HUMAN RESOURCE  MANAGEMENT        Prof.Anita singh
Competing through People   ‘You can get capital and erect buildings, but it    takes people to build a business’-Thomas J...
1-2      Introduction      Organisations have to provide a healthy work climate in order to get      the best out of peopl...
1-3       Human Resource Management:       Nature & Features             Pervasive force             Action oriented    ...
1-4      Important terms                                             Clearing the Fog          Human resource: Knowledge,...
1-5      Scope of HRM      HRM mainly covers three broad areas          Personnel aspect          Welfare aspect        ...
1-6      Objectives of HRM      HRM aims at achieving organisational goals, meet the expectations      of employees; devel...
1-7      Importance of HRM                                            attract and retain talent                          ...
1-8      HRM as a central subsystem in an      organisation                                      Product                  ...
1-9          Functions of HRM                                                 P/HRM      Managerial                       ...
1-10       Strategic Human Resource       Management       Competitive advantage through people?       Competitive advanta...
1-11       The evolving strategic role of       Human Resource Management                                    Strategic foc...
1-12       Strategic Human Resource       Management       Realising the growing importance of HR, a new line of thinking ...
1-13       Traditional HR vs. Strategic HR         Point of distinction          Traditional HR                    Strateg...
1-14       EVOLUTION OF HRM        The field of HRM evolved both in India and elsewhere over a        number of years to p...
1-15       Evolution of the Personnel Function       Concept                 What is it all about?        The Commodity   ...
1-16        Evolution of the Personnel Function       The Humanitarian       To improve productivity, physical, social and...
1-17       Growth in India        Legal phase        Welfare phase        Development phaseThe Strategic Role Of Human ...
1-18       Personnel Function in India;       Changing Scenario        Period                Emphasis                   St...
1-19       Shifts in HR management in India                Traditional HR practice                Emerging HR practice    ...
1-21       HRM in the new millennium       Current thinking in HRM strongly supports the view that when       opportunitie...
1-21       HRM in the new millennium        Composition of workforce            Equal pay for equal work            Break...
1-23       HRM in the new millennium           Changes in technology            Modernisation, computerisation, sophistic...
1-23       HRM in the new millennium           Changes in 21st century affecting HRM            HR as a springboard for s...
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Chapter 01

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Chapter 01

  1. 1. HUMAN RESOURCE MANAGEMENT Prof.Anita singh
  2. 2. Competing through People ‘You can get capital and erect buildings, but it takes people to build a business’-Thomas J. Watson, founder IBM ‘If you are not thinking all the time about making every person valuable, you don’t have a chance’-Jack Welch, former head of GE.
  3. 3. 1-2 Introduction Organisations have to provide a healthy work climate in order to get the best out of people. To utilise the capabilities of people fully, you need competent leadership willing to recognise, reward and nurture talent at all levels. This is where human resource managers play a critical role by bridging gaps between employee expectations and organisational requirements by adopting appropriate human resource strategies and practices. HRM, in short, is the art of procuring, developing and maintaining competent workforce to achieve the goals of an organisation in an effective and efficient manner.The Strategic Role Of Human Resources Management
  4. 4. 1-3 Human Resource Management: Nature & Features Pervasive force Action oriented Individually oriented People oriented Future oriented Development oriented Integrating mechanism Comprehensive function Auxiliary service Inter-disciplinary function Continuous functionThe Strategic Role Of Human Resources Management
  5. 5. 1-4 Important terms Clearing the Fog Human resource: Knowledge, skill sets, expertise of employees, the adaptability, commitment and loyalty of employees. Skills: The individual abilities of human beings to perform a piece of work. Resource: The stock of assets and skills that belong to a firm at a point of time. Capability: The ability of a bundle of resources to perform an activity; a way of combining assets, people and processes to transform inputs into outputs. Core competencies: Activities that the firm performs especially well when compared to its competitors and through which the firm adds value to its goods and services over a long period of time. Competitive advantage: It comes from a firms ability to perform activities more distinctively and more effectively than rivals. To attain competitive advantage, firms need to add value to customers and offer a product or service that cannot be easily imitated or copied by rivals (Uniqueness). Value: Sum total of benefits received and costs paid by the customer in a given situation.The Strategic Role Of Human Resources Management
