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HUMAN RESOURCE OR HUMAN RELATIONS MANAGEMENT Personnel Management is a function of managing people. PM is also called HRM.
HRM is the effective use of human resources in order to enhance organisational performance. Activities an organization conducts to use its human resource effectively HRM proposes that people are a capital resource (Human capital) and return on people is the measurable outcome.
What is HRM?
Origins. - HRM-type themes, including human capital theory and 'human asset accounting', can be found in the literature from the 1970s. The modern view of HRM gained prominence in 1981 - introduction in the prestigious MBA course at Harvard Business School.
Simultaneously, other interpretations were being developed in Michigan and New York
(1) as moving through 4 broad phases. (2) Through the 20th century. (1) as moving through 4 broad phases :A.The craft system: Craft guilds supervised quality,production,methods,conditions of employment. Senior (master) worker controlled guilds-recruit entered after longrigorous training. Best suited for domestic industry. Mass production deteriorated craft guilds.
(B) Scientific Management : Early 20th century. Tasks were divided into parts among unskilled workers. Large hierarchy of supervisors and managers became necessary. Along came assembly line and a scientific approach to an analysis of working terms of its constituent parts. Founder American Mechanical Engineer Fredrick Taylor.
( C ) Human Relations Approach : in order to be productive and satisfied employees need to be understood.
Hawthorne studies: Elton Mayo and associates (18801949).Conducted at Western Electrical,Chicago. Studied effect of illumination on productivity-one group was told lighting is going to be changed but not changed-workers were satisfied and productivity increased. Finding: significant variable was not physical but psychological.These findings led to lot of research on the social factors associated with work results-led to Human Relations
Approach: Focuses on total organization. Grew out of organizational science trend and combines learning from the previous movements with current research on behavioural science.
Before we go on
Contents Module 1 Introduction Nature and scope of HRM and HRD PM v/s HRM Features and Role of HRM Managerial functions and operative functions Objectives of HRM policies-procedures and programmes. Line and staff and personnel management. Role and qualities of HR Manager
Objective of this module is To familiarize students with various with various HRM terms. Introduce students to fundamentals and importance of HRM. Duration
Introduction
HRM starts from organization needs for HR with demand rather than supply. PM is designed to achieve organizational objective-like profit maximization. HRM gives equal importance to individual and organizational development. HRM is dedicated to develop a suitable corporate culture. Programmes are designed and implemented to reflect the core values of the enterprises.
Introduction
HRM is deep rooted comprehensive activity taken up to improve the quality of human beings who are vital assets of the organization. PM is subsystem of general management system. It concentrates on managing human element and other allied aspects HRM is directed towards managerial needs for resource in organization, with greater emphasis on planning, monitoring and control rather than problem solving and mediation. A detailed study of people is the main function of HRM. !!!!!!
Introduction
Study of HRM in college or reading number of books will not magically change one into an effective HR Manager. A practical approach to human and organizational problems, clear analysis of issues and thinking is what makes one an effective PM. PM has to keep his head above water while moving ahead
Introduction
P Management is one of the most challenging and complex fields of study and work. Firms requirement for an effective work force has to be met and should be concerned with welfare of employee and society.
Books
Personnel Management - Edwin Flippo 6th Edition Human resource management Cynthia Fisher Personnel and HR Management P.Subba Rao (Latest Edition) A good dictionary
Use a dictionary
Listen carefully
The effective use of people to achieve both organizational and individual goals
The effective recruitment, selection, development, compensation, and utilization of human resources by organizations The Harvard interpretation sees employees as resources. They are fundamentally different from other resources - they cannot be managed in the same way. The stress is on people as human resources.
Impact on you as employees Impact on you as managers Potential future roles as HR professionals Impact of HRM on organizations
HRM
has increased in importance since the 1980s. Why?
People determine the success and failure of organizations and projects. Globalization Government regulation Stronger knowledge/research base Changing role for labor unions Challenge of matching worker expectations with competitive demands
Importance of HRM
PERSONNEL EMPLOYEES STAFF Organizations create rules or guidelines to encourage people working to accomplish organizational goals. To accomplish the objectives there is need to create good Industrial Relation. For this Management has to manage / lead people effectively. Cost reduction-down sizing are major concerns , but not at the cost of quality and losing out to competition. Every Manager wants to deliver quality goods and services. For this We require quality workforce. People and the way they are managed are the major sources of competitive advantage.
Importance of HRM
Personnel Management helps- build an effective and satisfied working team.
