disadvantaged sections of the society.

To provide an opportunity for To provide an opportunity for expression and voice managementexpression and voice management..

To provide To provide fair, acceptable and efficient leadership.fair, acceptable and efficient leadership.

To provide To provide facilities and conditions of workfacilities and conditions of work and creation of and creation of favorable atmosphere for maintaining stability of employment.favorable atmosphere for maintaining stability of employment.

HRM Functions

HRM Objectives & FunctionsHRM Objectives & Functions1.Legal Compliance1.Legal Compliance

2.Benefits2.Benefits

3. Union-management 3. Union-management relationsrelations

Societal objectives

Organizational ObjectivesOrganizational Objectives1. Human Resource Planning2. Employee Relation3. Selection4. Training & Development5. Appraisal

Functional Objectives1. Appraisal 2. Placement3. Assessment

Personal Objective

1. Training & Development2. Appraisal3. Placement4. Compensation5. Assessment

Human Resource Wheel

The system of basic HRM PracticesThe system of basic HRM Practices

Selection Job Design Specification

Performance Appraisal

Rewards

Development

HR planningHR marketing & Employer BrandingRecruitment

Formal & informalcoaching and training

Career planning & developmentSuccession planning

Evaluation & Feedback &Objective setting

Outplacement

Promotion

Work / Life Balance

Models of HRModels of HRThe management of most important resources – The management of most important resources – the the

peoplepeople

is of utmost importanceis of utmost importance. .

Until about the 1970s the task of ‘Until about the 1970s the task of ‘finding and controlling finding and controlling peoplepeople’ was handled by Personnel Management which ’ was handled by Personnel Management which was largely an was largely an administrativeadministrative function, dealing with the function, dealing with the management and control of subordinatesmanagement and control of subordinates

The concept of Human Resource Management The concept of Human Resource Management developed with a more developed with a more strategic level of thinkingstrategic level of thinking about about the nature and role of people (as total 24hr per day the nature and role of people (as total 24hr per day human beings) working in human beings) working in organizations which are organizations which are ‘cultures‘cultures’ in their own right. ’ in their own right.

HRM ModelsHRM Models

Recent thinking has moved from theRecent thinking has moved from the control-based modelcontrol-based model to theto the compliance modelcompliance model. .

The soft edge of the latter involves The soft edge of the latter involves improving employee commitmentimproving employee commitment and and expecting effectiveness and efficiency to follow. expecting effectiveness and efficiency to follow.

The hard edge of the latter involves ridding the organization ofThe hard edge of the latter involves ridding the organization of

unnecessary layers of middle management which, when stripped of unnecessary layers of middle management which, when stripped of control functions, have very little by way of value added.control functions, have very little by way of value added.

The management task is to cause the The management task is to cause the people to be as creative and productive as people to be as creative and productive as possible.possible.

Theoretical perspectives on Theoretical perspectives on HRMHRM

Key areas of most models of HRM include:

HR Planning and staffing (including recruitment and selection)

Developing staff Rewarding and motivating staff Staff welfare (including health and safety) Employment relations – managing conflicts Managing change – response to competition,

new technology, laws Evaluate contribution of HRM

Some ModelsSome Models Fombrun, Tichy & Devanna

Model Harvard ModelHarvard Model David Guest ModelDavid Guest Model The Warwick ModelThe Warwick Model John Storey ModelJohn Storey Model

Fombrun, Tichy & DevannaFombrun, Tichy & Devanna

Fombrun, Tichy & Devanna

Fombrun, Tichy & DevannaFombrun, Tichy & Devanna This is a fairly basic model but identifies Four important and

interlinked activities of HRM

But does not really provide much detail as to how these things are or should be done

HarvardHarvard

Six elements identified Situation – workforce, management philosophies, labour market

contexts, legal and social regulations, social values

Stakeholders – various interests surrounding the organization

The Harvard SystemThe Harvard System

Integrated modelIntegrated model Analytical - commonly usedAnalytical - commonly used Policy choices influenced by interest Policy choices influenced by interest

groups and situational factors groups and situational factors A prescriptive element - the A prescriptive element - the

outcomesoutcomes Identifies limited preferred / superior Identifies limited preferred / superior

choices?choices? Perhaps one way communication?Perhaps one way communication?

Harvard model HRMHarvard model HRM

Consequences

Individual – pay, rewards, identity, well being

Organizational – effectiveness, efficiency, profits Societal - employment, economic growth, prosperity Feedback – evaluation and appropriate adjustment to policies and

practices

David Guest ModelDavid Guest ModelBasic argument is that integrated HR practices can

leadto improved individual and organizational performanceHRM is distinctive from old style personnel

managementbecause:

It is more tightly or closely integrated into the organization's business strategy, not an add on.

