Resource Management

1. Resource Management By: Syed ShahRukh Haider

2. Resource An economic or productive factor required to accomplish an activity, or as means to undertake an enterprise and achieve desired outcome.

3. The Three Most Basic Resources Land Includes all natural resources (“gifts of nature”) used in the production process, such as arable land, forests, mineral and oil deposits, and water resources. Labor Consists of the physical and mental talents of individuals used in producing goods and services. Capital Refers not to money but to tools, machinery, and other productive equipment.

4. Other Resources • Energy • Entrepreneurship • Information • Expertise • Management • Time

5. Resources in Project Management anything used up to execute the project • Budget • People • Technology • Time • Space • Tools • Equipment • and etc.

6. Resource Allocation Resource allocation is used to assign the available resources in an economic way. In project management, resource allocation is the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time.

7. Resource Allocation Plan • Basic Allocation Decision • Contingency mechanisms

8. 1.Basic allocation decision • The choice of which items to fund in the plan • What level of funding it should receive • Which to leave unfunded • The resources are allocated to some items, not to others

9. 2.Contingency mechanisms • There is a priority ranking of items excluded from the plan, showing which items to fund if more resources should become available. • There is a priority ranking of some items included in the plan, showing which items should be sacrificed if total funding must be reduced.

10. Example of Resource Allocation for Jobs Assume that the active resource plan is called “Night Plan”. 3 Job classes: DW Consumer Group OLTP Consumer Group Other Consumer Group

11. Resource leveling A project management technique used to examine unbalanced use of resources (usually people or equipment) over time, and for resolving over-allocations or conflicts. Leveling resources involves redistributing an imbalance of allocated work. It assists project team members by keeping them from becoming overwhelmed, working overtime, or running into project burnout.

12. Resource leveling If DW Consumer Group do not fully use the allocated 60%, the unused portion is available for use by jobs in OLTP and Other Consumer Group.

13. Resource leveling The Two Key Elements of Resource Leveling: • As the main aim of resource leveling is to allocate resource efficiently, so that the project can be completed in the given time period. Hence, resource leveling can be broken down into two main areas; projects that can be completed by using up all resources which are available and projects that can be completed with limited resources. • Projects which use limited resources can be extended for over a period of time until the resources required are available. If then again, the number of projects that an organization undertakes exceeds the resources available. Then it's wiser to postpone the project for a later date.

14. Resource Over-allocation Over-allocation of a resource is when a resource has been assigned more work than can be completed during normal work hours. Resource allocation often leads to overtime and overspending on financial resources.

15. Techniques for Avoiding Resource Overload • Resource Leveling • Prioritize Projects • Linking Tasks • Leaving Breathing Room • Avoid the “Putting out fires” approach to project management

16. Techniques for Avoiding Resource Overload • Resource Leveling In this method, the project manager can either level resources by hand (complicated, but perhaps more sound) or use a software program such as Microsoft Project to level resources for you.

17. Techniques for Avoiding Resource Overload • Prioritize Projects By prioritizing projects, when a resource allocation overload is apparent or a task conflict exists, it can be resolved without piling pressure on the individual or team (or requiring the individual or team to put in a couple twelve-hour days).

18. Techniques for Avoiding Resource Overload • Linking Tasks Linking tasks is more of a logistical solution. If the resource has been assigned to research the markets for project A and project B, these tasks could be linked. In this manner, when it appears that a resource has been over-allocated, really the tasks are similar enough to count for two projects. By linking these tasks from the different projects, the problem can be resolved.

19. Techniques for Avoiding Resource Overload • Leaving Breathing Room When scheduling the project, it is vital to leave breathing room between tasks. However, it is important to not under-allocate resources as this could lead to a loss of budget monies meaning resource allocations problems will affect your project's health. A fine balance must be achieved between breathing room and not moving forward quickly enough.

20. Techniques for Avoiding Resource Overload • Avoid the “Putting out fires” approach to project management If your team is consistently putting out fires, it makes it difficult to focus on the project. Moreover, by putting out fires, the team becomes knee-deep in ash, while project tasks pile up. This is where project management techniques such as Scrum come in handy.

21. Human Resource Management • ‘The real sources of competitive leverage are the culture and capabilities of your organization that derive from how you manage your people.’

22. Human Resource Management • “HRM is the function performed in organizations that facilitates the most effective use of people to achieve organizational and individual goals.” • Ivancevich and Glueck

23. History of HRM - 1 • Scientific Management Approach (mid 1900s) – • Study of motion and fatigue • ‘one-best-way’ to accomplish the task • Piece-rate system • Welfare programmes • Failed to bring behavioural changes and increase in productivity • Human Relations Approach (1930-40) • Effect of social and psychological factors • Relations and respect  High Productivity

24. History of HRM - 2 • Human Resources Approach (1970s) • Principles • Employees are assets • Policies, programmes and practices - help in work and personal development • Conducive environment

25. Challenges of HRM • Individuals differ from one another • Customization of stimulation and motivation • Demanding personnel

26. Managerial Planning Organizing Staffing Directing Controlling Functions of HRM - 1

27. Operational Employment HR Development Compensation Mgt Employee Relations HR Planning Performance Appraisal Job Evaluation Recruitment Training Wage and Salary Admn Selection Management Development Incentives Placement Career Planning and Development Bonus Induction Fringe Benefits Functions of HRM - 2

