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Human Resource Management
Human
Resource
Management

SESSION -1 : INTRODUCTION TO HRM

  • IMPORTANCE OF HRM

  • DEFINITION OF HRM

  • Components of hrm

  • HRM FUNCTIONS

  • CHALLENGES OF HRM

  • NEW CHALLENGES FOR HR EXECUTIVE

Human resource management (HRM) is the strategic and coherent approach to the management of an

organisation's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human

resources" (HR) have largely replaced the term

personnel management" as a description of the processes involved in managing people in

Organizations.

Take away my people, but leave my factories, and soon grass

will grow on the factory floors. Take away my factories, but

leave my people, and soon we will have a new and better factory

Andrew

Carnegie

IMPORTANCE OF HRM

HRM helps in

  • Improving the capabilities of an individual

  • Developing the team spirit

  • Obtaining cooperation from the employees

  • Promoting organisational effectiveness

IMPORTANCE OF HRM

Social significance : enhances ones dignity by satisfying their social needs

Professional significance :promotes team work in the employees

Significance for individual enterprise: help the organisation in accomplishing its goals

Importance of HRM

Social Significance

Balance the jobs available and job seekers

Provide suitable and productive employment

Maximise utilisation of the resources effectively

Eliminate waste or improper use human resources

Help people make their own decisions

Importance of HRM

Professional Significance

 

Maintain dignity of the employee as human

 

Provide

maximum

opportunities

for

personal

development Provide healthy relationship to different work groups

Improve skills and capacities

Minimise wrong postings, allocate work properly

Importance of HRM

Significance for Individual Enterprise

Create

right

attitude

among employees through

effective motivation Utilise the available human resources effectively

Secure co-operation of the employees: achieve goals, psychological needs- love, affection, belongingness, esteem and self actualisation

commit to improving knowledge and skills increase motivation retain high quality employees encourage nonperformers to leave

DEFINING HRM

“The planning, organising directing and controlling of the procurement, development, compensation, integration, and

maintenance of human resource to the end those individual, organisational, and social objectives are accomplished. (Flippo,

1984).

“The organisation function that focuses on the effective management, direction, and utilisation of people; both the people

who manage produce and market and sell the products and services of an organisation and those who support organisational activities. It deals with the human element in the organisation, people as individuals and groups, their recruitment, selection, assignment ,motivation, empowerment, compensation, utilisation,

services, training, development, promotion, termination and

retirement.”(Tracey,1994 )

DEFINING HRM

“A series of integrated decisions that govern employer-employee relations. Their quality contributes to the ability of organisations and employees to achieve their objectives” (Milkovich & Boudreau, 1997).

Concerned with the people dimension to management. Since every organisation comprises people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that

they continue at the same level of commitment to the organisation are

essential to achieving organisational goal. This is true, regardless of the type of organisation: viz. government, business, education, health, recreation, or social action”. (Decenzo & Robbins, 1989).

Human Resource Management
Human Resource Management

Human Resource Management includes all activities used to attract & retain employees

and to ensure they perform at a high level in

meeting organizational goals.

These activities are made up of

  • 1. Recruitment & selection.

  • 2. Training and development.

  • 3. Performance appraisal and feedback.

  • 4. Pay and benefits.

  • 5. Labor relations.

Meaning and Definition

HRM is a management function that helps managers recruit, select, train and develop members of an organisation.

HRM…… People’s dimension

A series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organisations and the employee to achieve their objectives.

HRM Definition……

Is concerned with people dimension in management. Since every organisation is made up of people, acquiring their services,

developing their skills, motivating them to higher levels of

performance and ensuring that they continue to maintain their commitment to the organisation are essential to achieving organisational objectives.

FUNDAMENTAL PRINCIPLES OF HRM

Human Resource is the organisation’s most important asset;

Personnel policies should be directed towards achievement of

corporate goals and strategic plans;

.

Corporate culture exerts a major influence on achievement of excellence and must therefore be tempered with consideration of employee welfare.

