Hrm 1 vtu_sem_2


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Hrm 1 vtu_sem_2

  1. 2. HRM <ul><li>HUMAN RESOURCE OR HUMAN RELATIONS MANAGEMENT </li></ul><ul><li>Personnel Management is a function of managing people. </li></ul><ul><li>PM is also called HRM. </li></ul>
  2. 3. What do you understand by HRM <ul><li>HRM is the effective use of human resources in order to enhance organisational performance. </li></ul><ul><li>Activities an organization conducts to use its human resource effectively </li></ul><ul><li>HRM proposes that people are a capital resource ( Human capital) and return on people is the measurable outcome. </li></ul><ul><li>  </li></ul>
  3. 4. What is HRM ? <ul><li>Origins . - HRM-type themes, including ‘ human capital theory’ and 'human asset accounting', can be found in the literature from the 1970s. </li></ul><ul><li>The modern view of HRM gained prominence in 1981 - introduction in the prestigious MBA course at Harvard Business School. </li></ul><ul><li>Simultaneously, other interpretations were being developed in Michigan and New York </li></ul>
  4. 5. Brief History of HRM. History of HRM can be characterized in two ways <ul><li>(1) as moving through 4 broad phases. </li></ul><ul><li>(2) Through the 20 th century. </li></ul><ul><li>(1) as moving through 4 broad phases : A . The craft system: Craft guilds supervised quality,production,methods,conditions of employment. </li></ul><ul><li>Senior (master) worker controlled guilds-recruit entered after long-rigorous training. Best suited for domestic industry. </li></ul><ul><li>Mass production deteriorated craft guilds. </li></ul>
  5. 6. Brief History of HRM. History of HRM can be characterized in two ways <ul><li>( B) Scientific Management : Early 20 th century. </li></ul><ul><li>Tasks were divided into parts among unskilled workers. </li></ul><ul><li>Large hierarchy of supervisors and managers became necessary. </li></ul><ul><li>Along came assembly line and a scientific approach to an analysis of working terms of its constituent parts. </li></ul><ul><li>Founder – American Mechanical Engineer Fredrick Taylor. </li></ul>
  6. 7. Brief History of HRM. History of HRM can be characterized in two ways <ul><li>( C ) Human Relations Approach : “in order to be productive and satisfied employees need to be understood”. </li></ul><ul><li>Hawthorne studies: Elton Mayo and associates (1880-1949).Conducted at Western Electrical,Chicago. </li></ul><ul><li>Studied effect of illumination on productivity-one group was told lighting is going to be changed –but not changed-workers were satisfied and productivity increased. </li></ul><ul><li>Finding: significant variable was not physical but psychological.These findings led to lot of research on the social factors associated with work results-led to Human Relations Movement. </li></ul>
  7. 8. Organizational Science –Human Resource Approach: <ul><li>( D ) Current organizational Science –Human Resource Approach: </li></ul><ul><li>Focuses on total organization. </li></ul><ul><li>Grew out of organizational science trend and combines learning from the previous movements with current research on behavioural science. </li></ul>
  8. 9. Before we go on… <ul><li>Contents Module 1 </li></ul><ul><li>Introduction </li></ul><ul><li>Nature and scope of HRM and HRD </li></ul><ul><li>PM v/s HRM </li></ul><ul><li>Features and Role of HRM </li></ul><ul><li>Managerial functions and operative functions </li></ul><ul><li>Objectives of HRM policies-procedures and programmes. </li></ul><ul><li>Line and staff and personnel management. </li></ul><ul><li>Role and qualities of HR Manager </li></ul>
  9. 10. Objective of this module <ul><li>Objective of this module is </li></ul><ul><li>To familiarize students with various with various HRM terms. </li></ul><ul><li>Introduce students to fundamentals and importance of HRM. </li></ul><ul><li>Duration… </li></ul>
  10. 11. Introduction <ul><li>HRM starts from organization needs for HR with demand rather than supply. </li></ul><ul><li>PM is designed to achieve organizational objective-like profit maximization. </li></ul><ul><li>HRM gives equal importance to individual and organizational development. </li></ul><ul><li>HRM is dedicated to develop a suitable corporate culture. Programmes are designed and implemented to reflect the core values of the enterprises. </li></ul>
  11. 12. Introduction <ul><li>HRM is deep rooted comprehensive activity taken up to improve the quality of human beings who are vital assets of the organization. </li></ul><ul><li>PM is subsystem of general management system. It concentrates on managing human element and other allied aspects </li></ul><ul><li>HRM is directed towards managerial needs for resource in organization, with greater emphasis on planning, monitoring and control rather than problem solving and mediation. </li></ul><ul><li>A detailed study of people is the main function of HRM. !!!!!! </li></ul>
  12. 13. Introduction <ul><li>Study of HRM in college or reading number of books will not magically change one into an effective HR Manager. </li></ul><ul><li>A practical approach to human and organizational problems, clear analysis of </li></ul><ul><li>issues and thinking is what makes one an effective PM . </li></ul><ul><li>PM has to keep his head above water while moving ahead </li></ul>
  13. 14. Introduction <ul><li>P Management is one of the most challenging and complex fields of study and work. </li></ul><ul><li>Firms requirement for an effective work force has to be met and should be concerned with welfare of employee and society . </li></ul>
  14. 15. Books <ul><li>Personnel Management - Edwin Flippo 6 th Edition </li></ul><ul><li>Human resource management – Cynthia Fisher </li></ul><ul><li>Personnel and HR Management – P.Subba Rao (Latest Edition) </li></ul><ul><li>A good dictionary </li></ul>