Human factor of production -skills, knowledge, physical , mental energy etc are given due consideration. Dale Yoder said managing people is the heart and essence of being a manager. Success or progress of an organization depends on how manager can motivate, understand, lead, inspire and activate them .
Be familiar with
Personal Personnel HR - HRM Career - Carrier Turnover =No of employees leaving the organization Retention = Retaining existing employee Attrition = wearing away Job family = all jobs related to same category mechanical, production, sales Outsourcing = Handing over the particular task to outside agency/ sister concern = Organization of the same management Ergonomics = study of work and its environment to achieve maximum efficiency Man Power = HR / how many people
Be familiar with
= Human Resource = Human Resource Management = Human Resource Planning = Manpower Planning = Performance Based Compensation = New Economic Policy = Global Economy = Management By Objective = Management By Exception = Workers Participation
Definitions of HRM
effective control and use of manpower as distinguished from other sources of power..
Definitions of HRM
Personnel Management involves procedures and practices
through human resources and are managed ie organized and directed towards attainment of individual, organizational and social goals.
Nature of HRM
1. A NATURE OF HRM is to reflect its new philosophy , a new
outlook, approach and strategy which views an Organizations manpower as its resource and assets not as liabilities or mere hands. attitudes and behaviour into Organizations.
Human element in the enterprise has paved the way for effective management of the organization.
Scope of HRM
Just employment, maintenance of salary records has enlarged to Providing welfare Performance Appraisal / Management Human Relations Strategic HR Employee Involvement
Scope of HRM
Managers job is administering a social system . Personnel records is becoming more and more important so as to ensure the adaptability of personnel / employees.
Labour Relations, Public Relations and plant security are Personnel sub areas not left to be the sole responsibility of Personnel Department. The scope is wide and varied P. Department and P.Mnagers perform a variety of roles in accordance with the needs of a situation. Personnel Managers play multiple roles bargainers, conscience keepers, peace makers, counselors, Company spokespersons, problem solvers and change managers.
Objectives of HRM Organization of HRM Employment & Development Wages, Salary, compensation Administration Motivation Industrial Relations Participative Management
Firms ability to survive and prosper is increasingly a function of the human resources they have
Managers career success depends on how well they manage their firms resources
HRM
v/s
PM
PM - is directed at the employees of the organization
Finding, training, arranging pay and contracts of employment Explaining what is expected of them. justifying what management is doing. Trying to modify management action that could produce an unwelcome response from the employees.
HRM is proactive than reactive. Is goal oriented. Treats labour as social capital
HRM - starts from organization needs for HR with demand rather than supply.
HRM
v/s
PM
P Manager ( worst stage ) has to act as organizations social conscience. P Manager ( best stage ) works as a well informed specialist , with all members of the organization, in determining and meeting the demands of the social role.
In modern HRM principles and theories from Psychology , Sociology , philosophy, economics and Management are combined.
HRM
v/s
PM
PM is subsystem of general management system.
It concentrates on managing human element and other allied aspects. PM is directed mainly at company employees and not completely identified with management needs. PM - is supply driven
HRM is directed towards managerial needs for resource in organization with greater emphasis on planning, monitoring and control rather than problem solving and mediation. The strategic and philosophical context of HRM makes it more purposeful, relevant, and more effective.
HRM is significantly different from PM >>>HRM is demanddriven.
PM v/s HRM
FRAMEWORK OF HRM
Meaning = HRM means the process of accomplishing organizational objectives by acquiring , retaining, terminating, developing and properly using the HR in the organization.
HRM encompasses many functions HRD is just one of the functions within HRM
Performance Management Communication Training and Development Employee commitment Equal opportunity Health and safety Grievances/labor relations
Job analysis Labour needs Recruitment Selection Orientation and training Wages and salaries Incentives and benefits
Primary
HRM FUNCTIONS Secondary Organization and job design Performance management/ performance appraisal systems Research and information systems
Human resource planning Equal employment opportunity Staffing (recruitment and selection) Compensation and benefits Employee and labor relations Health, safety, and security Human resource development
. 1. Recruitment (Acquiring people, selection(with talent , skill, will and motivation), Job analysis , job description , and job evaluation 2. Increasing organizational efficiency, . Establishing healthy relationship between Mgmt and workers and workers themselves. 3. Retaining - there should not be high manpower turnover. Recruited HR should remain in the organization for a long time. 4.Training and educational programmes. helping employee identify with the organization. 5. Developing involves educating , training , and making HR accept any type of current or future work.
