Human Resource Management: Aket Jeswani

SAKET JESWANI
Human Resource Management
2011
Department of Business Administration Shri Shankaracharya Institute of Technology & Management, Bhilai
SAKET JESWANI
Introduction to Human Resource Management

Unit 1
2011
Saket Jeswani/HRM/2nd Sem/MBA/SSITM
Page 2
HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCES MANAGEMENT
Saket Jeswani Sr. Asst. Prof MBA, SSITM Bhilai
Resource & Management

1. A resource is any physical or virtual entity that needs to be consumed to obtain a benefit from it.
2. An asset or wealth, which can be drawn upon as & when required is resource. eg - "the local library is a valuable resource
3. Management is the act of deploying resources together to accomplish desired goals and objectives efficiently and effectively.
Human Resources Management
Saket Jeswani, Sr.Asst.Prof, MBA, SSITM
Page 3
Introduction to HRM
1. Organizations have to provide a healthy work climate in order to get the best out of people. 2. To utilize the capabilities of people fully, organizations need competent leadership willing to recognize, reward and nurture talent at all levels. This is where human resource managers play a critical role by bridging gaps between employee expectations and organizational requirements by adopting appropriate human resource strategies and practices. 3. HRM, in short, is the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner.
Saket Jeswani, Sr.Asst.Prof, MBA, SSITM 3
Outline to HRM
Personnel Management
Human Resource Management (HRM)
Human Resource Development ( HRD)
Strategic Human Resource Management
Emerging Issue in HRM
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Definition of HRM
1. The HRM refers to the philosophy, policies, procedures and practices related to the management of people within an organization. By: Wendell L. French
2. Process consisting of four functions acquisition, development, motivation & maintenance of human resource. By: David A. Decenzo & Stephen P. Robbins
3. HRM is planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual, organizational and societal objectives are accomplished. By: Flippo
Features/ Nature of HRM

Pervasive force
Action oriented Individually oriented People oriented
Integrating mechanism
Comprehensive function Auxiliary service Inter-disciplinary function
Future oriented Development oriented
Continuous function
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Objectives of HRM
HRM aims at achieving organizational goals, meet the expectations of employees; develop the knowledge, skills and abilities of employees; improve the quality of work life and manage human resources in an ethical and socially responsible manner. The four objectives of HRM are:
1. Societal Objectives
2. Organizational Objectives
3. Functional Objectives
4. Personal Objectives.
Importance of HRM
From an organizational standpoint, good HR practices help in attracting and retaining talent, train people for challenging roles, develop their skills and competencies, increase productivity and profits and enhance standard of living
attract and retain talent
train people for challenging roles
develop skills and competencies

promote team spirit
Good HR Practices help
develop loyalty and commitment

increase productivity and profits improve job satisfaction enhance standard of living generate employment opportunities
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Systems Approach to HRM

HRM as a central subsystem in an organization
Production Subsystem
Finance Subsystem
HR Subsystem Procurement Training Compensation Appraisal Rewards
Marketing Subsystem
R&D Subsystem
Functions of HRM
HRM
Operative Functions
Procurement Job Analysis HR planning Organizing Recruitment Development Training Executive development Motivation and Compensation Maintenance Health Safety Welfare Social security Integration Grievances Discipline Teams and teamwork Collective bargaining Participation Empowerment Emerging Issues
Managerial functions:
Planning
Job design
Work scheduling Motivation Job evaluation Succession planning Human resources development strategies
Personnel records
Personnel audit Personnel research
Selection
Placement
Career planning
Directing
Induction Internal mobility
Performance and potential appraisal Compensation administration

Incentives benefits and services
HR accounting
HRIS Job stress Mentoring
Controlling
Trade unions
Employers associations Industrial relations
International HRM
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Elements of HRM
1. Facilitating the retention of competent employees.
2. Building the competencies of HR 3. Building & implementing high performance work systems
4. Developing management commitment
practices
that
engender
high
5. Developing practices that foster team work
6. Making employees feel that they are valued and respected and creating a sense of accomplishment
7. Facilitating management of workforce diversity and availability of equal opportunities to all. 8. Developing a sense of belonging (Ownership) among employees
Approaches to HRM
1. Hard Approach 1) It focuses on the quantitative & strategic aspects of managing the human resource. 2) It aims at protecting the interest of the management and buliding a strong corporate culture by internalization of the mission & value statements of the organization. 2. Soft Approach 1) It emphasizes on factors such as communication, motivation & leadership. 2) It treats employees as the essential means of realizing organizational objectives rather than mere objects. 3) It focus on engendering commitment among employees by winning their hearts.
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Scope of HRM
HRM mainly covers three broad areas
Personnel Aspect
Recruitment, selection, placement, training, appraisal, compensation, productivity.
Human Resource Management
Welfare Aspect
Working conditions, amenities, facilities, benefits.
Industrial Relations Aspect