  15. 16. What you have to do <ul><li>Use a dictionary </li></ul><ul><li>Listen carefully </li></ul><ul><li>Serious Pre-class reading </li></ul>
  16. 17. What is human resource management?   <ul><li>The effective use of people to achieve both organizational and individual goals   </li></ul><ul><li>The effective recruitment, selection, development, compensation, and utilization of human resources by organizations </li></ul><ul><li>  The Harvard interpretation sees employees as resources. They are fundamentally different from other resources - they cannot be managed in the same way. The stress is on people as human resources. </li></ul><ul><li>          </li></ul>
  17. 18. Why care about HRM ? <ul><li>Impact on you as employees </li></ul><ul><li>Impact on you as managers </li></ul><ul><li>Potential future roles as HR professionals </li></ul><ul><li>Impact of HRM on organizations </li></ul><ul><li>  </li></ul>
  18. 19. HRM has increased in importance since the 1980s.  Why? <ul><li>People determine the success and failure of organizations and projects. </li></ul><ul><li>Globalization </li></ul><ul><li>Government regulation </li></ul><ul><li>Stronger knowledge/research base </li></ul><ul><li>Changing role for labor unions </li></ul><ul><li>Challenge of matching worker expectations with competitive demands </li></ul><ul><li>  </li></ul>
  19. 20. Importance of HRM <ul><li>PERSONNEL – EMPLOYEES – STAFF </li></ul><ul><li>Organizations create rules or guidelines to encourage people working to accomplish organizational goals. To accomplish the objectives there is need to create good Industrial Relation. For this </li></ul><ul><li>Management has to manage / lead people effectively. </li></ul><ul><li>Cost reduction-down sizing are major concerns , but not at the cost of quality and losing out to competition. </li></ul><ul><li>Every Manager wants to deliver quality goods and services . For this We require quality workforce. </li></ul><ul><li>People and the way they are managed are the major sources of competitive advantage. </li></ul>
  20. 21. Importance of HRM <ul><li>Personnel Management helps- build an effective and satisfied working team. “ </li></ul><ul><li>“ Human factor of production “- skills, knowledge, physical , mental energy etc are given due consideration. </li></ul><ul><li>Dale Yoder said “ managing people is the heart and essence of being a manager. Success or progress of an organization depends on how manager can motivate, understand, lead, inspire and activate them ”. </li></ul>
  21. 22. Be familiar with <ul><li>Personal – Personnel </li></ul><ul><li>HR - HRM </li></ul><ul><li>Career - Carrier </li></ul><ul><li>Turnover =No of employees leaving the organization </li></ul><ul><li>Retention = Retaining existing employee </li></ul><ul><li>Attrition = wearing away </li></ul><ul><li>Job family = all jobs related to same category – mechanical, production, sales </li></ul><ul><li>Outsourcing = Handing over the particular task to outside agency/ </li></ul><ul><li>sister concern = Organization of the same management </li></ul><ul><li>Ergonomics = study of work and its environment to achieve maximum efficiency </li></ul><ul><li>Man Power = HR / how many people </li></ul>
  22. 23. Be familiar with <ul><li>HR = Human Resource </li></ul><ul><li>HRM = Human Resource Management </li></ul><ul><li>HRP = Human Resource Planning </li></ul><ul><li>MP = Manpower Planning </li></ul><ul><li>PBC = Performance Based Compensation </li></ul><ul><li>NEP = New Economic Policy </li></ul><ul><li>GE = Global Economy </li></ul><ul><li>MBO = Management By Objective </li></ul><ul><li>MBE = Management By Exception </li></ul><ul><li>WPM = Workers Participation </li></ul>
  23. 24. Definitions of HRM <ul><li>Definitions: D. YODER and others </li></ul><ul><li>“ HRM is the phase of the management , which deals with the effective control and use of manpower as distinguished from other sources of power.”. </li></ul><ul><li>“ The management of HR is a system - participants seek to attain both individual and group goals “ . </li></ul><ul><li>National Institute of PM “ it is that part of PM function which is primarily concerned with the human relationship within an organization. “ </li></ul>
  24. 25. Definitions of HRM <ul><li>“ Personnel Management involves procedures and practices through human resources and are managed ie organized and directed towards attainment of individual, organizational and social goals”. </li></ul><ul><li>British Institute of PM London, “ It is that part of management, which is concerned with the people at work and with their relationship within the enterprise “. </li></ul>
  25. 26. Nature of HRM <ul><li>1. A NATURE OF HRM – is to reflect its new philosophy , a new outlook, approach and strategy which views an Organizations manpower as its resource and assets not as liabilities or mere hands . </li></ul><ul><li>Mechanisation and IT have brought in more humans with different attitudes and behaviour into Organizations. </li></ul><ul><li>HRM looks into the individual needs and motivates them to work. Human element in the enterprise has paved the way for effective management of the organization. </li></ul>
  26. 27. Scope of HRM <ul><li>Just employment, maintenance of salary records has enlarged to </li></ul><ul><li>Providing welfare </li></ul><ul><li>Performance Appraisal / Management </li></ul><ul><li>Human Relations </li></ul><ul><li>Strategic HR </li></ul><ul><li>Employee Involvement </li></ul>
