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Introduction to human resource management

human resource management : concept and perspective evolution ans its philosophy, challenges in changing environment and the issues in India. ALL MBA STUDENTS

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Presented by
Shilpa Rajak
What do you understand by human
resource?
 Human resources is a term used to describe the
individuals who make up the workforce of an organization
 Human Resources refers to a function within an
organization charged with the overall responsibility for
implementing strategies and policies relating to the
management of individuals i.e., the HR management of the
organization.
HR
SKILLS
KNOWLEDGE
TALENT
APTITUDE
HR Management
In simple words, HRM can be defined as:
 Organization’s methods and procedures for managing
people to enhance skills and motivation.
 Activities to enhance the organization’s ability to attract,
select, retain and motivate people.
DEFINITIONS
 HRM encompasses those activities designed to provide
for & coordinate the HR of an organization– BYARS &
RUE
 HRM is a function performed in an organization that
facilitates the most effective use of people to achieve
organizational as well as individual goals-IVANCEVICH &
GLUECK

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Introduction to human resource management

  • 2. What do you understand by human resource?
  • 3.  Human resources is a term used to describe the individuals who make up the workforce of an organization  Human Resources refers to a function within an organization charged with the overall responsibility for implementing strategies and policies relating to the management of individuals i.e., the HR management of the organization.
  • 5. HR Management In simple words, HRM can be defined as:  Organization’s methods and procedures for managing people to enhance skills and motivation.  Activities to enhance the organization’s ability to attract, select, retain and motivate people.
  • 6. DEFINITIONS  HRM encompasses those activities designed to provide for & coordinate the HR of an organization– BYARS & RUE  HRM is a function performed in an organization that facilitates the most effective use of people to achieve organizational as well as individual goals-IVANCEVICH & GLUECK
  • 7. QUESTIONS • DOES HR MANAGEMENT MATTERS? • HOW DOES IT MATTER?
  • 8.  The HR managers have now started speaking the language of business. The seek to justify the economic value of their actions. THERE ARE TWO COMMON THINGS TO ALL BEST EMPLOYERS. 1. They build an inventory of people practices that are both unique & tailored for their firms. 2. They take trouble to painstakingly create a work environment that gets best out of their employees.
  • 10. Importance of Human Factor 1. Output will be greater than the input. 2.Each individual is different from culture, education, environment, background etc. 3.We can’t purchase the loyalty, .dedication, devotion towards the organization. 4.As time passes, human factor can bring experience to organization to accept the challenges. 5.Recent developments like legislation, trade unions enhanced their importance.
  • 11. Line and Staff Aspects of HRM • Line manager – A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks. • Staff manager – A manager who assists and advises line managers.
  • 12. Line Managers’ HRM Responsibilities 1. Placing the right person on the right job. 2. Orientation for new employees in the organization. 3. Training employees for jobs that are new to them. 4. Improving the job performance of each person. 5. Gaining creative cooperation and developing smooth working relationships. 6. Interpreting the firm’s policies and procedures. 7. Creating and maintaining department morale. 8. Protecting employees’ health and physical condition.
  • 13. NATURE OF HRM  HRM involves the application of management functions & principles. The functions & principles are applied to acquisition, developing, maintaining & remunerating employees in organizations.  Decisions made must influence the effectiveness of an organization & this effectiveness of the organization must result in betterment of services to customers in the form of high quality products supplied at reasonable costs.  HRM places emphasis on attitudinal & behavior
  • 14. CONTD..  HRM functions are not only confined to business establishments only. They are applicable to non-business organizations too, such as education, health care, recreation & the like.  HRM functions & activities are designed & carried out in order to maximize both employee as well as organizational effectiveness.  Decisions related to employees must be integrated.  HRM helps to improve the organizational efficiency, work culture, job satisfaction, better productivity & better understanding of human relations.