It seeks to achieve behavioural commitment of employees, not just compliance

Its emphasizes a unitary or common interest between employers and employees in working towards organizational success rather than recognizing differing interests & Conflicts

It emphasises individual contribution and efforts and links these to rewards, rather

than managing people in standard ways as a group

Business strategy is important because it has

implications for HR strategy and practices

Outcomes of HR are : high commitment high quality flexibility

Guest

The Warwick ModelThe Warwick Model

More analytical approach than Harvard - More analytical approach than Harvard - no perscriptive elementsno perscriptive elements

External influences are recognised in the External influences are recognised in the context of HR strategycontext of HR strategy

Two way system of communication - Two way system of communication - dialogue modeldialogue model

Recognises the role of personnel Recognises the role of personnel function in HR strategyfunction in HR strategy

John Storey Model John Storey Model Demonstrates the differences Demonstrates the differences

between the ‘personnel and between the ‘personnel and industrials’ and the HRM paradigm industrials’ and the HRM paradigm by creating an ‘ideal’ type.by creating an ‘ideal’ type.

Characterizes HRM as ‘anCharacterizes HRM as ‘an amalgam amalgam of description, prescription, and of description, prescription, and logical deduction’.logical deduction’.

Storey

Storey

Example: Example: HR Business ModelHR Business Model (Bank of Baroda)(Bank of Baroda)

The The Strategic HR Business ModelStrategic HR Business Model adopted by adopted byBank of Baroda incorporates its Bank of Baroda incorporates its HR Mission HR Mission

andandPhilosophyPhilosophy and is focused towards and is focused towards attainmentattainmentof long-term organizational goals.of long-term organizational goals. A very strong A very strong Organizational LeadershipOrganizational Leadership at atdifferent levels forms the key link in the Model.different levels forms the key link in the Model.These are:These are: Strategic Leadership - Corporate levelStrategic Leadership - Corporate level Business Leadership - Zonal & Regional level Business Leadership - Zonal & Regional level Operational Leadership - Business unit level Operational Leadership - Business unit level

i.e. branchi.e. branch

The two vital Human Resource sub-systems i.e. The two vital Human Resource sub-systems i.e.

HR Planning & Management Sub-System & HR Planning & Management Sub-System & Competency Based HRD Sub-SystemCompetency Based HRD Sub-System

shape the very crucial shape the very crucial Performance EnvironmentPerformance Environment within the Bank whichwithin the Bank which

facilitates development of enabling capabilities of facilitates development of enabling capabilities of people. people.

Through proper developmental inputs, Through proper developmental inputs, Positive Positive AttitudeAttitude & & Right MindsetRight Mindset is created among people. is created among people.

Through proper Through proper Communication Medium and an Communication Medium and an Organizational CultureOrganizational Culture of sharing, openness, collaboration of sharing, openness, collaboration & confrontation, autonomy etc., people in the & confrontation, autonomy etc., people in the organization are facilitated to give their best output organization are facilitated to give their best output (performance). (performance).

The Model is adequately supported by a suitableThe Model is adequately supported by a suitableLearning PlatformLearning Platform, which imparts proper , which imparts proper Knowledge Knowledge and enhances and enhances LearningLearning among among

peoplepeople(functional, behavioural etc) so that their(functional, behavioural etc) so that theirCompetenceCompetence increases and their potential could increases and their potential couldbe properly leveraged for be properly leveraged for greater greater IndividualIndividualAnd Organizational EffectivenessAnd Organizational Effectiveness. .

These create proper These create proper Employee MotivationEmployee Motivation,,which ultimately facilitates which ultimately facilitates Goal AchievementGoal Achievement. .

Assumptions about HRMAssumptions about HRMR. Wayne Pace, writing in R. Wayne Pace, writing in Human Resource Development,Human Resource Development, identifies seven identifies sevenunderlying assumptions that provide a foundation and direction for HRM. underlying assumptions that provide a foundation and direction for HRM.

First is the First is the acknowledgment of individual worthacknowledgment of individual worth, suggesting that companies , suggesting that companies recognize and value individual contributions.recognize and value individual contributions.

Second is that Second is that employees are resources who can learn new skills and ideasemployees are resources who can learn new skills and ideas and and

can be trained to occupy new positions in the organization. can be trained to occupy new positions in the organization.

Third is that Third is that quality of work lifequality of work life is a legitimate concern, and that employees is a legitimate concern, and that employees have a right to safe, clean, and pleasant surroundings. have a right to safe, clean, and pleasant surroundings.

