HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCE MANAGEMENT

CHAPTER NO. 1

AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO:

     

Understand the term HRM and importance of HRM. Comprehend four functions of HRM . Describe evolution of HRM. Identify key roles played by HR managers. Explain challenges faced by HR managers. Differentiate between HRM and international HRM.

We can Divide this Term into Three Parts

HUMAN

RESOURCE

MANAGEMENT

HUMAN

RESOURCE
FINANCIAL RESOURCES PHYSICAL RESOURCES

Means debt, equity, retain earnings and selected matters.

Means building, machinery, vehicle and other material.

ORGANIZATIONAL RESOURCES

HUMAN RESOURCE Includes skills, abilities, experience and other work related characteristics of people associated with the organization.

Include the history of groups in the organization, relationship, level of trust etc.

MANAGEMENT
Management is the universal process of getting activities completed with and through other people to achieve organizational goals.

HUMAN RESOURCE MANAGEMENT

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

Human Resource Management helps in maximizing productivity & reducing cost by Putting Right Person At Right Place.

EVOLUTION OF HRM

EVOLUTION OF HRM Cont . . .

 Small level of production  Industrial Revolution

1. The Craft System (1600s-1700s)

2. Scientific Management (Early 1900s)

 One best way to accomplish the task  Putting the right person on the job with the correct tools and equipment  Having a standardized method of doing the job  Providing an economic incentive to the worker

3. Human Relations (Late 1920s Early 1930s)

 Hawthorne studies  Employee participation program

EVOLUTION OF HRM Cont . . .

4. Behavioral Sciences

The study of the actions of people at work; people are the most important asset of an organization.

5. Personnel Management

Involve in operational planning and decision making & do not incorporate all HR activities.
Involve in operational as well as strategic planning and decision making & incorporate all HR activities(training, career development, EEO etc.)

6. Human Resource Management

7. Intellectual Capital Management

Organizations need to be dynamic both in the context of the management of individual capabilities and the management of organizational structure.

FUNCTIONS OF HRM
STAFFING

MAINTENANCE

HRM

TRAINING & DEVELOPMENT

MOTIVATION

FUNCTIONS OF HRM Cont . . . STAFFING

Strategic Human Resource Planning Recruitment Selection Maintenance

HRM
Motivation

Training & Development

1. STAFFING
The activities in HRM concerned with seeking and hiring qualified employees are called Staffing.

1. STAFFING
The basic objective of the staffing function is to locate & secure competent employee.

COMPONENTS OF STAFFING
a. Strategic Human Resource Planning b. Recruitment c. Selection

a. STRATEGIC HUMAN RESOURCE PLANNING

Strategic Human Resource Planning is the process by which an organization ensures that it has right number and kind of people capable of effectively and efficiently completing those task that are in direct support of companys mission and strategic goals.

b. RECRUITMENT
The process by which a job vacancy is identified and potential employees are notified.

OBJECTIVES

 To obtain an adequate pool of applicants there by more choice to the organization.  Providing enough information about the job such that those who are unqualified will not apply.

c. SELECTION
Selection is the process by which an organization chooses from list of applicants the person or persons who meet the selection criteria for the position available considering current environmental conditions.

c. SELECTION
The primary objective of selection activities is to predict which job applicant will be suitable if hired, during the selection process, candidate are also informed about the job and organization Proper selection can minimize the cost of replacement and training resulting in more productive workforce

FUNCTIONS OF HRM Cont . . .

Staffing
Maintenance

TRAINING & DEVELOPMENT

Orientation Employee Training Employee Development Organization Development Career Development

HRM
Motivation

2. TRAINING & DEVELOPMENT

 Training is the systematic process of altering the behavior of employees in a direction that will achieve organizational goals.  Development can be defined as Efforts to improve employees ability to handle a variety of assignments are.

