MANAGING HUMAN RESOURCES

MBA-028 SECOND SEMESTER

ACADEMIC CONSULTANT:

ABHILASHA SINGH

Lesson Plan
Lecture
1 2 3 4 5 6 7 8 9 10 11 12

Managing Human Resources

Contents
Human Resource Management, Meaning Nature and Scope Difference Between HRM and Personnel Management HRM Functions, Objectives Evolution of HR Environment ,Internal and External Human Resource Development in India, Evolution of HRD Principles of HRD, HRD vs. Personnel function Roles of HR Managers Strategic Human Resources-Nature of Strategies and Strategic Management Strategic Management Process-Environmental Scanning Strategy Formulation , Strategy Implementation Evaluation and Control Case Study Assignment Short/Descriptive Questions Objectives

Unit
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Slide no.
4-14 15-17 18-20 21-27 28-37 38-40 41-43 44-46 47-50 51-53 54-56 57-61 62-66 67-68 69-71 72-81

References

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Human Resource
Human resource is a resource like any other natural resource. It means that management can get and use the skill knowledge ,ability etc through the development of skills, tapping and utilizing them again and again HRM is the process of management which develops and manages the human elements of an enterprise

Meaning of HRM
Human resource management means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirements

According to Flippo

Human resource management is the 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
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MANAGERS HUMAN RESOURCE MANAGEMENT JOBS

PLANNING ORGANISIING STAFFING LEADING CONTROLLING

Managerial functions
Like other managers, a human resource manager performs the function of: 1. Planning A plan is predetermined course of action. It involves deciding personnel goals, formulating personnel policies and programmers. 2. Organizing It is the process of allocating tasks among the members of group. It is the framework through which management directs, controls and coordinates the efforts of people.
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Managerial functions
3. Directing

It is the process of motivating, activating, leading and supervising people . It helps in building sound individual and human relations in the organization. 4. Controlling It implies checking, verifying, and regulating to ensure that everything occurs in conformity with the plans controlling the management of human resources involves auditing training programmes, analyzing labor turnover records, interviews , morale surveys and such other means.
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 Staffing: Determining what type of people should be hired ,

recruiting prospective employees , selecting employees,
setting performance standards,

Nature Of HRM
HRM is a management function that helps recruit, select train and develop members for an organisation. HRM necessitates alignment of HR policies & practices with the organisations strategies HRM involves the application of management principles and functions HRM assumes that it is the people who make the difference. They are able to add value and the competitive advantage to the organisation. HR functions are not confined to business organisation but are applicable to non business organisation Following constitute the core of HRM Organisation are not mere bricks Application Of Management functions Employees related decisions must be integrated Function extent not only to business .

Functions of HRM
The function of HRM may broadly be classified into two categories
1. Managerial functions 2. Operative functions

( Planning , Staffing, Developing, Monitoring , Maintaining , Managing Relationship, Managing Change , Evaluating)
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Operative function
1. Procurement Job Analysis Human Resource Planning Recruitment and Selection Placement Induction Transfer Promotion Separation 2. Development Performance Appraisal Training Planning and Development
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Operative Functions
3. Compensation Job Evaluation Wage and Salary Bonus and Incentives Payroll 4. Integration Motivation Job Satisfaction Grievance Redressal Collective Bargaining Discipline

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Scope of HRM

*Source : Human resource management text 15 & cases -- Aswathaapa

Objectives of HRM
Four basic objectives of HRM 1. Societal objectives To manage human resources in ethical and socially responsible manner 2. Organizational objectives HR department should focus on achieving the goals of the organization first and it should recognize its role in bringing about organizational effectiveness 3. Functional objectives HRM should employ the skills and abilities of workforce efficiently 4. Personnel objectives Personal objectives of employees must be met if workers are to be maintained, retained and motivated
*Source : Human resource management text & cases -- Aswathaapa

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HRM OBJECTIVES & FUNCTIONS

Societal Objectives
1. 2. 3.

Legal Compliance Benefits Union Management relations

Organisational Objectives

HRP EMPLOYEES RELATION SELECTION TRAINING& DEVELOPMENT APPRAISAL PLACEMENT ASSESSMENT

Functional Objectives
Personal Objectives

Appraisal, Placement, Assessment

T&D,,Appraisal , Placement, Compensation,Assessment

Evolution Of HRM

DIFFERENCE BET HRM & PM

ASSIGNMENT:
PREPARE MODELS OF HRM AND SUBMIT THE ASSIGNMENT.

Importance of HRM
Managing the human component is the central and most important task because all else depends on how well it is done Line Managers / Staff Managers

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Why is HRM important to managers?

HRM helps you avoid potential messes!
Examples: Finding employees not performing at peak capacity Hiring the wrong person for the job or experiencing high turnover

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Importance Of HRM
A ) Social Significance B) Professional Significance C) Significance for Individual Enterprise.

