introduction to human resource management- session 1

7/29/2019 Introduction to Human Resource Management- SESSION 1

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Introduction to Human Resource

Management

SESSION 1


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NATURE ,SCOPE FUNTIONS AND OBJECTIVES

ORGANISATION OF THE HR DEPT

ROLE OF HR & NON HR MANAGERS HRM MODEL-

STRATEGIC HR


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Always recognize that human individuals are ends, and do

not use them as means to your end.

-Immanuel Kant (1724-1804),German Philosopher


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Defining Human Resource

Management

Human resource management is a strategic and

coherent approach to the management of an

organizations most valued assetsthe people,that work there, who individually and

collectively contribute to the achievement of its

objectives.


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Difference Between PM and HRM

Personnel Management Human Resource Management

Reactive , servicing role Proactive, innovative role

Emphasis on implementation of procedures Emphasis on strategy

Specialist department General management activity

Focus on employees need in their own right Focus on employee requirements in the

light of business needs

Employees seen as a cost to be controlled Employees seen as investment to be

nurtured as well as cost to be controlledPresumption of union manager conflicts Conflicts dealt with by team members

within their teams


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Difference Between PM and HRM

Personnel Management Human Resource Management

Preference for collective bargaining of pay

and working conditions

Management-led planning of people

resources and employment conditions

Emphasis on settling pay more in terms ofthe organizations internal market

Emphasis on competitive pay and conditionsto stay ahead of competitors

Serving other department / units Contributing added value to business

Supporting change Stimulating change

Challenging business goals in light of effect

on employees

Total commitment to business goals

Less flexible approach to staff deployments Completely flexible approach to staff

deployment


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Changing Environment in the

Marketplace

Shift towards services

The new business cult

Globalization

Technology trends

Demographic trends


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Shift Towards Services

Over the years, the services sector as a percentageof the GDP has grown from a mere 30 per cent inthe fifties to close to 60 per cent in 2010. The

cornerstone of any organizations success in theservices sector is primarily its workforce.

Post liberalization, because of opportunities in the

market, and also because of talent crunch in themarket, potential employees and employees havethe bargaining advantage.


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The New Business Cult

Innovation is the keel of successful business

management.

Innovations are powered by people, and hence

people have become the strategic advantage

for businesses. Consequently, human resource

management has become a strategic function

in the organization.


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Globalization

Nationalities can no longer be attached to organizations as companies go global

Lenovo, a new kind of PC company, defies geographic and organizational

boundaries on a global scale:

We develop, produce, and deliver our products across six continents.

Our global company has no single corporate headquarters.Our American CEO is based in Singapore.

Our Chinese Chairman works from North Carolina.

Globalization (think global and act local) has become the order of the day. (e.g.

TCS )

Organization structures and consequently reporting structures have becomemore complex.


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Technology Trends

Many jobs have become redundant.

New industries have come up because of

technology.

Redefined work ethics

Telecommuting, flexi time.

Digitally mediated conversation will replace face-to-

face interaction.


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Demographic Trends

While we have professionally qualified and trained

people in India, the quality of training and competency

of professionals leaves a lot to be desired. Young employable population base in India.

Increasing women in the workforce.

Sunrise industries pulling people away from brick and

mortar industries.

S k P k i h F HR @


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Sneak Peak into the FutureHR @

2020

PricewaterhouseCoopers, LLP with the help of theJames Martin Institute for Science and Civilizationat the Said Business School in Oxford usedScenarios to think about what the future of peoplemanagement could be.

They called these identified three plausible futures

Blue, Green and Orange worlds.


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Blue World

Corporates would take the centre stage

Technology shall become all pervasive, and for

employees it would become increasingly difficult to

separate work life from the rest of life.

The huge people cost will drive robust metrics andanalytics.

Talent will be at a premium.

As companies spread over geographies they would try

to reinforce corporate values, which may be at odds

with the local cultural values and lead to conflict

situations.

