Unit 1 perspectives in human resource management

Unit 1: PERSPECTIVES IN HUMAN
RESOURCE MANAGMENT
Prepared & Presented by ,
N. Ganesha Pandian,
Assistant professor,
Madurai School of management
References: John M Ivancewich, Human resource
Management, Tata Mc Graw Hill
AcademicYear2016-2017EvenSemester
MSM-MBA 2016-2017 Even semester
Year I Semester II

Content
• Evolution of human resource management
• The importance of the human factor
• Challenges
• Inclusive growth and affirmative action
• Role of human resource manager
• Human resource policies
• Computer applications in human resource
management
• Human resource accounting and audit

Case study
Story of Malden mills
Source: “Malden mills Senior Management Team”(January
27,2005), Corporate news; “The Mensch of Malden Mill”
(July 6, 2003),CBS News; Kathy Skala (March 1999), “
Balancing the Human equation”, Workforce, pp.54-59

Definition of Human Resource Management HRM
• Human resource management HRM specifically charged with
programs concerned with people – The employees
• It is the function performed in organizations that facilitates the most
effective use of people to achieve organizational and individual goals
Personnel, human resource management, industrial relations and
employee development - All concerned about people

• Human resource management consists of numerous activities,
including,
1. Equal employment opportunity (EEO) compliance
2. Job analysis Human resource planning
3. Employee recruitment, selection, motivation and orientation
4. Performance evaluation and compensation
5. Training and development
6. Labour relations
7. Safety , health and wellness

Characteristics of HRM
Human Resource management HRM
• It is action oriented
• It is people oriented
• It is globally oriented
• It is future oriented

Evolution of Human Resource Management
• History traced back to England, where masons, carpenters, leather
workers and other craftsman organized themselves into guild
• Due to complexity of industrial society, there is a widening gap
between workers and owners
• Scientific management and welfare work represent two concurrent
approaches
• Hugo Munsterberg and his book Psychology and Industrial efficiency
initiated in 1913 the field of industrial psychology

• The drastic changes in technology, the growth of organizations, the
rise of unions and government concern and intervention concerning
working people resulted in the development of personnel department
• Another early contributor: Elton Mayo and Fritz Roethlisberger to
Human relations movement
• It started as a result of series of experiments conducted at the
Hawthorne facility of Western Electric in Chicago
• The purpose of study is to find the impact of illumination on workers’
productivity

• Peter F Drucker – made a statement that job of personnel was “
Partly a file clerk’s job, partly a housekeeping job, and partly
firefighting heading off union trouble”
• Personnel functions not only record keeping, but also in Strategic
management as Strategic HRM

Traditional HRM Vs Strategic HRM
Traditional HRM Strategic HRM
Responsibility for human
resources and management
Specialists Line managers
Objective Better performance Improved understanding and
strategic use of human assets
Role of HRM area Responds to needs Lead, inspire, understand
Time focus Short-term results Short, intermediate and long-
term
Control Rules, policies, position power Flexible, based on human
resources
Culture Bureaucratic, top-down,
centralization
Open, participative,
empowerment
Major emphasis Following the rules Developing people
Accountability Cost centers Investment in human assets

Objectives of the HRM functions
1. Helping the organization reach its goal
2. Employing the skills and abilities of the workforce efficiently
3. Providing the organization with well-trained and well-motivated
employees
4. Increasing to the fullest the employee’s job satisfaction and self-
actualization
5. Communicating HRM policies to all employees
6. Helping to maintain ethical policies and socially responsible behavior
7. Managing change to the mutual advantage of individuals, groups,
the enterprise and the public

Nature of HRM
1. HRM Involves the Application of Management Functions and
Principles
2. Decision Relating to Employees must be Integrated
3. Decisions Made Influence the Effectiveness of an Organization
4. HRM Functions are not Confined to Business Establishments
Only

Features of HRM or characteristics or nature
1. HRM involves management functions like
planning, organizing, directing and controlling
2. It involves procurement, development,
maintenance of human resource
3. It helps to achieve individual, organizational and
social objectives
4. HRM is a mighty disciplinary subject. It includes
the study of management psychology
communication, economics and sociology.
5. It involves team spirit and team work.

