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Introduction to human resource management


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Published in: Business, Career

Introduction to human resource management

  2. 2. •According to Adi Godrej, “all corporate strengths are dependent on people.”
  3. 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. 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. 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. 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. 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. 8. Challenges of HRM • Individuals differ from one another • Customization of stimulation and motivation • Demanding personnel
  9. 9. Functions of HRM - 1 Managerial Planning Organizing Staffing Directing Controlling
  10. 10. Functions of HRM - 2 Operational Employment HR Development Compensation Mgt Employee Relations HR Planning Performance Appraisal Job Evaluation Recruitment Training Wage and Salary Admn Selection Management Development Incentives Placement Career Planning and Development Bonus Induction Fringe Benefits
  11. 11. Emerging role or HRM • Value of Human Resource • Competitive advantage • Human Resource Accounting – It is measurement of the cost and value of people for an organization
  12. 12. ROLE OF HR EXECUTIVES • Service provider • Executive • Facilitator • Consultant • Auditor
  13. 13. Challenges to HR Professionals • • • • • • Worker productivity Quality improvement The changing attitudes of workforce The impact of the government Quality of work-life Technology and Training
  14. 14. Organizational Structure & HRM
  15. 15. Why structure ???  What structure signifies?  No directions  Leads to confusion  Chaos  Why???????????
  16. 16. MAIN POINTS OF CHAPTER  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. 17. Mechanistic Vs organic organization  Rigid structure  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
  18. 18. Formal organization President Vice President Division Managers Division Managers Vice President Division Managers Department Managers Department Managers Department Managers Division Managers Division Managers Informal organization Chess group Vice President Division Managers Division Managers Division Managers Division Managers Department Managers Department Managers Department Managers Department Managers Department Managers Department Managers Informal organization Bowling team
  19. 19. Tall Vs Flat structure CMD COO ED GM GM ED GM CM ED PM PM PM PM CM Manager Team Lead Team Lead Team Lead Manager Officer Team Member Officer TALL STRUCTURE Executive Executive Team Member Team Member FLAT STRUCTURE Team Member
  20. 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. 21. LINE AND STAFF FUNCTIONS  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. 22. Line & Staff Relationship TradiTional concepT TradiTional concepT Service orienTed firm Service orienTed firm Which are line and STaff funcTionS Which are line and STaff funcTionS BoTh needS To SupporT each oTher BoTh needS To SupporT each oTher
  23. 23. Line staff conflict Different perception Different perception HR professional to bring change HR professional to bring change Understand market & organization Be empathetic Build trust and transparency Win – win approach
  24. 24. The Role of Human Resources Department As a specialist As a specialist As a facilitator As a facilitator As a change agent As a change agent As a controller As a controller
  25. 25. HUMAN RESOURCE MANAGEMENT AND OTHER ORGANIZATIONAL FUNCTIONS Product & HR Product & HR Production & HR Production & HR Marketing & HR Marketing & HR Management Techniques & HR Management Techniques & HR Organization structure & HR Organization structure & HR
  26. 26. summary 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
  27. 27. Think before others think
  28. 28. Human Resource Planning
  29. 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. 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. 31. • They then realised 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. 32. Human Resource planning Right number Right number Right Skills Right Skills Right Time Right Time Right Cost Right Cost
  33. 33. HRP defined • Process of anticipating and making provision for the movement of people into, within, and out of an organization
  34. 34. Objectives of HRP Right Time Right Time • To maintain Right number Right number • To forecast Right Skills Right Skills Right Cost Right Cost • To optimize • To utilize
  35. 35. HRP at different planning levels  Corporate – level planning  Intermediate – level planning  Operations planning  Planning short-term activities
  36. 36. Organizational plans Organizational plans and objectives and objectives Identify future human Identify future human resource requirements resource requirements HUMAN RESOURCE HUMAN RESOURCE PLANNING MODEL PLANNING MODEL Compare with the Compare with the current HR inventory current HR inventory Determine the numbers, Determine the numbers, levels & criticality of vacancies levels & criticality of vacancies Analyze the cost & time involved Analyze the cost & time involved in managing the demand in managing the demand Choose the resources & Choose the resources & methods of recruitment methods of recruitment Determine the redundant Determine the redundant numbers numbers Analyze the cost & time Analyze the cost & time required for managing surplus required for managing surplus Redeploy Redeploy Retrench Retrench
  37. 37. Assessing current human resources and making inventory • Job analysis • HR inventory – HRIS • Generate a fairly accurate picture existing situation
  38. 38. Forecasting • Compare future needs with current availabity • Analyze companies change plan • Forecasting methods used are Time Series Analysis, Regression Analysis and Productivity Ratios
  39. 39. Matching the inventory with future requirements • If the current inventory exceeds the future requirements • Natural attrition cannot bring down resource to match • What to consider then????
  40. 40. MANAGING THE FORECASTED DEMAND / SURPLUS Managing future demand Managing future demand Managing Future Surplus Managing Future Surplus
  41. 41. Dealing With Surplus Manpower Retrenchment Retrenchment outplacement outplacement layoffs layoffs Leave of absence without pay Leave of absence without pay Loaning Loaning
  42. 42. Work Sharing Work Sharing Reduced work hours Reduced work hours Early/voluntary retirement Early/voluntary retirement attrition attrition
  43. 43. Growing importance of HRP
  44. 44. Thank you