Human Resource Management

WHAT IS MANAGEMENT?

Planning -goals, objectives, forecasts. Organizing – delegation, direction, channels of authority and communication,

coordination. Staffing –recruitment, selection, setting performance standards, compensating,

evaluating performance, counselling, training. Leading–getting others to get the job done, maintaining morale, motivating subordinates. Controlling –setting standards such as sales quotas, quality standards,

comparing actual performance with these standards, taking corrective measures.

INTRODUCTION

Prof Sunita Mehta

Human Resource Management is the process of acquiring, training, appraising and compensating employees and of attending to their labour relations, health and safety and fairness concerns.

HRM is the art of procuring, developing and maintaining a competent workforce to achieve the goals of an organization in an effective and efficient manner.

Definition of HRM

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Human Resource Management is, It is realising that people are the greatest assets of any

organization. An effort to develop the employees in an organization. To get the best out of people. To manage them and their needs well. The process of bridging the gap between employee

expectations and organizational needs. Bringing the people and organization together so that

the goals of both are met.

IN OTHER WORDS……..

Prof Sunita Mehta

HRM is pervasive in nature. HRM is development oriented. HRM has strategic significance. HRM has futuristic orientation too. HRM is integrative in nature. HRM is a staff function HRM is a multidisciplinary function. HRM as a function is continuous in nature.

NATURE OF HRM

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To help the organization reach its goals. To employ the skills and abilities of the workforce efficiently. To provide the organization with well trained and well

motivated employees. To increase the employees job satisfaction and self-

actualization. To develop and maintain a quality of work-life. To communicate HR policies to all employees. To be ethically and socially responsible to the needs of the

society.

HRM OBJECTIVES

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Good HR practices help to:

Attract and retain talent Train people for challenging roles Develop skills and competencies Promote team spirit Develop loyalty and commitment Increase productivity and profits Improve job satisfaction Enhance standard of living Generate employment opportunities

IMPORTANCE OF HRM

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Authority : right to make decisions, to direct the work of others and to give orders

Line Authority Vs Staff Authority : Line authority gives managers the right to issue orders to

other managers or employees. It creates a superior-subordinate relationship.

Staff authority gives the manager the right (authority) to advise other managers or employees. It creates an advisory relationship. Staff mangers have staff authority. HR managers are staff managers.

LINE AND STAFF ASPECTS OF HRM

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Analysis of manpower requirements. Assist the HR department in job analysis and developing job

description. Orienting the new recruits towards the job and organization. Training employees various skills. Improving the job performance. Gaining creative cooperation and developing smooth

working relationships Interpreting Company’s policies and procedures. Controlling labor costs. Creating and maintaining departmental morale. Ensuring safety, welfare etc.

LINE MANAGERS HRM RESPONSIBILITIES

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SCOPE OF HRM

HUMAN RESOURCE MANAGEMA

NT

Procurement

Maintenance

ControlDevelopmen

t

• Human Resource Planning• Recruitment• Selection & placement

• Training• Career Development• Organization Development• Internal Mobility

• Remuneration• Motivation• Health and Safety• Social Security• Industrial Relations• Performance

Appraisals

• HR Audit• HR Accounting• HRIS

Prof Sunita Mehta

The Industrial revolution Scientific management Approach Trade Unionism Human relations approach Human Resources approach

EVOLUTION OF HRM

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The Industrial Revolution Machines were brought in for the first time. Technology made rapid progress. Jobs were fragmented Due to increase in speed and efficiency workers were

treated like “glorified machine tools” Production targets were the focus area.

EVOLUTION OF HRM

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SCIENTIFIC MANAGEMENT The scientific management approach suggested that

managers should adopt a scientific and objective approach to determine how work can be designed and carried out most efficiently.

EVOLUTION OF HRM

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SCIENTIFIC MANAGEMENT Fredrick Taylor regarded as the father of scientific management,

focused on the study of motions that were required for each job, the tools used, and the time needed to accomplish each task. Based on such scientific study, fair performance standards were determined for each job, and workers who produced more than the standard output were given incentives. The time-and-motion studies of Taylor were highly standardized, required little mental effort, and replaced the ‘rule-of-the-thumb’ work methods with ‘one best way’ of doing a job.

EVOLUTION OF HRM

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SCIENTIFIC MANAGEMENT During the early years of the twentieth century, the concept of

‘economic man’ was embraced by managers. According to this concept, economic gains motivated a worker, and financial incentives were alone sufficient to maximize the output of a worker. The ‘economic man’ concept led Taylor to propound the differential piece-rate system where workers got a higher rate of pay for every unit of output that exceeded the daily output standard.

EVOLUTION OF HRM

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TRADE UNIONS The workers joined hands to protect against the

exploitative tendencies of the employers. Unions tried to improve the state of the workers through collective bargaining, resolving employee grievances , strikes and lockouts etc.

EVOLUTION OF HRM

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HUMAN RELATIONS APPROACH The Hawthorne studies, conducted by Elton Mayo and F. J.

Roethlisberger during the 1930s and 1940s, forced organizations to shift their attention from the scientific management approach to the human relations approach.

The results of these studies suggested that employee productivity was affected not only by the way the job was designed and economic rewards but also by certain social and psychological factors like work conditions such as group relationships and management support.

It was recognized that treating employees with respect would improve employee satisfaction and help in achieving higher productivity.

EVOLUTION OF HRM

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HUMAN RELATIONS APPROACHWeakness of this approach : The approach was based on the management’s assumption that

“a happy worker is a hard worker” but this was not applicable to all workers.

The approach failed to recognize other factors that could influence employee satisfaction and productivity, like performance management, career development, job enrichment, and career planning.

