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Human Resource Management

SESSION -1 : INTRODUCTION TO HRM

IMPORTANCE OF HRM DEFINITION OF HRM Components of hrm HRM FUNCTIONS CHALLENGES OF HRM NEW CHALLENGES FOR HR EXECUTIVE

 Human resource management (HRM) is the strategic and coherent approach to the management of an organisation's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term personnel management" as a description of the processes involved in managing people in Organizations.

 Take away my people, but leave my factories, and soon grass will grow on the factory floors. Take away my factories, but leave my people, and soon we will have a new and better factory

Andrew Carnegie

IMPORTANCE OF HRM
HRM helps in
Improving the capabilities of an individual Developing the team spirit Obtaining cooperation from the employees Promoting organisational effectiveness

IMPORTANCE OF HRM
Social significance : enhances ones dignity by satisfying their social needs Professional significance :promotes team work in the employees Significance for individual enterprise: help the organisation in accomplishing its goals

Importance of HRM
Social Significance Balance the jobs available and job seekers Provide suitable and productive employment Maximise utilisation of the resources effectively Eliminate waste or improper use human resources Help people make their own decisions

Importance of HRM
Professional Significance Maintain dignity of the employee as human Provide maximum opportunities for personal development Provide healthy relationship to different work groups Improve skills and capacities Minimise wrong postings, allocate work properly

Importance of HRM
Significance for Individual Enterprise Create right attitude among employees through effective motivation Utilise the available human resources effectively Secure co-operation of the employees: achieve goals, psychological needs- love, affection, belongingness, esteem and self actualisation

1.Why HRM in Important All Managers Must EngageIs Some HRM Activities interview job candidates orient new employees evaluate work performance HRM Policies and Practices Have a Positive Impact on Performance high performance work practices
commit to improving knowledge and skills increase motivation retain high quality employees encourage nonperformers to leave
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DEFINING HRM
The planning, organising directing and controlling of the procurement, development, compensation, integration, and maintenance of human resource to the end those individual, organisational, and social objectives are accomplished. (Flippo, 1984). The organisation function that focuses on the effective management, direction, and utilisation of people; both the people who manage produce and market and sell the products and services of an organisation and those who support organisational activities. It deals with the human element in the organisation, people as individuals and groups, their recruitment, selection, assignment ,motivation, empowerment, compensation, utilisation, services, training, development, promotion, termination and retirement.(Tracey,1994 )

DEFINING HRM
A series of integrated decisions that govern employer-employee relations. Their quality contributes to the ability of organisations and employees to achieve their objectives (Milkovich & Boudreau, 1997). Concerned with the people dimension to management. Since every organisation comprises people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue at the same level of commitment to the organisation are essential to achieving organisational goal. This is true, regardless of the type of organisation: viz. government, business, education, health, recreation, or social action. (Decenzo & Robbins, 1989).

Human Resource Management

Human Resource Management includes all activities used to attract & retain employees and to ensure they perform at a high level in meeting organizational goals. These activities are made up of
1. Recruitment & selection. 2. Training and development. 3. Performance appraisal and feedback. 4. Pay and benefits. 5. Labor relations.

Meaning and Definition

HRM is a management function that helps managers recruit, select, train and develop members of an organisation. HRM Peoples dimension A series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organisations and the employee to achieve their objectives.

HRM Definition
Is concerned with people dimension in management. Since every organisation is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organisation are essential to achieving organisational objectives.

FUNDAMENTAL PRINCIPLES OF HRM

Human Resource is the organisations most important asset; Personnel policies should be directed towards achievement of corporate goals and strategic plans; . Corporate culture exerts a major influence on achievement of excellence and must therefore be tempered with consideration of employee welfare. Whilst integration of corporate resources is an important aim of HRM, it must also be recognised that all organisations are pluralist societies in which people have differing interests and concerns, which they defend and at the same time function collectively as a cohesive group.

Human Resource Management

What is HRM:

Human Resource Management refers to the practices and policies one need to carry out the personnel aspect of management jobs.

It has emerged as a set of prescription for managing people at work

HUMAN RESOURCE MANAGEMENT (HRM)

The design of formal systems in an organization to ensure the effective and efficient use of human talent to accomplish the organizational goals.

Components of a HRM System

Recruitment & Selection

Labor Relations

Training & Development

Pay & Rewards

Performance Appraisal & Feedback

HRM Components

Component should be consistent with the others, organization structure, and strategy.
Recruitment: develop a pool of qualified applicants.
Selection: determine relative qualifications & potential for a job.

Training & Development: ongoing process to develop workers abilities and skills. Performance appraisal & feedback: provides information about how to train, motivate, and reward workers.
Managers can evaluate and then give feedback to enhance worker performance.