Significance/importance/need of HRM
1. Objective
2. Facilitates professional growth
3. Better relations between union and management
4. Helps an individual to work in a team/group
5. Identifies person for the future
6. Allocating the jobs to the right person
7. Improves the economy

Scope of HRM
• Human Resource Planning
• Design of the Organization and Job Selection and
Staffing
• Training and Development
• Organizational Development
• Compensation and Benefits
• Employee Assistance
• Union/Labour Relations
• Personnel Research and Information System

Functions of HRM

HR department operations
• HRM Strategy : A firm’s strategy is the pattern or plan that integrates
the major objectives, policies and procedures into a cohesive whole
• The objectives of an organization or department are the goals it
seeks to achieve – its reason for existence
• A policy is a general guide that expresses limits within which action
should occur.
• A procedure or rule is a specific direction to action. In large
organizations, procedures are put into manuals, usually called
Standard operating procedure

Challenges in HRM
• Managing the Vision
• Internal Environment
• Changing Industrial Relations
• Building Organizational Capability
• Job Design and Organization Structure
• Managing the Large Work Force
• Employee Satisfaction
• Modern Technology
• Computerized Information System
• Managing Human Resource Relations

EEO- Equal employment opportunity - an inclusive
growth
• EEO programs are implemented by employers to prevent
employment discrimination in the workplace or to take remedial
action to offset employment discrimination.
Three main factors led to the development of EEO
1. Changes in societal values
2. Economic status of women and minorities
3. The emerging role of Government regulations

EEO Laws: Content
• Title VII of the 1964 Civil rights Act
1. Sexual Harassments
2. Pregnancy discrimination
3. “English only” rules
4. Religious minority
5. Age and gender discrimination
6. Equal pay
7. Persons with disabilities

Affirmative actions in organizations
• Affirmative actions defined as “ those actions appropriate
to overcome the effects of past or present practices,
policies or other barriers to equal employment
opportunity”
• Affirmative action may be
1. Voluntary or
2. Involuntary

Affirmative actions and Inclusive growth : Indian Context
• Constitution provision for Reservation in services
The Constitution of India, based on which orders relating to
reservations in services for Scheduled Castes (SCs), Scheduled
Tribes (STs) and other Backward Classes (OBCs) have been issued
by Department of Personnel & Training and Ministries of Social
Justice of Government of India
The provisions made in the Articles 16, 335, 338, 340, 341 & 342 of
the Constitution relate to reservation, protection and safeguards, in
public employment in respect of the persons belonging to the
SCs/STs and other backward classes.

The Preamble of our Constitution proclaims the resolution of
PEOPLE OF INDIA to constitute India into a SOVEREIGN,
SOCIALIST, SECULAR AND DEMOCRATIC REPUBLIC and to
secure to all its citizens
RIGHT TO EQUALITY-Article 14
Article 14 of the Constitution reads: “The state shall not deny to any
person equality before the law or the equal protection of the laws
within the territory of India"
Safeguards for public employment- Article16
Article 16 of the constitution provides for equality of opportunity for all
citizens in matters relating to employment or appointment to any
office under the state

Reservation of government jobs (Articles 16(4), 320(4), 333 and 335)
The above mentioned sections provides the reservation of government
services to OBC/SC/ST classified as poor segment given the
opportunity of relaxation or concession in age limit, exemption from
certain fee and likewise
Both central government and state government may separately legislate
their own policies for employment or services in state or central
organizations
Affirmative actions and inclusive growth is a major topic of concern in
this changing social scenario.

Role of Human resource manager
• Human resources function as primarily administrative and
professional.
• HR staff focused on administering benefits and other payroll and
operational functions and as well as playing a part in the firm‘s
overall strategy

The primary responsibilities of Human Resource managers are:
• To develop a thorough knowledge of corporate culture, plans and
policies. To act as an internal change agent and consultant
• To initiate change and act as an expert and facilitator
• To actively involve in company‘s strategy formulation
• To keep communication line open between the HRD function and
individuals and groups both within and outside the organization
• To identify and evolve HRD strategies in consonance with overall
business strategy

According to Dave Ulrich HR play‘s four key roles.
• Strategic Partner Role-Turning strategy into results by building
organizations that create value;
• Change Agent Role- making change happen, and in particular, help
it happen fast
• Employees Champion Role—managing the talent or the intellectual
capital within a firm
• Administrative Role—Trying to get things to happen better, faster
and cheaper

