Intro to HR.ppt

1. Human Resource Management - Introduction
By Harleen Mahajan

2. Human Resource Management Strategy
Why is HR critical to firm performance?
 67% of all firms in the INDIA are service firms.
 Service is delivered by people.
 Low quality HR leads to low quality customer
service.
 In the 21st century effective knowledge
management translates into competitive
advantage and profits.
 Knowledge comes from a firm’s people.

3. Definition
 Human Resource Management (HRM) is the
function within an organization that focuses on
recruitment of, management of, and providing
direction for the people who work in the
organization. Human Resource Management
can also be performed by line managers.

4. Human Resource Management Strategy
What is unique about Human Resource Management?
 HR is multidisciplinary: It applies the disciplines
of Economics (wages, markets, resources),
Psychology (motivation, satisfaction),
Sociology (organization structure, culture) and
Law (min. wage, labor contracts)
 HR is embedded within the work of all
managers, and most individual contributors due
to the need of managing people (subordinates,
peers and superiors) as well as teams to get
things done.

5. HR : Strategic Fit
Training Rewards
Corporate Strategy
Business Strategy
HR Strategy
HR System
(Performance Mgmt.)

6. HR Strategy: HR System Internal Fit
Performance Management System
HR Strategy
Goal Setting
Performance
Measurement
Coaching
Rewards
Appeal
Performance Evaluation

7. HR : Context of HR System
1. The “Five Factors” Influencing the HR System
 External Environment
 Social: social values, diversity, trends, etc.
 Political: political forces, changes.
 Legal: laws, court decisions, regulatory rules.
 Economic: eco growth, per capita income.

8. Social: social values, diversity, trends, etc.
 Young V/s Old
 Values (Americans VS Indians)
(Ethnocentric, Punctuality, Cleanliness, parochialism)
 Reserved categories in India
 SC and ST
 OBC’s
 DP’s
 Contract Labour
 Child Labour
 Defence and military people

9. Legal: laws, court decisions, regulatory rules.
 Minimum Wages Act 1948
 Payment of wages Act 1936
 The payment of bonus act 1965
-Calculated on the salary 2500 per month
-Ranges between 4-8.3%
-Employment required 30 days
-Has to be paid within 8 months after closing
-Bonus in case of no surplus

10.  Political Environment
 Legislature, executive and judiciary for HR law
implementation for the execution of :
 Article 14: Equality before Law
 Article 15: Prohibits discrimination
 Article 16:Equal Opportunity
 Article 24: Prohibits employments of children
 Article 42: Humane conditions

11.  Scope of Human Resource

12. Recruitment

13. Recruitment
 The process by which a job vacancy
is identified and potential employees are notified.
 The nature of the recruitment process
is regulated and subject
to employment law.
 Main forms of recruitment through advertising in
newspapers, magazines, trade papers and internal
vacancy lists.

14. Recruitment
 Job description – outline of the role
of the job holder
 Person specification – outline
of the skills and qualities required
of the post holder
 Applicants may demonstrate their suitability through
application form, letter or curriculum vitae (CV)

15. Selection

16. Selection
 The process of assessing candidates and
appointing a post holder
 Applicants short listed –
most suitable candidates selected
 Selection process –
varies according to organisation:

17. Employment Legislation

18. Discrimination
 Crucial aspects
of employment legislation:
 Race
 Gender
 Disability
Disability is no longer an issue for employers
to ignore, they must take reasonable steps
to accommodate and recruit disabled workers.

19. Discipline

20. Discipline
 Firms cannot just ‘sack’ workers
 Wide range of procedures and steps
in dealing with workplace conflict
 Informal meetings
 Formal meetings
 Verbal warnings
 Written warnings
 Grievance procedures
 Working with external agencies

21. Development

22. Development
 Developing the employee
can be regarded as investing
in a valuable asset
 A source of motivation
 A source of helping the employee fulfil potential

23. Training

24. Training
 Similar to development:
 Provides new skills for the employee
 Keeps the employee up to date
with changes in the field
 Aims to improve efficiency
 Can be external or ‘in-house’

25. Rewards Systems

26. Rewards Systems
 The system of pay and benefits used by the firm
to reward workers
 Money not the only method
 Fringe benefits
 Flexibility at work
 Holidays, etc.

27. Trade Unions

28. Trade Unions
 Importance of building relationships with employee
representatives
 Role of Trade Unions has changed
 Importance of consultation
and negotiation and working
with trade unions
 Contributes to smooth change management and
leadership

29. Productivity

30. Productivity
 Measuring performance:
 How to value the workers contribution
 Difficulty in measuring some types of output – especially in the
service industry
 Appraisal
 Meant to be non-judgmental
 Involves the worker and a nominated appraiser
 Agreeing strengths, weaknesses and ways forward
to help both employee and organisation

31. HR Strategy: Context of HR System
Critical Thinking Questions:
1. Should a company monitor the HR
environment and imitate “Best Practices” of HR
from successful firms? Recall some of the best
practices.
2. What type of HR practices would fit with jobs
with tasks that are highly ambiguous, uncertain
and creative? What about predictable, routine
and certain tasks?