  6. 6. 1-5 Scope of HRM HRM mainly covers three broad areas Personnel aspect Welfare aspect Industrial relations aspectThe Strategic Role Of Human Resources Management
  7. 7. 1-6 Objectives of HRM HRM aims at achieving organisational goals, meet the expectations of employees; develop the knowledge, skills and abilities of employees; improve the quality of working life and manage human resources in an ethical and socially responsible manner. Importance of HRM From an organisational standpoint, good HR practices help in attracting and retaining talent, train people for challenging roles, develop their skills and competencies, increase productivity and profits and enhance standard of livingThe Strategic Role Of Human Resources Management
  8. 8. 1-7 Importance of HRM attract and retain talent train people for challenging roles develop skills and competencies promote team spirit Good HR Practices help develop loyalty and commitment increase productivity and profits improve job satisfaction enhance standard of living generate employment opportunitiesThe Strategic Role Of Human Resources Management
  9. 9. 1-8 HRM as a central subsystem in an organisation Product Subsystem HR Subsystem Procurement Finance Training Marketing Subsystem Compensation Subsystem Appraisal Rewards Technical SubsystemThe Strategic Role Of Human Resources Management
  10. 10. 1-9 Functions of HRM P/HRM Managerial Operative Functions functions: Procurement Development: Motivation and Maintenance: Emerging – Planning Integration: Compensation: Issues: Job Analysis Training Grievances Job design Health Personnel HR planning Executive records Work scheduling Discipline – Organising Recruitment development Safety Personnel Motivation Teams and Selection Career teamwork audit planning Job evaluation Personnel Placement Welfare Collective Succession Performance and research – Directing bargaining Induction potential HR appraisal Social security Participation accounting Internal planning mobility Compensation Empowerment HRIS – Controlling Human administration resources Trade unions Job stress development Incentives benefits and Employers’ Mentoring strategies services associations International HRM Industrial relationsThe Strategic Role Of Human Resources Management
  11. 11. 1-10 Strategic Human Resource Management Competitive advantage through people? Competitive advantage allows a firm to gain an edge over its rivals when competing. It comes from a firm’s unique ability to perform activities more distinctively and more effectively than rivals. HR can be a source of competitive advantage when the talents of people working in the firm are valuable, rare; difficult to imitate and well organised to deliver efficient and effective results.The Strategic Role Of Human Resources Management
  12. 12. 1-11 The evolving strategic role of Human Resource Management Strategic focus Strategic partner Change agent System People Administrative expert Employee champion Operational focusThe Strategic Role Of Human Resources Management
  13. 13. 1-12 Strategic Human Resource Management Realising the growing importance of HR, a new line of thinking emerged elevating the status of HR to that of a strategic partner both in the formulation of a firm’s strategic as well as in the implementation of business activities. SHRM, simply stated, is the linkage of HRM with strategic goals and objectives with a view to improve business performance and develop organisational cultures that foster innovation and flexibility. Strategic HR differs radically from traditional HR in a number of ways:The Strategic Role Of Human Resources Management
  14. 14. 1-13 Traditional HR vs. Strategic HR Point of distinction Traditional HR Strategic HR Focus Employee Relations Partnerships with internal and external customers Role of HR Transactional change Transformational change leader follower and respondent and initiator Initiatives Slow, reactive, fragmented Fast, proactive and integrated Time horizon Short-term Short, medium and long (as required) Control Bureaucratic-roles, policies, Organic-flexible, whatever is procedures necessary to succeed Job design Tight division of labour; Broad, flexible, cross-training independence, teams specialisation Key investments Capital, products People, knowledge Accountability Cost centre Investment centre Responsibility for HR Staff specialists Line managersThe Strategic Role Of Human Resources Management
  15. 15. 1-14 EVOLUTION OF HRM The field of HRM evolved both in India and elsewhere over a number of years to present level of sophistication and use of proactive methods  The industrial revolution  Scientific management  Trade unionism  Human relations movement  Human resources approachThe Strategic Role Of Human Resources Management