HRM Components
Pay

and Benefits: high performing employees should be rewarded with raises, bonuses.
Increased pay provides additional incentive. Benefits, such as health insurance, reward membership in firm.

Labor

relations: managers need an effective relationship with labor unions that represent workers.
Unions help establish pay, and working conditions.

If management moves to a decentralized structure, HRM should be adjusted as well.

HRM-ACTIVITIES/PROCESES
Workforce planning Recruitment (sometimes separated into attraction and selection) Induction and Orientation Skills management Training and development Personnel administration Compensation in wage or salary Time management Travel management (sometimes assigned to accounting rather than HRM) Payroll (sometimes assigned to accounting rather than HRM) Employee benefits administration Personnel cost planning Performance appraisal INDUSTRAIL/LABOUR RELATION (IR) (GRIEVANCES HANDLING) TRADE UNION MANAGEMENT (COLLECTIVE BARGAINING/NEGOTIATION)

The HRM Process

Environment
Human Resource Planning

Recruitment

Selection

Identification and selection of competent employees

Derecruitment

Orientation

Training

Adapted and competent employees with up-to-date skills and knowledge

Performance Management

Compensation and Benefits

Career Development

Competent employees who are capable of sustaining high performance over the long term
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Environment

HR MANAGEMENT ACTIVITIES

HR MANAGEMENT ACTIVITIES

HR Planning and Analysis Staffing HR Development Compensation and Benefits Health, Safety, and Security Employee and Labor/Management Relations

AREAS OF OPERATION OF HRM

Human Resource Planning Job Analysis Job Design Recruitment & Selection Orientation & Placement Training & Development Performance Appraisals Job Evaluation Employee and Executive Remuneration Motivation Communication Welfare Safety & Health Industrial Relations

Human Resource Management Key Processes

Manpower Planning, Job Analysis defining effective performance Recruitment & Selection Induction & Orientation Assessing performance and managing careers Training & Development Job Evaluation Pay & Benefits Counseling & Feedback HR Policy/Systems/Rules/Strategy formulation Culture & Relation Building Establishment & Statutory Compliances Disputes & managing Conflicts

CHARACTERISTICS OF HRM
HRM is a pervasive function. It permeates all levels of decision making in an organisation HRM is also a comprehensive function, in that it is concerned directly or indirectly with every decision Cost effectiveness is a must There is a need to spot trends and tailor personnel requirements accordingly Human resource management department provides for an integrating mechanism It is action oriented as in it the focus is on action, rather than record keeping, written procedures or rules HRM seeks to maximise employee motivation to make them contribute to their maximum potential HRM is people oriented HRM is continuous activity, consistent function and not a short-term measure. Human resource management function is of importance to Public as well as private organisations

FEATURES OF HRM
integration of HR polices with overall planning Responsibility for personnel management no longer resides with specialist managers but is increasingly assumed by the senior line management The focus consequently shifts from management-trade union relations to management-employee relations; from collectivizing to individuation; macro to micro; and; To reiterate, with the manager donning the role of enabler, or facilitator, there is stress on commitment and initiative on the part of the employees.

SCOPE OF HRM
Personnel aspect: concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, lay off and retrenchment, remuneration, incentives, productivity, etc. Welfare aspect; dealing with working conditions and provision of amenities such as canteens, crches, rest and lunch rooms, housing, transport, medical assistance, education, health, safety, recreation facilities, etc.; and Industrial Relations aspect: the legal part which covers unionmanagement relations, joint consultation, collective bargaining, grievance redress and disciplinary procedures, settlement of disputes, etc.

Scope of HRM
HR Planning Job analysis and Design Recruitment and Selection Orientation and Placement, Training and Development Performance appraisal and Job Evaluation Employee and Executive Remuneration Motivation and communication Welfare, Safety and Health Industrial Relations (IR)

OBJECTIVES OF HRM
The primary objective of human resource management is to ensure a continuous flow of competent workforce to an organisation Societal Objectives Organisational Objectives Functional Objectives Personal Objectives

Objectives of HRM
Societal To be ethically and socially responsible to the needs and challenges of society while minimising the negative impact of such demands upon the organisation. Organisational To recognise the role of HRM in bringing about organisational effectiveness.

Objectives of HRM
Functional To maintain the departments contribution at a level appropriate to the organisations needs. Personal To assist employees in achieving their personal goals, at least insofar as these goals enhance the individuals contribution to the organisation.

OBJECTIVES/PURPOSES OF PERSONNEL MANAGEMENT / HUMAN RESOURCE MANAGEMENT

To attain maximum individual development (self-development) of the members of an organization and also to utilize available human resources (with the organization) fully and effectively. To mould effectively the human resources. To establish desirable working relationships between employer and employees and between groups of employees. To ensure satisfaction to the workers so that they are freely ready to work. To improve the service rendered by the enterprise to the society through better employee morale, which leads to more efficient individual and group performance.

