Intro to HRM

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  • 1. The Role of Human Resource Management in the Organisation According to Adi Godrej – all corporate strengths are dependent on people ©The McGraw-Hill Companies,
  • 2. Objective • To maximize the productivity of the organization by optimizing the effectiveness of its employees ©The McGraw-Hill Companies,
  • 3. Principles of HRM • Human resources are the most important assets of the organisation • business success "is most likely to be achieved if the personnel policies and procedures of the enterprise are closely linked with, and make a major contribution to, the achievement of corporate objectives and strategic plans.“ – Michael armstrong • find, secure, guide, and develop employees whose talents and desires are compatible with the operating needs and future goals of the company. ©The McGraw-Hill Companies,
  • 4. Changing environment of human resource management • • • • Globalization trends Technological trends Trends in the nature of work Workforce demographic ©The McGraw-Hill Companies,
  • 5. Post 70s Features of HRM • The collective bargaining role • The implementer of legislation role • The bureaucratic role • The social conscience of business role. • A growing performance improvement role ©The McGraw-Hill Companies,
  • 6. Traditional HR Functions ©The McGraw-Hill Companies,
  • 7. Personnel Versus Human Resource Management ©The McGraw-Hill Companies,
  • 8. Points of Difference between Personnel and IR Practices and HRM Practices Beliefs & assumptions Contract • Rules • Guide to management action • Behavior referent • Managerial task • Nature of relations • Conflicts ©The McGraw-Hill Companies,
  • 9. Strategic aspects • Key relations • Corporate plan • Speed of decision ©The McGraw-Hill Companies,
  • 10. Line management • • • • • Leadership Key managers Communication Standardization Prized management skills ©The McGraw-Hill Companies,
  • 11. Key levers • • • • • Selection Pay Labor management Job categories & grades Job design ©The McGraw-Hill Companies,
  • 12. • • • e-mail one Attention: Human Resources Joe Smith, my assistant programmer, can always be found hard at work in his cubicle. Joe works independently, without wasting company time talking to colleagues. Joe never thinks twice about assisting fellow employees, and he always finishes given assignments on time. Often Joe takes extended measures to complete his work, sometimes skipping coffee breaks. Joe is an individual who has absolutely no vanity in spite of his high accomplishments and profound knowledge in his field. I firmly believe that Joe can be classed as a high-calibre employee, the type which cannot be dispensed with. Consequently, I duly recommend that Joe be promoted to executive management, and a proposal will be executed as soon as possible. Regards, Project Leader ©The McGraw-Hill Companies,
  • 13. • e-mail two Attention: Human Resources • Joe Smith was reading over my shoulder while I wrote the report sent to you earlier today. Kindly read only the odd numbered lines [1, 3, 5, etc.] for my true assessment of his ability. Regards, Project Leader ©The McGraw-Hill Companies,
  • 14. Distinguishing Between HRM and PM ©The McGraw-Hill Companies,
  • 15. Guest’s Model of HRM • Linked to the strategic management of an organisation. • Seeks commitment to organisational goals • Focuses on the individual needs rather than the collective workforce. • Enables organisations to devolve power and become more flexible • Emphasises people as an asset to be positively utilised by the organisation. ©The McGraw-Hill Companies,
  • 16. Storey’s Definition of HRM • • • • 'Human capability and commitment'. Storey argues that this is what differentiates organisations. Strategic importance of HRM. It needs to be implemented into the organisational strategy and needs to be considered at the highest management level. The long term importance of HRM. It needs to be integrated into the management functions and is seen to have importance consequences on the ability of the organisation to achieve its goals. The key functions of HRM which are seen to encourage commitment rather than compliance. ©The McGraw-Hill Companies,
  • 17. The HR Functions ©The McGraw-Hill Companies,
