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INTRODUCTION TO HUMAN RESOURCE MANAGEMENT BY NISHA HARIYANI

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<ul><li>According to Adi Godrej, “all corporate strengths are dependent on people.” </li></ul>

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Human Resource Management <ul><li>‘ The real sources of competitive leverage are the culture and capabilities of your organization that derive from how you manage your people.’ </li></ul>

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Points to Ponder <ul><li>Definition and Concept of HRM </li></ul><ul><li>History of HRM </li></ul><ul><li>Functions of HRM </li></ul><ul><li>HR Policies and Procedures </li></ul><ul><li>Emerging Role of HRM </li></ul><ul><li>Role of HR Executives </li></ul><ul><li>Challenges to HR Professionals </li></ul><ul><li>Strategic HRM </li></ul>

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Human Resource Management <ul><li>“ HRM is the function performed in organizations that facilitates the most effective use of people to achieve organizational and individual goals.” </li></ul><ul><ul><li>Ivancevich and Glueck </li></ul></ul>

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History of HRM - 1 <ul><li>Scientific Management Approach (mid 1900s) – </li></ul><ul><ul><li>Study of motion and fatigue </li></ul></ul><ul><ul><li>‘ one-best-way’ to accomplish the task </li></ul></ul><ul><ul><li>Piece-rate system </li></ul></ul><ul><ul><li>Welfare programmes </li></ul></ul><ul><ul><li>Failed to bring behavioural changes and increase in productivity </li></ul></ul><ul><li>Human Relations Approach (1930-40) </li></ul><ul><ul><li>Effect of social and psychological factors </li></ul></ul><ul><ul><li>Relations and respect  High Productivity </li></ul></ul>

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History of HRM - 2 <ul><li>Human Resources Approach (1970s) </li></ul><ul><ul><li>Principles </li></ul></ul><ul><ul><ul><li>Employees are assets </li></ul></ul></ul><ul><ul><ul><li>Policies, programmes and practices - help in work and personal development </li></ul></ul></ul><ul><ul><ul><li>Conducive environment </li></ul></ul></ul>

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Challenges of HRM <ul><li>Individuals differ from one another </li></ul><ul><li>Customization of stimulation and motivation </li></ul><ul><li>Demanding personnel </li></ul>

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Functions of HRM - 1 Managerial Planning Organizing Staffing Directing Controlling

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Functions of HRM - 2 Operational Employment HR Development Compensation Mgt Employee Relations HR Planning Recruitment Selection Placement Induction Performance Appraisal Training Management Development Career Planning and Development Job Evaluation Wage and Salary Admn Incentives Bonus Fringe Benefits

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Emerging role or HRM <ul><li>Value of Human Resource </li></ul><ul><li>Competitive advantage </li></ul><ul><li>Human Resource Accounting – It is measurement of the cost and value of people for an organization </li></ul>

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ROLE OF HR EXECUTIVES <ul><li>Service provider </li></ul><ul><li>Executive </li></ul><ul><li>Facilitator </li></ul><ul><li>Consultant </li></ul><ul><li>Auditor </li></ul>

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Challenges to HR Professionals <ul><li>Worker productivity </li></ul><ul><li>Quality improvement </li></ul><ul><li>The changing attitudes of workforce </li></ul><ul><li>The impact of the government </li></ul><ul><li>Quality of work-life </li></ul><ul><li>Technology and Training </li></ul>

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Organizational Structure & HRM

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Why structure ??? <ul><li>What structure signifies? </li></ul><ul><li>No directions </li></ul><ul><li>Leads to confusion </li></ul><ul><li>Chaos </li></ul><ul><li>Why??????????? </li></ul>

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MAIN POINTS OF CHAPTER <ul><li>Organizational Structure and Human Resource Management </li></ul><ul><li>Formal and Informal Organizations </li></ul><ul><li>Tall and Flat Organizational Structures </li></ul><ul><li>Responsibility, Authority and Accountability </li></ul><ul><li>Line and Staff Functions </li></ul><ul><li>Human Resource Management and other Organizational Functions </li></ul>

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Mechanistic Vs organic organization <ul><li>Rigid structure </li></ul><ul><li>Employees are tied by rules & regulations </li></ul><ul><li>High degree of centralization </li></ul><ul><li>Suitable for operating in static environment </li></ul><ul><li>Decision-making is done by superiors </li></ul><ul><li>Ex: Public sector in the pre-reforms era </li></ul><ul><li>Flexible structure </li></ul><ul><li>Employees are not tied by rules & regulations </li></ul><ul><li>Decentralized style of management </li></ul><ul><li>Suitable for operating in dynamic environment </li></ul><ul><li>Decision-making is done by junior level employees also </li></ul><ul><li>Ex: Marico`s Saffola </li></ul>

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Informal organization Bowling team Informal organization Chess group Formal organization President Vice President Vice President Vice President Division Managers Division Managers Division Managers Division Managers Division Managers Division Managers Division Managers Division Managers Division Managers Department Managers Department Managers Department Managers Department Managers Department Managers Department Managers Department Managers Department Managers Department Managers

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Tall Vs Flat structure TALL STRUCTURE COO PM PM PM PM Team Lead Team Lead Team Lead Team Member Team Member Team Member Team Member FLAT STRUCTURE CMD ED ED ED GM GM GM CM CM Manager Manager Officer Officer Executive Executive