Functions of HRM
6. Terminating Employees who are unruly, unproductive , expensive should be made to retire. They are a strain on the finance and bad influence on other employees. 7 . Labour Relations ( collection of information, preparation, arbitration etc ( The maintenance and effective use of facilities for joint consultation between employer and employee to settle all disputes effectively. 8. Personnel planning and Evaluation.:. A detailed study of people is the main function of HRM. 10. Preparation and implementation of compensation and appraisal plans 11. Employees Record , Employees benefits services and programmes 12. Special services such as safety , communication etc HRM encompasses every activity relating to HR in an organization and communication system which reduces militancy.
Functions of HRM
All activities connected with the employees of an organization and all decisions reflected to the human relations come within the functional areas of HR management. Functions may vary according to situations and nature of work, the organization and attitude of Mgmt. Functions of HRM seek to secure the maximum return with minimum investment on HR. Physical assets loose their value by constant and regular use due to wear and tear. Value of HR increases through appropriate utilization and proper development. ***** IMPORTANT
Functions of HRM Managerial and Operational MANAGERIAL FUNCTIONS : One function cannot work without the other. A good blend of the two ensures the efficiency and success of the organization. Managerial functions of HRM: give right directions and motivate the Operation managers to put forth their best efforts. Planning , organizing , coordinating, controlling , directing work of those persons looking after operative functions.
Operational functions
Objectives of HRM
SOCIAL OBJECTIVES
ORGANIZATIONAL OBJECTIVES
FUNCTIONAL OBJECTIVES
INDIVIDUAL OBJECTIVES
OPERATIVE FUNCTIONS OF HRM COMPENSATION MGT HUMAN RELATIONS Motivaton Training Recruitment Job design Career pl Wage Job satisfaction Perks Induction Job analysis Placement Quality of life Communication Grievance Discp. action Job eva Morale
Selection
Objectives of HRM
To maximise commitment of people by organising work and creating attitudes and behaviour which generate best outcomes. To create and utilize an able and motivated workforce. To accomplish the basic organizational goals. To establish and maintain sound organizational structure and desirable working relationships among organizational members. To create facilities and opportunities for individuals or group development and to match with growth of the organization. HRM is basically a search for best practices to generate high levels of employee commitment and performance.
a. b. c.
A.
B.
C. D. E. F. G.
Secondary - Fulfillment of primary objectives is contingent upon Secondary Objectives. Usefulness of the goods and services required by the society. Pick up capable and right people on the basis of qualification and background. Condition of employment for all members which motivates them to work better towards target . Effective utilization of people and materials in productive work. The continuity of the enterprise. Means adopted in achieving the primary objectives shall be consistent with the ethical and moral values of society and with the policies and regulations established by legislative action. Control the cost of labour Facilitate technological progress
Objectives of HRM
Objectives are predetermined ends of goals at which individual or group activity in an organization is aimed. Human beings are goal directed. Objectives serve as standards against which performance is measured.
Setting of goals and their acceptance by employees promotes voluntary cooperation and coordination.
A policy is a plan of action . BREWSTEW & RICHBELL defined HRM policies as a set of proposals and action that act as a reference point for managers in their dealings with employees
Personnel Policies constitute guides to action. They furnish the general standards or bases on which decisions are reached. Their origin lies in an organizations values, philosophy, concepts and principles.
Policy : Personnel Policies guide the course of action intended to accomplish personnel objectives. Personnel policies are designed to ensure healthy conditions of work , employee participation , recognition of trade union , motivation of employees etc.
Principles of HR policy
1. 2. 3. 4. 5. Put right means in the right place. Train everyone for the job to be done. Make the organization a coordinated team Supply the right tool and condition of work Give security with opportunity , incentives , recognition to all employees. 6. Look ahead, plan ahead for more and better things.
Classification of HR policies
3 major classifications: 1. Basic organizational policies : relating to the principles, managerial philosophy and fundamental objectives of the organization.
2. General policies : relating to organizational activities personnel development & creation of appropriate work climate .
3. Specific policies : relating to job description , analysis & evaluation of fundamental objectives, proper communication system , determination of wage rates on the basis of performance.
HR Policies
HR Policies include :
History of companys growth -
HR Policies
HR Policies include : Employees news letters and house journals communication media
and suggestion system Health and hospitalization Vacation with pay Sickness death and maternity benefits Company stores, social security Collective bargaining , discipline Encashments , PR, Labour Relations Prohibited activities
Procedure prescribes
specific manner in which a piece of work is to be done. Procedures are called action guidelines and generally derived from policies. In procedure the emphasis is on step by step sequence of required action.