  • 15. SCOPE OF HRM HRM CONTROL • HR audit •HR accounting •HRIS MAINTENANCE •Remuneration •Safety & health •Motivation •Social security •IR •Performance appraisal DEVELOPMENT •Training •Career development •OD ACQUISITION • HRP •Recruitment •Selection •Placement
  • 16. CONTD.. The national institute of personnel management, Calcutta, has specified the scope of HRM as: 1. THE LABOR OR PERSONNEL ASPECT: Planning, recruitment, selection, placement, transfer, promotion, T&D, layoff, retrenchment, remuneration, etc. 2. WELFARE ASPECT: Canteen, crèches, rest & lunch rooms, housing, transport, medical assistance, education, health & safety, etc. 3. IR ASPECT: Union-management relations, settlement of disputes, grievance management.
  • 17. OBJECTIVES OF HRM The basic objective of HRM is to ensure that there are right people at the right time & at the right place. This basic objective is sub-divided into following sub-objectives:  To help organizations achieve/attain its goals effectively & efficiently by providing competent & motivated employees.  To utilize available HR effectively.  To increase to the fullest employee’s job satisfaction.  To ensure maximum individual development.
  • 18. CONTD..  To help maintain ethical policies & behavior inside & outside the organization.  To develop & maintain quality of work life which makes employment in the organizations a desirable personal & social situation.  To establish & maintain cordial relations between employees & management.  To reconcile individual/group goals with organizational goals.  To ensure respect for human personality & the well being of each individual.
  • 19. OBJECTIVES OF HRM PERSONAL OBJECTIVES FUNCTIONAL OBJECTIVES ORGANIZATIONAL OBJECTIVES SOCIETAL OBJECTIVES
  • 20. FUNCTIONS OF HRM They are broadly classified as: 1. Managerial functions: It includes the following: • Planning • Organizing • Staffing • Directing • Controlling
  • 21. CONTD.. 2. Operative functions  EMPLOYMENT • Job analysis • HRP • Recruitment • Selection • Induction • Placement • Transfer • Promotion
  • 22. CONTD..  HUMAN RESOURCE DEVELOPMENT • Executive Development • Performance appraisal • Training • Career Planning & Development • Organization change & development  COMPENSATION MANAGEMENT • Job evaluation • Wage & salary administration • Fringe benefits
  • 23. CONTD..  EMPLOYEE RELATION • Motivation • Morale • Job satisfaction • Communication • Grievance & disciplinary procedure (Conflict management, collective bargaining, participation of employees, discipline)
  • 24. CONTD.. MAINTENANCE • Health • Safety • Social security • Welfare schemes • Personnel records
  • 25. Functions of HRM1-9 The Strategic Role Of Human Resources Management – Planning – Organising – Directing – Controlling Operative Functions P/HRM Managerial functions: Procurement Job Analysis HR planning Recruitment Selection Placement Induction Internal mobility Development: Training Executive development Career planning Succession planning Human resources development strategies Motivation and Compensation: Job design Work scheduling Motivation Job evaluation Performance and potential appraisal Compensation administration Incentives benefits and services Maintenance: Health Safety Welfare Social security Integration: Grievances Discipline Teams and teamwork Collective bargaining Participation Empowerment Trade unions Employers’ associations Industrial relations Emerging Issues: Personnel records Personnel audit Personnel research HR accounting HRIS Job stress Mentoring International HRM
  • 26. EVOLUTION OF HRM  Trade Union Movement Era  Social Responsibility Era  Scientific Management Era  Human Relation Era  Behavioral Science Era  Systems Approach Era  Contingency Approach  Human Resource Approach
  • 27. HRM & ITS ENVIRONMENT Environment may be understood by all those factors which have their bearing on the functioning of various activities including HR activities. Analysis of environment is useful for the HR manager & his/her team in order to become proactive & not remain reactive to the environment.
  • 28. Environmental Forces 1. Internal Forces  Union  Organization culture & conflict  Professional bodies  Strategy, task & leadership 2. External Forces  Economical  Technological  Cultural  Political-Legal
  • 29. HRM Models 1. The Fombrun 2. The Harvard 3. The Guest 4. The Warwick
  • 30. The Fombrun, Tichy & Devenna Model Selection HRD APPRAISAL ORGANIZATION EFFECTIVENESS REWARDS
  • 31. • Being the first model (dates back to 1984), this emphasizes just four functions and their interrelatedness. The four functions are: selection, appraisal, development and rewards. These four constituent components of human resource management and are expected to contribute to organizational effectiveness. • The Fombrun model is incomplete as it focuses on only four functions of HRM and ignores all environmental and contingency factors that impact HR functions.