Contd

Source : Adapted from Managing tomorrows people The Future of work to 2020

http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/pdf/mtp-

- -
http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/pdf/mtp-future-of-work.pdf%20accessed%20on%20July%2022http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/pdf/mtp-future-of-work.pdf%20accessed%20on%20July%2022http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/pdf/mtp-future-of-work.pdf%20accessed%20on%20July%2022http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/pdf/mtp-future-of-work.pdf%20accessed%20on%20July%2022http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/pdf/mtp-future-of-work.pdf%20accessed%20on%20July%2022


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Blue World

Employees will start getting associated with corporates

at an early age (may be 16) and corporates may work

with universities to design learning programmes to suit

their organizational requirements.

Summing up, for the HR function in this scenario the

management of people and performance shall become

a hard business discipline, at least equal in standing to

finance in the corporate hierarchy.


http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/pdf/mtp-future-of-

work.pdf accessed on July 22, 2011


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Green World Consumers and employees will force change towards the world

becoming a more responsible place where companies developa powerful social conscience.

Consumers would demand ethics and environmental

credentials as a top priority. Society and business would see

their agenda align. Human resources shall drive the CSR

agenda of the organization and employees would be selected

based on their social credentials.

Technology would look for greener ways to work, and therefore

telecommuting may become a way of life.

Successful companies will engage with society across a broader

footprint. Communities, customers and contractors all will

become equal stakeholders along with employees and

shareholders.Source : Adapted from Managing tomorrows people The Future of work to 2020http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/pdf/mtp-future-of-work.pdfaccessed on July 22, 2011
http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/pdf/mtp-future-of-work.pdf%20accessed%20on%20July%2022http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/pdf/mtp-future-of-work.pdf%20accessed%20on%20July%2022http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/pdf/mtp-future-of-work.pdf%20accessed%20on%20July%2022http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/pdf/mtp-future-of-work.pdf%20accessed%20on%20July%2022http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/pdf/mtp-future-of-work.pdf%20accessed%20on%20July%2022http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/pdf/mtp-future-of-work.pdf%20accessed%20on%20July%2022


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Orange World

Global businesses shall fragment, and localism shall prevail. Business models of

companies shall be replaced by technology empowered high-tech networks.

The dream of a single global village would be replaced by a global network of

linked, but separate and much smaller communities. Business will constitute ofcomplex supply chains form of associations of specialist providers, varying greatly

from region to region and market to market.

Contd


http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/pdf/mtp-future-of-work.pdf

accessed on July 22, 2011


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Orange World

Individuals would belong to specialist associations and develop their own career

working on a short-term, contractual basis. They will join craft guilds which

manage career opportunities, provide training and development opportunities.

Summing up in the orange world, the flexible workforce shall have to becontinuously sourced as per the requirement of the organization and all

transactional HR processes may just become an outsourced function.


http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/pdf/mtp-future-of-work.pdf

accessed on July 22, 2011


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Harvard Framework for HRM

Adapted from Beer et. al., 1984


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HR Managers Role

Line Manager

Line authority which gives individuals in

management positions the formal power

to direct and control immediate

subordinates.

Staff Manager

Staff authority which grants staff

specialists the right to advise, recommend

and counsel in the staff specialists' area of

expertise.


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SESSION 2


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Role of the HR FunctionClassical

View

Traditionally, human resource managers carry out

three distinct functions within an organization:

Line function An HR manager has clear control of activities of the

people in his department. They have limited

(implied authority) control outside their function.

The implied authority also stems from the fact thatthe line managers think that HR is a close

confidante of the senior management and

leadership team in many areas.


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Role of the HR FunctionModern View

Employee advocate

Responsible for making sure the employeeemployerrelationship is one of reciprocal value.

Human capital developer

Responsible for building the future workforce.

Functional expert

Responsible for designing and delivering HR practices that

ensure individual ability and create organization capability.

Strategic partner Responsible for helping line managers reach their goals.

An HR leader

Responsible for exhibiting genuine leadership meaning

credibility within the HR organization and to those outside.


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Competencies of the HR Professional

.a Traditional View

For many years now, the human resource managersproficiencies are categorized under four areas:

HR proficiencies Knowledge in the areas of employee selection, training and

compensation. Business proficiencies HR professionals strategic role in partnering business.