  27. 28. Scope of HRM <ul><li>Manager’s job is administering a “ social system “. Personnel records is becoming more and more important so as to ensure the adaptability of personnel / employees. </li></ul><ul><li>Labour Relations, Public Relations and plant security are Personnel sub areas – not left to be the sole responsibility of Personnel Department. </li></ul><ul><li>The scope is wide and varied “ P. Department and P.Mnagers perform a variety of roles in accordance with the needs of a situation”. </li></ul><ul><li>Personnel Managers play multiple roles –bargainers, conscience keepers, peace makers, counselors, Company spokespersons, problem solvers and change managers. </li></ul>
  28. 29. Scope of HRM include <ul><li>Objectives of HRM </li></ul><ul><li>Organization of HRM </li></ul><ul><li>Employment & Development </li></ul><ul><li>Wages, Salary, compensation –Administration </li></ul><ul><li>Motivation </li></ul><ul><li>Industrial Relations </li></ul><ul><li>Participative Management </li></ul>
  29. 30. Strategic Role of HRM <ul><li>Firm’s ability to survive and prosper is increasingly a function of the human resources they have </li></ul><ul><li>Managers’ career success depends on how well they manage their firm’s resources </li></ul>
  30. 31. HRM v/s PM <ul><li>HRM is proactive than reactive. </li></ul><ul><li>Is goal oriented. </li></ul><ul><li>Treats labour as social capital </li></ul><ul><li>HRM - starts from organization needs for HR with demand rather than supply. </li></ul><ul><li>PM - is directed at the employees of the organization </li></ul><ul><li>Finding, training, arranging pay and contracts of employment </li></ul><ul><li>Explaining what is expected of them. </li></ul><ul><li>justifying what management is doing. </li></ul><ul><li>Trying to modify management action that could produce an unwelcome response from the employees. </li></ul>
  31. 32. HRM v/s PM <ul><li>In modern HRM principles and theories from Psychology , Sociology , philosophy, economics and Management are combined. </li></ul><ul><li>P Manager ( worst stage ) has to act as organizations social conscience. </li></ul><ul><li>P Manager ( best stage ) works as </li></ul><ul><li>a well informed specialist , with all members of the organization, in determining and meeting the demands of the social role. </li></ul>
  32. 33. HRM v/s PM <ul><li>HRM is directed towards managerial needs for resource in organization with greater emphasis on planning, monitoring and control rather than problem solving and mediation. </li></ul><ul><li>The strategic and philosophical context of HRM makes it more purposeful, relevant, and more effective. </li></ul><ul><li>HRM is significantly different from PM >>>HRM is demand-driven. </li></ul><ul><li>PM is subsystem of general management system. </li></ul><ul><li>It concentrates on managing human element and other allied aspects. </li></ul><ul><li>PM is directed mainly at company employees and not completely identified with management needs. </li></ul><ul><li>PM - is supply driven – </li></ul>
  33. 34. PM v/s HRM <ul><li>Most obvious change is a “re-labelling process” ? </li></ul><ul><li>A valuable contribution of HRM is to direct the attention to </li></ul><ul><li>people as the key resource of organisations and lending the “management of personnel ” increased importance. </li></ul><ul><li>Procedures and techniques strongly resemble those of personnel management. </li></ul>
  35. 36. Meaning and Functions <ul><li>Meaning = HRM means the process of accomplishing organizational objectives by acquiring , retaining, terminating, developing and properly using the HR in the organization. </li></ul><ul><li>HRM encompasses many functions </li></ul><ul><li>HRD is just one of the functions within HRM </li></ul>
  36. 37. Meaning and Functions HRM People Functions Include:   <ul><li>Performance Management </li></ul><ul><li>Communication </li></ul><ul><li>Training and Development </li></ul><ul><li>Employee commitment </li></ul><ul><li>Equal opportunity </li></ul><ul><li>Health and safety </li></ul><ul><li>Grievances/labor relations </li></ul><ul><li>Job analysis </li></ul><ul><li>Labour needs </li></ul><ul><li>Recruit ment </li></ul><ul><li>Selection </li></ul><ul><li>Orientation and training </li></ul><ul><li>Wages and salaries </li></ul><ul><li>Incentives and benefits </li></ul>
  37. 38. HRM FUNCTIONS Primary Secondary <ul><li>Human resource planning </li></ul><ul><li>Equal employment opportunity </li></ul><ul><li>Staffing (recruitment and selection) </li></ul><ul><li>Compensation and benefits </li></ul><ul><li>Employee and labor relations </li></ul><ul><li>Health, safety, and security </li></ul><ul><li>Human resource development </li></ul><ul><li>Organization and job design </li></ul><ul><li>Performance management/ performance appraisal systems </li></ul><ul><li>Research and information systems </li></ul>
  38. 39. MEANING-FUNCTIONS OF HRM Functions as per George Strauss and Leonard Sayels <ul><li>. </li></ul><ul><li>1. Recruitment (Acquiring people, selection(with talent , skill, will and motivation), Job analysis , job description , and job evaluation </li></ul><ul><li>2. Increasing organizational efficiency, . Establishing healthy relationship between Mgmt and workers and workers themselves. </li></ul><ul><li>3. Retaining - there should not be high manpower turnover. Recruited HR should remain in the organization for a long time. </li></ul><ul><li>4.Training and educational programmes. helping employee identify with the organization. </li></ul><ul><li>5. Developing – involves educating , training , and making HR accept any type of current or future work. </li></ul>
