INTRODUCTION TO HUMAN RESOURCE MANAGEMENT BY NISHA HARIYANI

According to Adi Godrej, “all corporate strengths are dependent on people.”

According to Adi Godrej, “all corporate strengths are dependent on people.”

Human Resource Management ‘ The real sources of competitive leverage are the culture and capabilities of your organization that derive from how you manage your people.’

‘ The real sources of competitive leverage are the culture and capabilities of your organization that derive from how you manage your people.’

Points to Ponder Definition and Concept of HRM History of HRM Functions of HRM HR Policies and Procedures Emerging Role of HRM Role of HR Executives Challenges to HR Professionals Strategic HRM

Definition and Concept of HRM

History of HRM

Functions of HRM

HR Policies and Procedures

Emerging Role of HRM

Role of HR Executives

Challenges to HR Professionals

Strategic HRM

Human Resource Management “ HRM is the function performed in organizations that facilitates the most effective use of people to achieve organizational and individual goals.” Ivancevich and Glueck

“ HRM is the function performed in organizations that facilitates the most effective use of people to achieve organizational and individual goals.”

Ivancevich and Glueck

History of HRM - 1 Scientific Management Approach (mid 1900s) – Study of motion and fatigue ‘ one-best-way’ to accomplish the task Piece-rate system Welfare programmes Failed to bring behavioural changes and increase in productivity Human Relations Approach (1930-40) Effect of social and psychological factors Relations and respect  High Productivity

Scientific Management Approach (mid 1900s) –

Study of motion and fatigue

‘ one-best-way’ to accomplish the task

Piece-rate system

Welfare programmes

Failed to bring behavioural changes and increase in productivity

Human Relations Approach (1930-40)

Effect of social and psychological factors

Relations and respect  High Productivity

History of HRM - 2 Human Resources Approach (1970s) Principles Employees are assets Policies, programmes and practices - help in work and personal development Conducive environment

Human Resources Approach (1970s)

Principles

Employees are assets

Policies, programmes and practices - help in work and personal development

Conducive environment

Challenges of HRM Individuals differ from one another Customization of stimulation and motivation Demanding personnel

Individuals differ from one another

Customization of stimulation and motivation

Demanding personnel

Functions of HRM - 1 Managerial Planning Organizing Staffing Directing Controlling

Functions of HRM - 2 Operational Employment HR Development Compensation Mgt Employee Relations HR Planning Recruitment Selection Placement Induction Performance Appraisal Training Management Development Career Planning and Development Job Evaluation Wage and Salary Admn Incentives Bonus Fringe Benefits

Emerging role or HRM Value of Human Resource Competitive advantage Human Resource Accounting – It is measurement of the cost and value of people for an organization

Value of Human Resource

Competitive advantage

Human Resource Accounting – It is measurement of the cost and value of people for an organization

ROLE OF HR EXECUTIVES Service provider Executive Facilitator Consultant Auditor

Service provider

Executive

Facilitator

Consultant

Auditor

Challenges to HR Professionals Worker productivity Quality improvement The changing attitudes of workforce The impact of the government Quality of work-life Technology and Training

Worker productivity

Quality improvement

The changing attitudes of workforce

The impact of the government

Quality of work-life

Technology and Training

Organizational Structure & HRM

Why structure ??? What structure signifies? No directions Leads to confusion Chaos Why???????????

What structure signifies?

No directions

Leads to confusion

Chaos

Why???????????

MAIN POINTS OF CHAPTER Organizational Structure and Human Resource Management Formal and Informal Organizations Tall and Flat Organizational Structures Responsibility, Authority and Accountability Line and Staff Functions Human Resource Management and other Organizational Functions

Organizational Structure and Human Resource Management

Formal and Informal Organizations

Tall and Flat Organizational Structures

Responsibility, Authority and Accountability

Line and Staff Functions

Human Resource Management and other Organizational Functions

Mechanistic Vs organic organization Rigid structure Employees are tied by rules & regulations High degree of centralization Suitable for operating in static environment Decision-making is done by superiors Ex: Public sector in the pre-reforms era Flexible structure Employees are not tied by rules & regulations Decentralized style of management Suitable for operating in dynamic environment Decision-making is done by junior level employees also Ex: Marico`s Saffola

Rigid structure

Employees are tied by rules & regulations

High degree of centralization

Suitable for operating in static environment

Decision-making is done by superiors

Ex: Public sector in the pre-reforms era

Flexible structure

Employees are not tied by rules & regulations

Decentralized style of management

Suitable for operating in dynamic environment

Decision-making is done by junior level employees also

Ex: Marico`s Saffola

Informal organization Bowling team Informal organization Chess group Formal organization President Vice President Vice President Vice President Division Managers Division Managers Division Managers Division Managers Division Managers Division Managers Division Managers Division Managers Division Managers Department Managers Department Managers Department Managers Department Managers Department Managers Department Managers Department Managers Department Managers Department Managers

Tall Vs Flat structure TALL STRUCTURE COO PM PM PM PM Team Lead Team Lead Team Lead Team Member Team Member Team Member Team Member FLAT STRUCTURE CMD ED ED ED GM GM GM CM CM Manager Manager Officer Officer Executive Executive

RESPONSIBILITY, AUTHORITY & ACCOUNTABILITY Responsibility: It is the obligation of a manager to carry out the duties assigned to him. Authority: It refers to the right to give orders and the power to exact obedience from others in the process of discharging responsibility. Accountability: The employee's answerability on using the authority in discharging the responsibility is termed accountability.

Responsibility:

It is the obligation of a manager to carry out the duties assigned to him.

