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  2. 2. AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO:  Understand the term HRM and importance of HRM.  Comprehend four functions of HRM .  Describe evolution of HRM.  Identify key roles played by HR managers.  Explain challenges faced by HR managers.  Differentiate between HRM and international HRM.
  3. 3. We can Divide this Term into Three Parts HUMAN RESOURCE MANAGEMENT
  4. 4. HUMAN
  5. 5. RESOURCE Means debt, equity, retain earnings and selected matters. Means building, machinery, vehi cle and other material. FINANCIAL RESOURCES PHYSICAL RESOURCES Include the history of groups in the organization, relationship , level of trust etc. Includes skills, abilities, experience and other work related characteristics of people associated with the organization. ORGANIZATIONAL RESOURCES HUMAN RESOURCE
  6. 6. MANAGEMENT Management is the universal process of getting activities completed with and through other people to achieve organizational goals.
  7. 7. HUMAN RESOURCE MANAGEMENT The design of formal systems in an organization to ensure effective and efficient use of talent to accomplish organizational goals. Human Resource Management helps in maximizing productivity & reducing cost by Putting Right Person At Right Place.
  8. 8. EVOLUTION OF HRM ? ?
  9. 9. EVOLUTION OF HRM Cont . . . 1. The Craft System (1600s-1700s)  Small level of production  Industrial Revolution 2. Scientific Management (Early 1900s)  One best way to accomplish the task  Putting the right person on the job with the correct tools and equipment  Having a standardized method of doing the job  Providing an economic incentive to the worker 3. Human Relations (Late 1920s – Early 1930s)  Hawthorne studies  Employee participation program
  10. 10. EVOLUTION OF HRM Cont . . . 4. Behavioral Sciences The study of the actions of people at work; people are the most important asset of an organization. 5. Personnel Management Involve in operational planning and decision making & do not incorporate all HR activities. 6. Human Resource Management Involve in operational as well as strategic planning and decision making & incorporate all HR activities(training, career development, EEO etc.) 7. Intellectual Capital Management Organizations need to be dynamic both in the context of the management of individual capabilities and the management of organizational structure.
  12. 12. FUNCTIONS OF HRM Cont . . . STAFFING •Strategic Human Resource Planning •Recruitment •Selection Maintenance Training & Development Motivation H R M
  13. 13. 1. STAFFING The activities in HRM concerned with seeking and hiring qualified employees are called Staffing.
  14. 14. 1. STAFFING The basic objective of the staffing function is to locate & secure competent employee. COMPONENTS OF STAFFING a. Strategic Human Resource Planning b. Recruitment c. Selection
  15. 15. a. STRATEGIC HUMAN RESOURCE PLANNING Strategic Human Resource Planning is the process by which an organization ensures that it has right number and kind of people capable of effectively and efficiently completing those task that are in direct support of company’s mission and strategic goals.
  16. 16. b. RECRUITMENT The process by which a job vacancy is identified and potential employees are notified.  To obtain an adequate pool of applicants there by more choice to the organization.  Providing enough information about the job such that those who are unqualified will not apply. OBJECTIVES
  17. 17. c. SELECTION Selection is the process by which an organization chooses from list of applicants the person or persons who meet the selection criteria for the position available considering current environmental conditions.
  18. 18. c. SELECTION • The primary objective of selection activities is to predict which job applicant will be suitable if hired, during the selection process, candidate are also informed about the job and organization • Proper selection can minimize the cost of replacement and training resulting in more productive workforce
  19. 19. FUNCTIONS OF HRM Cont . . . Staffing Maintenance Motivation TRAINING & DEVELOPMENT •Orientation •Employee Training •Employee Development •Organization Development •Career Development H R M
  20. 20. 2. TRAINING & DEVELOPMENT  Training is the systematic process of altering the behavior of employees in a direction that will achieve organizational goals.  Development can be defined as “Efforts to improve employees’ ability to handle a variety of assignments are.”