  39. 40. Functions of HRM <ul><li>6. Terminating – Employees who are unruly, unproductive , expensive should be made to retire. They are a strain on the finance and bad influence on other employees. </li></ul><ul><li>7 . Labour Relations ( collection of information, preparation, arbitration etc ( The maintenance and effective use of facilities for joint consultation between employer and employee to settle all disputes effectively. </li></ul><ul><li>8 . Personnel planning and Evaluation .:. A detailed study of people is the main function of HRM. </li></ul><ul><li>10. Preparation and implementation of compensation and appraisal plans </li></ul><ul><li>11. Employees Record , Employees benefits services and programmes </li></ul><ul><li>12. Special services such as safety , communication etc </li></ul><ul><li>HRM encompasses every activity relating to HR in an organization and communication system which reduces militancy. </li></ul>
  40. 41. Functions of HRM <ul><li>All activities connected with the employees of an organization and all decisions reflected to the human relations come within the functional areas of HR management. </li></ul><ul><li>Functions may vary according to situations and nature of work, </li></ul><ul><li>the organization and attitude of Mgmt. </li></ul><ul><li>Functions of HRM seek to secure the maximum return with minimum investment on HR. </li></ul><ul><li>Physical assets loose their value by constant and regular use due to wear and tear. </li></ul><ul><li>Value of HR increases through appropriate utilization and proper development. ***** IMPORTANT </li></ul>
  41. 42. Functions of HRM Managerial and Operational <ul><li>MANAGERIAL FUNCTIONS : One function cannot work without the other. </li></ul><ul><li>A good blend of the two ensures the efficiency and success of the organization. </li></ul><ul><li>Managerial functions of HRM: </li></ul><ul><li>give right directions and motivate the Operation managers to put forth their best efforts. </li></ul><ul><li>Planning , organizing , coordinating, controlling , directing work of those persons looking after operative functions. </li></ul>
  42. 43. Operative Functions & Managerial Functions <ul><li>Functions of HR Department can be categorized into - Operative Functions & Managerial Functions </li></ul><ul><li>OPERATIVE FUNCTIONS are related to specific activities : </li></ul><ul><li>Procuring </li></ul><ul><li>Developing </li></ul><ul><li>Relations </li></ul><ul><li>Utilizing and maintaining an efficient work force. </li></ul><ul><li>Operation managers are more concerned about the efficient and effective i mplementation of the plan given by the top management. </li></ul>
  43. 44. Operative Functions & Managerial Functions FUNCTIONS OF HRM Managerial functions Operational functions Planning Organizing Directing Controlling Employment HRD Compensation Human Relations IR
  44. 46. Objectives of HRM <ul><ul><ul><ul><ul><li>SOCIAL OBJECTIVES </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>ORGANIZATIONAL OBJECTIVES </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>FUNCTIONAL OBJECTIVES </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>INDIVIDUAL OBJECTIVES </li></ul></ul></ul></ul></ul>
  45. 47. EMPLOYMENT HR DEV COMPENSATION MGT HUMAN RELATIONS Org design Job design Job analysis Perf. app Training Career pl Job eva Wage Perks Motivaton Morale Job satisfaction Communication Grievance Discp. action Planning Recruitment Selection Induction Placement Quality of life AN ILLUSTRATION OBJECTIVES & POLICIES OF HRM OPERATIVE FUNCTIONS OF HRM MANAGERIAL FUNCTIONS OF HRM
  46. 48. Objectives of HRM <ul><li>To maximise commitment of people by organising work and creating attitudes and behaviour which generate best outcomes. </li></ul><ul><li>To create and utilize an able and motivated workforce. </li></ul><ul><li>To accomplish the basic organizational goals. </li></ul><ul><li>To establish and maintain sound organizational structure and desirable working relationships among organizational members. </li></ul><ul><li>To create facilities and opportunities for individuals or group development and to match with growth of the organization. </li></ul><ul><li>HRM is basically a search for “best practices” to generate high levels of employee commitment and performance. </li></ul>
  47. 49. Primary Objectives of HRM <ul><li>To identify and satisfy individual and group needs by providing adequate and equitable wages, incentives, employee benefits and social security measures for challenging work,prestige,recognition security,status. </li></ul><ul><li>Primary Objectives of HRM </li></ul><ul><li>Relate goods and services to Society. HRdepartment has to create workforce with proper ability and motivation to accomplish the basic organizational goals. Utilize HR effectively. </li></ul><ul><li>Satisfaction of the personal objectives of the members of an organization through monetary and non monetary devices. Bring about maximum individual development of Organization members. </li></ul><ul><li>Satisfaction of the community and social objectives. </li></ul>
  48. 50. Secondary Objectives of HRM - <ul><li>Secondary - Fulfillment of primary objectives is contingent upon Secondary Objectives. </li></ul><ul><li>Usefulness of the goods and services required by the society. Pick up capable and right people on the basis of qualification and background. </li></ul><ul><li>Condition of employment for all members which motivates them to work better towards target . </li></ul><ul><li>Effective utilization of people and materials in productive work. </li></ul><ul><li>The continuity of the enterprise. </li></ul><ul><li>Means adopted in achieving the primary objectives shall be consistent with the ethical and moral values of society and with the policies and regulations established by legislative action. </li></ul><ul><li>Control the cost of labour </li></ul><ul><li>Facilitate technological progress </li></ul>
  49. 51. Objectives of HRM
  50. 52. OBJECTVIES OF HRM POLICIES , PROCEDURES & PROGRAMME <ul><li>Objectives are predetermined ends of goals at which individual or group activity in an organization is aimed. </li></ul><ul><li>Human beings are goal directed. Objectives serve as standards against which performance is measured. </li></ul><ul><li>Setting of goals and their acceptance by employees promotes voluntary cooperation and coordination . </li></ul>
