HUMAN RESOURCE MANAGEMENT

Paper code: 2.23/5.83/3.23

Preeti NigamFaculty, Rai University

Acknowledgements

These notes have been prepared from the books written by the following authors:V.S.P RaoSchwind, Das, Werther, Davis

Unit-I

Concepts & Perspectives of HRM; HRM in changing environment, HRM functions, Role of HR Practitioners; HR Policies, Corporate objectives and Human Resource Planning.

People are Different

HeterogeneousDifferent reactionsEducated (New Technology)Motivation level

Definition

Human resource may be defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner.

FeaturesPervasive ForceAction OrientedIndividually orientedPeople orientedDevelopment orientedIntegrating mechanismComprehensive FunctionAuxiliary ServiceInter-disciplinary functionContinuous function

Scope of HRM

Personnel aspect

Welfare aspect

Industrial relations aspect

Misconceptions

1. Lack of expertise2. Alienation from the mainstream3. Fascination with latest fads4. Lack of respect

Objectives of HRM1. To contribute to organizational

effectiveness2. To be efficient and cost effective3. To be responsive to lager societal

concerns4. To meet personal needs of its

employees

Objectives of HRM1. To help the organization reach its goals2. To employ the skills and abilities of the

workforce efficiently3. To provide the organization with well trained

and well motivated employees4. To increase to the fullest the employee’s job

satisfaction and self-actualization5. To develop and maintain a quality of work life6. To communicate HR policies to all employees7. To help maintain ethical policies and

behavior

Importance of HRM1. Enterprise Level

a) Retain best people in the organization

2. Individual Levela) Promotes team work and spiritb) Excellent growth opportunitiesc) Work with diligence and commitment

3. Society Levela) Employment opportunitiesb) Scarce talents are put to best use

New Management Practices

1. Boundary less organization2. Employee empowerment3. Diminished corporate layers4. Changed power base5. New Manager a sponsor, a team

leader6. Commitment building

Role of HR Manager

Changing from protector and screener to the planner and change agentPlanning and implementing downsizing, restructuring and other cost cutting activities

HRM in IndiaStaticLegalisticRitualistic

History of HRM1. Industrial Revolution

Fragmented and Dull jobs, workers did portion of the job, workers were glorified machine tools, interests of workers not protected

2. Scientific ManagementTaylor advocated, work is broken down into smallest mechanical elements and rearranging them into efficient combination. Individuals should be matched physically and mentally to the requirements of the task. Piece rate system.

History of HRM3. Trade Unionism

Collective bargaining, unfair labor practices, grievance handling, disciplinary procedures, pay and benefits

4. Human Relations MovementHawthorne experiments by Elton Mayo demonstrated that employee productivity was affected not only by the way the job was designed and employee economically rewarded but also by certain social and psychological factors. Includes supervisory training programs, strengthen bonds between labor and management and counseling programs

History of HRM5. Human Resources Approach

Pet Milk theory that happy workers are productive workers or happy cows give more milk was rejected. Workers are unique with their own needs and motivation levels. This Approach assumes that job is the primary source of satisfaction and motivation to the employees. Emphasis on individual involvement in the decisions made in the organization.

Human Resources Approach

People do not dislike work if they have helped establish objectivesTheory Y- Most people can exercise a great deal more self-direction, self-control and creativity than are required in their current jobsManager’s job is to use untapped human potential Manager should create a healthy, safe and convenient environmentManager should provide self-direction to the subordinatesExpanding subordinates influenceWork satisfaction

TerminologyManagementHRMEmpowermentHRDJob AnalysisEmployee Development

CaseDoes Sincerity pay?

Environmental Challenges

Human Resource

Management

Economic Challenges

Technological Challenges

Demographic ChallengesSocietal

Challenges

Government and Legal Challenges

Economic and Societal Challenges

1. Economic ChallengesGlobal Trade ChallengeChallenge of Productivity Improvement

2. Technological ChallengesComputerizationAutomation

3. Demographic ChallengesIncreasing number of women in the workforceShift from Primary to Service jobsEducational attainment of workersEmployment of older workersMore part time workersUnemployment

4. Cultural Challenges5. Professional Challenges

Steps in Dealing with Environmental Challenges

1. Monitor the environment2. Evaluate the impact3. Take proactive measures4. Obtain and analyze feedback

Factors Influencing Personnel Function- Rao

External

TechnologicalEconomicPoliticalSocialLocal & Govt. IssuesUnionsEmployer’s demandsWorkforce diversity

Internal

MissionPoliciesOrganizational CultureOrganizational StructureHR Systems

Three Dimensions of Personnel ManagementPersonnel Management

Welfare Aspect

Working conditions, amenities, facilities, benefits

Personnel Aspect

Recruitment, selection, placement training, appraisal, compensation, productivity

Industrial Relations Aspect

Union-management relations, disputes settlement, grievance handling, discipline, collective bargaining

