HUMAN RESOURCE MANAGEMENT

Shrichand Bhambhani

HUMAN RESOURCE MANAGEMENT

Pedagogy

PLP / Assignment
Surprise Quiz

Mid-Term Exam
Final Exam

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

HUMAN RESOURCE MANAGEMENT

What is HRM?

Human people, us Resource Assets/costs for organizations Management co-ordination and control to
achieve set goals. But humans, unlike other resources in the context of work and management, cause problems.

HUMAN RESOURCE MANAGEMENT HRM is the study about people in an organization-how they are hired, trained, motivated, compensated, and maintained.

HUMAN RESOURCE MANAGEMENT a strategic approach to managing employment relations which emphasizes that leveraging peoples capabilities is critical to achieving sustained competitive advantage, this being achieved through a distinctive set of integrated employment policies, programs and practices

PM vs HRM
There are two school of opinions prevailing between the difference between both. Some experts assert there is no difference between human resources and personnel management. The two terms can be used interchangeably, with no difference in meaning. For those who recognize a difference between personnel management and human resources, the difference can be described as philosophical.

Definition
Personnel Management - Personnel Management is basically an administrative record-keeping function, at the operational level. Personnel Management attempts to maintain fair terms and conditions of employment, while at the same time, efficiently managing personnel activities for individual departments etc. It is assumed that the outcomes from providing justice and achieving efficiency in the management of personnel activities will result ultimately in achieving organizational success. Human Resource Development - Human resource management is concerned with the development and implementation of people strategies, which are integrated with corporate strategies, and ensures that the culture, values and structure of the organization, and the quality, motivation and commitment of its members contribute fully to the achievement of its goals.

PM and HRM
Personnel management is workforce centered, directed mainly at the organizations employees; such as finding and training them, arranging for them to be paid, explaining managements expectations, justifying managements actions etc. HRM is resource centered, directed mainly at management, in terms of devolving the responsibility of HRM to line management, management development etc.
Personnel Management is basically an operational function, concerned primarily with carrying out the day-to day people management activities. HRM is strategic in nature, concerned with assisting an organization to gain sustained competitive advantage.

HRM is more proactive than Personnel Management. Whereas personnel management is about the maintenance of personnel and administrative systems.
HRM is about the forecasting of organizational needs, the continual monitoring and adjustment of personnel systems to meet current and future requirements, and the management of change.

Personnel Management & HRM

Personnel management can be considered as reactive, it provides concerns and demands as they are presented. HRM is proactive, pertains to the continuous development of policies and functions for improving a companys workforce. Personnel management focuses on administrating employees. the prime focus of HRM is to build a dynamic culture. Personnel management is independent from an organization. HRM forms an integral part of a company or an organization.

Personnel management is regarded to be more administrative in nature. Personnel management basically deals with the employees, their payroll and employment laws. HRM deals with the management of the work force, and contributes to an organizations success.

HRM and HRD

HRD is a sub section of HRM, i.e. HRD is a section with the department of HRM. HRM deals with all aspects of the human resources function while HRD only deals with the development part. HRM is concerned with recruitment, rewards among others while HRD is concerned with employee skills development. HRM functions are mostly formal while HRD functions can be informal like mentorships.

HUMAN RESOURCE MANAGEMENT

Why HRM?? Development and Growth of the organization Creation of healthy culture in the Organization . Maintenance of Human Resources

HUMAN RESOURCE MANAGEMENT

HRM refers to the process whereby the employees are continuously helped in a planned way to
Acquire or sharpen capabilities required to perform various tasks associated with their present/future expected roles. Develop their general capabilities as individuals so that they are able to discover and exploit their own inner potential for their own and/or organizational development purpose. Develop an organizational work culture where: superior-subordinate relationships, team work and collaboration among different units are strong and contribute to the professional well-being, motivation and pride.

Features of HRM
Strategic i.e. planned, deliberate, seeking to achieve set objectives Capabilities i.e. people or resources with potential (knowledge, skills, attitudes) which can be developed to contribute to organizational success. Competitive advantage by tapping into and developing these capabilities organizations give themselves an edge over their rivals Integrated that the range of things under HRM (recruitment, selection of employees, their training and development, how they are rewarded) is looked at together not as separate things.

