INTRODUCTION TO HRM

1. INTRODUCTION TO HRM

2. HRM TODAY • Business is about making money; and having employees (human resources) is about getting work done for the business. • Individual and organizational behaviors will determine how employees contribute to organizational performance.

3. Human Capital • Human Capital – an organization’s employees described in terms of their: • training • experience • judgment • intelligence • relationships • insight • The concept of “human resource management” implies that employees are resources of the organization.

4. Obtain Maintain Retain Human Resource Management (HRM) • The policies, practices, and systems that influence employees’: • behavior • attitudes • performance The strategic goal of HRM is to obtain, maintain and retain the workforce necessary to accomplish the organizational goals

5. Functions of HRM Managerial Functions- Planning Organizing Directing Controlling Operative Function – Procurement Development Compensation Integration Maintenance Separation

6. Human Resources and Company Performance • Managers and economists have traditionally seen HRM as a necessary expense, rather than a source of value to the organization. • The concept of HRM implies that employees are resources of the employer. • Human capitalmeans the organization’s employees described in terms of their training, experience, judgment, intelligence, relationships and insight. • By influencing who works for the organization and how those individuals work, HRM contributes to such basic measures of an organization’s success as quality, profitability, and customer satisfaction. • HRM is critical to the success of organizations because human capital has certain qualities that make it valuable. • In terms of business strategy, an organization can succeed if it has a sustainable competitive advantage.

7. Human Resources IMPACTS • Company Performance • Managers have more complex jobs than ever before • The work context has become both vague and very complex • The individual worker (security, dignity, predictability) • Value is created as a result of the: • Knowledge, training, experience, judgment, intelligence, relationships, insight, physical attributes, psychological characteristics, and social skills of employees.

8. Importance of HRM • At companies with effective HRM: • Employees and customers tend to be more satisfied. • The companies tend to: • be more innovative • have greater productivity • develop a more favorable reputation in the community

9. Impact of Human Resource Management

11. Challenges faced by HR

12. Change in the Labor Force

13. Technological Change in HRM

14. The old “psychological” contract between Employers and Employees Has been broken.

15. Change in the Employment Relationship

16. There has been a major Change in the Employment Relationship • A. There is a New Psychological Contract • 1. A psychological contract is a description of what an employee expects to contribute in an employment relationship and what the employer will provide the employee in exchange for those contributions. • 2. This contract is not formally put into words. It describes unspoken expectations that are widely held by employers and employees. • 3. The psychological contract has changed over the years • B. Flexibility • From the organization’s perspective, the key to survival in a fast-changing environment is flexibility. Flexibility in HRM includes flexible staffing levels and flexible work schedules. • 1.. Flexible Staffing Levels: A flexible workforce is one the organization can quickly reshape and resize to meet its changing needs. • 2.. Alternative work arrangements are methods of staffing other than the traditional hiring of full-time employees. There are a variety of methods including the following: • a. Independent contractors. • b. On-call workers. • c. Temporary workers. • d. Contract company workers. • 3.. Flexible Work Schedules and flexible job assignments also provide organizations with a way to adjust to slow periods without laying off valued workers.

17. “Downsizing” has become a normal and acceptable practice

18. Difference Between Personnel Management and HRM

19. Difference Between Personnel Management and HRM

20. Relationship of HRM with other Disciplines • Economics (markets, wages, resources) • Psychology (motivation, satisfaction) • Sociology (organizational structure, teams) • Anthropology (organizational culture) • Law (minimum wages, labour contracts, legislations)

21. Lady in a faded gingham dress: • A lady in a faded gingham dress and her husband, dressed in a homespun threadbare suit, stepped off the train in Boston, and walked timidly without an appointment into the Harvard University President's outer office. • The secretary could tell in a moment that such backwoods, country hicks had no business at Harvard & probably didn't even deserve to be in Cambridge. • "We'd like to see the president," the man said softly • "He'll be busy all day," the secretary snapped. • "We'll wait," the lady replied. • For hours the secretary ignored them, hoping that the couple would finally become discouraged and go away. • They didn't, and the secretary grew frustrated and finally decided to disturb the president, even though it was a chore she always regretted. • "Maybe if you see them for a few minutes, they'll leave," she said to him! • He sighed in exasperation and nodded. Someone of his importance obviously didn't have the time to spend with them, and he detested gingham dresses and homespun suits cluttering up his outer office. • The president, stern faced and with dignity, strutted toward the couple.

22. Lady in a faded gingham dress: • The lady told him, "We had a son who attended Harvard for one year. He loved Harvard. He was happy here. But about a year ago, he was accidentally killed. My husband and I would like to erect a memorial to him, somewhere on campus." • The president wasn't touched. He was shocked. • "Madam," he said, gruffly, "we can't put up a statue for every person who attended Harvard and died. If we did, this place would look like a cemetery." • "Oh, no," the lady explained quickly. "We don't want to erect a statue. We thought we would like to give a building to Harvard." • The president rolled his eyes. He glanced at the gingham dress and homespun suit, then exclaimed, "A building! Do you have any earthly idea how much a building costs? We have over seven and a half million dollars in the physical buildings here at Harvard." • For a moment the lady was silent. The president was pleased. Maybe he could get rid of them now. • The lady turned to her husband and said quietly, "Is that all it cost to start a university? Why don't we just start our own? " • Her husband nodded. The president's face wilted in confusion and bewilderment. • Mr. and Mrs. Leland Stanford got up and walked away, traveling to Palo Alto, California where they established the university that bears their name, Stanford University, a memorial to a son that Harvard no longer cared about. • The president wasn't touched. He was shocked. • "Madam," he said, gruffly, "we can't put up a statue for every person who attended Harvard and died. If we did, this place would look like a cemetery." • "Oh, no," the lady explained quickly. "We don't want to erect a statue. We thought we would like to give a building to Harvard." • The president rolled his eyes. He glanced at the gingham dress and homespun suit, then exclaimed, "A building! Do you have any earthly idea how much a building costs? We have over seven and a half million dollars in the physical buildings here at Harvard." • For a moment the lady was silent. The president was pleased. Maybe he could get rid of them now. • The lady turned to her husband and said quietly, "Is that all it cost to start a university? Why don't we just start our own? " • Her husband nodded. The president's face wilted in confusion and bewilderment. • Mr. and Mrs. Leland Stanford got up and walked away, traveling to Palo Alto, California where they established the university that bears their name, Stanford University, a memorial to a son that Harvard no longer cared about.

23. Lady in a faded gingham dress: You can easily judge the character of others by how they treat those who they think can do nothing for them. TRUE STORY by Malcolm Forbes "People will forget what you said; People will forget what you did. But people will never forget how you made them feel."