2. TRAINING & DEVELOPMENT

The basic objective of Training & Development function is to take competent workforce, adapt them to the organization, and help them to obtain up-to-date skills, knowledge, and abilities for their job responsibilities

COMPONENTS OF TRAINING & DEVELOPMENT

Orientation

Career Development

Employee Training

Organization Development

Employee Development

COMPONENTS OF TRAINING & DEVELOPMENT Cont . . .

a. Orientation
It covers the activities involve in the introducing a new employee to organization and to his or her work unit. Employee training is designed to assist employee acquiring better skill for the current job.
The focus of employee development is on a future position with in the organization for the which employee require additional competencies. The focus of career development is to provide the necessary information and assignment in helping employees realize their career goals. Organizational Development is the part of HRM that deals with facilitating system wide change in the organization.

b. Employee Training

c. Employee Development

d. Career Development
e. Organizational

Development

FUNCTIONS OF HRM Cont . . .

Staffing
Maintenance

HRM
Motivation

Training & Development

   

Motivation and Job Design Performance management Reward & Compensation Employee Benefits

3. MOTIVATION
MOTIVATION

An inner force that impels human beings to behave in a variety of ways.

3. MOTIVATION

The basic objective of motivation function is to retain good staff and to encourage them to give of their best.

COMPONENTS OF MOTIVATION
1. Job Design A job should be designed in a such a way that it should facilitate the achievement of the organizational objective, stimulate performance and recognize the capacity and needs of those who are to perform it. Process which is used to identify, encourage, measure, evaluate and improve employees through performance appraisal. Compensation is what employee receives in exchange for their contribution to the organization. Compensation management help the organization to obtain, maintain and retain a productive Workforce. Employees benefit are generally membership based ,non financial reward offered to attract and keep the employees, regardless their performance level.

2. Performance Management

3. Compensation Management

4. Employee Benefit

FUNCTIONS OF HRM Cont . . .

Staffing

Maintenance
Health & safety Communication Employee relations

HRM
Motivation

Training & Development

4. MAINTENANCE FUNCTION
MAINTENANCE

Activities in HRM concerned with maintaining employees commitment and loyalty to the organization.

4. MAINTENANCE FUNCTION
The last phase of HRM process is called maintenance function. The main objective of this function is to do such HRM activities that maintain employees commitment and loyalty with the organization.

COMPONENTS OF MAINTENANCE
Health and Safety
Designing and implementing programs to ensure employee health and safety.

Employees/ Labor Relation

Communication

 Serving as an intermediary between the organization and its union.  Designing discipline and grievance handling systems.

Designing and implementing employee communication system.

ROLES OF HR MANAGER
Clerical Administration

Serve as Morale Officer Administrative Role Employee Advocate Role

Operational Role

Strategic Role

HR Activities

Business Contributor

ROLES OF HR MANAGER Cont . . .

1. Administrative Role

Clerical and administrative support operations (e.g., payroll and benefits work).

2. Employee Advocate Role

Champion for employee concerns Employee crisis management Responding to employee complaints

3. Operational Role

Identification and implementation of HR programs and policieshiring, training, compensating and other activities that support the organization.

ROLES OF HR MANAGER Cont . . .

 Focusing on developing HR activities that enhance organizational performance.  Involvement in strategic planning.  Participating in decision making on mergers, acquisitions, and downsizing.  Accounting and documenting the financial results of HR activities.

4. Strategic Role

HR MANAGEMENT CHALLENGES
Economic and Technological Changes

Workforce Availability and

Quality Growth in Contingent Workforce Demographics and Diversity Issues
Balancing Work and Family

Organizational Restructuring, Mergers, and Acquisitions

HR MANAGEMENT CHALLENGES Cont . . .

1. Economic & Technological Changes  Shift in jobs for manufacturing and agriculture to service industries and telecommunications.  Pressures of global competition causing firms to adapt by lowering costs and increasing productivity.  Growth of information technology. 2. Workforce Availability and Quality Inadequate supply of workers with needed skills for knowledge jobs Education of workers in basic skills

HR MANAGEMENT CHALLENGES Cont . . .