Thus, during the 1950s and 1960s, the human relations approach began to be considered as outdated and was discarded by many organizations.

EVOLUTION OF HRM

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HUMAN RESOURCES APPROACH The human resources approach treats organizational objectives

and employee needs as mutual and compatible, and as issues which can be dealt together.

The human resources approach is based on the following principles. Employees are considered assets of an organization. Policies, programs, and practices should meet the needs of employees, and

these should assist them in their work and personal development. A favorable work environment should be created and maintained in order

to encourage employees to develop and harness their knowledge and skills for the benefit of the organization.

EVOLUTION OF HRM

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In 1920’s,post First World War, State intervention was necessary, due to the difficult and pathetic conditions of the workers in the backdrop of the British regime.

Unfair labour practices and “Jobber” system of recruitment, selection, arbitrary fixation of wages, reduction of wages, undue exercise of coercion.

Evolution Of HRM in India

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The Factories Act 1948, made appointment of welfare officers compulsory in industrial establishments employing 500 or more workers each.

Two professional bodies, the Indian institute of Personnel Management (IIPM) in Calcutta and National Institute of Labour (NILM) in Bombay were formed. Later they merged to form National Institute of Personnel Management(NIPM) at Kolkata.

During 1960’s, the personnel function began to expand beyond the welfare aspects, with labour welfare, IR and personnel administration integrating into the emerging profession called personnel management.

Evolution Of HRM in India

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Second Five Year Plan laid lots of emphasis on heavy industries and the accelerated growth of the public sector shifted focus towards professionalism of management.

By 1970’s , there was a shift from welfare to efficiency. In 1980’s HRM and HRD came into limelight.

Evolution Of HRM in India

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Operational to Strategic Qualitative to quantitative Policing to Partnering Short term to long Term Administrative to Consultative Functionally oriented to business oriented Internally focused to externally and customer-focused Reactive to proactive Activity focused to solutions focused

HUMAN RESOURCE MANGEMENT’S CHANGING ROLE

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Composition of Workforce Changes in Technology Changing nature of jobs – eg more service jobs Managing Ethics Lean organizations Life style changes Creating a high performance culture Talent retention Moving from patriarchic and hierarchical management to a

more team based, informal organizational culture.

IMPORTANT HUMAN RESOURCE MANGEMENT ISSUES TODAY

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Compensating knowledge workers Changes in Job Design Changing Attitude of workforce

IMPORTANT HUMAN RESOURCE MANGEMENT ISSUES TODAY (cont’d)

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Role of HRM in Strategy Formulation

Company’s strategic situation

Company’s competitive environment

Company’s internal

strengths and weaknesses

Company’s strategic

plan

Company’s HR strategies

Organization Performance

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Human Resource Strategy, which has been defined by Randall Schuler as follows: “HR strategies are essentially plans and programs to address and solve fundamental strategic issues related to human resources management.”

Human resource strategy focuses on the alignment of the organization’s human resource practices, policies, and programs with corporate and strategic business unit plans.

Human Resource Strategy

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Evolving Strategic Role of HRM to Increase Organization Performance

Strategic Focus

Operational Focus

PeopleSystems

Management of Transformation

and Change

Management of Employee

Contribution

Management of Firm Infrastructure

Management of Strategic Human

Resources

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Role Outcome Metaphor ActivityManagement of Strategic Human Resources

Executing Strategy

Strategic Partner Aligning HR and Business strategy : Organizational Diagnosis

Management of Firm Infrastructure

Building and efficient Infrastructure

Administrative Expert

Reengineering Organization Processes

Management of Employee Contribution

Increasing employee Commitment and capability

Employee Champion

Listening and responding employees: Providing resources to employees

Management of Transformation and Change

Creating a renewed organization

Change Agent Managing transformation and change: Ensuring capacity for change

HR Roles in Building a Competitive Organization

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Top 18 Core Senior HR Leadership CompetenciesBusiness knowledge: An understanding of the operations and processes of

how business is conducted.Coaching/developing others: Helping others to reach their potential.Credibility: Being perceived by others as having the knowledge and

experience to back up one’s authority.Critical/analytical thinking: Seeking information and using that information

to inform decision and resolve problems.Cross-cultural intelligence: Knowledge of and sensitivity to differences among cultures.Effective communication: Being able to verbally or in writing convey

messages in terms that make sense, and also to actively listen to others’ interpersonal communications.

Competency Framework for HR Professionals

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Ethical behavior: Perception of the moral appropriateness of individual and/or group conduct or behavior.

Flexibility/adaptability: The ability to adjust the approach as required by shifts within the organization and in the external business environment.

Global intelligence/global mindset: An overarching way of thinking about the nature of doing business that includes an understanding of and sensitivity to cultural differences among workers in other countries and legal issues inherent in operating a business multinationally.

HR knowledge: Understanding of tactical and strategic HR functions and processes.Integrity: Honesty and doing the right thing.Leading change: Charting the course for organization’s stakeholders to

navigate a shift in business processes, priorities, roles and expectations.

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Organizational knowledge: Understanding the business issues that are specific to the organization and having empathy for and an awareness of the impact of human capital issues on the organization as a system.

Persuasiveness/influencing others: The art of using interpersonal skills to convince others to share one’s perspective or way of thinking.

Results orientation/drive for performance: The ability to link processes and practices to positive outcomes and to demonstrate the value that HR brings to the organization.

Shaping organizational culture: Creating the values by which an organization operates.

Strategic thinking: Seeing the big picture, having a long-term line of sight and understanding the interconnectedness of decisions and activities within the various lines of the business.

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Technological savvy: Knowledge of the unique solutions and challenges that new technology will bring to the organization and understanding of how talent management will be affected by a technologically enhanced business environment.

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Conclusion

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