  51. 53. OBJECTVIES OF HRM POLICIES , PROCEDURES & PROGRAMME <ul><li>A policy is a plan of action . BREWSTEW & RICHBELL defined HRM policies as “ a set of proposals and action that act as a reference point for managers in their dealings with employees” </li></ul><ul><li>“ Personnel Policies constitute guides to action. They furnish the general standards or bases on which decisions are reached. Their origin lies in an organization’s values, philosophy, concepts and principles”. </li></ul>
  52. 54. OBJECTVIES OF HRM POLICIES , PROCEDURES & PROGRAMME <ul><li>Policy : Personnel Policies guide the course of action intended to accomplish personnel objectives. </li></ul><ul><li>Personnel policies are designed to ensure healthy conditions of work , employee participation , recognition of trade union , motivation of employees etc. </li></ul>
  53. 55. Need for HR Policy – <ul><li>Need for HR Policy – </li></ul><ul><li>To have formal statement on corporate thinking which will serve as a guideline for action. </li></ul><ul><li>To establish consistency in the application of the policies over a period. </li></ul><ul><li>To accord consistent treatment to all the employees -to avoid favouritism and discrimination. </li></ul><ul><li>To assure certainty of action and promote stability in an organization. </li></ul><ul><li>To serve as standard for evaluating performance. </li></ul><ul><li>To provide just and fair treatment. Policies build employee enthusiasm and loyalty. </li></ul>
  54. 56. Principles of HR policy <ul><li>1. Put right means in the right place. </li></ul><ul><li>2. Train everyone for the job to be done. </li></ul><ul><li>3 . Make the organization a coordinated team </li></ul><ul><li>4. Supply the right tool and condition of work </li></ul><ul><li>5. Give security with opportunity , incentives , recognition to all employees. </li></ul><ul><li>6. Look ahead, plan ahead for more and better things. </li></ul>
  55. 57. Classification of HR policies <ul><li>3 major classifications: </li></ul><ul><li>1. Basic organizational policies : relating to the principles, managerial philosophy and fundamental objectives of the organization. </li></ul><ul><li>2. General policies : relating to organizational activities personnel development & creation of appropriate work climate . </li></ul><ul><li>3. Specific policies : relating to job description , analysis & evaluation of fundamental objectives, proper communication system , determination of wage rates on the basis of performance. </li></ul>
  56. 58. HR Policies <ul><li>HR Policies include : </li></ul><ul><li>History of company’s growth - </li></ul><ul><li>Employment practices and conditions of employment - </li></ul><ul><li>Grievances redressal ( amends/alteration/) procedure </li></ul><ul><li>Safety rules and regulations and responsibilities of employees </li></ul><ul><li>Need for cooperation between management and employees - employee financial aids, educational opportunities </li></ul>
  57. 59. HR Policies <ul><li>HR Policies include : </li></ul><ul><li>Employees news letters and house journals – communication media and suggestion system </li></ul><ul><li>Health and hospitalization </li></ul><ul><li>Vacation with pay </li></ul><ul><li>Sickness death and maternity benefits </li></ul><ul><li>Company stores, social security </li></ul><ul><li>Collective bargaining , discipline </li></ul><ul><li>Encashments , PR, Labour Relations </li></ul><ul><li>Prohibited activities </li></ul>
  58. 60. What is HRM procedure ?? <ul><li>Procedures are specific applications. </li></ul><ul><li>A procedure is well thought out course of action. </li></ul><ul><li>procedures show a sequence of activities within that area. </li></ul><ul><li>Procedure prescribes specific manner in which a piece of work is to be done. </li></ul><ul><li>Procedures are called “ action guidelines “ and generally derived from policies. </li></ul><ul><li>In procedure the emphasis is on step by step sequence of required action. </li></ul><ul><li>Policies are general instructions. </li></ul><ul><li>Policies define a broad field – </li></ul><ul><li>Policy might be translated into action through procedures </li></ul>
  59. 61. To achieve the objectives – <ul><li>To achieve the objectives – </li></ul><ul><li>tools, techniques, to be adopted are </li></ul><ul><li>Administrative system – which collects systematic data both from within the organization and external sources. </li></ul><ul><li>Periodic review of administrative practice. </li></ul><ul><li>HR Manager should assume the responsibility of attaining the requirements of his enterprise and those imposed upon it by environmental changes. </li></ul>
  60. 62. HR Manager’s Responsibilities <ul><li>Restoring Trust in the HR Profession </li></ul><ul><li>Building a New Social Contract at Work </li></ul><ul><li>Opening the Door to the Next Generation of HR Leaders </li></ul><ul><li>  </li></ul>
  61. 63. HRM as a central subsystem Finance Marketing Materials Technology HRM Information Production
  62. 64. ORGANIZATION & HRM <ul><li>Organizations are effective instruments in helping individuals accomplish , personal objectives that they cannot achieve alone. Organizations are formed to satisfy objectives that can be best met collectively </li></ul><ul><li>Organizations are means to an end . Organization design deals with structural aspects of organizations. </li></ul><ul><li>Organizational design aims at analyzing roles and relationships so that collective effort can be explicitly organized to achieve specific ends </li></ul>