2.
3.
To achieve the objectives tools, techniques, to be adopted are Administrative system which collects systematic data both from within the organization and external sources. Periodic review of administrative practice. HR Manager should assume the responsibility of attaining the requirements of his enterprise and those imposed upon it by environmental changes.
HR Managers Responsibilities
Technology
HRM
Information
Production
Organizations are effective instruments in helping individuals accomplish ,personal objectives that they cannot achieve alone. Organizations are formed to satisfy objectives that can be best met collectively
Organizations are means to an end. Organization design deals with structural aspects of organizations.
Organizational design aims at analyzing roles and relationships so that collective effort can be explicitly organized to achieve specific ends
ORGANIZATIONAL STRUCTURE
STRUCTURE : Efficiency with which an organization is able to achieve its goal are determined by the organizational structure.
STRUCTURE is the pattern of formal relationships and duties activities or tasks are assigned to different departments and people Co-ordination of these tasks Hierarchical relationships within the organization Policies , procedures, standards, evaluation systems etc guide the activities and relationships of people in the organization.
Structure Types
Multi-Divisional Structure
Chief Executive Officer
Corporate R&D Corporate Finance Strategic Planning Corporate Marketing Corporate Human Resources
Division
Division
Division
Division
Finance
Production Engineering
Accounting
Human Resources
management, management levels etc 7. Job structure job design, job analysis, job descriptions, job specification etc 8. Organizational climate working atmosphere in the enterprise, team work, communication, creativity, participation and trust. 9. Management style democratic, free-rein ,autocratic
Formal Relationships: The relationship with which the managers in an organization deal with one another are broadly classified into LINE & STAFF Informal Relationships are those that emerge from formal relationships and are established unofficially by persons employed. Line Managers : Authority -Making decisions-Directing work, Giving orders -Accomplishing goals Staff Managers : Assisting and advising line managers
STAFF RELATIONS
STAFF RELATIONS : The staff concept is an old / ancient one. Line has to perform all their functions and concentrate on management of people and activities. This gives rise to securing advice and help from specialists. - This creates staff relationships.The relationships between two managers when it is created for Taking/giving advice, information, counseling etc for achieving organizational goals is called staff relations. Staff Managers analyze problems, collect information and develop alternative suggestions and help the line managers to make right decisions. Staff responsibility is monitoring and reporting ---results and information to the line managers to reduce their work load.
The right person Orientation Training Performance Creativity Working relationships Policies and procedures Labour costs Development Morale Protecting
organizations Eg: Recruiting & hiring of employees Usually the line manager specifies the qualifications needed to fill specific positions. Then the HR manager develops sources of qualified candidates, conducts initial screening (tests) and sends those filtered to line manager. Line manager conducts the final technical screening tests and selects the one to hire or requests new applicants
Employee interviews Performance appraisal Skills training Job analysis & descriptions Changing Environment of HR Management Globalization Technological Advances Exporting Jobs The Nature of Work Workforce Diversity
STAFF : Operational functional managers who carry out the decisions The relationships that are established among the components of organization are of two types Formal and Informal. Line & Staff Relations Formal relationships are those officially established and prescribed in the manual, charts and job descriptions. The three basic relationships of this category are responsibility, authority, and accountability. Line Relationship : Relationship existing between managers due to delegation of authority and responsibility and giving or receiving instructions or orders is called LINE RELATIONSHIP
Organizational ability depends on sound management of HR. HR Provides specialized assistance to line managers through Personnel Managers. Line Managers may not have the time to manage HR and it is HR Manager who provides training , grievance redressed and motivation. PM performs certain staff functions relating management of personnel like Advice, guidance, counseling. and providing necessary information. HRM is a staff function, but responsibility for the management of personnel rests with Line Managers. HRM is a A LINE responsibility but STAFF but staff function.
Line Authority given to managers directly responsible for the production of goods and services (direct function) Staff Authority given to units that advise and consult line units Limits of Authority HRM & HRD units have staff authority (Overhead function) Line authority takes precedence Scope of authority how far (how much) can you authorize?
ROLE OF HR MANAGER
The Spokesperson
to organizational effectiveness. The conscience Role that of humanitarian who reminds management of its morals and obligation to employees and society. The counselor for job related , professional and personal problems. The Mediator - peace maker settles disputes between employees & management and between employees,works as a communication link.