Fourth assumption is the Fourth assumption is the need for continuous learningneed for continuous learning; talents and skills must be ; talents and skills must be continually refined in the long-term interests of the organization.continually refined in the long-term interests of the organization.

Fifth assumption supporting the existence of an organized HRM within a Fifth assumption supporting the existence of an organized HRM within a company or institution is that company or institution is that opportunities are constantly changingopportunities are constantly changing and and companies need methods to facilitate continual worker adaptation.companies need methods to facilitate continual worker adaptation.

Sixth is Sixth is employee satisfactionemployee satisfaction, which implies that humans have a right to be , which implies that humans have a right to be satisfied by their work and that employers have a responsibility and profit satisfied by their work and that employers have a responsibility and profit motivation to try to match a worker's skills with his or her job.motivation to try to match a worker's skills with his or her job.

Seventh and final assumption is that HRM encompasses a much broader scope Seventh and final assumption is that HRM encompasses a much broader scope than technical training—employees than technical training—employees need to know more than the requirements need to know more than the requirements of a specific taskof a specific task in order to make their maximum contribution. in order to make their maximum contribution.

THE ROLE, POSITION, AND STRUCTURETHE ROLE, POSITION, AND STRUCTURE

OF HRM DEPARTMENTSOF HRM DEPARTMENTS In In Personnel Management,Personnel Management, Paul S. Greenlaw and John P. Kohl describe three Paul S. Greenlaw and John P. Kohl describe threedistinct, distinct, interrelated fields of interestinterrelated fields of interest addressed by the HRM discipline: addressed by the HRM discipline:

human relations, human relations, organization theory,organization theory, and and decision areas. decision areas.

. .

. .

. .

Human relationsHuman relations individual motivation, individual motivation,

leadership,leadership,& group relationships& group relationships

Organization theoryOrganization theory job design,job design,

managerial control & managerial control & work flowwork flow

through the organizationthrough the organization

Decision areas Decision areas interests related tointerests related to

acquisition, development,acquisition, development,Compensation & Compensation & maintenance of maintenance of

human resourceshuman resources

HRM

Structure of HRM departmentsStructure of HRM departments The departments differ according to the The departments differ according to the type and sizetype and size of the organization of the organizationthat they serve. that they serve.

But many large organizations (including governments, institutions,But many large organizations (including governments, institutions,manufacturing companies, and service firms) organize HRM employeemanufacturing companies, and service firms) organize HRM employeedevelopment functions around various clusters of workers—theydevelopment functions around various clusters of workers—they conduct conductrecruiting, administrative, and other duties in a recruiting, administrative, and other duties in a central locationcentral location. .

Different employee development groupsDifferent employee development groups for each department are for each department arenecessary to train and develop employees in necessary to train and develop employees in specialized specialized areas, such asareas, such assales, engineering, marketing, or executive education. sales, engineering, marketing, or executive education.

In contrast, some In contrast, some HRM departments are completely independentHRM departments are completely independent and are and areorganized purely by function. The same training department, for example,organized purely by function. The same training department, for example,serves all divisions of the organization.serves all divisions of the organization.

HRM department responsibilitiesHRM department responsibilities Individual managementIndividual management This entails This entails helping employees identify their strengths andhelping employees identify their strengths andweaknessesweaknesses, correct their shortcomings, and then make their best, correct their shortcomings, and then make their bestcontribution to the enterprise. These duties are carried outcontribution to the enterprise. These duties are carried outthrough a variety of activities such as performance reviews,through a variety of activities such as performance reviews,training, and testing.training, and testing.

Organizational developmentOrganizational development This focuses on fostering This focuses on fostering a successful systema successful system that maximizes that maximizeshuman, and other, resources. This important duty also includes thehuman, and other, resources. This important duty also includes thecreation and maintenance of a change program, which allows thecreation and maintenance of a change program, which allows theorganization organization to respond to evolving outside and internal to respond to evolving outside and internal

influencesinfluences. .

Career AreasCareer AreasThe third responsibility, The third responsibility, career developmentcareer development, involves matching, involves matchingindividuals with the most suitable jobs and career paths. individuals with the most suitable jobs and career paths.

Positioning of HRM DepartmentsPositioning of HRM Departments In larger organizations the HRM function might be headed by aIn larger organizations the HRM function might be headed by avice president,vice president, while smaller entities will have a middle-level while smaller entities will have a middle-level

managermanageras head of HRM. as head of HRM.

