Chapter 1, 2

Understanding the Nature , Scope & Context of Human Resource Management

Learning Objectives
Understand the Nature, Scope and Objectives of Human Resource Management. Design an Organisation Chart for Human Resource Management Function in a Typical Industrial Establishment. Environment of HRM Changing role of HRM Trace the Evolution of Human Resource Management. .

Introduction
There is unlimited people potential that is untapped The universal challenge is getting results through people Acquiring ,developing and maintaining human talent Building the human capital Its people that lend competitive advantage

Definition
HRM refers to acquisition, retention, motivation and maintenance of Human Resources in an organization.

Functions of HR
MANAGERIAL FUNCTIONS Planning Organising Directing Controlling OPERATIVE FUNCTIONS Staffing Development Compensation Motivation

Maintenance
Integration Emerging Issues

Operative functions of HR
STAFFING
Job analysis, HRP, Recruitment, Selection, Placement, Induction, Internal Mobility Competency profiling, Training and development, Performance & potential management, Career management, 360 degree feedback Job design, Work scheduling, Job evaluation, Compensation administration, Incentives and benefits

DEVELOPMENT

COMPENSATION & MOTIVATION

Operative functions of HR (contd.)

MAINTENANCE
Health, Safety, Welfare, Social security Employment relations, Grievance, Discipline, Trade unions, Participation, Collective bargaining HRIS, HR audit, HR scorecard, International HRM, Workforce Diversity

INTEGRATION

EMERGING ISSUES

Objectives of HRM
Societal objectives To be ethically & socially responsible to the needs of the society while minimizing the negative impact of such demands upon the organization Organizational objectives To recognize the role of HRM in bringing about organizational effectiveness Functional objectives To maintain the departments contribution at a level appropriate to the organizations needs Personal objectives To assist employees in achieving their personal goals in a manner that their personal goals enhance the individuals contribution to the organization

Objectives of HRM

Personal Objectives

Functional Objectives

Organisational Objectives

Societal Objectives

HRM Objectives & Functions HRM Objectives 1.Societal Supporting Functions 1.Legal compliance 2.Benefits 3.Union-Mgmt relation 1.HR Planning 2.Employee relation 3.Selection 4.T &D 5.Appriasal 6.Placement & 7.Assessment 1.Apprisal 2. Placement 3.Assessment

2.Organisational

3.Functional

4.Personal

1.T&D 2.Placement 3.Compemsation 4.Assessment

Difference between PM and HRM

Semantics HRM vs. PM
Mutuality Labour management Legal compliance

HRD and IRM What are they?

Segments of HRM

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Composition of a HR / Personnel Department

The size of HR department reflects the size of the company

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HRM Large-scale Unit

Chairman and Managing Director

Director Production

Director Finance

Director Personnel/HRM

Director Marketing

Director R&D

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HRM Small-scale Unit

Owner/Manager

Production Manager

Sales Manager

Office-Manager

Accountant

Personnel Assistant

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Composition of a HR / Personnel Department

Owner/Manager

Manager-Personnel

ManagerAdministration

Manager-HRD

Manager-IR

Appraisal

Training & Development

PR

Canteen

Medical

Welfare

Transport

Legal

HRP

Hiring

Grievances Handling

Compensation

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How important is HRM ?

Small mistakes = huge loses

What can go wrong!
Hire the wrong person High turnover People not performing Waste time with useless interviews Have your company taken to court because of discriminatory actions Have your company cited under occupational safety laws for unsafe practices Unfair and inequitable salaries Lack of training Commit unfair labor practices

Every manager is an HR manager

Authority line and staff

Line employee: an employee involved directly in producing the companys goos or delivering services Staff employees are those who support the line function

HR managers duties
A line function A coordinative function to ensure line managers are implementing organizations policies, rules. Staff functions- assist and advise line managers

The changing environment and HRM

Context of HRM

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Environment may be understood as all those forces which have their bearing on the functioning of HR department

General

Forces are
Specific

Political- Legal Economic Technological Cultural forces

Customers Suppliers Competitors Unions

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Political Legal
Political Legal : All HR activities are affected in one way or other by
them. HR Planning, recruitment, selection, placement, training and development, remuneration, employee relations are conditioned by Constitutional provisions

Human rights legislation Employment standards

Basic or minimum employment conditions in an organization
Minimum wage, hours of work, OT pay

Health and safety

Healthy and Safe work Environment On the Job Injuries

Labour relations
Relationship between union and employer Not all organizations are covered by Labour Relations
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Globalization & implications of global economy

Tendency of firms to extend their sales , ownership and manufacturing to newer markets abroad
Worldwide company culture Worldwide recruiting Global alliance needs highly trained and devoted staff Deal with virtual workforce Outsourcing

Technology
Technology plays a vital role in HR functions, in order to make people more intellectual and efficient. Managing Occupational Shift (manufacturing .. services) managing a virtual workforce managing employee alienation training & retraining employees to manage obsolescence. providing work life balance IPRs
Ex: bank installed special software that made CSR to handle customers inquiries. Seeking to capitalize on new software, bank upgraded CSR jobs.; gave training , how to sell other services and thereby improved, profitability. Other bank didnt ; just system helped service rep. Handle few more calls

Cultural
Culture refers to the complex whole which includes knowledge, belief, art Morales, laws, customs and other capabilities and habits acquired by an Individual as a member of society. Eg: Tata and L& T Tatas culture Hire the right people and let them free L & Ts culture They are known for their professional approach Culture indicates attitude of workers towards work Time dimensions which influence HRM Achievement oriented Individualistic or collectivism

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Specific environment
Suppliers For HR dept, suppliers are those who provide human Resources to an organization. Ex: Consulting firms, training institutes. Competitors Competition plays significant role in HR function and Activities. Organization need to groom its employees through well managed HR planning programmes to withstand competition Customers Customers have their own influence on companies personal Functions . So everybody in the orgn must endeavour to offer products which gives satisfaction for the money customers pay.
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Internal force
Unions
A firms personal activities will be influenced by its own unions as well as the unions of other plants. A trade union may be understood as association of workers or management formed to protect their own individual interest. All HR activities like recruitment, selection, training, compensation are carried out in consultation with union leaders. Eg : The Bokaro steel plant has 68 trade unions. Calcutta Corporation has about 100 trade unions.
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The changing role of HRM

Changing role of HRM

HR functions to be more Strategic, SHRM
HR mangers involved in partnering with their top managers in both designing and executing their company's strategies

Creating High performance work systems

focus on productivity and performance:
Productivity is function of ability, motivation, quality of work life By use of technology through effective HR practices ; By instituting high performance work systems

Measuring HRM team performance

Measurable evidence of their efficiency and effectiveness

Evolution of HRM in India

1920s 30s
Pragmatism of capitalists

1940s 50s
Technical, legalistic

1970s 80s
Professional, legalistic, impersonal

1990s
Philosophical

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Image and Quality of HR/Personnel Manager

Fairness and firmness Tact and resourcefulness Sympathy and consideration Knowledge of labour and other terms Broad social outlook

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For next class

2010 batch :read chapter :strategic management All the students read :case study read page no: pg-36, 37; pg-60; pg-80-81 Vybhav case study from ch1,2,3

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