HUMAN RESOURSE MANAGEMENT Managing HR important because HR are heterogenous

1. HUMAN RESOURSE MANAGEMENT Managing HR important because • HR are heterogenous • Modern employees more educated • Himself determines what he contributes Drucker---Of all the resources available i.e.mgmt. of materials,methods, money machine most imp.is M for MEN

2. HR management is the planning, organizing, of the procurement, dev., compensation. integration ,maintenance &separation of human resources to the end that individual, organizational & societal objectives are achieved

3. Human resource: Knowledge, skill sets, expertise of employees, the adaptability, commitment and loyalty of employees. • Skills:The individual abilities of human beings to perform a piece of work. • Resource:The stock of assets and skills that belong to a firm at a point of time. • Capability: The ability of a bundle of resources to perform an activity; a way of combining assets, people and processes to transform inputs into outputs.

4. HRM is concerned with most effective use of people to achieve org.al & individual goals. • Acc. To National Institute Of personnel mgmt. in India “it is that part of mgmt which is concerned with people at work & their relationships in the org. • It seeks to bring together men & women who make up an enterprise, enabling each to make its own best contribution to its success both as individual & as a member of working group.

5. Competitive Advantage through People • Core Competencies • Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers. • Sustained competitive advantage through people is achieved if these human resources: • Have value. • Are rare and unavailable to competitors. • Are difficult to imitate. • Are organized for synergy.

6. Internal • External • Environment • Environment • HRM Functions • HRM Objectives • Attract • Retain • Motivate • Cont….

7. HRM Purposes and Criteria Productivity • Performance • Absenteeism • Turnover • Quality of Work Life • Job Satisfaction • Job Involvement • Stress • Legal Compliance • Fines • Contracts • Goodwill • Bottom Line • Survival • Competitiveness • Growth • Profitability • Flexibility • Basic Model of Human Resource Management • Cont….

8. Characteristics of Human Resource Management • strategic activity • goal-oriented rather than establishment / maintenance focused; • seeks to develop individual capacity and capability in order to contribute their best to the organization;

9. people-oriented process for assimilating individual efforts with organization’s competitive priorities • emphasizes individual as a core element of its competitive strategy;

10. is an ongoing set of activities and requires commitment of top management.

11. Personnel mgmt. Vs HRM

14. Environment Of Human Resource Management • Both at national and global levels, labour market conditions and trade unions. • Cont….

15. Internal Environmental Influences • Organizational culture • core values, beliefs and assumptions • Organizational climate • the prevailing environment that exists in an organization and its impact on employees. • Cont….

16. Employer Branding • Attrition has today assumed epidemic proportions plague ring every organization across different industry segments. • Branding the organization and offering employees a ‘great place to work’ experience.

17. External Environmental Influences Economic environment • the kinds of external influences are: • Political • Economic • Social • Technological • Mergers and Acquisitions • Labour Market Conditions • Trade Unions

18. Functions of HRM P/HRM Operative Functions Managerial functions: Procurement Job Analysis HR planning Recruitment Selection Placement Induction Internal mobility Development: Training Executive development Career planning Succession planning Human resources development strategies Motivation and Compensation: Job design Work scheduling Motivation Job evaluation Performance and potential appraisal Compensation administration Incentivesbenefits andservices Maintenance: Health Safety Welfare Social security Emerging Issues: Personnel records Personnel audit Personnel research HR accounting HRIS Job stress Mentoring International HRM –Planning – Organising – Directing – Controlling Integration: Grievances Discipline Teams and teamwork Collective bargaining Participation Empowerment Trade unions Employers’ associations Industrial relations

19. Qualities and Role of Human Resource Manager • The critical qualities for an HR professional as mentioned below: • Selling Skills • Knowledge of overall business • A willingness to work hard • Broad-based knowledge of human resource management and labour laws • Good listening skills • Good communications skills • Cont….

20. Good counselling skills • Branding skills • Leadership skills • Cultural skills • Customer management skills

21. The critical roles for an HR professional • Strategic Partner • Administrative Expert • Employee Champion • Change Agent • Corporate Architect • Cont….

22. 1-10 Strategic Human Resource Management • Competitive advantage through people? • Competitive advantage allows a firm to gain an edge over its rivals when competing. • It comes from a firm’s unique ability to perform activities more distinctively and more effectively than rivals. • HR can be a source of competitive advantage when the talents of people working in the firm are valuable, rare; difficult to imitate and well organised to deliver efficient and effective results.

23. 1-12 Strategic Human Resource Management • SHRM, is the linkage of HRM with strategic goals and objectives with a view to improve business performance and develop organisational cultures that foster innovation and flexibility.

24. Summarization of Development of HRM • (Source: Mercer Delta Consulting)

25. Challenge 1: Going Global • Globalization • The trend toward opening up foreign markets to international trade and investment • Impact of globalization • “Anything, anywhere, anytime” markets • Partnerships with foreign firms • Lower trade and tariff barriers • WTO and GATT

26. Corporate Social Responsibility • The responsibility of the firm to act in the best interests of the people and communities affected by its activities • Impact on HRM • Different geographies, cultures, laws, and business practices • Issues: • Identifying capable managers and workers • Developing foreign culture and work practice training programs. • Adjusting compensation plans for overseas work

27. Challenge 2: Embracing New Technology • Knowledge Workers • Workers whose responsibilities extend beyond the physical execution of work to include planning, decision making, and problem solving. • Knowledge-Based Training • Online instruction • “Just-in-time” learning via the Internet on company intranets

28. Influence of Technology in HRM • Human Resources Information System (HRIS) • A computerized system that provides current and accurate data for the purposes of control and decision making. • Benefits: • Store and retrieve of large quantities of data. • Combine and reconfigure data to create new information. • Institutionalization of organizational knowledge. • Easier communications. • Lower administrative costs, increased productivity and response times.

29. HRM IT Investment Factors • Fit of the application to the firm’s employee base. • Ability to upgrade Increased efficiency and time savings • Compatibility with current systems • Availability of technical support • Time required to implement and train staff members to use HRIS • Initial and annual maintenance costs • Training time required for HR and payroll

30. Challenge 3: Managing Change • Types of Change • Reactive change • Change that occurs after external forces have already affected performance • Proactive change • Change initiated to take advantage of targeted opportunities • Managing Change through HR • Formal change management programs help to keep employees focused on the success of the business.

31. Challenge 3: Managing Change • Why Change Efforts Fail: • Not establishing a sense of urgency. • Not creating a powerful coalition to guide the effort. • Lacking leaders who have a vision. • Lacking leaders who communicate the vision. • Not removing obstacles to the new vision. • Not systematically planning for and creating short-term “wins.” • Declaring victory too soon. • Not anchoring changes in the corporate culture.

32. Challenge 4: Managing Talent, or Human Capital • Human Capital • The knowledge, skills, and capabilities of individuals that have economic value to an organization. • Valuable because capital: • is based on company-specific skills. • is gained through long-term experience. • can be expanded through development.

33. Challenge 5: Responding to the Market • Total Quality Management (TQM) • A set of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement. • Six Sigma

34. Reengineering and HRM • Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed. • Requires that managers create an environment for change. • Depends on effective leadership and communication processes. • Requires that administrative systems be reviewed and modified.

35. Challenge 6: Containing Costs • Downsizing • The planned elimination of jobs (“head count”). • Layoffs • Outsourcing • Contracting outside the organization to have work done that formerly was done by internal employees. • Offshoring • The business practice of sending jobs to other countries.

36. Employee Leasing • Employees are hired by a leasing company (which handles all HR-related activities) and contract with a company to lease the employees.