HUMAN RESOURSE MANAGEMENT

Managing HR important because

HR are heterogenous

Modern employees more educated

Himself determines what he contributes

Drucker---Of all the resources available i.e.mgmt. of materials,methods, money machine most imp.is M for MEN

HR management is the planning, organizing, of the procurement, dev., compensation. integration ,maintenance &separation of human resources to the end that individual, organizational & societal objectives are achieved

Human resource: Knowledge, skill sets, expertise of employees, the adaptability, commitment and loyalty of employees.

Skills: The individual abilities of human beings to perform a piece of work.

Resource: The stock of assets and skills that belong to a firm at a point of time.

Capability: The ability of a bundle of resources to perform an activity; a way of combining assets, people and processes to transform inputs into outputs.

• HRM is concerned with most effective use of people to achieve org.al & individual goals.

• Acc. To National Institute Of personnel mgmt. in India “it is that part of mgmt which is concerned with people at work & their relationships in the org.

It seeks to bring together men & women who make up an enterprise, enabling each to make its own best contribution to its success both as individual & as a member of working group.

COMPETITIVE ADVANTAGE THROUGH PEOPLE Core Competencies

Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers.

Sustained competitive advantage through people is achieved if these human resources: Have value. Are rare and unavailable to competitors. Are difficult to imitate. Are organized for synergy.

Cont….

HRM Functions

Internal Environment

External Environment

HRM Objectives

Attract Retain Motivate

Cont….

HRM Purposes and Criteria

Productivity Performance Absenteeism Turnover

Quality of Work Life Job Satisfaction Job Involvement Stress

Legal Compliance Fines Contracts Goodwill

Bottom Line

Survival Competitiveness Growth Profitability Flexibility

Basic Model of Human Resource Management

Characteristics of Human Resource Management

• strategic activity

• goal-oriented rather than establishment / maintenance focused;

• seeks to develop individual capacity and capability in order to contribute their best to the organization;

people-oriented process for assimilating individual efforts with

organization’s competitive priorities

emphasizes individual as a core element of its competitive strategy;

• is an ongoing set of activities and requires commitment of top management.

PERSONNEL MGMT. VS HRM

Contract

Personnel mgmt.Careful delineation of written contracts

HRMAim to go beyond contract

Managerial tasks vis a vis labor

Monitoring Nurturing

Key relation Labor mgmt. Customer

Speed of decision

Slow Fast

Mgmt. Role Transactional Transformational

Key managers Personnel/IR specialists

General/business /line mgrs.

Communication Indirect ,Slow & downward

Direct,fast&both upward & downward

Selection Separate,marginal task

Integrated,key task

Pay Job evaluation (fixed grades)

Performance related

Job categories& grades

Many Few

Philosophy Reactive Proactive

Motivators On monetary rewards

On higher order needs

Aim Tries to improve the efficiency of people and admin.

Tries to develop the organization as a whole and its culture

Cont….

Environment Of Human Resource Management

Both at national and global levels, labour market

conditions and trade unions.

Cont….

Internal Environmental Influences

Organizational culture

• core values, beliefs and assumptions

Organizational climate

• the prevailing environment that exists in an organization and its impact on employees.

Employer Branding• Attrition has today assumed epidemic proportions plague ring every organization across different industry segments. • Branding the organization and offering employees a ‘great place to work’ experience.

External Environmental Influences

Economic environment

the kinds of external influences are:

i. Political

ii. Economic

iii. Social

iv. Technological

v. Mergers and Acquisitions

vi. Labour Market Conditions

vii. Trade Unions

FUNCTIONS OF HRM

– Planning

– Organising

– Directing

– Controlling

Operative Functions

P/HRM

Managerial functions:

Procurement

Job Analysis

HR planning

Recruitment

Selection

Placement

Induction

Internal mobility

Development:

Training

Executive development

Career planning

Succession

planning

Human resources development strategies

Motivation and Compensation:

Job design

Work scheduling

Motivation

Job evaluation

Performance and potential appraisal

Compensation administration

Incentivesbenefits andservices

Maintenance:

Health

Safety

Welfare

Social security

Integration:

Grievances

Discipline

Teams and teamwork

Collective bargaining

Participation

Empowerment

Trade unions

Employers’ associations

Industrial relations

Emerging Issues:Personnel recordsPersonnel auditPersonnel researchHR accountingHRISJob stressMentoringInternational HRM

Cont….