Leadership proficiencies

Lead management groups and drive the changes required. Learning proficiencies Staying abreast of, and applying new technologies and

practices affecting the profession.


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Competencies of the HR Professional

.a Traditional View

Strategic contribution

Personal credibility

HR delivery

Business knowledge

HR technology


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Strategic Contribution Culture management

Define appropriate culture, design practices and processesto cultivate and sustain it.

Ability to manage change

Plan and implement large-scale interventions that make

change happen quickly.

Strategic decision-making

Contribute to business decision by critiquing the existing

strategy, by having a personal vision for the future of the

business.

Market driven connectivity

Facilitate the dissemination of market information

throughout the firm to create organizational readiness.


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Personal Credibility

Achieving results

Meet commitment in performing accurate workand achieving results with integrity.

Effective relationships Have good relationship with internal and external

clients based on respect and confidence.

Communication skills

Effectively communicate using formal andinformal channels of communication.


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HR Delivery

Acquisition of human resources

Design and deliver staffing cycles that include

hiring, promoting, transferring, redeploying,

retaining and separating.

Training and development

Design and deliver development agendas whichintegrate personal aspirations and organizational

requirements.


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HR Delivery

HR measurement

Measure results at each step of the HR value

proposition.

Statutory and legal compliance

Understand the legal and other statutory

requirement that are relevant to the organizationas well as employees.

Performance management


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Business Knowledge

Knowledge of the value chain

Have knowledge of each component of the business valuechain and its integration.

Knowledge of the organizations value proposition

Have knowledge of how the organization creates value forthe customer, and in the world at large.

Labour knowledge

Have knowledge of talent in the market, labour law driverfor maintaining effective employee relationships.


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HR Technology

Ability to apply technology to HR processes.

Apply information systems technology to HR

processes.


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The HR Organization

Functional HR structure

Shared service

Service centres

Outsourcing

Technology and employee self-help

Embedded HR


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Ethics in HRM

Code of Conduct for HR Practitioners (As prescribed by the National HRD Network)

I will always strive to meet the highest evolving standards of COMPETENCE in the professionand ADD VALUE to organizational success.

I will deal with all stakeholders with utmost INTEGRITY and create an environment of TRUST

leading to ETHICAL success of my organization.

I will ensure that I am always RELIABLE and consistent in all my actions by accepting

responsibility for my decisions and actions thereby creating CREDIBILITY for my profession and

myself. I will be OBJECTIVE in all my actions and decisions and foster FAIRNESS with firmness.

I will conduct myself in a way that FACILITATES GROWTH and DEVELOPMENT of all those I am

responsible for.

I will strive to be a ROLE MODEL for all others and CHAMPION exemplary practice of the HR

profession.

I will respect the rights of privacy, will not use my position for personal gains and ensure thatthere is no CONFLICT OF INTEREST in what I do with any of my stakeholders.

Source: http://www.nationalhrd.org/The-Network-4/code-of-conduct.html (Access Date 10th

Jan 2011)
http://www.nationalhrd.org/The-Network-4/code-of-conduct.htmlhttp://www.nationalhrd.org/The-Network-4/code-of-conduct.html


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"Would you tell me, please, which way I oughtto go from here?

"That depends a good deal on where you wantto get to," said the Cat.

"I dont much care where" said Alice.

"Then it doesnt matter which way you go,"

said the Cat.


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Defining Strategy

It is the direction and scope of an organization

over the long term, which matches its

resources to its changing environment, and in

particular, to its markets, customers and clients

to meet stakeholder expectations.


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Strategic Management Process

Phase I

Diagnosis

Define mission

Situationanalysis

Gap analysis

Phase II

Formulation

Formulating a

new businessstatement

Translatemission intostrategic goals

Phase III

Implementation

Implement

strategies

Monitorimplementationand revisestrategies

accordingly

Levels of Strategy


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Levels of Strategy


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Basis of SHRM

The basis of SHRM is the following three propositions:

Human resources of an organization are the cornerstone ofsuccess of an organization and hence are a source of

competitive advantage to the organization.