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RESPONSIBILITY, AUTHORITY & ACCOUNTABILITY <ul><li>Responsibility: </li></ul><ul><ul><li>It is the obligation of a manager to carry out the duties assigned to him. </li></ul></ul><ul><li>Authority: </li></ul><ul><li>It refers to the right to give orders and the power to exact obedience from others in the process of discharging responsibility. </li></ul><ul><li>Accountability: </li></ul><ul><li>The employee's answerability on using the authority in discharging the responsibility is termed accountability. </li></ul>

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LINE AND STAFF FUNCTIONS <ul><li>Departments or employees of a firm that perform core activities </li></ul><ul><li>Contributes directly to the business of the firm </li></ul><ul><li>Ex: Manufacturing and Marketing departments </li></ul><ul><li>Departments or employees of a firm that perform a support function </li></ul><ul><li>Contributes indirectly to the business of the firm </li></ul><ul><li>Ex: HR and Finance departments </li></ul>

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Line & Staff Relationship Traditional concept Service oriented firm Which are line and staff functions Both needs to support each other

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Line staff conflict <ul><li>Understand market & organization </li></ul><ul><li>Be empathetic </li></ul><ul><li>Build trust and transparency </li></ul><ul><li>Win – win approach </li></ul>Different perception HR professional to bring change

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The Role of Human Resources Department As a specialist As a facilitator As a change agent As a controller

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HUMAN RESOURCE MANAGEMENT AND OTHER ORGANIZATIONAL FUNCTIONS Product & HR Production & HR Marketing & HR Management Techniques & HR Organization structure & HR

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summary <ul><li>Organizational Structure and Human Resource Management </li></ul><ul><li>Formal and Informal Organizations </li></ul><ul><li>Tall and Flat Organizational Structures </li></ul><ul><li>Responsibility, Authority and Accountability </li></ul><ul><li>Line and Staff Functions </li></ul><ul><li>Human Resource Management and other Organizational Functions </li></ul>

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<ul><li>Think before others think </li></ul>

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Human Resource Planning

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Point to ponder <ul><li>Definition of Human Resource Planning </li></ul><ul><li>Objectives of Human Resource Planning </li></ul><ul><li>The Process of Human Resource Planning </li></ul><ul><li>Managing the Forecasted Demand/Surplus </li></ul><ul><li>Growing Importance of Human Resource Planning </li></ul>

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Opening case <ul><li>HRP??? NO, Thank you </li></ul><ul><li>A reputed south Indian university appointed 218 people on temporary basis and paid them Rs 750/month later increased to 1575/month. </li></ul><ul><li>University already had surplus of these employees eating away 22% of budget allocation </li></ul><ul><li>33% of temporary staff already working for 10 years </li></ul><ul><ul><ul><ul><li>No laid down procedure for recruitment or appointment, go to vice chancellor and get your name scribbled on it and your are taken in </li></ul></ul></ul></ul>

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<ul><li>They then realised the guilt of violating Equal Remuneration Act and supressing human rights </li></ul><ul><li>What to do with this 218 temoparay staff...?? </li></ul><ul><li>University can dismiss services of 33% as there have been breaks in their services. Will they take it????? </li></ul><ul><li>While 67% of temporary staff, university can not terminate them, as there were no breaks </li></ul><ul><li>University decides to regularize their services, with 50 available vacancies </li></ul><ul><li>This would cost the university an exra expenditure of Rs 30 lakh/year. And 1.2 crore for rest remaining... </li></ul>

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Human Resource planning Right number Right Skills Right Time Right Cost

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HRP defined <ul><li>Process of anticipating and making provision for the movement of people into, within, and out of an organization </li></ul>

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Objectives of HRP <ul><li>To maintain </li></ul><ul><li>To forecast </li></ul><ul><li>To optimize </li></ul><ul><li>To utilize </li></ul>Right Cost Right Skills Right number Right Time

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HRP at different planning levels <ul><li>Corporate – level planning </li></ul><ul><li>Intermediate – level planning </li></ul><ul><li>Operations planning </li></ul><ul><li>Planning short-term activities </li></ul>

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Organizational plans and objectives Identify future human resource requirements Compare with the current HR inventory Determine the redundant numbers Determine the numbers, levels & criticality of vacancies Analyze the cost & time involved in managing the demand Analyze the cost & time required for managing surplus Retrench Choose the resources & methods of recruitment Redeploy HUMAN RESOURCE PLANNING MODEL

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Assessing current human resources and making inventory <ul><li>Job analysis </li></ul><ul><li>HR inventory – HRIS </li></ul><ul><li>Generate a fairly accurate picture existing situation </li></ul>

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Forecasting <ul><li>Compare future needs with current availabity </li></ul><ul><li>Analyze companies change plan </li></ul><ul><li>Forecasting methods used are Time Series Analysis, Regression Analysis and Productivity Ratios </li></ul>

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Matching the inventory with future requirements <ul><li>If the current inventory exceeds the future requirements </li></ul><ul><li>Natural attrition cannot bring down resource to match </li></ul><ul><li>What to consider then???? </li></ul>

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MANAGING THE FORECASTED DEMAND / SURPLUS Managing future demand Managing Future Surplus

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Dealing With Surplus Manpower Retrenchment outplacement layoffs Leave of absence without pay Loaning

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Work Sharing Reduced work hours attrition Early/voluntary retirement

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Growing importance of HRP

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Thank you