Whilst integration of corporate resources is an important aim of

HRM, it must also be recognised that all organisations are ‘pluralist societies’ in which people have differing interests and concerns, which they defend and at the same time function collectively as a cohesive group.

Human Resource Management

What is HRM:

Human Resource Management refers to the practices and policies one need to carry out the personnel aspect of management jobs.

It has emerged as a set of prescription for managing people at

work

HUMAN RESOURCE MANAGEMENT (HRM)

The design of formal systems in an organization to ensure the effective and efficient use of human talent to accomplish the organizational goals.

Components of a HRM System
Components of a HRM System
Recruitment & Selection Labor Relations Training & Development Performance Pay & Appraisal & Rewards Feedback
Recruitment
& Selection
Labor
Relations
Training &
Development
Performance
Pay &
Appraisal &
Rewards
Feedback
HRM Components
HRM Components

Component should be consistent with the others, organization structure, and strategy.

Recruitment: develop a pool of qualified applicants.

Selection: determine relative qualifications & potential for a job.

Training & Development: ongoing process to develop worker’s abilities and skills.

Performance appraisal & feedback: provides information about how to train, motivate, and reward workers.

Managers can evaluate and then give feedback to enhance worker performance.

HRM Components
HRM Components
  • Pay and Benefits: high performing employees should be rewarded with raises, bonuses.

Increased pay provides additional incentive. Benefits, such as health insurance, reward membership in firm.

  • Labor relations: managers need an effective relationship with labor unions that represent workers.

Unions help establish pay, and working conditions.

If management moves to a decentralized structure, HRM should be adjusted as well.

HRM-ACTIVITIES/PROCESES

Personnel administration

Travel management (sometimes assigned to accounting rather than

Recruitment (sometimes separated into attraction and selection)

Compensation in wage or salary

HRM) Payroll (sometimes assigned to accounting rather than HRM)

Employee benefits administration

Personnel cost planning

INDUSTRAIL/LABOUR RELATION (IR) (GRIEVANCES HANDLING)

TRADE UNION MANAGEMENT (COLLECTIVE BARGAINING/NEGOTIATION)

The HRM Process

Environment

Derecruitment Orientation Planning Selection Recruitment Resource Human Identification and selection of competent employees Adapted and competent
Derecruitment
Orientation
Planning
Selection
Recruitment
Resource
Human
Identification and selection
of competent employees
Adapted and competent
             

Training

employees with up-to-date skills and knowledge

 
 
 
Training employees with up-to-date skills and knowledge Performance Compensation Career
 
 

Performance

Compensation

Career

Training employees with up-to-date skills and knowledge Performance Compensation Career
Training employees with up-to-date skills and knowledge Performance Compensation Career
Training employees with up-to-date skills and knowledge Performance Compensation Career
Training employees with up-to-date skills and knowledge Performance Compensation Career

Management

Benefits and
Benefits
and

Development

Derecruitment Orientation Planning Selection Recruitment Resource Human Identification and selection of competent employees Adapted and competent

performance over the long term

are capable of sustaining high

Competent employees who

Environment

12-24

HR MANAGEMENT ACTIVITIES

HR MANAGEMENT ACTIVITIES

HR MANAGEMENT ACTIVITIES

HR Planning and Analysis Staffing HR Development Compensation and Benefits Health, Safety, and Security Employee and Labor/Management Relations

AREAS OF OPERATION OF HRM

Human Resource Planning

Job Design

Job Analysis

Recruitment & Selection

Orientation & Placement

Training & Development

Performance Appraisals

Job Evaluation

Employee and Executive Remuneration

Motivation

Communication

Welfare

Safety & Health

Industrial Relations

Human Resource Management Key Processes

  • Manpower Planning,

  • Job Analysis defining effective performance

  • Recruitment & Selection

  • Induction & Orientation

  • Assessing performance and managing careers

  • Training & Development

  • Job Evaluation

  • Pay & Benefits

  • Counseling & Feedback

  • HR Policy/Systems/Rules/Strategy formulation

  • Culture & Relation Building

  • Establishment & Statutory Compliances

  • Disputes & managing Conflicts

CHARACTERISTICS OF HRM

HRM is a pervasive function. It permeates all levels of decision making in an organisation

HRM is also a comprehensive function, in that it is concerned directly or indirectly with every decision

Cost effectiveness is a must

There is a need to spot trends and tailor personnel requirements accordingly

Human resource management department provides for an integrating mechanism

It is action oriented as in it the focus is on action, rather than record keeping, written procedures or rules

HRM seeks to maximise employee motivation to make them contribute to their maximum potential

HRM is people oriented

HRM is continuous activity, consistent function and not a short-term measure.