  • 18. Points of Difference between Personnel and IR Practices and HRM Practices Dimension Personnel/IR HRM Beliefs and assumptions 1. Contract Careful delineation of written contracts Aim to go 'beyond contract' 2. Rules Importance of devising clear rules/mutuality 'Can-do' outlook; impatience with 'rule' 3. Guide to management action Procedures 'Business need' 4. Behaviour referent Norms/custom and practice Values/mission Managerial task vis a vis labour Monitoring Nurturing 6. Nature of relations Pluralist Unitarist 7. Conflict Institutionalised De-emphasised ©The McGraw-Hill Companies,
  • 19. S trate gic as pe c ts Personnel /IR HRM 8. Key relations Labour management Customer 9. Initiatives Piecemeal Integrated 10.Corporate plan Marginal to Central to 11. Speed of decision Slow Fast ©The McGraw-Hill Companies,
  • 20. Line manage me nt Personnel / IR HRM 12. Management role Transactional Transformational leadership 13. Key managers Personnel/IR specialists General/business/line managers 14. Communication Indirect Direct 15. Standardisation High (for example 'parity' an issue) 16. Prized management skills Negotiation Low (for example 'parity' not an issue) Facilitation ©The McGraw-Hill Companies,
  • 21. Key Levers Personnel / IR HRM 17. Selection Separate, marginal task Integrated, key task 18. Pay Job evaluation (fixed grades) Performance related 19. Conditions Separately negotiated Harmonisation 20. Labour management Collective bargaining contracts Towards individual contracts 21. Thrust of relations with stewards Regularised through facilities and training 22. Job categories and grades Many Marginalised (with exception of some bargaining for change models) Few 23. Communication Restricted flow Increased flow 24. Job design Division of labour Teamwork 25. Conflict handling Reach temporary truces Manage climate and culture 26. Training and development Controlled access to courses Learning companies 27. Foci of attention for interventions Personnel procedures Wide ranging cultural, structural and personnel strategies © The McGraw-Hill Companies,
  • 22. A Model of the Shift to HRM ©The McGraw-Hill Companies,
  • 23. Hard HRM • The 'hard' approach rooted in the manpower planning approach is concerned with aligning human resource strategy with business strategy ©The McGraw-Hill Companies,
  • 24. Soft HRM • The 'soft' approach is rooted in the human relations school, with concern for workers' outcomes and encourages commitment to the organisation by focussing on workers' concerns. ©The McGraw-Hill Companies,
  • 25. The Human Resource System ©The McGraw-Hill Companies,
  • 26. The Harvard Model of Human Resource Management ©The McGraw-Hill Companies,
  • 27. Guest’s Model of HRM ©The McGraw-Hill Companies,
  • 28. Human resource Development ©The McGraw-Hill Companies,
  • 29. The Context of HRM ©The McGraw-Hill Companies,
  • 30. Strategic Management and Environmental Pressures ©The McGraw-Hill Companies,
  • 31. The Human Resource Cycle ©The McGraw-Hill Companies,
  • 32. Summary • An HR manager needs to recognise that Human Resource Management is in a constant state of change. • HR management has progressed from an ad hoc role to the professional body of the CIPD. ©The McGraw-Hill Companies,
  • 33. Summary continued 1 • The terms Personnel management and HRM have are part of the debate that inform the role of the HR manager. • HRM is viewed as a means of moving people along to achieve organisational goals through staffing, performance, change management and administrative objectives. ©The McGraw-Hill Companies,
  • 34. Summary continued 2 • Personnel Management has often been seen as a bridge between the employer and the employee. • "Hard" HRM characterised by the Michigan model is seen as viewing people as a resource needed to achieve organisational goals. • "Soft" HRM characterised by the Harvard model is seen as a method of developing strategies to encourage employee©The McGraw-Hill Companies,
  • 35. Summary continued 3 • The functions of HR include: planning and resourcing; recruitment and selection; training and development; pay and reward and employee relations. • Understanding the HR context in relation to the organisational and external context is important for an effective HR manager. ©The McGraw-Hill Companies,