HUMAN RESOURCE POLICIES
• Predetermined established guideline towards the attainment of
accepted goals and objectives.
• Personnel Polices refer to principles and rules to conduct which
“Formulate, redefine, break into details and decide a number of
actions ” that govern the relationship with employees in the
attainment of organizational objectives.
• Personnel Polices are those that individual have developed to keep
them on track towards their personnel objectives

Aims and objective of Personnel polices
• Enable the organization to carry out the main objectives
• Awareness of items in policies and to secure the co operation
• Sense of unity with the enterprise
• Provide competent , adequate and trained personnel for all levels
and types of management
• To protect the common interest of all parties
• Recognize the role trade unions in the organization.
• Efficient consultative service.
• Management leadership
• Delegating the human relations

Specific Policies
• Hiring – factors like reservation , martial status,
• Terms and conditions – compensation policy , hours of work,
overtime , promotion , transfer, etc
• Medical assistance - sickness benefits
• Housing, transport, and other allowances.
• Training and development
• Industrial relations

Coverage of HR Policies
• Travel Pay
• Work Records
• Temporary & Casual
• Appointments
• Workweek & Pay
Periods
• Compensation
•Pay Advances
•Sick Leave
•Voting
•Worker's Compensation
•Labor Relations
•Probation
•Grievance Procedure
• Ethical Conduct
•Sick
•Employee Discipline
•Pay bands

Formulating Policies
• Five principle source for determining the content and meaning of
policies
• – Past practice
• – Prevailing practice in the rival companies
• – Attitudes and philosophies of the founders (Top level
Management
• – Attitudes and philosophies of middle level management.
• – Knowledge and experience from handling personnel problems

Computer applications in HRM
Human source Information System (HRIS)
Human Resource Information System is a systematic way of
storing data and information for each individual employee to aid
planning , decision making and submitting of returns and
reports to the external agencies.

Purpose of HRIS
• Storing information and data for each individual employee for future
references
• Providing basis for planning, Organizing , Decision Making,
Controlling and other Human resources function.
• Meeting daily transactional requirements- marking present / absent ,
and granting leave.
• Supply data and submitting returns to government and other
statutory agencies

Applications of HRIS
• Personnel
Administration
• Salary Administration
• Leave / absence
recording
• Skill Inventory
• Medical History
• Accident Monitoring
•Performance
Appraisal
•Training and
Development
•HRP
•Recruitment
•Career Planning
•Collective Bargaining

Steps in Implementing HRIS
1. Inception of Data
2. Feasibility Study
3. Selecting a project team
4. Defining the requirements
5. Vendor analysis
6. Contract Negotiations
7. Tailoring the system
8. Collecting data
9. Testing system
10. Starting up
11. Running in parallel
12. Maintenance
13. Evaluation

Benefits of HRIS
• Higher speed of retrieval of information
• Reduction in duplication
• Ease in classifying and reclassifying
• Effective decision making
• Higher accuracy of information
• Fast response of quires
• Improve quality of people
• Better work culture
• Systematic procedures
• Transparency

Human Resource Accounting & Audit
• Accounting for people as an organizational resource. It involves
measuring the costs incurred by business firms and other
organizations to recruit, select, hire, train and develop human assets.
It involves measuring the economic value of people to the
organization

Basic Information of HR
• Number of Employees
• Categories
• Grades
• Total Value of human resources
• Value per employee

HR Acquisition
• Number of employees acquired during the year
• Cost of Acquisition
• Levels for which they were acquired
• HR Development
• All information pertaining to HRD activities of the organization
• HR maintenance
• Cost related to HR maintenance.
• HR Separation
• Cost related to HR Separation, attribution rate.
• Details of benefits provided to the employees

Various Methods of HR Accounting
• Non- Monetary Measurement
• Monetary Measurement
• Non- Monetary Measurement
• Capitalization of Historical Cost
• Replacement Cost Method
• Opportunity Cost method
• Economic Value Method
• Present Value Method

HR Accounting
• Developing skill inventory
• Performance Appraisal
• Assessing the individual capacity for development
• Attitude survey
• Subjective Appraisal

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