In any case, because the HRM department is charged with managingIn any case, because the HRM department is charged with managingthe the productivity and development of workers at all levelsproductivity and development of workers at all levels, the top, the topHRM manager ideally has access to, and the support of, key decisionHRM manager ideally has access to, and the support of, key decisionmakers. makers.

In addition, the HRM department should be situated in such a wayIn addition, the HRM department should be situated in such a waythat that it has horizontal accessit has horizontal access, or , or is able to communicate effectivelyis able to communicate effectivelywith all divisions within the company. with all divisions within the company.

Horizontal access allows HRM Horizontal access allows HRM to integrate, educate, and train theto integrate, educate, and train theworkforceworkforce, and , and to facilitate changesto facilitate changes that affect one division and that affect one division andindirectly influence other segments of the company or institution. indirectly influence other segments of the company or institution.

HRM IMPLEMENTATION ACTIVITIESHRM IMPLEMENTATION ACTIVITIES

To fulfill their basic role and achieve their goals,To fulfill their basic role and achieve their goals,HRM professionals and departments engage in aHRM professionals and departments engage in avariety of activities in order to execute theirvariety of activities in order to execute theirhuman resource plans. human resource plans.

HRM implementation activities fall into HRM implementation activities fall into fourfourfunctional groups, each of which includesfunctional groups, each of which includesrelated legal responsibilities:related legal responsibilities: acquisition, acquisition, development, development, compensation, and compensation, and maintenance. maintenance.

Today’s Workforce Realities: Today’s Workforce Realities: A Pressure Cooker about to Blow?A Pressure Cooker about to Blow?

Decade of boom & bust leaves working families withDecade of boom & bust leaves working families with:: Stagnant, declining incomesStagnant, declining incomes Increased inequalityIncreased inequality Longer working hoursLonger working hours Less retirement savings; fewer health care benefitsLess retirement savings; fewer health care benefits Broader job insecurityBroader job insecurity Loss of worker voice in societyLoss of worker voice in society

Current government policies producing:Current government policies producing: Further cuts in services & jobs Further cuts in services & jobs Tax policies that further increase inequalityTax policies that further increase inequality Deep divisions over war policies Deep divisions over war policies Direct attacks on workers, unions, and core valuesDirect attacks on workers, unions, and core values

FORCES CHANGING HRMFORCES CHANGING HRMInformation technologyInformation technology—brought about the —brought about the decentralization of communicationsdecentralization of communications and the and theshake-up of existing paradigms of human interaction and organizational theory. Satelliteshake-up of existing paradigms of human interaction and organizational theory. Satellitecommunications, communications, computerscomputers and networking systems, fax machines, and other devices and networking systems, fax machines, and other deviceswere facilitating rapid changewere facilitating rapid change

Decentralized management systems-Decentralized management systems---(scrapping traditional, hierarchical organizational--(scrapping traditional, hierarchical organizationalstructures) structures) teamteam approach to management approach to management

GlobalizationGlobalization------To compete abroad, companies were looking to their HRM professionalsTo compete abroad, companies were looking to their HRM professionalsto augment initiatives related to quality, productivity, and innovationto augment initiatives related to quality, productivity, and innovation

Cultural changesCultural changes Concern for employee rightsConcern for employee rights Changing attitude towards workChanging attitude towards work Balancing work and familyBalancing work and family

Demographic (population related) and Employee concernsDemographic (population related) and Employee concerns Demographic changesDemographic changes Diversity of backgroundsDiversity of backgrounds Age distributionsAge distributions Gender distributionGender distribution Rising level of educationRising level of education

Meeting the challengeMeeting the challenge Critical Issues & OpportunitiesCritical Issues & Opportunities

Building Knowledge Based OrganizationsBuilding Knowledge Based Organizations Knowledge WorkersKnowledge Workers Knowledge Based Work SystemsKnowledge Based Work Systems

The Dual Agenda: Work & Family OutcomesThe Dual Agenda: Work & Family Outcomes Building/Sustaining Productive Labor Building/Sustaining Productive Labor

Management PartnershipsManagement Partnerships

How to Get ThereHow to Get There Rebuilding External AlliancesRebuilding External Alliances Becoming More AnalyticalBecoming More Analytical Rebuilding Trust through Openness & Rebuilding Trust through Openness &