Human resource management function is of importance to Public as well as private organisations

FEATURES OF HRM

integration of HR polices with overall planning

 

Responsibility for personnel management no longer resides with specialist managers but is increasingly assumed by the senior line management

The focus consequently shifts from management-trade union relations to

management-employee relations; from

collectivizing

to

individuation;

macro to micro; and; To reiterate, with the manager donning the role of “enabler”, or

‘facilitator’, there is stress on commitment and initiative on the part of the

employees.

SCOPE OF HRM

Personnel aspect: concerned with manpower planning, recruitment, selection, placement, transfer, promotion,

training and development, lay off and retrenchment, remuneration, incentives, productivity, etc.

Welfare aspect; dealing with working conditions and

provision of amenities such as canteens, crèches, rest and

lunch rooms, housing, transport, medical assistance, education, health, safety, recreation facilities, etc.; and

Industrial Relations aspect: the legal part which covers union- management relations, joint consultation, collective

bargaining, grievance redress and disciplinary procedures, settlement of disputes, etc.

Scope of HRM

HR Planning

Job analysis and Design

Recruitment and Selection

Orientation and Placement,

Training and Development

Performance appraisal and Job Evaluation

Employee and Executive Remuneration

Motivation and communication

Welfare, Safety and Health

Industrial Relations (IR)

OBJECTIVES OF HRM

The primary objective of human resource management is to ensure a continuous flow of competent workforce to an organisation

Societal Objectives

Organisational Objectives

Functional Objectives

Personal Objectives

Objectives of HRM

Societal

To be ethically and socially responsible to the needs

and

challenges

of

society

while

minimising

the

negative

impact

of

such

demands

upon the

organisation.

Organisational

To

recognise the role

of HRM

in

organisational effectiveness.

bringing about

Objectives of HRM

Functional

To maintain the department’s contribution at a level appropriate to the organisation’s needs.

Personal

To assist employees in achieving their personal goals, at least insofar as these goals enhance the individual’s contribution to the organisation.

OBJECTIVES/PURPOSES OF PERSONNEL MANAGEMENT / HUMAN RESOURCE MANAGEMENT

  • To attain maximum individual development (self-development) of the members of an organization and also to utilize available human resources (with the organization) fully and effectively.

  • To mould effectively the human resources.

  • To establish desirable working relationships between employer and employees and between groups of employees.

  • To ensure satisfaction to the workers so that they are freely ready to work.

  • To improve the service rendered by the enterprise to the society through better employee morale, which leads to more efficient individual and group performance.

  • To establish and maintain a productive and self respecting

relationship among all the members of an organization.

  • To ensure the availability of a competent and willing workforce to the organization for its progress and prosperity.

  • To help organization to achieve its goals by providing well trained efficient and properly motivated employees.

  • To maintain high morale and good human relations within the organization for the benefit of employer and employees.

  • To secure the integration of all the individuals and groups with the organization by reconciling individual/group goals with those of an organization.