Union-management relations, disputes settlement, grievance handing, discipline, collective bargaining.
13
Environment of HRM
External Environment
Economy Labour Force
Internal Environment
Technology Finance
Marketing
Society
HRM Functions
Customers
Production Others Unions
Legal/Political
Competitors
Shareholders
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HRM Model
.
1. Basic Model of HRM 2. Environmental Model of HRM 3. Detail Model of HRM
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Evolution of HRM
1. The concept of HRM emerged in the mid 1980s against the background of the works of .famous writers on management like Pascale & Athos (1981) and Peter & Waterman (1982).
2. The American Society for Training & Development (ASTD) has developed a Human Resource Wheel in 1983, highlighting the different functions of HRM.
3. Michigan School Human Resource Cycle
4. Harvard Framework (1984) - developed by Beer et al.

5. Walton (1985) - Concept of Mutuality 6. Storey (1989) Hard & Soft Approach of HRM
7. Karen Legge (1989) Integration of HRM policies with business strategy.

8. Keith Sission (1990) Integration Responsibility Relationship Commitment. 9. Armstrong (1999) - People is the most important asset.
Page 10
Evolution of HRM in India

. 1. Personnel Management 20th Century
2. Royal Commission of Labour in India (1931) Jobber System Appointment of Labour Officer 3. Factories Act (1948) Labour Welfare Officer 4. IIPM at Kolkata & NILM at Mumbai In 1980 merged to form NIPM at Kolkata.
5. American Society for Personnel Administration (ASPA) in 1990 renamed as Society for Human Resource Management (SHRM).
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Evolution of the Concept of HRM

Concept The Commodity concept What is it all about? Labour was regarded as a commodity to be bought and sold. Wages were based on demand and supply. Government did very little to protect workers. Labour is like any other factor of production, viz, money, materials, land, etc. Workers are like machine tools. Welfare measures like safety, first aid, lunch room, rest room will have a positive impact on workers productivity
The Factor of Production concept The Goodwill concept
The Paternalistic concept/ Paternalism
Management must assume a fatherly and protective attitude towards employees. Paternalism does not mean merely providing benefits but it means satisfying various needs of the employees as parents meet the requirements of the children.
Cont
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Contd
The Humanitarian concept To improve productivity, physical, social and psychological needs of workers must be met. As Mayo and others stated, money is less a factor in determining output, than group standards, group incentives and security. The organisation is a social system that has both economic and social dimensions.
The Human Resource concept
Employees are the most valuable assets of an organisation. There should be a conscious effort to realise organisational goals by satisfying needs and aspirations of employees.
The Emerging concept Employees should be accepted as partners in the progress of a company. They should have a feeling that the organisation is their own. To this end, managers must offer better quality of working life and offer opportunities to people to exploit their potential fully. The focus should be on Human Resource Development.
Growth of HRM in India

Legal Phase
Welfare Phase
Development Phase
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Page 12
Shifts in HRM in India

Personnel Administration
Administrative role Reactive Separate, isolated from company mission
(Difference between Personnel & HRM)

HRM
Strategic role Proactive Key part of organizational mission Service focus Process-based organization Cross-functional teamwork most important People as key investments/assets
Production focus
Functional organization Individuals encouraged, singled out for praise, rewards
People as expenses
21
Competitative Challenges Influencing HRM

Three Competitive challenges that companies will face in the next decade, which will increase the importance of HRM practices are: 1. The global challenge 2. The challenge of meeting stakeholders needs 3. The high performance work system
Competiting through High Performance Work System Competiting by meeting Stakeholders Needs Competiting through Globalization
1. Change employees & managers work roles 2. Integrate technology & social systems
1. Provide a return to shareholders 2. Develop employees & create a positive work environment
1. Expand into foreign markets 2. Prepare employees to work in foreign companies
Business Competitiveness
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Meeting Competitive Challenges through HRM Practices

Global Challenge Stakeholder Challenge
HR Practices
1. HR strategy is matched to business strategy
2. Work is performed by teams 3. Pay system reward skills & accomplishment 4. Selection system is job related & legal 5. Work attitudes of employees are monitored
6. Continuous learning environment is created

7. Discipline system is progressive 8. Customer satisfaction & quality are evaluated in the performance management system 9. Skills & values of a diverse work force are valued & used.
High Performance Work System Challenge

