LEARNING

We should have the humility to learn from others who performed better than us.

N.R. Narayana Murthy

Every thing we do today is a people management issue

Introduction

Unit I
Personnel Management Analysis and design of jobs Human Resource Planning Recruitment Selection Induction & Placement Training & Development Transfers & Promotion Changing role of HRD

Unit II
Performance Appraisal Designing of effective performance appraisal system Wage & Salary administration Job evaluation and merit rating Occupational health safety and social security Discipline Employee grievance and their redressal

Unit III
Quality Circles TQM Personnel management & Technological change Management of change Changing role of personnel manager Current trends in HRM

Unit IV
Industrial Relations IR system in the Indian environment Tripartite Bodies in India Trade union movement in India Industrial Laws in India Trade Union Act Industrial Employment Standing Order Act Industrial Disputes Act

Unit V
Collective Bargaining Industrial relations in Public and Private Sector organizations Workers participation in management Industrial relations in the present era Role of employees/employers in the changing business scenario

HRM
Process consisting of four functions-acquisition, development, motivation and maintenance of human resources David A. Decenzo& Stephen P.Robbins

Centrality of Human Resources for Organisational Goal Achievement

Financial Capital People Utilization

Processes

Organisational Goals

Technology

Main Features of Human Resource Assets

HRs are not owned by firms

Value may decline

HR Assets

Value grows with time

Cannot be duplicated

Evolution of HR Function
PM
Part of Mechanistic Organization Bureaucratic High Centralization High Formalization Low Flexibility

HRM
Part of Organic organisation Cross hierarchical teams Decentralized Low formalization Flexible

SHRM
Convergence between HRM and Business Strategy Proactive HRM Concerned with organisational effectiveness & performance

 Employees are human assets

Increase in value to organization and marketplace when investments of appropriate policies & programs are applied

Effective organizations recognize that employees have value

Much as organizations physical & capital assets have value

Employees are valuable source of sustainable competitive advantage

Sources of Employee Value

Technical Knowledge
Markets, processes, customers, environment

Ability to Learn and Grow

Openness to new ideas Acquisition of knowledge & skills

Decision Making Capabilities Motivation Commitment Teamwork

Interpersonal skills, leadership ability

Investment-Oriented Organization
Sees people as central to mission & strategy Mission statement & strategic objectives espouse value of human assets in achieving goals Management philosophy encouraging development & retention of human assets Does not treat human assets in same ways as physical assets

HR Value Chain

Key HRM Activities

Organization design Job design and role building Organizational development The employment relationship Resourcing Performance management Human Resource Development Reward Management

The HR Profession

Paradigm Shift in Business Scenario Competition is Global Competencies are Global Technology and Finance will become lesser Issues Speed gives competitive advantage Global Outsourcing

Business Scenario
Fast changes in structures Management Technology is within the reach of every one Knowledge improvements are high Intelligent Work Force Growing Customer Expectations

HR Roles of Future
Business Partner
Strategist (people focused competitive strategies) Business driver (new businesses and opportunities)

Change and OD Facilitator

Researcher Diagnostician Interventionist

In Sum: Role of HR
Strategic Business Driver Employees as Entrepreneurs and Business Partners Knowledge Generators and Disseminators

Future HR Manager
Strategic Thinker Leader Entrepreneur Technological Familiarity Global Benchmarking Initiative Visionary All Rounder Researcher

Competencies Needed
Global Networking Technology Savvy Fast Changing Innovativeness

 Strategic Human Resource Management

Involves aligning initiatives involving how people are managed with organizational mission & objectives

Strategic Management Process

Determining what needs to be done to achieve corporate objectives over 3 - 5 years Examining organization & competitive environment Establishing optimal fit between organization & its environment Reviewing & revising strategic plan

The Process of Strategic Management

Mission statement Environmental analysis Organizational self-assessment Establishing goals & objectives

Process of Strategic Management

Mission Statement
Explains purpose & reason for existence Usually very broad No more than a couple of sentences Serves as foundation for everything organization does

Analysis of Environment
Critical components of external environment
Competition Industry structure Government regulations Technology Market trends Economic tends

Organization Self-Assessment
Identify primary strengths & weaknesses Find ways to capitalize on strengths Find ways to improve or minimize weaknesses Examine resources Physical Human Technological Capital

Organization Self-Assessment
Examine internal management systems
Culture Organization structure Power dynamics & policy Decision-making processes Past strategy & performance Work systems

Establishing Goals & Objectives

Goals should be:
Specific Measurable Flexible

Benefits of a Strategic Approach to HR

Facilitates development of highquality workforce through focus on types of people & skills needed Facilitates cost-effective utilization of labor, particularly in service industries where labor is generally greatest cost Facilitates planning & assessment of environmental uncertainty & adaptation of organization to external forces