HRM Objectives Societal Objectives

Organisational Objectives

Functional Objectives

Personal Objectives

Supporting Functions

1. Legal compliance

2. Benefits

3. Union-management relations

1. Human resource planning 2. Employee relations

3. Selection

4. Training and development

5. Appraisal

6. Placement

7. Assessment

1. Appraisal

2. Placement

3. Assessment

1. Training and development

2. Appraisal

3. Placement

4. Compensation

5. Assessment

HRM Objectives and Functions

HRM Objectives

Supporting Functions

 

1.Legal Compliance

Societal

2.Benefits

3.Union management relationship

HRM Objectives and Functions

HRM Objectives

Organisational

Supporting Functions

1.Human Resource Planning

2.Employee Relations

3.Selection

4.Training & Development

5.Appraisal

6.Placement

7.Assessment

HRM Objectives and Functions

HRM Objectives

Personal

Supporting Functions

1.Training & Development

2.Placement

3.Assessment

4.Compensation

ROLE OF HRM

Advisory Role

Personnel Policies Personnel Procedures

Functional Role:

Service Role:

HRM Objectives

Supporting HRM Functions

Social Objectives (3)

Legal Compliance

 

Benefits

Union Management Relations

Human Resource Planning

Organizational Objectives (7)

Employee Relations

 

Recruitment & Selection

Training & Development

Performance Appraisals

Placement & Orientation

Employee Assessment

Performance Appraisals

Functional Objectives (3)

Placement & Orientation

 

Employee Assessment

Training & Development

Personal Objectives (5)

Performance Appraisals

 

Placement & Orientation

Compensation

Employee Assessment

FUNCTIONS OF HRM

MANAGERIAL FUNCTIONS

  • Planning

  • Organising

  • Directing (motivating, actuating or commanding)

  • Co-coordinating and controlling

OPERATIVE FUNCTIONS

  • The Procurement Function

  • The Development Function

  • The Compensating Function

  • The Integration Function

  • The Maintenance Function

Functions of HRM Process

necessary for staffing the organization and sustaining high employee performance

identify and select competent employees provide up-to-date knowledge and skills retain competent, high performing employees

12-47

Difference between HRM & PM

HRM

HRM views people as an important source or asset to be used for the benefit of organisation, employees and the society.

Philosophy of mutuality : mutual goals, mutual respect,mutual rewards and mutual responsibilities. ASPA changed its name to SHRM

Difference between HRM &PM PM

PM has limited scope and an inverted orientation

Viewed labour as a tool for benefits of the

organisation

Personnel Dept not respected, no productive employees

PM treated as routine activity meant to hire new employee and maintain personnel records

Never part of strategic management of business.

Historically PM preceded HRM

Difference between HRM & PM

Dimension

Personnel

Human

Resource

Employment

Written,

Aim to go

Contract

delineated

beyond contract

Rules

Clear

Outlook,

Impatience

Guide to Mgnt. Action

Procedures

Business Needs

Behaviour

Norms/Custom

Values/Missions

referent

s and Practices

Difference between HRM & PM

Dimension

Personnel

Human

Resource

Managerial

Monitoring

Nurturing

/labour task

Key Relations

Labour

Customer

Management

Initiatives

Piecemeal

Integrated

Management

Transactional

Transformational

Role

Leadership

Speed of decision

Slow

Fast

Difference between HRM & PM

Dimension

Personnel

Human

Resource

Communication

Indirect

Direct

Prized

Negotiation

Facilitation

Management

skill

Selection

Separate,

Integrated, key

Marginal task

task

Pay

Job Evaluation

Performance

(Fixed grades)

based

Conditions

Separately

Harmonisation

negotiated

Difference between HRM & PM

Dimension

Personnel

Human

Resource

Labour

Collective barg-

Individual

Management

aining contracts

contracts

Job categories and grades

Many

Few

Job design

Division of labour

Team work

Conflict handling

Reach temporary

Manage climate

truce

and culture

Training &

Controlled access

Learning

Development

to courses

companies

Difference between HRM & PM

Dimension

Personnel

Human

Resource

Intervention

Personnel

Wide ranging-

focus

procedures

cultural,structural and personnel strategies

Respect for employees

Labour treated as tool :

People are treated as assets to

expendable and replaceable

benefit organisation/ employees/society

Difference between HRM & PM

Dimension

Personnel

Human

Resource

Shared

Organisational

Mutuality of

interests

interests are

interests

uppermost

Evolution

Precedes HRM

Latest in the evolution of the subject