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Introduction to human resource management
The document provides an introduction to human resource planning. It discusses key points such as the definition of human resource planning as anticipating and making provision for the movement of people into, within and out of an organization. The objectives of HRP are to maintain, forecast, optimize and utilize the right number of people with the right skills at the right time and cost. The process of HRP involves identifying future requirements, comparing them to current resources, determining surpluses or vacancies, and managing demand and surplus. Effective HRP is increasingly important for organizations.
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Introduction to human resource management
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- 2. •According to AdiGodrej, “all corporate strengths are dependent on people.”
- 3. Human Resource Management •‘The real sources of competitive leverage are the culture and capabilities of your organization that derive from how you manage your people.’
- 4. Points to Ponder •Definition and Concept of HRM • History of HRM • Functions of HRM • HR Policies and Procedures • Emerging Role of HRM • Role of HR Executives • Challenges to HR Professionals • Strategic HRM
- 5. Human Resource Management •“HRM is the function performed in organizations that facilitates the most effective use of people to achieve organizational and individual goals.” – Ivancevich and Glueck
- 6. History of HRM- 1 • Scientific Management Approach (mid 1900s) – – Study of motion and fatigue – ‘one-best-way’ to accomplish the task – Piece-rate system – Welfare programmes – Failed to bring behavioural changes and increase in productivity • Human Relations Approach (1930-40) – Effect of social and psychological factors – Relations and respect High Productivity
- 7. History of HRM- 2 • Human Resources Approach (1970s) – Principles • Employees are assets • Policies, programmes and practices - help in work and personal development • Conducive environment
- 8. Challenges of HRM •Individuals differ from one another • Customization of stimulation and motivation • Demanding personnel
- 9. Functions of HRM- 1 Managerial Planning Organizing Staffing Directing Controlling
- 10. 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
- 11. Emerging role orHRM • Value of Human Resource • Competitive advantage • Human Resource Accounting – It is measurement of the cost and value of people for an organization
- 12. ROLE OF HREXECUTIVES • Service provider • Executive • Facilitator • Consultant • Auditor
- 13. Challenges to HRProfessionals • Worker productivity • Quality improvement • The changing attitudes of workforce • The impact of the government • Quality of work-life • Technology and Training
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- 15. Why structure ??? Whatstructure signifies? No directions Leads to confusion Chaos Why???????????
- 16. MAIN POINTS OFCHAPTER Organizational Structure and Human Resource Management Formal and Informal Organizations Tall and Flat Organizational Structures Responsibility, Authority and Accountability Line and Staff Functions Human Resource Management and other Organizational Functions
- 17. Mechanistic Vs organic organization Rigidstructure Employees are tied by rules & regulations High degree of centralization Suitable for operating in static environment Decision-making is done by superiors Ex:Public sector in the pre-reforms era Flexible structure Employees are not tied by rules & regulations Decentralized style of management Suitable for operating in dynamic environment Decision-making is done by junior level employees also Ex: Marico`s Saffola
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- 19. Tall Vs Flatstructure CMD ED ED ED GM GM GM CM CM Manager Manager Officer Officer Executive Executive TALL STRUCTURE COO PM PM PM PM Team Lead Team Lead Team Lead Team Member Team Member Team Member Team Member FLAT STRUCTURE
- 20. RESPONSIBILITY, AUTHORITY & ACCOUNTABILITY Responsibility: It is the obligation of a manager to carry out the duties assigned to him. Authority: It refers to the right to give orders and the power to exact obedience from others in the process of discharging responsibility. Accountability: The employee's answerability on using the authority in discharging the responsibility is termed accountability.
- 21. LINE AND STAFFFUNCTIONS Departments or employees of a firm that perform core activities Contributes directly to the business of the firm Ex: Manufacturing and Marketing departments Departments or employees of a firm that perform a support function Contributes indirectly to the business of the firm Ex: HR and Finance departments
- 22. Line & StaffRelationship Traditional concept Service oriented firm Which are line and staff functions Both needs to support each other
- 23. Line staff conflict Differentperception HR professional to bring change Understand market & organization Be empathetic Build trust and transparency Win – win approach
- 24. The Role ofHuman Resources Department As a specialist As a facilitator As a change agent As a controller
- 25. HUMAN RESOURCE MANAGEMENT ANDOTHER ORGANIZATIONAL FUNCTIONS Product & HR Production & HR Marketing & HR Management Techniques & HR Organization structure & HR
- 26. summary Organizational Structure andHuman Resource Management Formal and Informal Organizations Tall and Flat Organizational Structures Responsibility, Authority and Accountability Line and Staff Functions Human Resource Management and other Organizational Functions
- 27. Think before othersthink
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- 29. Point to ponder Definition of Human Resource Planning Objectives of Human Resource Planning The Process of Human Resource Planning Managing the Forecasted Demand/Surplus Growing Importance of Human Resource Planning
- 30. Opening case • HRP???NO, Thank you • A reputed south Indian university appointed 218 people on temporary basis and paid them Rs 750/month later increased to 1575/month. • University already had surplus of these employees eating away 22% of budget allocation • 33% of temporary staff already working for 10 years – No laid down procedure for recruitment or appointment, go to vice chancellor and get your name scribbled on it and your are taken in
- 31. • They thenrealised the guilt of violating Equal Remuneration Act and supressing human rights • What to do with this 218 temoparay staff...?? • University can dismiss services of 33% as there have been breaks in their services. Will they take it????? • While 67% of temporary staff, university can not terminate them, as there were no breaks • University decides to regularize their services, with 50 available vacancies • This would cost the university an exra expenditure of Rs 30 lakh/year. And 1.2 crore for rest remaining...
- 32. Human Resource planning Right number RightSkills Right Time Right Cost
- 33. HRP defined •Process ofanticipating and making provision for the movement of people into, within, and out of an organization
- 34. Objectives of HRP •To maintain • To forecast • To optimize • To utilize Right Cost Right Skills Right number Right Time
- 35. HRP at different planninglevels Corporate – level planning Intermediate – level planning Operations planning Planning short-term activities
- 36. Organizational plans and objectives Identifyfuture 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
- 37. Assessing current human resourcesand making inventory • Job analysis • HR inventory – HRIS • Generate a fairly accurate picture existing situation
- 38. Forecasting • Compare futureneeds with current availabity • Analyze companies change plan • Forecasting methods used are Time Series Analysis, Regression Analysis and Productivity Ratios
- 39. Matching the inventorywith future requirements • If the current inventory exceeds the future requirements • Natural attrition cannot bring down resource to match • What to consider then????
- 40. MANAGING THE FORECASTED DEMAND/ SURPLUS Managing future demand Managing Future Surplus
- 41. Dealing With Surplus Manpower Retrenchment outplacement layoffs Leaveof absence without pay Loaning
- 42. Work Sharing Reduced workhours attrition Early/voluntary retirement
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