Authority:

It refers to the right to give orders and the power to exact obedience from others in the process of discharging responsibility.

Accountability:

The employee's answerability on using the authority in discharging the responsibility is termed accountability.

LINE AND STAFF FUNCTIONS Departments or employees of a firm that perform core activities Contributes directly to the business of the firm Ex: Manufacturing and Marketing departments Departments or employees of a firm that perform a support function Contributes indirectly to the business of the firm Ex: HR and Finance departments

Departments or employees of a firm that perform core activities

Contributes directly to the business of the firm

Ex: Manufacturing and Marketing departments

Departments or employees of a firm that perform a support function

Contributes indirectly to the business of the firm

Ex: HR and Finance departments

Line & Staff Relationship Traditional concept Service oriented firm Which are line and staff functions Both needs to support each other

Line staff conflict Understand market & organization Be empathetic Build trust and transparency Win – win approach Different perception HR professional to bring change

Understand market & organization

Be empathetic

Build trust and transparency

Win – win approach

The Role of Human Resources Department As a specialist As a facilitator As a change agent As a controller

HUMAN RESOURCE MANAGEMENT AND OTHER ORGANIZATIONAL FUNCTIONS Product & HR Production & HR Marketing & HR Management Techniques & HR Organization structure & HR

summary Organizational Structure and Human Resource Management Formal and Informal Organizations Tall and Flat Organizational Structures Responsibility, Authority and Accountability Line and Staff Functions Human Resource Management and other Organizational Functions

Organizational Structure and Human Resource Management

Formal and Informal Organizations

Tall and Flat Organizational Structures

Responsibility, Authority and Accountability

Line and Staff Functions

Human Resource Management and other Organizational Functions

Think before others think

Think before others think

Human Resource Planning

Point to ponder Definition of Human Resource Planning Objectives of Human Resource Planning The Process of Human Resource Planning Managing the Forecasted Demand/Surplus Growing Importance of Human Resource Planning

Definition of Human Resource Planning

Objectives of Human Resource Planning

The Process of Human Resource Planning

Managing the Forecasted Demand/Surplus

Growing Importance of Human Resource Planning

Opening case HRP??? NO, Thank you A reputed south Indian university appointed 218 people on temporary basis and paid them Rs 750/month later increased to 1575/month. University already had surplus of these employees eating away 22% of budget allocation 33% of temporary staff already working for 10 years No laid down procedure for recruitment or appointment, go to vice chancellor and get your name scribbled on it and your are taken in

HRP??? NO, Thank you

A reputed south Indian university appointed 218 people on temporary basis and paid them Rs 750/month later increased to 1575/month.

University already had surplus of these employees eating away 22% of budget allocation

33% of temporary staff already working for 10 years

No laid down procedure for recruitment or appointment, go to vice chancellor and get your name scribbled on it and your are taken in

They then realised the guilt of violating Equal Remuneration Act and supressing human rights What to do with this 218 temoparay staff...?? University can dismiss services of 33% as there have been breaks in their services. Will they take it????? While 67% of temporary staff, university can not terminate them, as there were no breaks University decides to regularize their services, with 50 available vacancies This would cost the university an exra expenditure of Rs 30 lakh/year. And 1.2 crore for rest remaining...

They then realised the guilt of violating Equal Remuneration Act and supressing human rights

What to do with this 218 temoparay staff...??

University can dismiss services of 33% as there have been breaks in their services. Will they take it?????

While 67% of temporary staff, university can not terminate them, as there were no breaks

University decides to regularize their services, with 50 available vacancies

This would cost the university an exra expenditure of Rs 30 lakh/year. And 1.2 crore for rest remaining...

Human Resource planning Right number Right Skills Right Time Right Cost

HRP defined Process of anticipating and making provision for the movement of people into, within, and out of an organization

Process of anticipating and making provision for the movement of people into, within, and out of an organization

Objectives of HRP To maintain To forecast To optimize To utilize Right Cost Right Skills Right number Right Time

To maintain

To forecast

To optimize

To utilize

HRP at different planning levels Corporate – level planning Intermediate – level planning Operations planning Planning short-term activities

Corporate – level planning

Intermediate – level planning

Operations planning

Planning short-term activities

Organizational plans and objectives Identify future human resource requirements Compare with the current HR inventory Determine the redundant numbers Determine the numbers, levels & criticality of vacancies Analyze the cost & time involved in managing the demand Analyze the cost & time required for managing surplus Retrench Choose the resources & methods of recruitment Redeploy HUMAN RESOURCE PLANNING MODEL

Assessing current human resources and making inventory Job analysis HR inventory – HRIS Generate a fairly accurate picture existing situation

Job analysis

HR inventory – HRIS

Generate a fairly accurate picture existing situation

Forecasting Compare future needs with current availabity Analyze companies change plan Forecasting methods used are Time Series Analysis, Regression Analysis and Productivity Ratios

Compare future needs with current availabity

Analyze companies change plan

Forecasting methods used are Time Series Analysis, Regression Analysis and Productivity Ratios

Matching the inventory with future requirements If the current inventory exceeds the future requirements Natural attrition cannot bring down resource to match What to consider then????

If the current inventory exceeds the future requirements

Natural attrition cannot bring down resource to match

What to consider then????

MANAGING THE FORECASTED DEMAND / SURPLUS Managing future demand Managing Future Surplus

Dealing With Surplus Manpower Retrenchment outplacement layoffs Leave of absence without pay Loaning

Work Sharing Reduced work hours attrition Early/voluntary retirement

Growing importance of HRP

Thank you