1. BUSINESS PRACTICE AND
INDUSTRIAL ECONOMICS
Dileep Pandalai
Semester – 1
Mtech
IEM

2. TOPICS FOR DISCUSSION
 Human Resource Management
 Managing Organizational change
 Innovation
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3. HUMAN RESOURCE MANAGEMENT
 Human Resource Management (HRM) is a
management function through which managers
Recruit, Select, Train and Develop organization
members
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4. THE HRM PROCESS
Human
Resource
Planning
Recruitment
Selection
Socialization
Training &
Development
Performance
Appraisal
Promotions, tran
sfers, demotions
and separations
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5. HUMAN RESOURCE PLANNING
 It is designed to ensure the personnel needs of the
organization appropriately.
 Human resource planning has four basic aspects:
 Planning for future needs by deciding how many
people with what skills the organization will need
 Planning for future balance by comparing the
number of needed employees who can be expected
to stay with the organization which leads to
 Planning for recruitment or laying off employees
and
 Planning for the development of employees
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6. 6
RECRUITMENT
 Recruitment is concerned with developing a pool of
job candidates in line with the human resource
plan.
• Step 1: Prepare a Job/Position description –
Description with the title, duties and responsibilities
• Step 2: Hiring/Job specification – qualification and
experience requirements
 Sources of recruitment
• Campus placements, placement agencies
• Peer recruitment, recruitment from within

7. 7
SELECTION
 Selection means finding out the right candidate for
job by evaluating through
• Application forms
• Resumes
• Interviews
• Employment and skill tests
• Reference checks

8. SOCIALIZATION (ORIENTATION)
 Helps the hired individual to fit smoothly in to the
organization.
• New comers get introduced to colleagues
• Make familiar with their responsibilities
• Introduced to Company’s culture, Policy’s and
expectations regarding employee behavior
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9. TRAINING AND DEVELOPMENT
 Training is designed
• to improve job skills
• to contribute to organizational effectiveness
 Requirements for training is determined by
1. Performance appraisal
2. Analysis of job requirements
3. Organizational analysis
4. Employee survey
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10. DEVELOPMENT PROGRAMS
 Development programs are designed
• to prepare the employees for promotion
 Two Methods
1. On the job methods (Coaching, Job
rotation, Training positions, Planned work
activities)
2. Off the job methods (in house training and
management development programs and
university sponsored programs)
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11. PERFORMANCE APPRAISAL
 Individual’s performance is compared to standards
or objectives determined for the position
 HRM will establish the policies for appraisal working
with the top management
 Appraisal in done by the employee’s immediate
supervisor
 High performance
 Bonus, Salary rise, Promotion
 Low performance
 Additional training, Demotion or separation
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12. PROMOTIONS
 A major incentive for superior managerial
performance
 Affects morale & productivity if some people are
frequently bypassed
 Discrimination – Racial & Gender
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TRANSFERS
 Provides broader job experience
 Fills job vacancies
 Low performers can be shifted to other departments
instead of demoting or firing from the job
 Some employees may need to join their spouse or
family

13. DISCIPLINE, DEMOTIONS & SEPARATIONS
 Discipline – generally administered when company
policy is violated or falls short of work expectations
 Steps – warning, reprimand, probation, suspension,
disciplinary transfer, demotion & discharge
 Separation – if transfer or demotion is not possible
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14. MANAGING ORGANIZATIONAL CHANGE
 Reasons for change
 Changes in external environment
 Technology
 Nature of work force
 Effects of change
 Organization structure can become obsolete
 Management practice & culture become outdated
 Communication & decision making system gets
choked
 Deteriorates interpersonal & interdepartmental
relationships 14

15. PLANNED CHANGE
 The systematic attempt to redesign an organization
in a way that it will help it adapt to changes in the
external environment or to achieve new goals
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16. FORCE FIELD THEORY – KURT LEWIN
EVERY BEHAVIOR IS AN EQUILIBRIUM BETWEEN DRIVING &
RESTRAINING FORCES
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17. SOURCES OF RESISTANCE
Organization’s
culture
Individual self
interests
Perception of
organizational
goals and
strategies
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18. THE PROCESS OF CHANGE
Unfreezing Change Refreezing
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Unfreezing – making the need for change obvious
Change – Adopting new attitudes, values and
behaviors
Refreezing – locking the new behavior pattern by
means of supporting or reinforcing mechanisms

19. TYPES OF APPROACHES TO PLANNED
CHANGE
 Structural change
1. Organizational change
2. Decentralization
3. Modified work flow
 Technological change
 Changing people
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20. STRUCTURAL CHANGE
 Rearranging internal systems like
1. Line of communication
2. Work flow or management hierarchy
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ORGANIZATIONAL CHANGE
 Classical organization structure focuses on
1. Clearly defined job responsibilities
2. Appropriate division of labor
3. Lines of performance
 New trend
1. Flat-lean organization where middle level of
managers are eliminated

21. DECENTRALIZATION
 Creating smaller, self contained organizational units
 Increases motivation and performance of unit
members
 Each unit can adapt its own structure and
technology to its particular task and environment
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MODIFIED WORK FLOW
 Modified work flow and careful grouping of activities
can improve productivity and morale

22. TECHNOLOGICAL CHANGE
 New engineering processes
 Research techniques
 Production methods
 New equipments
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CHANGING PEOPLE
 Changing employee
behavior, skills, attitudes, perceptions and
expectations

23. MANAGING CREATIVITY AND INNOVATION
 Creativity is defined as generation of a new idea
and innovation as the translation of a new idea into
a new company, new product or new service, a new
process or a new method of production
 Organizational creativity and innovation
• Like individuals organizations also differ in their
ability to translate talents into ideas
• Creative process involves 3 steps
• Idea generation
• Problem solving or idea development
• Implementation 23

24. THANK YOU
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