  21. 21. 2. TRAINING & DEVELOPMENT The basic objective of Training & Development function is to take competent workforce, adapt them to the organization, and help them to obtain up-to-date skills, knowledge, and abilities for their job responsibilities
  22. 22. COMPONENTS OF TRAINING & DEVELOPMENT Orientation Employee Training Employee Development Organization Development Career Development
  23. 23. COMPONENTS OF TRAINING & DEVELOPMENT Cont . . . • It covers the activities involve in the introducing a new employee to organization and to his or her work unit. a. Orientation • Employee training is designed to assist employee acquiring better skill for the current job. b. Employee Training •The focus of employee development is on a future position with in the organization for the which employee require additional competencies. c. Employee Development d. Career Development e. Organizational Development •The focus of career development is to provide the necessary information and assignment in helping employees realize their career goals. •Organizational Development is the part of HRM that deals with facilitating system wide change in the organization.
  24. 24. FUNCTIONS OF HRM Cont . . . Training & Development Staffing Maintenance Motivation  Motivation and Job Design  Performance management  Reward & Compensation  Employee Benefits H R M
  25. 25. 3. MOTIVATION An inner force that impels human beings to behave in a variety of ways. MOTIVATION
  26. 26. 3. MOTIVATION The basic objective of motivation function is to retain good staff and to encourage them to give of their best.
  27. 27. COMPONENTS OF MOTIVATION A job should be designed in a such a way that it should facilitate the achievement of the organizational objective, stimulate performance and recognize the capacity and needs of those who are to perform it. 1. Job Design Process which is used to identify, encourage, measure, evaluate and improve employees through performance appraisal. 2. Performance Management Compensation is what employee receives in exchange for their contribution to the organization. Compensation management help the organization to obtain, maintain and retain a productive Workforce. 3. Compensation Management Employees benefit are generally membership based ,non financial reward offered to attract and keep the employees, regardless their performance level. 4. Employee Benefit
  28. 28. FUNCTIONS OF HRM Cont . . . Motivation Staffing Maintenance •Health & safety •Communication •Employee relations Training & DevelopmentH R M
  29. 29. 4. MAINTENANCE FUNCTION Activities in HRM concerned with maintaining employees commitment and loyalty to the organization. MAINTENANCE
  30. 30. 4. MAINTENANCE FUNCTION The last phase of HRM process is called maintenance function. The main objective of this function is to do such HRM activities that maintain employees commitment and loyalty with the organization.
  31. 31.  Serving as an intermediary between the organization and its union.  Designing discipline and grievance handling systems. Designing and implementing employee communication system. Designing and implementing programs to ensure employee health and safety. COMPONENTS OF MAINTENANCE Health and Safety Communication Employees/ Labor Relation
  32. 32. ROLES OF HR MANAGER Administrative Role Employee Advocate Role Operational Role Strategic Role Serve as “Morale Officer” Clerical Administration Business Contributor HR Activities
  33. 33. ROLES OF HR MANAGER Cont . . . • Clerical and administrative support operations (e.g., payroll and benefits work). 1. Administrative Role • “Champion” for employee concerns • Employee crisis management • Responding to employee complaints 2. Employee Advocate Role • Identification and implementation of HR programs and policies— hiring, training, compensating and other activities that support the organization. 3. Operational Role
  34. 34. ROLES OF HR MANAGER Cont . . . 4. Strategic Role  Focusing on developing HR activities that enhance organizational performance.  Involvement in strategic planning.  Participating in decision making on mergers, acquisitions, and downsizing.  Accounting and documenting the financial results of HR activities.