Core values of HRM

Human beings are the crucial aspects of every organization. The greater is the commitment of the human resources the more successful is the organization. An individual is a whole person. He brings all aspects of his personality, attitudes, traits and behavior to the work place.
People represent the organization. Building, equipment and other resources productive only because being handled by effective humans. People vary in abilities, nature, personality, religion etc. and are influenced by social economic and environmental factors.

Core values of HRM

Human resources have to be acquired, developed and motivated to give higher performances and also must be retained.

Success of an organization depends upon the satisfaction of organizational needs and employees needs.
There are various levels of hierarchy in an organization. The people who manage (i.e., the managers), and people who work (subordinates). The effective coordination and commitment between managers and subordinates is essential for organizational success.

Healthy relationships with consumers, entrepreneurs, governments and suppliers.

shareholders,

HRM OBJECTIVES
Employee motivation Employee effectiveness and efficiency Improved quality (innovation & Creativity) job satisfaction, self-Actualization and

Cost-effectiveness and competitiveness

Rewards and incentives linked to career growth

Recognition of human resource issues at the strategic

level

Philosophy of HRM
HRM is climbing up the peak of humanitarianism with its distinct policies and programs. HRM insists on mutuality. Mutuality is the common feeling felt by one another as you are all aware the organization where the mutuality exists will flourish and grow. Quid-pro-quo

Functions of HRM

Key Functions
Human Resource Planning Recruitment & Selection

Compensation & Benefits

Performance Appraisals Training & Development

Learning Objectives
Understand the importance of Human Resource Management to the organization Appreciate the key functions associated with Human Resource Management Implement a Human Resource Planning Process Understand the importance of Recruitment and Selection

Learning Objectives
The main types of Compensation and Benefits Systems

Implement Process

an

effective

Performance

Appraisal

Understand the function of Training and Development and its importance to the organization

Human Resource Planning

Planning
Planning is a process that involves gathering information that would enable managers and supervisors make sound decisions. The information obtained is also utilized to make better actions for achieving the objectives of the Organization.

What is Human Resource Planning? An effort to anticipate future business and environmental demands upon the organization and to provide personnel to fulfill that business and satisfy that demand

What is Human Resource Planning? A systematic analysis of HR needs in order to ensure that correct number of employees with the necessary skills are available when they are required.

What is Human Resource Planning?

Why HR Planning??
The number of people required in a specific time frame & the availability of talent. Early indications difficulties. of potential requirement or retention

Surpluses or deficiencies in certain grades or functions.

Availability of suitable qualified & experienced successors. To meet expansion programs To meet challenge of a new & changing technology & new techniques of production and to train them as per requirement.

Recruitment & Selection

Recruitment & Selection

Both recruitment and selection are the two phases of the employment process. The differences between the two are: 1. Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organisation WHEREAS selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts. 2. The basic purpose of recruitments is to create a talent pool of candidates to enable the selection of best candidates for the organisation, by attracting more and more employees to apply in the organisation WHEREAS the basic purpose of selection process is to choose the right candidate to fill the various positions in the organisation.

Recruitment & Selection

3. Recruitment is a positive process i.e. encouraging more and more employees to apply WHEREAS selection is a negative process as it involves rejection of the unsuitable candidates. 4. Recruitment is concerned with tapping the sources of human resources WHEREAS selection is concerned with selecting the most suitable candidate through various interviews and tests. 5. There is no contract of recruitment established in recruitment WHEREAS selection results in a contract of service between the employer and the selected employee.

Recruitment & Selection

Basis Meaning Recruitment It is an activity of establishing contact between employers and applicants. It encourages large number of Candidates for a job. It is a simple process. The candidates have not to cross over many hurdles. It is a positive approach. It preceeds selection. It is an economical method. Less time is required. Selection It is a process of picking up more competent and suitable employees. It attempts at rejecting unsuitable candidates. It is a complicated process. Many hurdles have to be crossed. It is a negative approach. It follows recruitment. It is an expensive method. More time is required.

Objective Process Hurdles Approach Sequence Economy Time Factor

Compensation & Benefits

Compensation "Employee compensation refers to all forms of pay going to employees and arising from their employment." The phrase 'all forms of pay' in the definition does not include non-financial benefits, but all the direct and indirect financial compensations.

