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  1. 1. Components ofHuman Resource Management<br />Dr Ashutosh N Misal<br />2/22/2008 8:33 AM<br />© Dr Ashutosh N Misal<br />1<br />
  2. 2. 1. Human Resource Organization<br />Achieving success by organization design and development, motivation, the application of effective leadership and the process of getting across the message about what the enterprise is setting out to do and how it proposes to do it<br />Desired corporate culture is required to be developed and reinforced<br />Organization Development interventions are needed to achieve integration, improve teamwork, motivate human resource, develop proper leadership, facilitate communication system, manage conflict and change and obtain commitment<br />2/22/2008 8:33 AM<br />© Dr Ashutosh N Misal<br />2<br />
  3. 3. 2. Human Resource Planning<br />How many people organization wants; type of people organization wants at present and future in terms of their expertise and how they “fit” the corporate culture<br />Forecasting demand and supply for future labour<br />It provides base for recruitment programmes and Human Resource Planning<br />2/22/2008 8:33 AM<br />© Dr Ashutosh N Misal<br />3<br />
  4. 4. 3. Human Resource Systems<br />Programmes such as<br />Recruitment Management:Process of obtaining required human resource<br />Information Management: ensuring all policies and practices well articulated and communicated to the workforce<br />Training management: identification of training needs, preparation of training strategy and appropriate training system<br />Performance Management: technique of appraising performance systematically against defined criteria, reviewing progress to date and assessing potential for advancement. Three main appraisal systems: performance appraisal, performance coaching and counseling<br />2/22/2008 8:41 AM<br />© Dr Ashutosh N Misal<br />4<br />
  5. 5. 3. Human Resource Systems<br />Programmes such as<br />Reward Management:method to ensure that people are rewarded in accordance with their contribution<br />Career Management: charting special career paths for individuals for advancement in the organization<br />Health and Safety Management: maintaining healthy and safe system of work in an organization<br />Discipline Management: administrating discipline to foster positive employee behaviour that will promote organizational objectives<br />Culture Management: system of thinking and behaving shaped by values, attitudes, rituals and sanctions in an organization<br />2/22/2008 8:53 AM<br />© Dr Ashutosh N Misal<br />5<br />
  6. 6. 4. Human Resource Development<br />The process by which the employees of an organization are helped, in a continuous planned way to: (a) acquire or sharpen capabilities required to perform various tasks and functions associated with their present and expected future roles, (b) develop their general enabling capabilities as individuals so that they are able to discover and exploit their own inner potentials for their own and organizational development purposes; and (c) develop an organizational culture where superior subordinate relationship, team work, and collaboration among different sub-units are strong and contribute to organizational health, dynamism and pride of employees (Rao)<br />2/22/2008 9:07 AM<br />© Dr Ashutosh N Misal<br />6<br />
  7. 7. 4. Human Resource Development<br />Two main purposes<br />To provide employees with greater opportunity to grow and succeed within the company<br />To strengthen management and professional teams at all organizational levels<br />2/22/2008 9:12 AM<br />© Dr Ashutosh N Misal<br />7<br />
  8. 8. 4. Human Resource Development<br />(UdaiPareek) Four subsystems necessary for introducing HRD <br />Planning and Administration of H R – MPP, recruitment, promotion and career planning<br />Job and salary administration – performance appraisal, job analysis and potential analysis<br />Training, performance feedback, counseling and organizational development<br />Industrial relations and welfare of workers<br />2/22/2008 9:40 AM<br />© Dr Ashutosh N Misal<br />8<br />
  9. 9. 4. Human Resource Development<br />Ensures that organization has people with skills and knowledge it needs to achieve its strategic objectives<br />Thrust of HRD is on training and development<br />Ensure that all people practice support continuous development, learning and high performance; work to create participative cultures and to dissolve autocratic and dependent mindsets; help prepare people and institutions to succeed in rapidly changing global village; and treat their employees like customers for enduring success of the organization<br />2/22/2008 9:40 AM<br />© Dr Ashutosh N Misal<br />9<br />