HRM & Environment

The environment furnished the macro context and organization is micro unit. There are two environmental factors which effect the organization (1)External environment-effect an organizations Human Resources from outside the organization. (2)Internal Environment-effect an organizations Human Resources from inside the organization.
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HRM and its Environment

*Source : Human resource management text & cases -- Aswathaapa

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External Environment
Political Legal factors include Impact of political institutions on the HRM department. HRM has to abide by the rules and regulations imposed by the government from time to time Three Institutions which constitute political envt are The Legislative, The Executive and The Judiciary. The Legislative called parliament-( central & State Level ) The Executive ( Government) is the law implementing body The Judiciary has the role of the Watch dog. Important legislation affecting HRM in India are: Factories Act Trade Union Act The minimum wages Act

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External Environment
Economic Factors include ( Industrial Production,agriculture,population, money suppliers, competitors Suppliers who provide human resources to the organization Customer- They want high quality products at reasonable prices. each employee in the company must contribute towards achieving the quality of goods Competitors- as the number of competitors increases the importance of staffing function and compensation practices also increases. Industrial Labour: Diversity: Globalization-the benefits between globalization and workers are mutual.
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External Environment
Technological Factors: New technology advancements lead to downsizing of workers Need more skilled people who has technical know how.

External Environment
Social and Cultural Factors:
Social impacts have to be evaluated before taking any action program. society there includes the firms own employees, their friends, relatives, and neighbors also.

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External Environment
Unions trade union constitute one of the major power blocks in many countries. Professionalism
Job holders and seekers have become highly professionalized and knowledgeable now a days. Such organization can boast of a progressive and modern outlook of its personnel.
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HRM External Environment

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Internal Environment
Prominent Internal Forces are: 1.Strategy 2.Task 3.Leadership 4.Unions 5.Organisational Culture & Conflicts 6. Professional Bodies

Internal Environment
Strategy: It indicates the direction in which an organisation moves

Internal Environment
Mission
Mission is reason for existence. At various level, people must carry out assigned tasks keeping the overall mission of the firm in mind Policies Policies are the guide maps in the organization. Policies tell people what they may or may not do Organizational Culture It is the sum total of shared values, beliefs and habits within an organization. HR manager have to choose the paths that best reflect the culture of the firm and the attitudes of people.
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Internal Environment

Internal Environment

Internal Environment
Organizational Culture
Often conflict between organizational culture and employees attitudes

Organizational Structure
Two types of organizational structure tall and flat. Tall type of structures are suitable to companies that are labor oriented (centralized authority). Flat structures are suitable to technology oriented companies (decentralization).
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LECTURE-6

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Human Resource Development

Concept
In simple words HRD is organized learning experience aimed at matching the organizational need for human resource with the individual need for career growth and development.

Definition
HRD is process in which the employees of an organization are continually helped in planned way to: Acquire or sharpen capabilities required to perform various functions associated with their present or expected future roles. To develop an organizational culture where superiors subordinate relationships teamwork and collaboration among different subunits are strong and contribute to organizational wealth.
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Evolution of HRD
HRD processes might have existed to some extent in India earlier but a professional outlook to HRD began only in 1970s. L&T is perhaps the first company in India to design and implement integrated HRD system in 1970s. The first workshop in HRD was held in 1979 . A centre of HRD was established in the Xavier labor relations institutes Jamshedpur. Now several public and private organizations have HRD departments and HRD managers

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Principles of HRD
Corporate policy on human resources The company must state its human resource policy explicitly. The policy should be communicated throughout the organization Commitment of top management Complete faith of top management is essential. Managers at all levels will support HRD efforts only when chief executive considers his people is the greatest assets Sound planning HRD needs differ from one organization to another. The plan should be prepared for the proper utilization of new skills. Conducive climate Trust and mutuality among people Team spirit or collaboration Freedom to express once ideas and opinions
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Distinction between Personnel function and HRD

Personnel
It is an independent functions with independent sub function. It is a service and reactive function Its seeks to improve the efficiency of people and administration It focuses on salary economic rewards job simplification and job specialization for motivating people It is considered to be responsibility of Personnel manager It considers improved satisfaction and moral as the cause of improved performance.

HRD
It is an integrated system consisting of interdependent sub system It is proactive function It seeks to develop total organization and its culture. It focuses on autonomous work groups job challenges and creativity for motivating people . It is the responsibility of all managers It considers improved performance as the cause of improved satisfaction and moral.
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Role of HR Manager
A role of HR manager may be analyzed as follows: As a Specialist:
He advices the heads of different functional departments on various aspects of human resource management, such as HR planning, Recruitment, selection orientation, training , appraisal and compensation etc. With his counseling and suggestions, functional managers can perform these functions successfully

As an information source
The HR manager provides valuable information about labor market, labor laws and other related areas He serves as a record keeper and researcher to provide the required information
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Role of HR Manager
As a change agent
The HR manager can serve as an internal change agent to initiate and improvements in human resource practices As a consultant he can provide necessary infrastructure and support for organizational development

As a controller
HR manager assists the line managers in effective implementations of human resource policies and programmers. As a liaison man Very often the HR manager is asked to act as a linking pin between different divisions of an organization.