Benefits Employees today are not willing to work only for the cash alone, they expect 'extra'. This extra is known as employee benefits. Also known as fringe benefits, Employee benefits are nonfinancial form of compensation offered in addition to cash salary to enrich workers lives.

Performance Appraisal

Performance Appraisal
Performance Appraisal is a systematic description of job relevant strengths and development needs of an employees actual performance relative to established standards. It is a process to control employee work behaviors and outputs through providing feedback on performance. Performance management the process through which managers ensure that employees activities and outputs contribute to the organizations goals.

PM versus PA
Performance Management
Processes used to identify, encourage, measure, evaluate, improve, and reward employee performance Performance Appraisal

The process of evaluating how well employees perform their jobs and then communicating that information to the employees

Uses for Performance Appraisal

Purpose of Performance Management

Strategic Purpose means effective performance management helps the organization achieve its business objectives. Administrative Purpose refers to the ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs.

Developmental Purpose means that it serves as a basis for developing employees knowledge and skills.

Training & Development

Training & Development

Training is the formal and systematic modification of behavior through learning which occurs as a result of education, instruction, development and planned experience. A process of altering employee behavior and attitudes in a way that increases the probability of goal attainment. Training refers to a planned effort by a company to facilitate employees learning of job-related competencies

Training & Development

Learning is the processing and assimilation of what we hear, see or experience that alters or improves our knowledge, skills and attitudes. Development is any learning activity, which is directed towards future needs rather than present needs, and which is concerned more with career growth than immediate performance.

Training, Learning & Development

The combination of kSAs is behaviour. If someone trains us, or we learn something new or different, it is our behaviour that is affected. Training is active - it is conscious and planned - it does not just happen. Training is something you do. Learning is something that happens. Learning should be the major outcome of training. Training is successful if learning occurs.

Distinction between Training and Education Training Application Job Experience Specific Tasks Narrow perspective Education Theoretical orientation Classroom learning General concepts Broad perspective

Purpose of Training
To increase productivity and quality

To promote versatility and adaptability to new methods

To reduce the number of accidents To reduce labor turnover To increase job satisfaction displaying itself in lower labour turn- over and less absenteeism To increase efficiency

Importance of T & D
Maintain skill levels Advance skill and knowledge to improve
Performance (efficiency) Service delivery (error rate) Profitability (productivity, manpower)

Integrate new technologies into work Establish standards for work practices

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Benefits of Training - Individuals

Do job more efficiently learn new methods Professional approach to work, engaged in best practice routines Personal satisfaction felt valued Recognised qualification to add to CV

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The Challenges of HRM

The Challenges of HRM

There is an old joke that goes.. The organization of the future will be so technologically advanced that it will be run by just one person and a dog. The person will be there to feed the dog, and the dog will be there to make sure that the person doesnt touch anything. In the past, observers feared that machines might one day eliminate the need for people at work. In reality, just the opposite has been occurring.

Competitive advantage belongs to companies that know how to attract, select, deploy, and develop talent.
Competitive Advantage Through People People always been central to organization. Today even more central role in building a firms competitive advantage. In knowledge-based industries, success increasingly depends on people-embodied know-how. This includes the kSAs imbedded in an organizations people.

The Challenges of HRM

Competitive Advantage Through People A firms success is based on establishing a set of core competencies integrated knowledge sets within an organization that distinguish it from its competitor and deliver value to customers.

The Challenges of HRM

For achieving competitive advantage through people : The Resources must be of value Value is increased when employees find ways to decrease costs, provide something unique to customers. Empowerment programs, total quality initiative, and continuous improvement efforts.
The Resource must be rare people are a source of competitive advantage when their skills, knowledge, and abilities are not equally available to competitors. Microsoft and other firms hire and train the brightest employees in order to gain advantage over competitors.

The Resources must be difficult to imitate when employee capabilities and contributions cannot be copied by others. (teamwork)
The Resources must be organized when employees talents can be combined and deployed to work on new assignments at a short notice.

The Challenges of HRM

Competitive Challenges and HRM

Going Global
Embracing technology

Managing Change
Developing human capital Responding to the market Containing Costs

The Challenges of HRM

Challenge 1 Going Global In order to grow and prosper, many companies are seeking business opportunities in global markets. Impact of Globalization Globalization trend toward opening up foreign markets to international trade and investment Approximately 70% to 85% of the US economy today is affected by international competition. Eg China, US, India.. Effect of Globalization on HRM Finding competent individuals that understand, geographies, cultures, laws, and business practice.