Qualities and Role of Human Resource Manager

The critical qualities for an HR professional as mentioned below:

• Selling Skills

• Knowledge of overall business

• A willingness to work hard

• Broad-based knowledge of human resource management and labour laws

• Good listening skills

• Good communications skills

Good counselling skills Branding skills Leadership skills Cultural skills Customer management skills

The critical roles for an HR professional

1. Strategic Partner

2. Administrative Expert

3. Employee Champion

4. Change Agent

5. Corporate Architect

Cont….

STRATEGIC HUMAN RESOURCE MANAGEMENT

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Competitive advantage through people?Competitive advantage allows a firm to gain an edge over its rivals

when competing.

It comes from a firm’s unique ability to perform activities more distinctively and more effectively than rivals.

HR can be a source of competitive advantage when the talents of people working in the firm are valuable, rare; difficult to imitate and well organised to deliver efficient and effective results.

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SHRM, is the linkage of HRM with strategic goals and objectives with a view to improve business performance and develop organisational cultures that foster innovation and flexibility.

STRATEGIC HUMAN RESOURCE MANAGEMENT

Summarization of Development of HRM

Period Key Business Issue HRM’s Role Title for Role

1920s–1930s Organic growth New technologies

Recruitment New technologies Caring for employees

Labour Relations

1940s–1970s Diversification Competition

Productivity Negotiations

Personnel

1970s–1990s International competition

Survival Shift to service

Downsizing Leadership Change management Performance management

Human Resources

2000s onwards

Globalization Innovation Reinvention

Talent management Strategic capabilities

HR Business Partner

(Source: Mercer Delta Consulting)

CHALLENGE 1: GOING GLOBAL Globalization

The trend toward opening up foreign markets to international trade and investment

Impact of globalization“Anything, anywhere, anytime” marketsPartnerships with foreign firmsLower trade and tariff barriers

WTO and GATT

Corporate Social Responsibility The responsibility of the firm to act in the best

interests of the people and communities affected by its activities

Impact on HRM Different geographies, cultures, laws, and

business practices Issues:

Identifying capable managers and workers Developing foreign culture and work practice training

programs. Adjusting compensation plans for overseas work

CHALLENGE 2: EMBRACING NEW TECHNOLOGY Knowledge Workers

Workers whose responsibilities extend beyond the physical execution of work to include planning, decision making, and problem solving.

Knowledge-Based Training Online instruction “Just-in-time” learning via the Internet

on company intranets

INFLUENCE OF TECHNOLOGY IN HRM Human Resources Information System

(HRIS) A computerized system that provides

current and accurate data for the purposes of control and decision making.

Benefits: Store and retrieve of large quantities of data. Combine and reconfigure data to create new

information. Institutionalization of organizational knowledge. Easier communications. Lower administrative costs, increased

productivity and response times.

HRM IT INVESTMENT FACTORS Fit of the

application to the firm’s employee base.

Ability to upgrade Increased efficiency and time savings

Compatibility with current systems

Availability of technical support

Time required to implement and train staff members to use HRIS

Initial and annual maintenance costs

Training time required for HR and payroll

CHALLENGE 3: MANAGING CHANGE Types of Change

Reactive change Change that occurs after external forces have

already affected performance Proactive change

Change initiated to take advantage of targeted opportunities

Managing Change through HR Formal change management programs help

to keep employees focused on the success of the business.

CHALLENGE 3: MANAGING CHANGE Why Change Efforts Fail:

1. Not establishing a sense of urgency.2. Not creating a powerful coalition to guide the

effort.3. Lacking leaders who have a vision.4. Lacking leaders who communicate the vision.5. Not removing obstacles to the new vision.6. Not systematically planning for and creating

short-term “wins.”7. Declaring victory too soon.8. Not anchoring changes in the corporate culture.

CHALLENGE 4: MANAGING TALENT, OR HUMAN CAPITAL Human Capital

The knowledge, skills, and capabilities of individuals that have economic value to an organization.

Valuable because capital: is based on company-specific skills. is gained through long-term experience. can be expanded through development.

CHALLENGE 5: RESPONDING TO THE MARKET Total Quality Management (TQM)

A set of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement.

Six Sigma

Reengineering and HRM Fundamental rethinking and radical redesign of

business processes to achieve dramatic improvements in cost, quality, service, and speed. Requires that managers create an environment for

change. Depends on effective leadership and communication

processes. Requires that administrative systems be reviewed and

modified.

CHALLENGE 6: CONTAINING COSTS Downsizing

The planned elimination of jobs (“head count”).

Layoffs Outsourcing

Contracting outside the organization to have work done that formerly was done by internal employees.

Offshoring The business practice of sending jobs to

other countries.

Employee LeasingEmployees are hired by a leasing company

(which handles all HR-related activities) and contract with a company to lease the employees.