HR strategies should be in line with the business strategy.

Individual HR strategies should work as a whole by beinglinked to one another to give mutual support.


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HR Strategy

HR strategies articulate the organizations

intention about its human resource

management policies, about how they would

fit in with the business strategy, and how thepolicies would reinforce one another to

achieve the business objectives.

The HR strategies articulate the beliefs andthe philosophy of the organization about

people practices, policies and procedures.

The philosophy might advocate a broad


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Types of HR Strategies

Overall strategies

Specific strategies


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Overall Strategies

Overall strategies articulate the approach to people

management in a broad manner. These are usually a set

of HR practices which reinforce one another to create a

coherent HR system. There are three kinds of overall

strategies which get designed. These are:

High performance management

High involvement management

High commitment management.


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High Performance Work Systems

HPWS means an ecosystem of HR policies, procedures and practices which help

the organization in creating a performance culture in it. This would mean that all

policies, procedures and practices work with one another to improve and

enhance the performance of individuals, teams and in turn the entire

organization. Here is a universal list of the practices which are used in various

studies on HPWS:

Targeted selections and recruitment. Formal training as the indicator of employers commitment to invest in

human capital.

Internal promotions or selections to fill vacant positions.

Employees participation programs.

Teams as a fundamental unit of organization.

Formal performance appraisal.

Development appraisal.

Performance based pay systems.

Merit based promotions.


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Specific Strategies

Specific HR strategies work for a particular

identified area of attention for the

organization. The specific HR strategies can be

around each of the sub-functions of HR:Human capital management strategy

High performance management strategy

Corporate social responsibility strategyOrganization development strategy

Employee engagement strategy

Knowledge management strategy


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Metrics Lead to Action

Possible Metrics Possible Use Analysis Leading to Action

Attrition: Employee

turnover rates for

different categories of

management and

employees

Analysis will show which 20% reasons contribute to 80% of

voluntary regrettable turnover. (for example, if its team

management) Learning Intervention for Team Leaders on team

management. Analysis of involuntary turnover may show up

concerns in the recruitment policy.Internal promotion rate Indicate extent to which talent management programmes are

successful.

Workforce composition

(age, gender, race, etc.)

Analyse the extent of diversity. Analyse the long term implications

of the composition of people.

Percentage of employees

under the variable pay

scheme

Demonstrate the extent to which pay for performance has

become a part of the work culture in the organization

Hi h P f M t


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High Performance Management

Strategy

High performance management strategy meansan ecosystem of HR policies, procedures andpractices which help the organization in creating a

performance culture in it.

This would mean that all policies, procedures andpractices work with one another to improve andenhance the performance of individuals, teamsand in turn the entire organization.


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Employee Engagement Strategy

HR strategies working around engaging

employees to work with passion, feel a

profound connection to their company, driveinnovation and move the organization forward

can be termed as employee engagement

strategies.


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Knowledge Management Strategy

The knowledge management (KM) strategy

seeks to create, acquire, capture, share and use

knowledge to enhance knowledge and

performance. KM is a framework to

institutionalize processes to fully leverage the

collective knowledge in an organization.

Example: Hindustan Lever Ltd.


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Resourcing Strategy

These are strategies to devise ways of

attracting and retain high quality people in the

organization


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Talent Management Strategy

These are strategies to ensure that the

organization has talented people to fulfill its

needs to achieve its objectives. In fact, talent

management strategy in a way encompasses all

other strategies to deliver the right talent to

the organization at the right time and also keep

it talent ready to deliver in the future too.


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Learning and Development Strategy

This strategy is all about providing a learningenvironment to employees within the organization todevelop and grow the organization too.

This strategy is about defining the posture that theorganization wants to take in the corporate marketplacein terms of compensation and rewards. This is aboutdeveloping sound reward and recognition practiceswithin the organization to sustain and drive the growthof the organization in line with the competitive strategyof the organization.


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Reward and Recognition Strategy

This strategy is about defining the posture that the

organization wants to take in the corporate

marketplace in terms of compensation and rewards.