  • 33. The Harvard model • (1984) which use as an as a strategic map to concentrates on the soft aspect of HRM. It describes employee commitment. It also shows that employees needed to be competent and cost effective. This model has six basic components. Such as; • Stakeholders interest - shareholder, management, employee groups, government, unions • Situational factors- workforce characteristics, business strategy and conduct, management philosophy, Labour markets, unions, task technology, social and law values, • Human resources management policy choices – employee influence, hr. flow, rewards, work system • Human Resources outcomes- commitment, competence, congruence, cost effective • Long term consequences- individual well being, organizational effectiveness, societal well being • Feedback loop
  • 35. • (Guest, 1997) works on as integrated Human Resources Management practices will result to superior individual and organizational performance .The concept describes HRM strategies such as differentiation, innovation, the focus on Quality and cost reduction will increase good practices which influence the quality of the outcome, commitment and flexibility by training, appraisal, selection, rewards, job designs, involvement, and security. The final outcome will be positive productivity, with innovation, and decrees Labour turnover, fewer conflicts and less customer complaints.
  • 36. • Yet another human resource management model was developed by David Guest in 1997 and claims to be much superior to other models. The details will justify the claim. This model claims that the HR manager has specific strategies to begin with, which demand certain practices and when executed, will result in outcomes. These outcomes include behavioral, performance related and financial rewards. • The model emphasizes the logical sequence of six components: HR strategy, HR practices, HR outcomes, behavioral outcomes, performance results and financial consequences. Looking inversely, financial results depend on employee performance, which in turn is the result of action oriented employee behaviors. Behavioral outcomes are the result of employee commitment, quality and flexibility, which, in turn are impacted by HR practices. HR practices need to be in tune with HR strategies which are invariably aligned with organizational strategies. • The claim of the Guest model that it is superior to others is partly justified in the sense that it clearly maps out the field of HRM and delineates the inputs and outcomes. But the dynamics of people management are so complex that no model (including the Guest model) can capture them comprehensively.
  • 38. Warwick model: was developed by Hendry and Pettigrew (1990). It is on analytical approach to Human Resources Management. It also recognizes the impact of the role of the personnel functions on the human resource strategy content. : Outer context, inner context, business strategy context, HRM context, HRM content
  • 39. This model was developed by two researchers, Hendry and Pettigrew of University of Warwick (hence the name Warwick model). Like other human resource management models, the Warwick proposition centers around five elements • Outer context (macro environmental forces) • Inner context (firm specific or micro environmental forces) • Business strategy content • HRM context • HRM content The Warwick model takes cognisance of business strategy and HR practices (as in the Guest model), the external and internal context (unlike the Guest model) in which these activities take place, and the process by which such changes take place, including interactions between changes in both context and content. The strength of the model is that it identifies and classifies important environmental influences on HRM. It maps the connection between the external and environmental factors and explores how human resource management adapts to changes in the context. Obviously, those organizations achieving an alignment between the external and internal contexts will achieve performance and growth.
  • 40. Shifts in HR management in India 1-19 The Strategic Role Of Human Resources Management Emerging HR practice  Strategic role  Proactive  Key part of organizational mission  Service focus  Cross-functional teams, teamwork most important  People as key investments/assets Traditional HR practice  Administrative role  Reactive  Separate, isolated from company mission  Production focus  Individuals encouraged, singled out for praise, rewards  People as expenses
  • 41. 3-22 Designing appropriate HR systems Issue Focus on  Nature of employment : Job/Career  Recruitment : Internal/external/both  Selection : Merit/other considerations  Training and employee : 6 months/yearly development actions Regular/irregular/need based  Degree of participation : Top down/bottom up  Incentives : Individual merit/group output  Job security : Lifelong employment/need-based jobs  Employee welfare : Be a model employer (offer those that are needed by law.)
  • 42. CHALLENGES TO HR PROFESSIONAL  Worker productivity  Quality improvement  The changing attitude of workforce  The impact of government  Quality of work life  Technology & training