  63. 65. ORGANIZATIONAL STRUCTURE <ul><li>STRUCTURE : Efficiency with which an organization is able to achieve its goal are determined by the organizational structure. </li></ul><ul><li>STRUCTURE is the pattern of formal relationships and duties – </li></ul><ul><li>activities or tasks are assigned to different departments and people -Co-ordination of these tasks – </li></ul><ul><li>Hierarchical relationships within the organization </li></ul><ul><li>Policies , procedures, standards, evaluation systems etc guide the activities and relationships of people in the organization. </li></ul>
  64. 66. Structure Types
  65. 68. Multi-Divisional Structure Division Division Division Division Production Finance Engineering Accounting Sales & Marketing Human Resources Chief Executive Officer Corporate Finance Corporate R&D Corporate Marketing Strategic Planning Corporate Human Resources
  66. 69. Steps in designing Organizational structure <ul><li>1 . Analysis of present and future circumstances and environmental factors. </li></ul><ul><li>2 . Overall aims and purpose of the enterprise – survival, growth, profit maximization, wealth maximization </li></ul><ul><li>3. Objectives – specific aims or targets to be achieved. </li></ul><ul><li>4. Activities – assessment of work being done and what needs to be done to achieve objectivities </li></ul><ul><li>5 . Decisions to be taken across –horizontal / vertical dimensions. </li></ul>
  67. 70. Steps in designing Organizational structure <ul><li>6 . Organization structure – grouping of activities, span of management, management levels etc </li></ul><ul><li>7. Job structure – job design, job analysis, job descriptions, job specification etc </li></ul><ul><li>8. Organizational climate – working atmosphere in the enterprise, team work, communication, creativity, </li></ul><ul><li>participation and trust. </li></ul><ul><li>9. Management style – democratic, free-rein ,autocratic </li></ul><ul><li>10 . Human Resources – availability of HR marked by skill, knowledge, commitment, aptitude. </li></ul>
  68. 71. <ul><li>Formal Relationships : The relationship with which the managers in an organization deal with one another are broadly classified into LINE & STAFF </li></ul><ul><li>Informal Relationships are those that emerge from formal relationships and are established unofficially by persons employed. </li></ul><ul><li>Line Managers : Authority -Making decisions-Directing work, </li></ul><ul><li>Giving orders - Accomplishing goals </li></ul><ul><li>Staff Managers : Assisting and advising line managers </li></ul><ul><li>  </li></ul>LINE & STAFF
  69. 72. STAFF RELATIONS <ul><li>STAFF RELATIONS : The staff concept is an old / ancient one. Line has to perform all their functions and concentrate on management of people and activities. This gives rise to securing advice and help from specialists. - This creates staff relationships.- </li></ul><ul><li>The relationships between two managers when it is created for Taking/giving advice, information, counseling etc for achieving organizational goals is called staff relations. </li></ul><ul><li>Staff Managers analyze problems, collect information and develop alternative suggestions and help the line managers to make right decisions. </li></ul><ul><li>Staff responsibility is monitoring and reporting ---results and information to the line managers to reduce their work load. </li></ul>
  70. 73. Line Manager’s HRM Jobs   <ul><li>The right person </li></ul><ul><li>Orientation </li></ul><ul><li>Training </li></ul><ul><li>Performance </li></ul><ul><li>Creativity </li></ul><ul><li>Working relationships </li></ul><ul><li>Policies and procedures </li></ul><ul><li>Labour costs </li></ul><ul><li>Development </li></ul><ul><li>Morale </li></ul><ul><li>Protecting </li></ul><ul><li>  </li></ul>
  71. 74. Exact activities of Line and staff managers?? <ul><li>There is no single division of responsibility applied to all organizations </li></ul><ul><li>Eg: Recruiting & hiring of employees </li></ul><ul><li>Usually the line manager specifies the qualifications needed to fill specific positions. </li></ul><ul><li>Then the HR manager develops sources of qualified candidates, conducts initial screening (tests) and sends those filtered to line manager. </li></ul><ul><li>Line manager conducts the final technical screening tests and selects the one to hire or requests new applicants </li></ul>
  72. 75. Some activities tend to be split between line & HR managers <ul><li>Employee interviews </li></ul><ul><li>Performance appraisal </li></ul><ul><li>Skills training </li></ul><ul><li>Job analysis & descriptions </li></ul><ul><li>  Changing Environment of HR Management </li></ul><ul><li>Globalization </li></ul><ul><li>Technological Advances </li></ul><ul><li>Exporting Jobs </li></ul><ul><li>The Nature of Work </li></ul><ul><li>Workforce Diversity </li></ul><ul><li>  </li></ul>
  73. 76. Line and staff relations <ul><li>STAFF : Operational – functional managers who carry out the decisions The relationships that are established among the components of organization are of two types </li></ul><ul><li>Formal and Informal. Line & Staff Relations </li></ul><ul><li>Formal relationships are those officially established and prescribed in the manual, charts and job descriptions. </li></ul><ul><li>The three basic relationships of this category are responsibility, authority, and accountability. </li></ul><ul><li>Line Relationship : Relationship existing between managers due to delegation of authority and responsibility and giving or receiving instructions or orders is called LINE RELATIONSHIP </li></ul>