This is about developing sound reward andrecognition practices within the organization to

sustain and drive the growth of the organization in

line with the competitive strategy of the organization.


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Developing HR Strategy

Clarify and articulate business strategyStep 1

Develop the business case of HR as astrategic asset

Step 2

Create a strategy map for the firmStep 3

Identify HR deliverables within thestrategy map

Step 4

Align the HR architecture with the HRvariables

Step 5

Design the strategic measurementsystem

Step 6

Execute management by measurementStep 7

Periodically test the

HR measure against

the business

strategy and adjust

where required

Common Mistakes Made in the


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Common Mistakes Made in the

Development of HR strategy

HR strategy owned by HR only

Over ambition

Wishful thinking

Conflicting elements

Measuring HRs Contribution to


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Measuring HRs Contribution to

Business

Human resources are the key differentiators in

building a competitive edge and hence human

resource management for obvious reasons

occupies a strategic place in business.

HR S d


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HR Scorecard

The HR scorecard uses the concept of the balancedscorecard to manage the performance of HR. It isa tool which allows a business to:

Manage HR as a strategic contributor to themaintenance of competitive edge of the organizationthrough its people.

Measure the contribution of HR to the firms financialresults by quantifying this contribution.

Create an HR architecture which is aligned to thebusiness strategy and measure its degree of alignment.


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Benefits of HR Scorecard

It clearly distinguishes HR doable from HR deliverable.

It empowers HR managers to control costs and create value.

It measures the firms leading indicators.

It clarifies HRs contribution to profitability.

It allows HR professionals to manage better.

It encourages flexibility and ongoing change.


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I expect to spend the rest of my life in the future, so I want to bereasonably sure of what kind of future it is going to be.

Charles Kettering

D fi i H R Pl i


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Defining Human Resource Planning

Human resource planning determines the humanresource requirement by the organization toachieve its strategic goal.

It is the process by which the organizationensures that it has the right number and rightkinds of people, at the right places, at the right

time, capable of effectively completing thosetasks that will help the organization achieve itsobjectives.

Which Stage of HRP is the


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Which Stage of HRP is the

Organization in?Stage Characteristics Activities

Traditional

Stage 1 No long-term business plan. Could be family-run businesses. Employee

engagement is interpreted as hosting parties and organizing picnics.

Stage 2Organizations tend to be skeptical of HRP, though some of them have

short-term headcount forecasting. They believe that HRP is important and

think that there is need to do more.

Moderate Stage 3 Long-term headcount forecasting that are for at least five years. This

activity is however not integrated with the long-term business plan.

Advanced

Stage 4HRP is a part of the business planning process, and the senior managers

are enthusiastic about it. Skills inventories and succession planning are apart of long-term business plan.

Stage 5Long-term detailed plans in place. They use advanced methods of

planning. All HR processes like succession planning, career planning, high

potential development and retention are tied in with the HRP process.

S l d D d F t


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Supply and Demand Forecast

Source : Adapted R Wayne Mondy , Human Resource Management , 10 th edition , Pearson

Human Resource Planning Process


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Human Resource Planning Process

Step 1: Environment scan

External scan

Internal scan

Step 2: Forecasting demand of manpower

Step 3: Forecasting supply of manpower

Step 4: RAG analysis

Required, available and Gap analysis

Step 5: Plan of action

Dealing with surplus of manpower

D d F ti


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Demand Forecasting

Quantitative Method Judgmental Methods

Ratios

Benchmarking / Thumb rule

Scatter plotTrend analysis

Computerized forecasts

Simulation model

Work study

Managerial judgment

- Bottom up approach

-Top down approach

Delphi technique

Human resource allocation approach

Zero-based forecasting

h d


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Quantitative Methods

Ratios

It is assumed that two variables bear a direct

relationship with each other.

Benchmarking / Thumb rule Many years of experience gives rise to various

thumb rules or benchmarks.

Scatter plot This refers to the graphical representation which

depicts how two variables are related to each

other.