  35. 35. HR MANAGEMENT CHALLENGES Economic and Technological Changes Workforce Availability and Quality Growth in Contingent Workforce Demographics and Diversity Issues Balancing Work and Family Organizational Restructuring, Mergers, and Acquisitions
  36. 36. HR MANAGEMENT CHALLENGES Cont . . .  Shift in jobs for manufacturing and agriculture to service industries and telecommunications.  Pressures of global competition causing firms to adapt by lowering costs and increasing productivity.  Growth of information technology. 1. Economic & Technological Changes Inadequate supply of workers with needed skills for “knowledge jobs” Education of workers in basic skills 2. Workforce Availability and Quality
  37. 37. HR MANAGEMENT CHALLENGES Cont . . .  Increases in temporary workers, independent contractors, leased employees, and part-timers caused by:  Need for flexibility in staffing decisions  Increased difficulty in firing regular employees. 3. Growth in Contingent Workforce “Right-sizing”—eliminating of layers of management, closing facilities, merging with other organizations, and out placing workers.  Intended results are flatter organizations, increases in productivity, quality, service and lower costs.  HR managers must work toward ensuring cultural compatibility in mergers. 4. Organizational Restructuring, Mergers, and Acquisitions
  38. 38. HR MANAGEMENT CHALLENGES Cont . . .  Dual-career couples  Single-parent households  Decline in the “traditional family”  Working mothers and family/childcare  Single employee “backlash” against family-oriented programs. 5. Balancing Work & Family  More diversity of race, gender, age etc. 6. Demographics and Diversity Issues
  39. 39. INTERNATIONAL HRM (IHRM) International HRM (IHRM) is the process of procuring, allocating , and effectively utilizing human resources in a multinational corporation.  Encompasses more functions.  Has more heterogeneous functions.  Involves constantly changing perspectives.  Requires more involvement in employees’ personal lives.  Influenced by more external sources.  Involves greater level of risk than typical domestic HRM. HRM vs. IHRM
  40. 40. THE CONCEPT OF TRANSNATIONALITY Each of these definitions, depending upon how the organization perceives itself , has implications for the role of international HRM. Multinational Companies Refers to companies that have developed a strategic posture and organizational capability that allow them to be very sensitive and responsive to differences in national environments around the world. Global Companies Refers to companies that have developed international operations that are much more driven by the need for global efficiency and centralized in strategic and operational decisions. International Companies Based on Transferring and adapting the parent company’s knowledge or expertise to foreign markets.
  41. 41. FUNCTION OF INTERNATIONAL HRM 1. The Three broad Human Resource activities: 2. The Three major Country categories involved in International HRM activities: 3. The Three type of Employee of an International Firm: Host country Nationals (HCNs) Parent Country Nationals (PCNs) Third Country National (TCNs) Procurement Allocation Utilization Host country Home Country Other Country Highlighting the broad functions of HRM, Morgan (1986) has presented a model that consist of three dimensions which are:
  42. 42. APPROACHES TO IHRM APPROACHES DEFINITIONS ETHNOCENTRIC MNC simply exports HR practices and policies used in the home country to the foreign subsidiaries. It Emphasizes consistency and integration across all subsidiaries. POLYCENTRIC HR policies are adapted to meet the circumstances in each foreign location. REGIOCENTRIC Represents a regional grouping of subsidiaries. HR policies are coordinated and integrated within the region. GEOCENTRIC HR policies are developed to meet the goals of the global network of home country locations and foreign subsidiaries.
  43. 43. Human Resource Management Evolution of HRM Craft System Scientific Management Human Relations Behavioral Sciences Personnel Management HRM Intellectual Capital Management Scientific ManagementSTAFFING Scientific Management TRAINING & DEVELOPMENT Scientific ManagementMOTIVATION Scientific ManagementMAINTAINCE Goals of HRM Enhancing Productivity & Quality Promoting Individual Growth & Development Complying with Legal & Social Obligations Facilitating Organizational Effectiveness Functions of HRM Roles of HR Manager Administrative Employee Advocate Operational Strategic HR Management Challenges Economic & Technological Changes Workforce Availability & Quality Growth in Contingent Workforce Demographics & Diversity Issues Balancing Work & Family Mergers & Acquisition International HRM (IHRM) CHAPTER : 1 HRM Vs. IHRM The Concept Of Transnationality Function Of International HRM Approaches to IHRM • Strategic Human Resource planning • Recruitment • Selection • Orientation • Employee Training • Employee Development • Organizational Development • Career Development • Motivation & Job Design • Performance Management • Reward & Compensation • Benefits • Health & Safety • Communication • Employee Relations
  44. 44. THOUGHT OF THE DAY People are definitely a company’s realest asset. It doesn't make any difference whether the product is cars or cosmetics. A company is only as good as the people it keeps. “Mary Kay Ash”