3. Growth in Contingent Workforce
 Increases in temporary workers, independent contractors, leased employees, and part-timers caused by:  Need for flexibility in staffing decisions  Increased difficulty in firing regular employees. 4. Organizational Restructuring, Mergers, and Acquisitions Right-sizingeliminating of layers of management, closing facilities, merging with other organizations, and out placing workers.  Intended results are flatter organizations, increases in productivity, quality, service and lower costs.  HR managers must work toward ensuring cultural compatibility in mergers.

HR MANAGEMENT CHALLENGES Cont . . .

5. Balancing Work & Family  Dual-career couples  Single-parent households  Decline in the traditional family  Working mothers and family/childcare  Single employee backlash against family-oriented programs.

6. Demographics and Diversity Issues  More diversity of race, gender, age etc.

INTERNATIONAL HRM (IHRM)

International HRM (IHRM) is the process of procuring, allocating , and effectively utilizing human resources in a multinational corporation.

HRM vs. IHRM

 Encompasses more functions.  Has more heterogeneous functions.  Involves constantly changing perspectives.  Requires more involvement in employees personal lives.  Influenced by more external sources.  Involves greater level of risk than typical domestic HRM.

THE CONCEPT OF TRANSNATIONALITY

Each of these definitions, depending upon how the organization perceives itself , has implications for the role of international HRM.
Refers to companies that have developed a strategic posture and organizational capability that allow them to be very sensitive and responsive to differences in national environments around the world. Refers to companies that have developed international operations that are much more driven by the need for global efficiency and centralized in strategic and operational decisions. Based on Transferring and adapting the parent companys knowledge or expertise to foreign markets.

Multinational Companies

Global Companies International Companies

FUNCTION OF INTERNATIONAL HRM

Highlighting the broad functions of HRM, Morgan (1986) has presented a model that consist of three dimensions which are:

1.

The Three broad Human Resource activities:

Procurement Allocation Utilization

2.

The Three major Country categories involved in International HRM activities:

Host country Home Country Other Country

3.

The Three type of Employee of an International Firm:

Host country Nationals (HCNs) Parent Country Nationals (PCNs) Third Country National (TCNs)

APPROACHES TO IHRM
APPROACHES
ETHNOCENTRIC

DEFINITIONS MNC simply exports HR practices and policies used in the home country to the foreign subsidiaries. It Emphasizes consistency and integration across all subsidiaries. HR policies are adapted to meet the circumstances in each foreign location. Represents a regional grouping of subsidiaries. HR policies are coordinated and integrated within the region. HR policies are developed to meet the goals of the global network of home country locations and foreign subsidiaries.

POLYCENTRIC

REGIOCENTRIC

GEOCENTRIC

Evolution of HRM
Craft System Scientific Management Human Relations Behavioral Sciences Personnel Management

HRM

Intellectual Capital Management

Goals of HRM

Enhancing Productivity & Quality

Promoting Individual Growth & Development

Complying with Legal & Social Obligations

Facilitating Organizational Effectiveness

Functions of HRM

CHAPTER : 1

Human Resource Management

Scientific STAFFING Management TRAINING Scientific & Management DEVELOPMENT
Orientation Employee Training Employee Development Organizational Development Career Development

Scientific MOTIVATION Management

Scientific MAINTAINCE Management

Strategic Human Resource planning Recruitment Selection

Motivation & Job Design Performance Management Reward & Compensation Benefits

Health & Safety Communication Employee Relations

Roles of HR Manager
HR Management Challenges

Administrative

Employee Advocate

Operational

Strategic

Economic & Technological Changes

Workforce Availability & Quality

Growth in Contingent Workforce

Demographics & Diversity Issues

Balancing Work & Family

Mergers & Acquisition

International HRM (IHRM)

HRM Vs. IHRM

The Concept Of Transnationality

Function Of International HRM

Approaches to IHRM

THOUGHT OF THE DAY

People are definitely a companys realest asset. It doesn't make any difference whether the product is cars or cosmetics. A company is only as good as the people it keeps. Mary Kay Ash