  74. 77. HRM is a staff function <ul><li>Organizational ability depends on sound management of HR. </li></ul><ul><li>HR Provides specialized assistance to line managers through Personnel Managers. </li></ul><ul><li>Line Managers may not have the time to manage HR and it is HR Manager who provides training , grievance redressed and motivation. </li></ul><ul><li>PM performs certain staff functions relating management of personnel like Advice, guidance, counseling. and providing necessary information. </li></ul><ul><li>HRM is a staff function, but responsibility for the management of personnel rests with Line Managers. </li></ul><ul><li>HRM is a A LINE responsibility but STAFF but staff function. </li></ul>
  75. 78. Line versus Staff Authority <ul><li>Line Authority – given to managers directly responsible for the production of goods and services (direct function) </li></ul><ul><li>Staff Authority – given to units that advise and consult line units Limits of Authority </li></ul><ul><li>HRM & HRD units have staff authority (Overhead function) </li></ul><ul><li>Line authority takes precedence </li></ul><ul><li>Scope of authority – how far (how much) can you authorize? </li></ul>
  76. 79. ROLE OF HR MANAGER <ul><li>HR Manager contributes a lot to organizational effectiveness. </li></ul><ul><li>The conscience Role – that of humanitarian who reminds management of its morals and obligation to employees and society. </li></ul><ul><li>The counselor – for job related , professional and personal problems. </li></ul><ul><li>The Mediator - peace maker settles disputes between employees & management and between employees,-works as a communication link. </li></ul><ul><li>The Spokesperson – Spokesperson OF or FOR the company. </li></ul><ul><li>The problem –solver : with respect to the issues that involve HR Management and overall long range organizational planning. </li></ul><ul><li>The change Agent _ Introduces changes in various existing programmes. </li></ul><ul><li>Other Roles : Welfare Roles, clerical role and fire fighting role- </li></ul>
  77. 80. HRM Activities <ul><li>Two main HRM goals </li></ul><ul><ul><li>Getting the right people </li></ul></ul><ul><ul><li>HRM activities must be aligned with corporate strategy </li></ul></ul><ul><ul><li>Maximizing their performance and potential </li></ul></ul><ul><li>Failure of either goal can influence the success or failure of the other </li></ul>
  78. 82. HRM Activities <ul><li>Planning </li></ul><ul><ul><li>Forecasting demand </li></ul></ul><ul><ul><li>Assessing supply </li></ul></ul><ul><ul><li>Formulating fulfillment plans </li></ul></ul><ul><li>Job analysis (assessing the job) </li></ul><ul><li>Scope and depth of jobs </li></ul><ul><li>Requisite skills, abilities, and knowledge that people need to perform their jobs successfully </li></ul><ul><li>Job description </li></ul><ul><li>Job specification </li></ul>Getting the Right People
  79. 83. ACTIVITY OF HR MANAGER/DEPARTMENT <ul><li>Recruitment / interview / hiring </li></ul><ul><li>Pre-employment Testing </li></ul><ul><li>Induction / Orientation, Promotion/ transfer </li></ul><ul><li>Personnel records / reports </li></ul><ul><li>Personnel Research </li></ul><ul><li>Insurance benefits- Administration ( ESI ) </li></ul><ul><li>Unemployment - Administration </li></ul><ul><li>EEO compliance –affirmative action </li></ul><ul><li>Wages / salary / compensation Education aid – scholarship </li></ul><ul><li>Job Evaluation </li></ul><ul><li>Health and Medical Services </li></ul>
  80. 84. ACTIVITY OF HR MANAGER/DEPARTMENT <ul><li>Retirement Preparation Programme Vacation / Leave Processing separation = Controlling / control points . Effective separation of employees by carefully designing programmes of retirement, layoffs and discharge. Retirement programmes and Information - More the information about retirement / more successful is the transition and number of retirees participating in. Unemployment compensation – appropriate for voluntary resignation, during strikes, calamities, emergencies. </li></ul>
  81. 85. ACTIVITY OF HR MANAGER/DEPARTMENT <ul><li>Pension and profit sharing plan </li></ul><ul><li>Recreation / social recognition programme </li></ul><ul><li>Attitude surveys / union& labour relations </li></ul><ul><li>Disciplinary procedures </li></ul><ul><li>Relocation services </li></ul><ul><li>Training Programmes </li></ul><ul><li>Communication – publications – bulletin Boards </li></ul>
  82. 86. ACTIVITY OF HR MANAGER/DEPARTMENT <ul><li>Public Relations </li></ul><ul><li>Pay Roll Processing </li></ul><ul><li>Travel / Transport Services / Library </li></ul><ul><li>Executive compensation </li></ul><ul><li>HR Planning & Management Development </li></ul><ul><li>Performance Evaluation </li></ul><ul><li>Community Relation / Fund drives ( TSUNAMI ) </li></ul><ul><li>Management appraisal </li></ul><ul><li>MBO (Mgmt BY Objective ) </li></ul>
  83. 87. QUALITIES & QUALIFICATION – REQUIREMENTS OF HR MANAGER <ul><li>HR manager organizes and manages the Personnel development of the organization. </li></ul><ul><li>He has to win the confidence of all concerned people. It is a tight rope walk. Should be tactful and imaginative. </li></ul><ul><li>Should be a specialist in organization theory. Has to advise the top management and should be able to Organize - minimize friction, promote goodwill. </li></ul><ul><li>Should have good knowledge of personnel administration, relevant laws, procedure, techniques, economics, industrial Psychology, and behavioural science help to tackle humans and Problems efficiently. </li></ul>
  84. 88. QUALITIES & QUALIFICATION – REQUIREMENTS OF HR MANAGER <ul><li>Should be familiar with philosophy, ethics , logic , sociology history, medicine, and political science. </li></ul><ul><li>Should have a sense of social justice and be appreciative of rights and interests of people at work. </li></ul><ul><li>Other Qualities HR manager should possess are : </li></ul><ul><li>Loyalty, responsibility and honesty to organization and people who work there. </li></ul><ul><li>Faith in humanity. </li></ul><ul><li>Need to place high value on performance judging people objectively giving full credit to those who perform. </li></ul><ul><li>Ability to analyse and take prompt decisions. </li></ul><ul><li>Capacity for persuasion patience and tolerance. </li></ul>Qualities that stand out
