Human Resource

Management

Overview of HR Function

http://edition.cnn.com/2009/WORLD/asiapcf/09/23/india.vp.beaten/index.html

NEW DELHI, India (CNN) -- Angry workers beat todeath a human resources vice president after helaid off 42 employees at an auto-partsmanufacturing company in southern India, policesaid Wednesday.

Roy George was vice-president for humanresources at Pricol, the auto-parts company.

Some four to five workers, belonging to a union notrecognized by the company, barged into his officeand beat him up with iron rods, said N. Kannan, apolice superintendent of Coimbatore in Tamil Nadustate.

India: HR manager killed by

workers

http://www.workplacebullying.org/2010/11/14/hr-exec-killed/

GHAZIABAD: A 45-year-old human resources

manager, who was employed with Allied Nippon,

succumbed to his injuries on Sunday. Joginder

Singh, who passed away around 12.15am, had

suffered multiple head and chest injuries when

workers of the factory clashed with the

management on Saturday.

HRM – Crucial to the

Success of Organization

I believe the only game in town is the personnelgame ... My theory is if you have the right person inthe right place, you don't have to do anything else.If you have the wrong person in the job, there's nomanagement system known to man that can saveyou.

Walter Wriston

Former Chairman and Managing Director

Citicorp

Human Resource

Management

Conducting job analysis

Planning labor needs and recruiting job candidates

Selecting job candidates

Orienting and training new employees

Compensating employees

Providing incentives and benefits

Appraising performance

Communicating (interviewing, counseling, disciplining)

Training and developing managers

Building employee commitment

Key HR Challenges for Today’s Managers

Environment

• Rapid Change

• Workforce Diversity

• Globalization

• Rise of Internet

• Legislation

• Evolving Work and Family Roles

• Skill Shortages and the Rise

of the Service Sector

Organization

• Competitive Position: Cost,

Quality, Distinctive Capabilities

• Decentralization

• Downsizing

• Organizational Restructuring

• Self-Managed Work Teams

• Small Businesses

• Organizational Culture

• Technology

• Outsourcing

Individual• Matching People and Organization

• Ethical Dilemmas and Social Responsibility

• Productivity

• Empowerment

• Brain Drain

• Job Insecurity

Effective HR Strategy

Formulation and

Implementation

Organizational

Strategies

Organizational

Characteristics

Organizational

Capabilities

Environment

HR Strategies

Consistency

Consistency

Co

ns

iste

nc

y

Co

ns

iste

nc

y

Improved

Firm

Performance

Fit

Fit

Fit

Fit

Personnel Aspects Of A

Manager’s Job

Conducting job analyses (determining the nature of eachemployee’s job)

Planning labor needs and recruiting job candidates

Selecting job candidates

Orienting and training new employees

Managing wages and salaries (compensating employees)

Providing incentives and benefits

Appraising performance

Communicating (interviewing, counseling, disciplining)

Training and developing managers

Building employee commitment

Personnel Mistakes

Hire the wrong person for the job

Experience high turnover

Have your people not doing their best

Waste time with useless interviews

Court cases because of discriminatory actions

Have some employees think their salaries are unfair andinequitable relative to others in the organization

Allow a lack of training to undermine your department’seffectiveness

Commit any unfair labor practices

Line Managers’ HRM

Responsibilities

1. Placing the right person on the right job

2. Starting new employees in the organization (orientation)

3. Training employees for jobs new to them

4. Improving the job performance of each person

5. Gaining creative cooperation and developing smooth working relationships

6. Interpreting the firm’s policies and procedures

7. Controlling labor costs

8. Developing the abilities of each person

9. Creating and maintaining department morale

10. Protecting employees’ health and physical condition

Examples of HR Job

Duties

Recruiters

– Search for qualified job applicants.

Laws of the land

Job analysts

– Collect and examine information about jobs to prepare job descriptions.

Examples of HR Job

Duties

Compensation managers

– Develop compensation plans and handle the

employee benefits program.

Training specialists

– Plan, organize, and direct training activities.

Labor relations specialists

– Advise management on all aspects of union–

management relations.

Measuring HR’s

Contribution

Strategy

– The company’s long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.

HR managers today are more involved in partnering with their top managers in both designing and implementing their companies’ strategies.

– Top management wants to see, precisely, how the HR manager’s plans will make the company more valuable.

HR Metrics

Absence Rate

[(Number of days absent in month) ÷ (Average number of employees during mo.) × (number of workdays)] × 100

Cost per Hire

(Advertising + Agency Fees + Employee Referrals + Travel cost of applicants and staff + Relocation costs + Recruiter pay and benefits) ÷ Number of Hires

Health Care Costs per Employee

Total cost of health care ÷ Total Employees

HR Expense Factor

HR expense ÷ Total operating expense

HR Metrics

Training Investment Factor

Total training cost ÷ Headcount

Turnover Costs

Cost to terminate + Cost per hire + Vacancy Cost + Learning curve loss

Turnover Rate

[Number of separations during month ÷ Average number of employees during month] × 100

Workers’ Compensation Cost per Employee

Total WC cost for Year ÷ Average number of employees

HRM Practices

HRM practices should

– Increase employees’ knowledge, skills and

abilities (KSA).

– Motivate employees to leverage their KSAs for

the firm’s benefit

– Empower employees to do so.

Increase employee’s

KSA

Training

Selection

Compensation Level

Motivation Enhancing

Practices

Internal Promotion

Incentive System

Empowerment

Enhancing Practices

Grievance Procedure

Flex Time

Employment Security

Participation Programme

Expatriate

A citizen of one country living and

working in another country.

Transnational

Corporation

A firm with operations in many

countries and highly

decentralized operations. The

firm owes little allegiance to its

country of origin and has weak

ties to any given country.

Managing an International

Subsidiary

Ethnocentric Approach– Top management and other key positions are

filled by people from the home country

Polycentric Approach– International subsidiaries are managed and

staffed by personnel from the host country

Geocentric Approach– Nationality is deliberately downplayed and the

firm actively searches on a worldwide or regional basis for the best people to fill key positions

Advantages and Disadvantages of Using

Local and Expatriate Employees to Staff

International Subsidiaries

Locals

Advantages

• Lower labor costs

• Demonstrates trust in local

citizenry

• Increases acceptance of the

company by the local community

• Leads to recognition of the

company as a legitimate

participant in the local economy

• Effectively represents local

considerations and constraints

in the decision-making process

Disadvantages

• Makes it difficult to balance local

demands and global priorities

• Leads to postponement of

difficult local decisions (such as

layoffs) until they are

unavoidable, when they are more

difficult, costly, and painful than

they would have been if

implemented earlier

• May make it difficult to recruit

qualified personnel

• May reduce the amount of control

exercised by headquarters

Advantages and Disadvantages of Using

Local and Expatriate Employees to Staff

International Subsidiaries

Expatriates

Advantages

• Cultural similarity with parent

company ensures transfer of

business/management practices

• Permits closer control and

coordination of international

subsidiaries

• Gives employees a multinational

orientation through experience

at parent company

• Establishes a pool of

internationally experienced

executives

• Local talent may not yet be able

to deliver as much value as

expatriates can

Disadvantages

• Creates problems of adaptability

to foreign environment and

culture

• Increases the “foreignness” of

the subsidiary

• May involve high transfer, salary,

and other costs

• May result in personal and family

problems

• Has disincentive effect on local-

management morale and

motivation

• May be subject to local

government restrictions