  16. 16. 1-15 Evolution of the Personnel Function Concept What is it all about? The Commodity Labour was regarded as a commodity to be bought and sold. concept Wages were based on demand and supply. Government did very little to protect workers. The Factor of Labour is like any other factor of production, viz, money, Production concept materials, land, etc. Workers are like machine tools. The Goodwill concept Welfare measures like safety, first aid, lunch room, rest room will have a positive impact on workers’ productivity The Paternalistic Management must assume a fatherly and protective attitude concept/ Paternalism towards employees. Paternalism does not mean merely providing benefits but it means satisfying various needs of the employees as parents meet the requirements of the children. Cont…The Strategic Role Of Human Resources Management
  17. 17. 1-16 Evolution of the Personnel Function The Humanitarian To improve productivity, physical, social and psychological concept needs of workers must be met. As Mayo and others stated, money is less a factor in determining output, than group standards, group incentives and security. The organisation is a social system that has both economic and social dimensions. The Human Resource Employees are the most valuable assets of an organisation. concept There should be a conscious effort to realise organisational goals by satisfying needs and aspirations of employees. The Emerging concept Employees should be accepted as partners in the progress of a company. They should have a feeling that the organisation is their own. To this end, managers must offer better quality of working life and offer opportunities to people to exploit their potential fully. The focus should be on Human Resource Development.The Strategic Role Of Human Resources Management
  18. 18. 1-17 Growth in India  Legal phase  Welfare phase  Development phaseThe Strategic Role Of Human Resources Management
  19. 19. 1-18 Personnel Function in India; Changing Scenario Period Emphasis Status Roles 1920 – 30 Welfare management Clerical Welfare Paternalistic practices administrator 1940 – 60 Expanding the role to cover Administrative Appraiser Labour, Welfare, Industrial Advisor Relations and Personnel Mediator Administration Legal advisor Fire fighting 1970 – 80 Efficiency, effectiveness Developmental Change agent dimensions added Integrator Emphasis on human Trainer values, aspirations, Educator 1990s – Incremental productivity Proactive, Developer onwards gains through human growth-oriented Counsellor assets Coach Mentor Problem solverThe Strategic Role Of Human Resources Management
  20. 20. 1-19 Shifts in HR management in India Traditional HR practice Emerging HR practice  Administrative role  Strategic role  Reactive  Proactive  Separate, isolated from  Key part of organisational company mission mission  Production focus  Service focus  Functional organisation  Process-based organisation  Individuals encouraged,  Cross-functional eams, singled out for praise, teamwork most important rewards  People as expenses  People as key investments/assetsThe Strategic Role Of Human Resources Management
  21. 21. 1-21 HRM in the new millennium Current thinking in HRM strongly supports the view that when opportunities for growth and enhancement of skills are available in an organisation, people will be stimulated to give their best, leading to greater job satisfaction and organisational effectiveness. To this end, therefore, HR managers in the new millennium are expected to successfully evolve an appropriate corporate culture, take a strategic approach to the acquisition, motivation and development of human resources and introduce programmes that reflect and support the core values of the organisation and its people.          Size of work force Demands for better pay, benefits, working conditions Cont…The Strategic Role Of Human Resources Management
  22. 22. 1-21 HRM in the new millennium  Composition of workforce Equal pay for equal work Breaking down of glass ceiling Constitutional protection to minority groups Importance to factors such as age, sex, religion, region, caste especially while dealing with multifarious, heterogeneous, culturally diverse work groups    Employee expectations Better educated, more knowledgeable, emotionally strong and demanding workforce Demand for educated, trained, experienced and knowledgeable workers growing Understand individual differences and develop appropriate policies to meet their growing expectations. Cont…The Strategic Role Of Human Resources Management
  23. 23. 1-23 HRM in the new millennium  Changes in technology Modernisation, computerisation, sophistication increasing by the day Knowledge and skills need to be refined constantly Training, retraining and mid-career counselling important Equip employees so as to cope with dramatic challenges brought forward by rapid advances in science and technology  Life style changes  Environmental challenges  Personnel function in future Job redesign Career opportunities Productivity Recruitment and selection Training and development Rewards Safety and welfare Cont…The Strategic Role Of Human Resources Management
  24. 24. 1-23 HRM in the new millennium  Changes in 21st century affecting HRM HR as a springboard for success Talent hunting, developing and retraining Lean and mean organisations Labour relations Health and benefit programmesThe Strategic Role Of Human Resources Management

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