  85. 89. Concept of HR <ul><li>Concept of HR : </li></ul><ul><li>A . Industry is a partnership between Management and other employees whose objective is to earn profit through services </li></ul><ul><li>B . Industry can earn profit by developing and coordinating the capacities, the interests and opportunities of each worker and management . </li></ul>
  86. 90. ASSIGNMENT <ul><li>1. What are the essential qualities of an HR Manager? What are her/his functions? </li></ul><ul><li>2. Explain meaning of HRM. How does it differ from PM? </li></ul><ul><li>3. PM is paid by the company. How should he act? As representative of management or employees? Discuss. </li></ul><ul><li>4. Explain in detail the steps in designing organizational structure. </li></ul><ul><li>5. Explain the various strategic roles of the HR Manager. </li></ul><ul><li>6. Identify and discuss managerial and operative functions of HR department. </li></ul><ul><li>7. Personnel administration is a line responsibility but a staff function. Discuss </li></ul><ul><li>8. Explain the qualities and qualifications necessary to be a successful or a HR manager. </li></ul><ul><li>DUE DATE ---- Next week same day </li></ul>
  87. 91. A new model of HRM is needed   <ul><li>More strategic (not strictly focused on day-to-day operational needs) </li></ul><ul><li>More proactive (less reactive) </li></ul><ul><li>More of a consultant to line management (less of a bureaucratic specialist) </li></ul><ul><li>More of an “employee champion” (less of an organizational “cop”) </li></ul><ul><li>  </li></ul>
  88. 92. Competencies needed for HRM   <ul><li>Personal credibility </li></ul><ul><li>Business mastery </li></ul><ul><li>HR mastery </li></ul><ul><li>  </li></ul><ul><li>Change mastery </li></ul>
  89. 93. Development of HRM in India <ul><li>1. 1947 – Industrial disputes act passed </li></ul><ul><li>Functions of labour officer were defined </li></ul><ul><li>1948 – Factories Act </li></ul><ul><li>1959 - Employment Exchange Act </li></ul><ul><li>1961 - Maternity Benefit Act </li></ul><ul><li>1970 - Contract Labour (regulation&abolishment) </li></ul><ul><li>1972 - Payment of Gratuity Act </li></ul><ul><li>1985 - Ministry of HRD-PM to HRM to HRD </li></ul><ul><li>1995 - Emphasis shifted to modern techniques </li></ul><ul><li>2001 - smart sizing of the organization </li></ul><ul><li>2002 - Emphasis on positive attitude rather than skill & knowledge – shift Intelligence quotient to emotional quotient </li></ul>
  90. 94. Modern HRM is a combination of principles <ul><li>Psychology </li></ul><ul><li>Sociology </li></ul><ul><li>Philosophy </li></ul><ul><li>Economics and </li></ul><ul><li>Management </li></ul>
  91. 95. HRM Involves <ul><li>Procedures and practices through which Human Resource is managed </li></ul><ul><li>Ie organized and directed towards attainment of </li></ul><ul><li>Individual goals </li></ul><ul><li>Organizational goals </li></ul><ul><li>Social goals </li></ul>
  92. 96. CHALLENGES OF MODERN HR MANAGEMENT <ul><li>Changing mix of the work force – Changes brought by women workers </li></ul><ul><li>Changing personal values of the work force </li></ul><ul><li>Changing expectations of citizen –employees </li></ul><ul><li>Changing levels of productivity - ( Reason : IT, </li></ul><ul><li>( Globalization, economic policies and world politics) </li></ul><ul><li>Changing demands of government.( civil rights, equal employment , minimum wages, ) </li></ul>
  93. 97. Environmental influence <ul><li>HRM cannot exist in vacuum.It is an interdependent activity. </li></ul><ul><li>Environmental factors that influence the organization through HR is called in STEPIN </li></ul><ul><li>S ocial </li></ul><ul><li>T echnological </li></ul><ul><li>E conomic </li></ul><ul><li>P olitical </li></ul><ul><li>I nternational </li></ul><ul><li>N atural </li></ul>
  94. 98. What motivates employees ?   <ul><li>Rank </li></ul><ul><li>Feeling “in” on things      </li></ul><ul><li>Good wages      </li></ul><ul><li>Good working conditions     </li></ul><ul><li>Job security  </li></ul><ul><li>  Full appreciation of work that is done   </li></ul><ul><li>Tactful disciplining     </li></ul><ul><li>Employer loyalty to employees    </li></ul><ul><li>Interesting work   </li></ul><ul><li>Promotion and growth in the organization  </li></ul><ul><li>                             (Karl and Sutton, 1996) </li></ul><ul><li>    </li></ul>
  95. 99. What motivates employees?   <ul><li>Rank </li></ul><ul><li>Good wages     1 </li></ul><ul><li>Job security     2 </li></ul><ul><li>Interesting work     3 </li></ul><ul><li>Good working conditions    4 </li></ul><ul><li>Full appreciation of work that is done  5 </li></ul><ul><li>Promotion and growth in the organization 6 </li></ul><ul><li>Employer loyalty to employees   7 </li></ul><ul><li>Feeling “in” on things    8  </li></ul><ul><li>Tactful disciplining    9 </li></ul><ul><li>                             (Karl and Sutton, 1996) </li></ul><ul><li>  </li></ul><ul><li>LINE refers to those positions of the organization which have responsibility , authority and are accountable for accomplishments of objectives. </li></ul><ul><li>Managers identified as LINE are not subject to command by staff position. In case of disagreements between line and staff , line manager has the right to make final operating decision. </li></ul><ul><li>Line authority represents uninterrupted series of authority and responsibility delegating down the management hierarchy . </li></ul><ul><li>Though authority is delegated responsibility for action taken by subordinate still rests with the Line manager. </li></ul>