 To establish and maintain a productive and self respecting relationship among all the members of an organization. To ensure the availability of a competent and willing workforce to the organization for its progress and prosperity. To help organization to achieve its goals by providing well trained efficient and properly motivated employees. To maintain high morale and good human relations within the organization for the benefit of employer and employees. To secure the integration of all the individuals and groups with the organization by reconciling individual/group goals with those of an organization.

HRM Objectives Societal Objectives

Supporting Functions
1. Legal compliance 2. Benefits 3. Union-management relations 1. Human resource planning 2. Employee relations 3. Selection 4. Training and development 5. Appraisal 6. Placement 7. Assessment

Organisational Objectives

Functional Objectives

1. Appraisal 2. Placement 3. Assessment 1. Training and development 2. Appraisal 3. Placement 4. Compensation 5. Assessment

Personal Objectives

HRM Objectives and Functions

HRM Objectives Societal Supporting Functions 1.Legal Compliance 2.Benefits 3.Union management relationship

HRM Objectives and Functions

HRM Objectives Organisational
Supporting Functions 1.Human Resource Planning 2.Employee Relations 3.Selection 4.Training & Development 5.Appraisal 6.Placement 7.Assessment

HRM Objectives and Functions

HRM Objectives

Supporting Functions
1.Training & Development 2.Placement 3.Assessment 4.Compensation

Personal

ROLE OF HRM

Advisory Role
Personnel Policies Personnel Procedures

Functional Role: Service Role:

HRM Objectives Social Objectives (3)

Supporting HRM Functions Legal Compliance Benefits Union Management Relations Human Resource Planning Employee Relations Recruitment & Selection Training & Development Performance Appraisals Placement & Orientation Employee Assessment Performance Appraisals Placement & Orientation Employee Assessment Training & Development Performance Appraisals Placement & Orientation Compensation Employee Assessment

Organizational Objectives (7)

Functional Objectives (3)

Personal Objectives (5)

FUNCTIONS OF HRM
MANAGERIAL FUNCTIONS

Planning Organising Directing (motivating, actuating or commanding) Co-coordinating and controlling

OPERATIVE FUNCTIONS

The Procurement Function The Development Function The Compensating Function The Integration Function The Maintenance Function

 Functions 2.The HRM Process of HRM Process necessary for staffing the organization and sustaining high employee performance identify and select competent employees provide up-to-date knowledge and skills retain competent, high performing employees

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Difference between HRM & PM HRM

HRM views people as an important source or asset to be used for the benefit of organisation, employees and the society. Philosophy of mutuality : mutual goals, mutual respect,mutual rewards and mutual responsibilities. ASPA changed its name to SHRM

Difference between HRM &PM PM

PM has limited scope and an inverted orientation Viewed labour as a tool for benefits of the organisation Personnel Dept not respected, no productive employees PM treated as routine activity meant to hire new employee and maintain personnel records Never part of strategic management of business. Historically PM preceded HRM

Difference between HRM & PM

Dimension Employment Contract Rules Guide to Mgnt. Action Personnel Written, delineated Clear Procedures Human Resource Aim to go beyond contract Outlook, Impatience Business Needs

Behaviour referent

Norms/Custom Values/Missions s and Practices

Difference between HRM & PM

Dimension Personnel Human Resource Nurturing Customer Integrated Transformational Leadership Fast

Managerial /labour task Key Relations

Initiatives Management Role Speed of decision

Monitoring
Labour Management Piecemeal Transactional Slow

Difference between HRM & PM

Dimension Personnel Human Resource Direct Facilitation

Communication Indirect
Prized Management skill Selection Pay Conditions Negotiation

Separate, Marginal task Job Evaluation (Fixed grades) Separately negotiated

Integrated, key task Performance based Harmonisation

Difference between HRM & PM

Dimension Labour Management Job categories and grades Job design Personnel Collective bargaining contracts Many Human Resource Individual contracts Few

Division of labour Team work Manage climate and culture Learning companies

Conflict handling Reach temporary truce Training & Controlled access Development to courses

Difference between HRM & PM

Dimension Intervention focus Personnel Personnel procedures Human Resource

Respect for employees

Wide rangingcultural,structural and personnel strategies Labour treated People are treated as tool : as assets to expendable and benefit replaceable organisation/ employees/society

Difference between HRM & PM

Dimension
Shared interests Evolution

Personnel
Organisational interests are uppermost Precedes HRM

Human Resource
Mutuality of interests Latest in the evolution of the subject