Human Resource Management

Session – 1

Dr. Chandra Sekhar

Assistant Professor (OB & HRM Area)
FORE School of Management, New Delhi
@Dr. Chandra Sekhar, FORE School of Management New Delhi – 110016
Before we Begin
▪ Punctuality
▪ Proxy
▪ Text Book and Course Outline?
▪ Groups
▪ CRs
▪ Case Presentations/Discussion

▪ Evaluation Components:
▪ Group Assignment/Presentation : 15+5
▪ Quiz (2 x 10): 20 (Average)
▪ CP: 10 (Presentation + CP)
▪ End Term : 50
▪ Total: 100
Discussion Question
How Technology affects HRM Practices?
Gartner Top 3 Priorities for HR Leaders in 2019

• Build critical skills and competencies for the organization

• Strengthen the current and future leadership bench

• Improve the employee experience

 What HRM Needs to Address (CHRO’s Perspective, 2017,
Economic Times)
▪ Foster productivity, innovation, efficiency – horizontally, vertically – Focused
capability intervention tightly tied to business outcomes
▪ Leadership development – bottom up
▪ Preparing bench strength for tomorrow – succession and talent pipeline
▪ More power to line managers
▪ Diversity – more women in workforce, flexibility even for men, technology for the new
generation workforce
▪ Greater transparency at work place
▪ Use More Performance Analytics – in the range of activities from talent acquisition
to management
▪ Aligning Skills to Business Strategy – Technical, Business and Leadership
▪ Operations in Focus – HR Operations to adapt and become more accountable to
business
Human Resource Management (HRM)

The policies, practices, and systems that influence

employees’
• behavior
• attitudes
• performance
HRM
HRM is a subset of management. It has five main goals:
attract
employees

retain hire
Goals employees
employees
of
HRM

motivate train
employees employees

Strong employees base = competitive advantage.

Companies With Effective HRM
Employees and customers tend to be more satisfied when…

The companies tend to

▪ be more innovative

▪ have greater productivity

▪ develop a more favorable reputation in the community

Figure 1.1 HRM Practices
 Responsibilities of Human Resource Departments

HR Product Lines

• Administrative services and transactions

• Business partner services

• Strategic partner
Table Responsibilities of HR Departments
Function Responsibilities
Analysis and design of work Work analysis; job design; job descriptions

Recruitment and selection Recruiting; job postings; interviewing; testing; coordinating use of temporary labor

Training and development Orientation; skills training; career development programs

Performance management Performance measures; preparation and administration of performance appraisals; discipline

Compensation and benefits Wage and salary administration; incentive pay; insurance; vacation leave administration; retirement
plans; profit sharing; stock plans
Employee relations Attitude surveys; labor relations; employee handbooks; company publications; labor law compliance;
relocation and outplacement services
Personnel policies Policy creation; policy communication

Employee data and Record keeping; HR information systems; workforce analytics

information systems
Compliance with laws Policies to ensure lawful behavior; reporting; posting information; safety inspections; accessibility
accommodations
Support for strategy Human resource planning and forecasting; talent management; change management
Responsibilities cont.…

Job Analysis
Process of getting detailed information about
jobs.

Job Design
Process of defining the way work will be
performed and the tasks that a given job
requires.
Responsibilities cont.…
Recruitment Selection
The process through which the The process by which the organization
organization seeks applicants for attempts to identify applicants with the
potential employment. necessary knowledge, skills, abilities,
and other characteristics that will help
the organization achieve its goals.

Training Employees Development

A planned effort to enable employees to Acquisition of knowledge, skills, and
learn job-related knowledge, skills, and behaviors that improve an employee’s
behavior. ability to meet changes in job
requirements and in customer demands.
Responsibilities cont.…

Performance Management – The process of ensuring that employees’ activities

and outputs match the organization’s goals.
– HR may be responsible for developing or obtaining questionnaires and other
devices for measuring performance.

Maintaining Positive Employee Relations

• Preparing and distributing employee handbooks and company publications
• Dealing with and responding to communications from employees’ questions
• Negotiating union contracts and maintaining communication with union
representatives
Responsibilities cont.…
Planning Pay & Benefits Administering Pay & Benefits
▪ How much salary, wages bonuses, ▪ Systems for keeping track of
commissions, and other performance- employees’ earnings and benefits are
related pay to offer needed.
▪ Which benefits to offer and how much ▪ Employees need information about
of the cost will be shared by their benefits plan.
employees ▪ Extensive record keeping and
reporting is needed.
Responsibilities cont.…

Establishing and Administering Personnel Policies

• hiring
• discipline
• promotions
• benefits
HR personnel communicate through a variety of channels.

Managing and Using Human Resource Data

– Workforce Analytics - use of quantitative tools and scientific methods to
analyze data from human resource databases and other sources to make
evidence-based decisions that support business goals.
Responsibilities cont.…
Ensuring Compliance with Labor Laws
– Government requirements include:
▪ filing reports and displaying posters
▪ avoiding unlawful behavior
– Managers depend on HR professionals to help them keep track of these
requirements.
– Lawsuits will continue to influence HRM practices concerning job security.
• Employment at will, age discrimination, etc.
 Responsibilities cont.…
Supporting the Organization’s Strategy
HR planning – identifying the numbers and types of employees the organization will
require to meet its objectives.
Talent Management- a systematic, planned effort to attract, retain, develop, and
motivate highly skilled employees and managers.
Evidence-based HR– Collecting and using data to show that human resource
practices have a positive influence on the company’s bottom line or key stakeholders.
Supporting the Organization’s Strategy
Corporate Social Responsibility
A company’s commitment to meeting the needs of its stakeholders.
Corporate Social Responsibility
The parties with an interest in the company’s success (typically, shareholders, the
community, customers, and employees.)
Sustainability
An organization’s ability to profit without depleting its resources, incl. employees,
natural resources, and support of surrounding community.
 “Top Qualities Employers Look for in Employees”
Which of the following are top qualities employers look for in employees?
1. Teamwork skills
2. Decision making, problem solving
3. Planning, prioritizing tasks
4. Verbal communication skills
5. Gathering/processing information
6. All the above