As a house keeper The human resource manager looks after the safety , health , welfare etc of the employees.
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Nature of Strategies and Strategic Management

Strategy A strategy is a way of doing something. It usually includes the formulation of a goal and set of action plans for accomplishment of that goal It is originated from Greek term strategia which means the art or Science or being Generals(Army General) Strategy has planning component as well as action component. A strategy is a companys plan for matching internal strengths and weakness with external opportunities and threats
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Strategic Management defined

Set of managerial decisions and actions that determines the long-run performance of a firm It emphasis monitoring and evaluating environment opportunities and threats in the light of corporations strengths and weaknesses.
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Characteristics of Strategic Management

Strategic management is: Performance oriented Ongoing in nature Dynamic rather than static Oriented to the present and the future Concerned with conditions both outside and inside the firm Concerned with performing well and satisfying stakeholders
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STRATEGIC HR MODEL
ReFirm
Strategy
Institutional / Political Forces Resource Dependence Institution

Resource Based View Of the Firm

HRM Practices

Cybernetic Agency/Transactio n Cost HR Capital Pool ( Skills ,Abilities)

Behaviour Approach

HR Behaviors

Firm Level Outcomes

( Performance Satisfaction, Absenteeism etc.)

Strategic HRM Model

The Model Presents SIX variable. The Four are dependent on the strategy orientation Of the Organisation.

Strategic Management Process

Basic Elements of the Strategic Management Process

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Environmental Scanning defined

Environmental scanning is the monitoring, evaluation, and disseminating information from external and internal environments to key people in the firm

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Strategy formulation
Strategies are formulated at three levels 1. Corporate level strategy 2. Business unit level strategy 3. Functional level

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Strategic implementation
It is the process by which strategies and policies are put into action through the development of programs budget and procedures Program-is a statement of the activities or steps needed to accomplish a plan. It makes strategy action oriented. Budgets- is a statement of a corporations programs in terms of money Procedures- are system of sequential steps or techniques that describe in detail how a particular task or job is to be done
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Evaluation and control

It is the process in which corporate activity and performance results are monitored so that actual performance can be compared with desired performance. Performance-is the end result of activities. It includes the actual outcome of strategic management process

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What is strategic HRM?

Strategic HRM is the formulation and execution of HR policies and practices that produce competent employees with the behaviors needed to achieve the companys strategic goals

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Role of HRM in Strategy formulation

Importance it is the people who formulate and implement strategies and people are supplied by HRM. HRM is of great help in locating opportunities and threats (external environment scanning) HRM is in a unique position to supply competitive intelligence that may be useful in strategy formulation The strength and weaknesses of a companys human resource can have a determining affect on its strategic options
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Role of HRM in strategy implementation

Human Resource today is heavily involved in the execution of the company's downsizing and restructuring strategies through out placing employees performance linked pay plans ,reducing health care cost etc.

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CASE STUDY

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Government Regulation
Since the 1940s the Indian government has increased its regulation of the way employers treat employees. The trade Union Act 1926, permits workers to join unions, the Minimum Wage Act,1948, guarantees a minimum wage, the Factories Act, 1948, ensures a safe and healthy environment, the Workmen's Compensation Act, 1923, offers compensation to injured workers, the Payment of Wage Act, 1936, checks fraudulent practices in the payment of wages to workers. The regulatory framework covering factories, unionmanagement relations, compensation issues, dispute settlement, etc., is quite rigorous and elaborate. There are laws that prohibit discrimination and restrict the freedom of employers to make HR decisions in other areas as well.
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Cont..
As the guardian of the economy and as a regulator of employment relations, the central government does not seem to loosen its grip in the near future. Experts believe that the trend toward increased governmental intervention will continue. They base their arguments on the current trends in developed countries in his area in the form of employersponsored health insurance schemes, greater job securities, improved treatment, etc.

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Cont..
Others, however, are not very optimistic about governments trying to regulate the employer-employee relations closely. Competitive pressures, deregulation of the industry, rising wage bills, increasing number of older employees needing social security protection, inflationary pressures, heavy taxes and a host of other factors having a significant bearing on the profitability of a firm do not seem to support governments active intervention in industry. These experts contend that if Indian firms have to remain competitive in international markets, they should be freed from all types of control, especially those imposed by the government.

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Questions:
1. Which trend do you think will occur and why?
2. If government regulation continues to increase, how will HR departments be affected?

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ASSIGNMENT

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Assignment
1.What are the challenges of HR Executives in the present day business scenario? 2. State essential Manager? qualities of Successful HR

3. Draw an organizational chart of an MNC known to you and state whether HR function line or Staff function.
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Short/ Descriptive Questions

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Short/Descriptive Questions
What do you understand by human resources management? Why human resource management is essential for an organization? How is it different from human resource development? Describe the scope of Human Resource Management. Describe various function of human resource management Explain the objectives of human resource management? What is required to achieve these objectives? What is difference between human resource management and human resource development? Explain the environment of human resource management
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Short/Descriptive Questions
Distinguish between HRM and Personnel Management What do you understand by Strategic Human Resource Management? Describe Strategic Management process

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