Functions of Personnel Management

Managerial FunctionsPlanningOrganizingDirectingControlling

Operative Functions1. Employment

Job AnalysisHR PlanningRecruitmentSelectionPlacementInduction and Orientation

Functions of Personnel Management

2. Human Resource DevelopmentPerformance AppraisalTrainingManagement DevelopmentCareer Planning and DevelopmentOrganization Development

3. CompensationJob EvaluationWage and salary administrationIncentivesBonusFringe benefitsSocial security measures

Functions of Personnel Management

4. Human relations5. Effectiveness of Human resource

ManagementOrganization healthHuman resource auditing, audit and research

Personnel Policy

Brewster and Richbell defined Personnel policies as “a set of proposals and actions that act as a reference point for managers in their dealings with employees. Personnel policies constitute guides to action. They furnish the general standards or bases on which decisions are reached. Their genesis lies in an organization's values, philosophy, concepts and principles”.E.g. equal employment opportunity to minorities

ProceduresProcedures are action guidelines. They are derived from policies.

Advantages of Personnel Policies

DelegationUniformityBetter controlStandards of efficiencyConfidenceSpeedy decisionsCoordinating devices

Obstacles in Administering Personnel Policies

Reluctant managersConflicts in policy specially employmentDifficult to review and updateFreedom to managers dangerous

Characteristics of Personnel Policy

Related to objectivesEasy to understandPreciseStable and flexibleBased on factsAppropriate numberJust, fair and equitableReasonableReview

Coverage of Personnel Policies- Michael ArmstrongSocial responsibility

EquityConsiderationQuality of Work Life

Employment policiesPromotion policiesDevelopment policiesRelations policies

Line and Staff Relationships

Line Relationships exists between superior and subordinate. Line refers to those positions of an organization which have responsibility, authority and are accountable for accomplishment of primary objectives.

Line and Staff Relationships

Staff RelationsWhen positions are created to secure advice, guidance, information, help or assistance, counseling etc. in the process of attaining organizational goalsStaff authority is advisory. A staff manager helps serve, investigate, plan, solve special problems, supports line effort, provides ideas and has special expertise.

Personnel Management- Line or Staff

The personnel management is a line management responsibility but a staff function. Personnel managers perform the various functions of personnel management viz. employment, training, development, wage and salary administration, motivation, grievance redressal, workers’ participation in management, collective bargaining etc. Also personnel managers perform certain staff functions relating to management of personnel like advising, assisting, guiding, suggesting, counseling and providing information to line managers.

Human Resource PlanningThe process of getting the right number of qualified people into the right job at the right time.

ObjectivesForecast personnel requirementsCope with changesUse existing manpower productivelyPromote employees in a systematic manner

BenefitsReservoir of TalentPrepare people for futureExpand or contractCut costsSuccession Planning

HRM at Different Levels1. National level2. Sectoral Level3. Industry Level4. Unit level5. Departmental level6. Job Level

The Process Of HRP1. Forecasting the demand for

Human resources2. Preparing Manpower Inventory3. Determining Manpower Gaps4. Formulating Manpower Plans

Human Resource Planning (cont’d)

Small Business and HR Planning Issues

Attracting and retaining qualified outsidersManagement succession between generations of ownersEvolution of HR activities as business growsFamily relationships and HR policies

HR Planning Process

Manpower Plan: StrategiesRecruitment PlanRedeployment PlanRedundancy planTraining PlanProductivity PlanRetention PlanControl Points

Benefits of HR PlanningBetter view of the HR dimensions of business decisions

Lower HR costs through better HR management.

More timely recruitment for anticipate HR needs

More inclusion of protected groups through planned increases in workforce diversity.

Better development of managerial talent

Responsibility for HRPProf. Geisler outlined the responsibilities-

Assist and counsel operating managers to plan and set objectivesCollect and summarize manpower data keeping long run objectives and organizational interests in mindMonitor and measure performance against the plan and keep top management informedProvide proper research base for effective manpower and organizational planning

Problems in HRPAccuracySupportNumber’s game

Indian Organizations

Inadequate recordsImproper retrieval systemsNon-computerized personnel informationCurrent technologies and knowledge not put to use optimallyChanges in labor marketDifficulties in forecasting resignations, deaths, turnovers etc.

Guidelines

ObjectivesTop Management SupportManpower InventoryHuman Resource Information SystemCoordination

Suggested Readings:1. Dessler, Gary, Human Resource Management, Pearson Education

Asia, New Delhi.2. Rao, V.S.P., Human Resource Management-Text & Cases, Excel

Books, New Delhi.3. Ramaswamy, E; Managing Human Resources, Oxford University

Press, New Delhi4. Irancevich, John, Human Resource Management, Irwin/McGraw Hill.5. Casio, Wayne F; Managing Human Resources, McGraw Hill Inc.6. Subba Rao, P; Essentials of Human Resource Management &

Industrial Relations, Text, Cases & Games, Mimbai, Himalaya Publishing House.

7. Mondy R.W; Noe, R.M., Premeaux, S.r. and Mondy J.B; Human Resource Management, Prentice Hall Inc.

8. Saiyodain, Human Resource Management, TMH, N.Delhi.9. Aswthappa, Human Resource Management, TMH, N.Delhi.