Q i i h d


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Quantitative Methods

Computerized forecast

The computer program enables the manager to

enter all these variables to generate the resource

requirement that is required to meet the businessobjectives.

Simulation

It models a real-life or hypothetical situation on

the computer to see how a system works.

J d l M h d


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Judgmental Methods

Managerial forecast

Bottom up approach

Topdown approach

Delphi technique

Zero-based forecasting

J d l M h d


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Judgmental Methods

Managerial forecast In this, the opinions of manager, functional and

departmental heads, subject matter experts or

senior level management who are aware of the

manpower needs of the organization are sought to

arrive at an estimate.

Top down / Bottom Up

Delphi technique

Experts take turns at presenting their forecast and

assumptions to the others, who then make revisions

S l F ti


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Supply Forecasting

Markov analysis

Replacement charts

Skill inventories

Staffing tables

Wastage analysis

Succession planning

Markov Analysis


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Markov Analysis

The focus of Markov analysis is an attempt to project into the future whatthe current workforce would look like if the current mobility flow

continues with no changes.

R l t Ch t


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Replacement Charts

Replacement chart identifies possible

replacement for positions which maybe

rendered vacant or open.

Skill Inventories


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Skill Inventories

The skill

inventory is

normally

obtained as

a report

from the

HRIS. It is acompilation

of the skills,

education

Skills Inventory TemplateProficiency level Beginner Experienced Expert

Skills

Verbal skills:

Platform

presentation/Training

Public speaking

Written skills:

Articles/News briefs

Surveys

Editing

Publishing

Peer reviews

Policies/Procedures

Forms/ChecklistsE-learning

Research studies

Data analysis

Skill 3

Skill 4

Skill5

S l F ti M th d


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Supply Forecasting Methods

Staffing tables Staffing tables are graphical representations of all

organizational jobs, along with the number of

employees currently occupying those jobs.

Wastage analysis

It is the analysis of the employee turnover in anorganization.

Replacement charts

Succession Planning


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Succession Planning

It is a process for identification of critical key

positions of the organization, and then developing

internal people with the potential to fill these

positions.Sr. Vice President Sales

A. K. Tiwari A/2

Regional Manager

Deven Patel A/1

Bhavya Jha B/1

Regional Manager

Veena Raha B/2

Regional Manager

Raghav Kumar A/2

Bharat Rai B/1

Marketing Manager

A. B. Ghorpade B/1

Aastha Mathur B/3

KEY

Names provided are replacementcandidates

A. Promotable now

B. Needing development

C. Not fitted for position

1. Superior performance

2. Above-average performance

3. Acceptable performance

4. Poor performance

J b A l i


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Job Analysis

Job analysis is a systematic process of

determining the knowledge, skills and abilities

required for performing jobs in an organization.

Steps in Job Analysis


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Steps in Job Analysis

Planning the job analysis

Preparing and introducing job analysis

Conducting the job analysis

Developing job description and job specification

Maintaining and updating job descriptions and jobspecifications

Methods of Job Analysis Information


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Observation

In the observation method, the job analyst

observes the individual performing the job

and takes notes to describe the tasks and

duties performed.

Work Sampling

This method allows the job analyst to

determine the content and pace of a typical



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Employee Dairy/Log

The employee diary/log requires employees

to do self-observation by keeping a log or a

diary of all job duties done during the course

of specified time.

Critical Incident Technique (CIT)

CIT is an interview technique used to

investigate actual incidences of on-the-job



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Interviewing

Structured or unstructured interviews can be

used to collect information from the job

holder or the manager or at times from the

subordinate too.

Questionnaire

A questionnaire is a survey instrument which

is developed and given to employees and



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Management Position Description

Questionnaire

It is a standardized questionnaire designed to

analyse managerial and executive jobs.

Work Profiling SystemIt contains a structured questionnaire which

measures ability and personality attributes in

areas such as hearing skills, sight, taste,


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Job description is simply a clear concise

depiction of a jobs duties and responsibility.

Job specification is a statement of the

knowledge, skills and abilities needed to do the

job.

Application of Job Analysis


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Application of Job Analysis

introduction to human resource management- session 1

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