Spokesperson OF or FOR the company. The problem solver : with respect to the issues that involve HR Management and overall long range organizational planning. The change Agent _ Introduces changes in various existing programmes. Other Roles : Welfare Roles, clerical role and fire fighting role-
HRM Activities
Maximizing their performance and potential Failure of either goal can influence the success or failure of the other
Planning Forecasting demand Assessing supply Formulating fulfillment plans Job analysis (assessing the job)
Scope and depth of jobs Requisite skills, abilities, and knowledge that people need to perform their jobs successfully Job description Job specification
ACTIVITY OF HR MANAGER/DEPARTMENT
Recruitment / interview / hiring Pre-employment Testing Induction / Orientation, Promotion/ transfer Personnel records / reports Personnel Research Insurance benefits- Administration ( ESI ) Unemployment - Administration EEO compliance affirmative action Wages / salary / compensation Education aid scholarship Job Evaluation Health and Medical Services
ACTIVITY OF HR MANAGER/DEPARTMENT
Retirement Preparation Programme Vacation / Leave Processing separation = Controlling / control points . Effective separation of employees by carefully designing programmes of retirement, layoffs and discharge. Retirement programmes and Information - More the information about retirement / more successful is the transition and number of retirees participating in. Unemployment compensation appropriate for voluntary resignation, during strikes, calamities, emergencies.
ACTIVITY OF HR MANAGER/DEPARTMENT
Pension and profit sharing plan Recreation / social recognition programme Attitude surveys / union& labour relations Disciplinary procedures Relocation services Training Programmes Communication publications bulletin Boards
ACTIVITY OF HR MANAGER/DEPARTMENT
Public Relations Pay Roll Processing Travel / Transport Services / Library Executive compensation HR Planning & Management Development Performance Evaluation Community Relation / Fund drives ( TSUNAMI ) Management appraisal MBO (Mgmt BY Objective )
HR manager organizes and manages the Personnel development of the organization. He has to win the confidence of all concerned people. It is a tight rope walk. Should be tactful and imaginative. Should be a specialist in organization theory. Has to advise the top management and should be able to Organize - minimize friction, promote goodwill. Should have good knowledge of personnel administration, relevant laws, procedure, techniques, economics, industrial Psychology, and behavioural science help to tackle humans and Problems efficiently.
Should be familiar with philosophy, ethics , logic , sociology history, medicine, and political science. Should have a sense of social justice and be appreciative of rights and interests of people at work. Other Qualities HR manager should possess are : Loyalty, responsibility and honesty to organization and people who work there. Faith in humanity. Need to place high value on performance judging people objectively giving full credit to those who perform. Ability to analyse and take prompt decisions. Capacity for persuasion patience and tolerance.
Concept of HR
Concept of HR : A. Industry is a partnership between Management and other employees whose objective is to earn profit through services B. Industry can earn profit by developing and coordinating the capacities, the interests and opportunities of each worker and management .
ASSIGNMENT
1. What are the essential qualities of an HR Manager? What are her/his functions? 2. Explain meaning of HRM. How does it differ from PM? 3. PM is paid by the company. How should he act? As representative of management or employees? Discuss. 4. Explain in detail the steps in designing organizational structure. 5. Explain the various strategic roles of the HR Manager. 6. Identify and discuss managerial and operative functions of HR department. 7. Personnel administration is a line responsibility but a staff function. Discuss 8. Explain the qualities and qualifications necessary to be a successful or a HR manager.
More strategic (not strictly focused on day-to-day operational needs) More proactive (less reactive) More of a consultant to line management (less of a bureaucratic specialist) More of an employee champion (less of an organizational cop)
Personal credibility
Business mastery
HR mastery
Change mastery
HRM Involves
Procedures and practices through which Human Resource is managed Ie organized and directed towards attainment of
Individual goals
Organizational goals
Social goals
Changing levels of productivity - ( Reason : IT, ( Globalization, economic policies and world politics) Changing demands of government.( civil rights, equal employment , minimum wages, )
Environmental influence
HRM cannot exist in vacuum.It is an interdependent activity. Environmental factors that influence the organization through HR is called in STEPIN Social Technological Economic Political International Natural
Rank Feeling in on things Good wages Good working conditions Job security Full appreciation of work that is done Tactful disciplining Employer loyalty to employees Interesting work Promotion and growth in the organization (Karl and Sutton, 1996)