HRM Philosophy
1. The prosperity of any business depends on successfully developing an integrated, global community of motivated and innovative employees.
2. Organizations must committed to hiring, developing and retaining the most talented people in the world. Therefore, Strategic Human Resources activities should aligned with Business Direction, guided by vision, consistent with core values, and in support of business goals.
3. A sound HR Philosophy will be to provide and promote a safe and healthful working environment, encourage a high level of morale through recognition and positive employee relations, and inspire employees by offering opportunities for challenging work, personal development and growth.
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HRM Philosophy
In order to achieve a committed pool, HR philosophy must include:
1. Treat all employees with dignity, honesty and respect, regarding them
2.
3.
4. 5.
as responsible adults. In turn, we expect a similar treatment. Set and maintain high standards of performance. Inform employees on a timely basis when they are and when they are not meeting the standards. Provide adequate and specific help to aid employees to perform satisfactorily. This means providing proper direction, arranging for training, supplying the necessary resources, maintaining a safe working environment, and removing unnecessary barriers to performance. Hire and/or promote only those with suitable qualifications to perform the job. Avoid selecting or rejecting on any other basis. Utilize the full potential of each individual employee, and thereby encourage their full involvement and commitment to our goals.
HRM Philosophy
6. Improve the skills of managers and supervisors in handling interpersonal
relations. 7. Promote the easy flow of communication in all directions, and emphasize timely and appropriate response by all levels of management. 8. Avoid creating employee expectations, which are at variance with reality, and thereby avoid causing morale problems. 9. Act and communicate with consistency, fairness, and careful attention to detail in all employee matters. Recognize that attitudes, good or bad, can be formed on the basis of managerial communications and that bad attitudes are long lasting. 10. Make employee decisions with a proper regard for the ever so delicate balance between individual needs on the one hand and organizational needs on the other.
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HRM Philosophy
11. Enhance organizational effectiveness by promoting teamwork between groups and work units. 12. Arrange for timely planning and defining of organizational structures and future staffing to ensure Amadeus India's strength and continuity. 13. Design employee benefits and services which are competitive and which effectively meet employee needs within the limits of economic feasibility. 14. Provide reward systems so that people are appropriately rewarded for their contributions, and conversely, are not rewarded for inadequate or improper performance.
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Basic Model of HRM

Human Resource Planning
Job Analysis
Recruitment
Selection
Placement
Training & Development
Performance Appraisal
Transfer/ Promotion
Induction/ Orientation
Compensation /Benefits
Fired
Development, Motivation, Maintenance & Integration

Saket Jeswani/HRM/2nd Sem/MBA/SSITM Page 16
Environmental Model of HRM

External Environment
Economy Government Labor Market Competitors Demographics
HR Functions Managerial Functions & Operative Functions
Organizational Environment
Employees
Jobs
Job Outcomes
Organizational Outcomes
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SAKET JESWANI

Human Resource Management

Introduction to Human Resource Management

Saket Jeswani/HRM/2nd Sem/MBA/SSITM

HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCES MANAGEMENT

Saket Jeswani Sr. Asst. Prof MBA, SSITM Bhilai

Resource & Management

Human Resources Management

Saket Jeswani, Sr.Asst.Prof, MBA, SSITM

Saket Jeswani/HRM/2nd Sem/MBA/SSITM

Human Resource Management (HRM)

Human Resource Development ( HRD)

Strategic Human Resource Management

Emerging Issue in HRM

Human Resources Management

Saket Jeswani, Sr.Asst.Prof, MBA, SSITM

Saket Jeswani/HRM/2nd Sem/MBA/SSITM

Features/ Nature of HRM

Future oriented Development oriented

Human Resources Management

Saket Jeswani, Sr.Asst.Prof, MBA, SSITM

Saket Jeswani/HRM/2nd Sem/MBA/SSITM

Human Resources Management

Saket Jeswani, Sr.Asst.Prof, MBA, SSITM

develop skills and competencies

develop loyalty and commitment

Human Resources Management

Saket Jeswani, Sr.Asst.Prof, MBA, SSITM

Saket Jeswani/HRM/2nd Sem/MBA/SSITM

Systems Approach to HRM

HR Subsystem Procurement Training Compensation Appraisal Rewards

Human Resources Management

Induction Internal mobility

Performance and potential appraisal Compensation administration

Human Resources Management

Saket Jeswani, Sr.Asst.Prof, MBA, SSITM

Saket Jeswani/HRM/2nd Sem/MBA/SSITM

4. Developing management commitment

5. Developing practices that foster team work

Saket Jeswani/HRM/2nd Sem/MBA/SSITM

Human Resource Management

Industrial Relations Aspect

Human Resources Management

Saket Jeswani, Sr.Asst.Prof, MBA, SSITM

Human Resources Management

Saket Jeswani, Sr.Asst.Prof, MBA, SSITM

Saket Jeswani/HRM/2nd Sem/MBA/SSITM

Human Resources Management

Saket Jeswani, Sr.Asst.Prof, MBA, SSITM

4. Harvard Framework (1984) - developed by Beer et al.

7. Karen Legge (1989) Integration of HRM policies with business strategy.

Saket Jeswani/HRM/2nd Sem/MBA/SSITM

Evolution of HRM in India

Human Resources Management

Saket Jeswani, Sr.Asst.Prof, MBA, SSITM

Evolution of the Concept of HRM

The Factor of Production concept The Goodwill concept

The Paternalistic concept/ Paternalism

Human Resources Management

Saket Jeswani, Sr.Asst.Prof, MBA, SSITM

Saket Jeswani/HRM/2nd Sem/MBA/SSITM