Strategic Human Resource Management

Involves development of consistent, aligned collection of practices, programs, & policies to facilitate achievement of strategic objectives Requires abandoning mindset & practices of personnel management & focusing on strategic issues rather than operational issues Integration of all HR programs within larger framework, facilitating mission & objectives Writing down strategy facilitates involvement & buy-in of senior executives & other employees

SHRM Critical Competencies

HRs success as true strategic business partner dependent on five specific competencies: Strategic contribution - development of strategy Business knowledge - understanding nuts & bolts of organization Personal credibility - measurable value demonstrated in programs & policies HR delivery - serving internal customers through effective & efficient programs HR technology - using technology to improve organizations management of people

Traditional HR Versus Strategic HR

Outcomes of Strategic HR

Major Factors Affecting HRM

Technological Advancement Demographics and Diversity

Strategic HRM

Globalization

Issues for Integrating New Technologies

Impact of Technology on Organizations

Technology Challenges for HRM

Telecommuting Employee surveillance & monitoring e-HR

Employee Surveillance and Monitoring

More than 80% of large employers utilize monitoring technology
Internet usage E-mails Computer files Voice-mail Telephone usage

Attrition

Attrition Cost
Job Posting Cost Training & Development cost New recruitment cost Loss of sales cost

Strategies to minimize attrition

Transparent communication Understanding social needs of employee Treat employees like customers Share achievements with employees Training & Development Feedback Motivation Pay & Benefits

Human Resource Planning (HRP)

Goes beyond simple hiring & firing Involves planning for deployment of human capital in line with organization &/or business unit strategy May involve: Reassignment Training & development Outsourcing Using temporary help or outside contractor Needs as much flexibility as possible

Key Objectives of HR Planning

Prevent overstaffing & understaffing Ensure organization has right employees with right skills in right places at right times Ensure organization is responsive to changes in environment Provide direction & coherence to all HR activities & systems Unite perspectives of line & staff managers

Types of Planning
Aggregate Planning Anticipating needs for groups of employees in specific, usually lower level jobs & general skills employees will need to ensure sustained high performance Succession Planning Focuses on ensuring key critical management positions in organization remain filled with individuals who provide best fit

Strategies for Managing Shortages

Recruit new permanent employees Offer incentives to postpone retirement Rehire retirees part-time Attempt to reduce turnover Work current staff overtime Subcontract work out Hire temporary employees Redesign job processes so fewer employees are needed

Strategies for Managing Surpluses

Hiring freezes Do not replace those who leave Offer early retirement incentives Reduce work hours Across-the-board pay cuts Layoffs Reduce outsourced work Employee training Expand operations

Succession Planning
Involves identifying key management positions the organization cannot afford to have vacant Purposes of succession planning Facilitates transition when employee leaves Identifies development needs of highpotential employees & assists in career planning Many organizations fail to implement succession planning effectively Qualified successors may seek external career advancement opportunities if succession is not forthcoming

Sample Replacement Chart

Pros & Cons of Disclosing Succession Planning

Model for Design of Work Systems

Design of Work Systems

Job Specialization Creates jobs with very narrow task (activity) assignments Resulted in high efficiency, quickly achieved job competency, low training costs, but created monotonous jobs Job Enlargement An increase in task variety to relieve boredom Job Rotation Employees moved across different specialized positions Enlargement & rotation add variety but not necessarily responsibility

Design of Work Systems

Job Enrichment Increasing amount of responsibility for quality & productivity that employees have for their own work

Five Core Job Characteristics

Skill variety Extent to which work allows employee to use variety of skills Task identity Extent to which work allows employee to complete whole or identifiable piece of work Task significance Extent to which employee perceives that work is important & meaningful to those inside or outside organization Autonomy Extent to which employee is able to work & determine work procedure at own discretion Feedback Extent to which work allows employee to gain sense of how well job responsibilities are met

Job Characteristics Model

What Workers Need

Changing demographics & life styles Worker needs vary by age, gender, race, religion, physical abilities, sexual orientation, & marital & family status Employee needs for work/life balance Workers less committed to organizations today Also suffer from burnout & lower performance Employee needs representation (voice) Workers want to be involved in workrelated issues & expect organization to listen to concerns Employee concerns about safety in workplace Workers want safe, hazard-free working environment

Job Analysis Questionnaire for Developing Job Descriptions

A form used by managers to determine the duties and functions of a job through a series of questions that employees answer.
)

Job Analysis Questions

What is the job being performed? What are the major duties of position? What exactly do you do? What are the skill, and certification requirements? education, [where and your

experience, applicable] licensing

In what activities do you participate now? What are the and duties? jobs responsibilities

What are the basic accountabilities or performance standards that typify your work?

Job Analysis Questions

What are your responsibilities? What are the environmental and working conditions involved? What are the jobs physical demands? Its emotional and mental demands? What are the conditions? health and safety

Does the job expose you to any hazards or unusual working conditions?