The Challenges of HRM

Challenge 2 Embracing New Technology The introduction of advanced technology tends to reduce the number of jobs that require little skill and to increase the number of jobs that require considerable skills. This move is from touch labor to knowledge workers, where employees responsibilities expand to include a richer array of activities such as planning, decision making, and problem solving. Influence of Technology in HRM Use of technology to manage HRM called Human Resources Information System (HRIS) HRIS computerized system that provides current and accurate data for purposes of control and decision making.

The Challenges of HRM

Three major components The operational impact automating routine activities, alleviating the administrative burden, reducing costs, and improving productivity internal to the HR function itself. (payroll processing, maintaining employee records, administering benefits programs) The Relational impact it enhances service by providing line managers and employees with remote access to HR databases, supporting their HR related decisions, and increasing their ability to connect with other parts of the corporation. (scanning resumes, tracking application information) The transformational impact expanding the scope and function of the HR depart. (training, on-line performance evaluation, employees self-learning)

The Challenges of HRM

Challenge 3: Managing Change

Due to technology, globalization of competition and markets, and workforce demographics, CHANGE in today's business world is inevitable.
Types of Change Reactive-change that occurs after external forces have already affected performance

Proactive-change initiated to take advantage of targeted opportunities.

The Challenges of HRM

Managing Change Through HR Responsibilities change job assignments change

work processes change

The Challenges of HRM

Challenge 4: Developing Human Capital The idea that organizations compete through people highlights the fact that success increasingly depends on an organizations ability to manage Human capital. Human capital the economic value of knowledge, skills, and capabilities. Human Capital and HRM Human capital is intangible and elusive and cannot be managed the way organizations manage jobs, products, and technologies. One of the reasons for this is that employees, not the organization, own their human capital.

The Challenges of HRM

Human Capital and HRM

If valued employees leave a company, they take their human capital with them, and any investment the company has made in training and developing those people is lost.
To build human capital in organizations, managers must continue to develop superior knowledge, skills, and experience within the workforce. Staffing programs focus on identifying, recruiting, and hiring the best and the brightest talent available.

Training programs complement these staffing practices to provide skill enhancement, particularly in areas that cannot be transferred to another company if an employee should leave. (What is transferable skills?)

The Challenges of HRM

Challenge 5: Responding to the Market
Meeting customers expectations is essential for any organization. Focusing on internal management issues, managers must also meet customer requirements of quality, innovation, variety, and responsiveness. These standards separate the successful and unsuccessful companies: Who well does a company understand its customers needs? How fast can it develop and get a new product to market? How effectively has it responded to special concerns? Faster, better, cheaper..

The Challenges of HRM

Challenge 5: Responding to the Market Organizations use several approaches to address this very crucial issues: 1. Total Quality Management (TQM) 2. Six Sigma 3. Reengineering TQM, Six Sigma, Reengineering, and HRM TQM is a set of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement. Six Sigma a statistical method of translating a customers needs into separate tasks and defining the best way to perform each task in concert with the others. Reengineering has been described as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service and speed. (ISO 9000+)

The Challenges of HRM

Challenge 6: Containing Costs Investments in reengineering, TQM, human capital, technology, globalization, and the like are all very important for organizational competitiveness.
Yet, at the same time, there are increasing pressures on companies to lower costs and improve productivity to maximize efficiency.

Labor costs are one of the largest expenditures of any organization Organizations have tried a number of approaches to lower costs: Downsizing, outsourcing and employee leasing, and productivity enhancement. 1) Downsizing the planned elimination of jobs. Other ways of downsizing besides direct layoffs: Early retirements Sweetened voluntary separation program Sabbaticals Severance packages

The Challenges of HRM

Challenge 6: Containing Costs

Outsourcing contracting outside the organization to have work done that formerly was done by internal employees. Employee Leasing Process of dismissing employees who are then hired by a leasing company (which handles all HR related activities) and contracting with that company to lease back the employees.
Impact on HR: Increasing morale especially if you know your work is only temporarily Increasing productivity level Managing contracting companies Legal issues with temporary workers

Task
Group - A To make a PPT on Role Demographic factors in HRM

of

Group - B To make a PPT on Line Managers & HR Dept