Source: Based on National Association of Colleges and Employers, “The Candidate Skills/Qualities
Employers Want,” news release, October 10, 2013, http://www.naceweb.org.
HR Roles
Future/Strategic
Focus
Management Management of
of Strategic transformation and
Human change
Resources
Processes People
Management Management of
of firm employee
infrastructure contribution

Day-to-
Day/Operational
Focus
 • Strategic Partner • Change Agent

Negotiations
Data based Communications
decision Overcoming
making resistance to
change

Compliance
Contract Counseling
Administration Developing
eHRM and Teams
HRIS

• Administrative Expert • Employee Advocate

Line Managers’ HRM Responsibilities
1. Placing the right person on the right job
2. Starting new employees in the organization (Induction)
3. Training employees for jobs that are 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 (Training)
9. Creating and maintaining department morale
10. Protecting employees’ health and physical condition
More on HR Technology Trends
There are 5 main types of digital technologies driving HR professionals to
automation:
• Social Media
• Mobile Applications
• Gaming
• Cloud Computing
• Data Analytics (known as Talent Analytics)
What Trends Mean for Human Resource Management
What Responsibilities and Roles Do HR Departments Perform?
HRM is a means to contribute to
• profitability
• quality
• other business goals
High-Impact HR functions
• more integrated with the business
• more skilled at attracting and retaining employees
• can adapt quickly
• identify and promote talent from within
• identify what motivates employees
• continuously building talent and skills
HR as a Business with Three Product Lines
1. Administrative Services and Transactions
Compensation, hiring, staffing
Emphasis: Resource efficiency and service quality
2. Business Partner Services
Developing effective HR systems and helping implement business plans, talent management.
Emphasis: Knowing the business and exercising influence – problem solving, designing effective
systems to ensure needed competencies
3. Strategic Partner
Contributing to the business strategy based on considerations of human capital, business
capabilities, readiness, and developing HR practices as strategic differentiators
Emphasis: Knowledge of HR and of the business, competition, the market, and business
strategies
The Strategic View of Human Resources
• Employees are Human Assets
• Employees are valuable source of sustainable competitive advantage

A Dilemma

Failure to invest in employees causes

• Inefficiency
• Weakening of organization’s competitive position
Responsibilities cont.…
Responsibilities cont.…
Competencies for HRM Professionals
Source of Employee Value
• Technical knowledge
• Ability to Learn and Grow
• Decision Making Capabilities
• Motivation
• Commitment/Engagement
• Teamwork
HR Value Chain
Employee Outcome Upward

Organizational Outcomes

Financial/Accounting Outcomes

Market based outcomes Downward

Six step model of valuation of HR initiatives
1. Identify specific business problem that HR can impact
2. Calculate actual cost of the problem
3. Choose an HR solution that addresses all or part of the problem
4. Calculate the cost of the solution
5. After implementation, calculate the value of the improvement
6. Calculate the specific return on investment (ROI)
HR Competencies
Human resource expertise: Knowledge of principles, practices, and functions of
effective human resource management

Business acumen: Ability to understand and apply information to contribute to the

organization’s strategic plan

Critical evaluation: Ability to interpret information to make business decisions and

recommendations

Consultation: Ability to provide guidance to organizational stakeholders

Leadership and navigation: Ability to direct and contribute to initiatives and

processes within the organization
HR Competencies cont.
Ethical practice: Ability to integrate core values, integrity, and accountability
throughout all organizational and business practices

Communication: Ability to effectively exchange with stakeholders

Relationship management: Ability to manage interactions to provide service and

to support the organization

Global and cultural effectiveness: Ability to value and consider the perspectives
and backgrounds of all parties
Human Resource Manager Certification
• HRCI Certifications

PHR – Professional in Human Resources

SPHR – Senior Professional in Human Resources

• SHRM now has its own competency and knowledge based testing
Reference(s)
Trends in Human Resource Management
• Workforce Demographics and Diversity Trends
• Trends in How People Work
• Improving Performance at Work: HR as a Profit Center
• Globalization Trends
• Economic Trends
• Technology Trends
New Approaches To Organizing HR
Reorganizing the HR function of how it is organized and delivers HR services

• Shared Services (Transactional) HR teams

• Corporate HR teams
• Embedded HR teams
• Centers of expertise
The Future of the Workforce
• The alternative workforce: It’s now mainstream
• From jobs to superjobs
• Leadership for the 21st century: The intersection of the traditional and the new

The Future of the Organization

• From employee experience to human experience: Putting meaning back into
work
• Organizational performance: It’s a team sport
• Rewards: closing the gap

Source: Deloitte Global Human Capital Trends Survey, 2019

The future of HR

• Assessing Talent: It’s more than acquisition

• Learning in the flow of life

• Talent mobility: Winning the war on the home front

• HR cloud: A launch pad, not a destination

Source: Deloitte Global Human Capital Trends Survey, 2019

HR faces global workforce trends
• The hot labor market

• Digital disruption

• Social and political change

• Declining employee engagement level

Important Metrics for Assessing Health of Human Capital (CHRO’s
View)

• Retention
• Engagement/Climate
• Succession
• Bench/Pipeline
• Business/Person Ratio
• Internal/External Hire/Promotion
• Diversity