  10. 10. 5. Human Resource Relationships<br />Handling of employees individually and collectively as members of trade unions and staff associations<br />To increase cooperation, trust and to involve employees actively in company’s affairs<br />Deals with problem solving, disciplinary cases and grievance handling<br />2/22/2008 9:38 AM<br />© Dr Ashutosh N Misal<br />10<br />
  11. 11. 6. Human Resource Utilization<br />To achieve productivity through people<br />Treat them as adult, treat them as partners, treat them with dignity, and respect<br />Following actions are required<br />Conduct productivity drive<br />Improve manpower budgeting and control techniques<br />Introduce work measurement<br />Use appropriate payment method…bonus, profit sharing etc<br />Improve motivation<br />Involve employees in improvement programs<br />Introduce new technology<br />Negotiate productivity agreement<br />Device proper training programs<br />2/22/2008 9:38 AM<br />© Dr Ashutosh N Misal<br />11<br />
  12. 12. 7. Human Resource Accounting<br />Accounting for people as organizational resource<br />Measurement of the cost and value of people to organizations that involves….<br />Costs incurred on recruiting, selecting, hiring, training and developing employees and judging their economic value to the organization<br />HRA can provide data pertaining to turnover costs, cost of employee’s absence, and its impact of performance on others<br />Traditional accounting treat people only as expenses and now as business partners and assets<br />2/22/2008 9:38 AM<br />© Dr Ashutosh N Misal<br />12<br />
  13. 13. 8. Human Resource Audit<br />To assess the effectiveness of H R function and to ensure regulatory compliance<br />Turnover, compensation practice, exit interview summaries, employee complaints, H R budget and expenditures, and so on<br />2/22/2008 9:39 AM<br />© Dr Ashutosh N Misal<br />13<br />
  14. 14. 9. Human Resource Functions<br />HR involves nothing less than managing change, technology, innovation and diversity<br />Primary responsibilities of H R Manager are…<br />Develop a thorough knowledge of corporate culture, plans and policies<br />Act as an internal change agent and consultant, expert and facilitator<br />Actively involve himself in company’s strategy formulation<br />Keep communication open between HR function and individuals and groups within organization<br />Develop various organization teams and their working relationship with other teams and individuals<br />Relate people and work to achieve organizational objectives effectively and effectively<br />To diagnose problems and determine appropriate solution in H R areas<br />Provide coordination and support services for the delivery of HRD programs and services<br />Evaluate impact of an HR intervention and improve individual, group and organizational performance<br />2/22/2008 9:39 AM<br />© Dr Ashutosh N Misal<br />14<br />
  15. 15. 10. Strategic H R M<br />Integrating HR into strategic planning process<br />Linking HR practices to business strategy and to one another<br />Developing partnership with line management so that HR programs meet real business needs<br />Internally transforming of HR structure and staff<br />Enhancing HR administrative efficiency<br />Measuring the bottom-line impact of HR activities<br />2/22/2008 9:40 AM<br />© Dr Ashutosh N Misal<br />15<br />
  16. 16. 11. H R Balance Score Card<br />Provides managers with the instrumentation they need to navigate to future competitive success<br />BSC measures organizational performance across four balanced perspectives…<br />financial, customers, internal business process, and learning & growth<br />Scorecard emphasizes that the financial and non-financial measures must be part of the information system for employees at all levels of organization<br />2/22/2008 8:31 AM<br />© Dr Ashutosh N Misal<br />16<br />
  17. 17. 11. H R Balance Score Card<br />Financial perspective…Does the business strategy, implementation, and execution adds value for shareholders?<br />Customer perspective…How well has the business articulated and executed its customer and market strategies to deliver superior future financial returns?<br />Internal Business Process perspective…deliver value proposition to attract and retain customers and satisfy shareholders expectations of financial returns<br />Learning & Growth perspective…What are people capabilities, learning and innovation that add value to organization?<br />2/22/2008 8:31 AM<br />© Dr Ashutosh N Misal<br />17<br />