28. Emerging role or HRM • Value of Human Resource • Competitive advantage • Human Resource Accounting – It is measurement of the cost and value of people for an organization

29. ROLE OF HR EXECUTIVES • Service provider • Executive • Facilitator • Consultant • Auditor

30. Challenges to HR Professionals • Worker productivity • Quality improvement • The changing attitudes of workforce • The impact of the government • Quality of work-life • Technology and Training

31. Human Resource Management Definition 1 – Integration HRM is a series of integrated decisions that form the employment relationships; their quality contributes to the ability of the organizations and the employees to achieve their objectives

32. Human Resource Management Definition 2-Influencing HRM is concerned with the people dimensions management. Since every organization is made up of people ,acquiring their services, developing their skills , motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. This is true regardless of the type of the organization- govt, business education , health, recreational or social action

33. Definition 3Applicability HRM is planning, organizing directing and controlling of the procurement , development, compensation , integration, maintenance, and separation of human resources to the end that individual, organizational and social objectives are accomplished. Core Elements of HRM Organizations ------People ------ Management

34. Meaning of HRM It is concerned with management of people from Recruitment to Retirement To select right person, at the right place for the right job.

35. Difference between Personnel Mgmt & HRM

36. Difference between Personnel Mgmt & HRM

37. SCOPE OF HRM HRM starts from the employees entry till the exit of the same and hence covers everything under the sun. Activities HR Planning Job Analysis – JD &JS- Eg Wipro – implicit JA & Nirma – explicit Job Design eg- Bajaj Auto- job rotation and job enrichment Employees Hiring --Recruitment & Selection Orientation & Placement, Training & Development eg Dupoint Saint Goabain Satyam –team work practiced, Punjab Tractor- Indvidual

38. SCOPE OF HRM Employee and Executive Remuneration Eg- Industrial A prefers low base of salary& individual negotiation , Industrial B prefers collective bargaining Employee Maintenance – Motivation, Communication eg Engro–for its employees with international cons, Performance Appraisals, Job Evaluation Eg- P&G Auto- 1-behaviour 2.on results Industrial Relations – Welfare, Safety& Health, eg Engro

39. Role of HRM Advisory Role Personnel Policies Personnel Procedures Functional Role Service Role Eg – Google HR Managers TodayFuture Humanitarian Role Enhancement of Human & Non Human Resources Counselor Maximization of people to achieve organizational goals Mediator Synergizing IT with HR Spokesman Managing diverse workforce Problem Solver Change Agent

40. Planning- plan & research about wage trends,labour mkt etc Organizing- manpower and resources Staffing- recruitment & selection Directing- issuance of orders and instructions to follow plan of action Controlling – to regulate the activities Operational Functions of HRMProcurement- planning , Recruitment & Selection , Induction & Placement Development – T & D, Career Planning & Counseling Compensation- Wage & Salary administration IntegrationMaintenance – improving work conditions, retentions Separation - caused by resignations, retirement, death, medical reasons etc Managerial functions of HRM

41. Organization of Personnel Department • Its concerned with the relationships of management to employees • Its concerned with the relationships of employees to employees in all matter • Personnel department is staff deparment and has a structure of line type • Organization of personnel function depends on the size, structure, range and depth of actions, needs, capacities, nature and location of organization. • The degree to which the organization takes personnel function seriously • Scale of operations large – a separate department is essential

42. Organizational Structure Personnel Department

43. Organizational Structure Personnel Department

44. Personnel Department

45. Organizational Structure & HRM

46. MAIN POINTS OF CHAPTER • Organizational Structure and Human Resource Management • Formal and Informal Organizations • Tall and Flat Organizational Structures • Responsibility, Authority and Accountability • Line and Staff Functions • Human Resource Management and other Organizational Functions

47. Rigid structure Employees are tied by rules & regulations High degree of centralization Suitable for operating in static environment Decision-making is done by superiors Ex: Public sector in the pre-reforms era Flexible structure Employees are not tied by rules & regulations Decentralized style of management Suitable for operating in dynamic environment Decision-making is done by junior level employees also Ex: Marico`s Saffola Mechanistic Vs organic organization

48. Formal organization President Vice President Vice President Vice President Division Managers Division Managers Division Managers Division Managers Division Managers Division Managers Division Managers Division Managers Division Managers Department Managers Department Managers Department Managers Department Managers Department Managers Department Managers Department Managers Department Managers Department Managers Informal organization Chess group Informal organization Bowling team

49. CMD ED ED ED GM GM GM CM CM Manager Manager Officer Officer Executive Executive Tall Vs Flat structure COO PM PM PM PM Team Lead Team Lead Team Lead Team Member Team Member Team Member Team Member TALL STRUCTURE FLAT STRUCTURE

50. RESPONSIBILITY, AUTHORITY & ACCOUNTABILITY • Responsibility: It is the obligation of a manager to carry out the duties assigned to him. • Authority: It refers to the right to give orders and the power to exact obedience from others in the process of discharging responsibility. • Accountability: The employee's answerability on using the authority in discharging the responsibility is termed accountability.