TransparencyTransparency

Steps in Strategic HRMSteps in Strategic HRM

EnvironmentalEnvironmentalAnalysisAnalysis

EnvironmentalEnvironmentalAnalysisAnalysis

OrganizationalOrganizationalMission &Mission &

GoalsGoalsAnalysisAnalysis

OrganizationalOrganizationalMission &Mission &

GoalsGoalsAnalysisAnalysis

Analysis ofAnalysis ofOrganizationalOrganizational

Strengths &Strengths &CultureCulture

Analysis ofAnalysis ofOrganizationalOrganizational

Strengths &Strengths &CultureCulture

Analysis ofAnalysis ofOrganizationalOrganizational

StrategiesStrategies

Analysis ofAnalysis ofOrganizationalOrganizational

StrategiesStrategies

Choice &Choice &ImplementationImplementation

Of HROf HRStrategiesStrategies

Choice &Choice &ImplementationImplementation

Of HROf HRStrategiesStrategies

Review & Review & Evaluation Evaluation

of HR of HR StrategiesStrategies

Review & Review & Evaluation Evaluation

of HR of HR StrategiesStrategies

Changes… leads to….Changes… leads to…. More consumer choice More consumer choice Merger and acquisitionsMerger and acquisitions Joint venturesJoint ventures More complexityMore complexity Short product life cyclesShort product life cycles Market fragmentationMarket fragmentation More uncertainty for managersMore uncertainty for managers Record number of business failuresRecord number of business failures

So.. The companies must be…So.. The companies must be…FAST, RESPONSIVE, COST-EFFECTIVEFAST, RESPONSIVE, COST-EFFECTIVE::

*Flat organization *Downsized *Flat organization *Downsized

*Quality-conscious *Empowered*Quality-conscious *Empowered

*Smaller units *Decentralized *Smaller units *Decentralized

*Human-capital oriented *Boundary less*Human-capital oriented *Boundary less

*Values- and vision-oriented *Team-based*Values- and vision-oriented *Team-based

HRM-Indian ContextHRM-Indian ContextInnovative HRM practices are being adopted by Indian firms to brace competition in thepost liberalization scenario:

HRM plays a vital role in crafting creative business strategies

HRM plays a critical role during organizational restructuring

Adoption of innovative HRM practices in creating social networks

HRM's role in strategy formulation

Innovative HRM invokes new challenges, new skills, new programs and new technologies

Innovative HRM shifts from an uni-dimesional to a multi-dimensional approach

Effective HRM and strong leadership can enable Indian companies to go global

Innovative HRM practices can help the company to break away from traditional shackles

Innovative and proactive HRM can lead to superior performance

HRM –Global ContextHRM –Global Context

HR and the Internationalization of HR and the Internationalization of businessbusinessThe HR Challenges of international businessThe HR Challenges of international businessHow inter country differences influence HRMHow inter country differences influence HRM

Cultural factorsCultural factorsEconomic systemsEconomic systemsLegal and industrial relations factorsLegal and industrial relations factors

A Case StudyA Case Study

Dell’s dual HR roles

Deals with staff - benefits - compensation - call center

Deals with management - education - recruitment - planning - training - personnel needs

OPERATIONS MANAGEMENT

GlobalizationGlobalization

0

10

20

30

40

50

60

70

80

1920 1950 1970 2000

% fortune 500 with aglobal presence

Consequences of these basic Consequences of these basic trendstrends

Technology

Global expansion

Strengths and Weaknesses

Uncertainty, Turbulence, Rapid Change, Changing power bases

Companies must be Fast,Responsive, andCost-effective

Improved competition

HR’s evolving roleHR’s evolving role

Protector and Screener

Strategic Partner

Change Agent

Technology can be the Human Technology can be the Human Resources engine of changeResources engine of change

HR and technologyHR and technology

Basic HR systems demand paperworkBasic HR systems demand paperwork

70% of HR’s employees time = paperwork70% of HR’s employees time = paperwork

Off the shelf forms from Office Depot/OfficemaxOff the shelf forms from Office Depot/Officemax

Online formsOnline forms

Human Resource Information Systems Human Resource Information Systems (HRIS)(HRIS)

HR on the InternetHR on the Internet

HR portalsHR portals

Employees can answer their own questions

HR moves from reactive to proactive

HR means performanceHR means performance Can HR have a Can HR have a

measurable impact on a measurable impact on a company’s bottom line?company’s bottom line?

Better HRM translates Better HRM translates into improved employee into improved employee attitudes and motivation attitudes and motivation (e.g., working at home)(e.g., working at home)

Well run HR programs Well run HR programs drive employee drive employee commitmentcommitment

TOYOTA

Things to Remember as We Move into Things to Remember as We Move into Chapter 2Chapter 2

HR management: the HR management: the responsibility of responsibility of everyevery managermanager

HR practices today must HR practices today must address several basic issues address several basic issues includingincluding Improving competitivenessImproving competitiveness GlobalizingGlobalizing Technology and internet-based Technology and internet-based

advancesadvances Contributing to strategic successContributing to strategic success