HUMAN RESOURCE MANAGEMENT Paper code: 2.23/5.83/3.23

1. HUMAN RESOURCE MANAGEMENTPaper code: 2.23/5.83/3.23 Preeti Nigam Faculty, Rai University

2. Acknowledgements These notes have been prepared from the books written by the following authors: • V.S.P Rao • Schwind, Das, Werther, Davis

3. Unit-I • Concepts & Perspectives of HRM; • HRM in changing environment, HRM functions, Role of HR Practitioners; • HR Policies, Corporate objectives and Human Resource Planning.

4. People are Different • Heterogeneous • Different reactions • Educated (New Technology) • Motivation level

5. Definition • Human resource may be defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner.

6. Features • Pervasive Force • Action Oriented • Individually oriented • People oriented • Development oriented • Integrating mechanism • Comprehensive Function • Auxiliary Service • Inter-disciplinary function • Continuous function

7. Scope of HRM • Personnel aspect • Welfare aspect • Industrial relations aspect

8. Misconceptions • Lack of expertise • Alienation from the mainstream • Fascination with latest fads • Lack of respect

9. Objectives of HRM • To contribute to organizational effectiveness • To be efficient and cost effective • To be responsive to lager societal concerns • To meet personal needs of its employees

10. Objectives of HRM • To help the organization reach its goals • To employ the skills and abilities of the workforce efficiently • To provide the organization with well trained and well motivated employees • To increase to the fullest the employee’s job satisfaction and self-actualization • To develop and maintain a quality of work life • To communicate HR policies to all employees • To help maintain ethical policies and behavior

11. Importance of HRM • Enterprise Level • Retain best people in the organization • Individual Level • Promotes team work and spirit • Excellent growth opportunities • Work with diligence and commitment • Society Level • Employment opportunities • Scarce talents are put to best use

12. New Management Practices • Boundary less organization • Employee empowerment • Diminished corporate layers • Changed power base • New Manager a sponsor, a team leader • Commitment building

13. Role of HR Manager • Changing from protector and screener to the planner and change agent • Planning and implementing downsizing, restructuring and other cost cutting activities

14. HRM in India • Static • Legalistic • Ritualistic

15. History of HRM • Industrial Revolution • Fragmented and Dull jobs, workers did portion of the job, workers were glorified machine tools, interests of workers not protected • Scientific Management • Taylor advocated, work is broken down into smallest mechanical elements and rearranging them into efficient combination. Individuals should be matched physically and mentally to the requirements of the task. Piece rate system.

16. History of HRM • Trade Unionism • Collective bargaining, unfair labor practices, grievance handling, disciplinary procedures, pay and benefits • Human Relations Movement • Hawthorne experiments by Elton Mayo demonstrated that employee productivity was affected not only by the way the job was designed and employee economically rewarded but also by certain social and psychological factors. Includes supervisory training programs, strengthen bonds between labor and management and counseling programs

17. History of HRM • Human Resources Approach • Pet Milk theory that happy workers are productive workers or happy cows give more milk was rejected. Workers are unique with their own needs and motivation levels. This Approach assumes that job is the primary source of satisfaction and motivation to the employees. Emphasis on individual involvement in the decisions made in the organization.

18. Human Resources Approach • People do not dislike work if they have helped establish objectives • Theory Y- Most people can exercise a great deal more self-direction, self-control and creativity than are required in their current jobs • Manager’s job is to use untapped human potential • Manager should create a healthy, safe and convenient environment • Manager should provide self-direction to the subordinates • Expanding subordinates influence • Work satisfaction

19. Terminology • Management • HRM • Empowerment • HRD • Job Analysis • Employee Development

20. Case • Does Sincerity pay?

21. Environmental Challenges Economic Challenges Government and Legal Challenges Technological Challenges Human Resource Management Demographic Challenges Societal Challenges

22. Economic and Societal Challenges • Economic Challenges • Global Trade Challenge • Challenge of Productivity Improvement • Technological Challenges • Computerization • Automation • Demographic Challenges • Increasing number of women in the workforce • Shift from Primary to Service jobs • Educational attainment of workers • Employment of older workers • More part time workers • Unemployment • Cultural Challenges • Professional Challenges

23. Steps in Dealing with Environmental Challenges • Monitor the environment • Evaluate the impact • Take proactive measures • Obtain and analyze feedback

24. External Technological Economic Political Social Local & Govt. Issues Unions Employer’s demands Workforce diversity Internal Mission Policies Organizational Culture Organizational Structure HR Systems Factors Influencing Personnel Function- Rao

25. Three Dimensions of Personnel Management Personnel Management Industrial Relations Aspect Union-management relations, disputes settlement, grievance handling, discipline, collective bargaining Personnel Aspect Recruitment, selection, placement training, appraisal, compensation, productivity Welfare Aspect Working conditions, amenities, facilities, benefits

26. Functions of Personnel Management Managerial Functions • Planning • Organizing • Directing • Controlling Operative Functions • Employment • Job Analysis • HR Planning • Recruitment • Selection • Placement • Induction and Orientation

27. Functions of Personnel Management • Human Resource Development • Performance Appraisal • Training • Management Development • Career Planning and Development • Organization Development • Compensation • Job Evaluation • Wage and salary administration • Incentives • Bonus • Fringe benefits • Social security measures

28. Functions of Personnel Management • Human relations • Effectiveness of Human resource Management • Organization health • Human resource auditing, audit and research

29. Personnel Policy • Brewster and Richbell defined Personnel policies as “a set of proposals and actions that act as a reference point for managers in their dealings with employees. Personnel policies constitute guides to action. They furnish the general standards or bases on which decisions are reached. Their genesis lies in an organization's values, philosophy, concepts and principles”. • E.g. equal employment opportunity to minorities

30. Procedures • Procedures are action guidelines. They are derived from policies.

31. Advantages of Personnel Policies • Delegation • Uniformity • Better control • Standards of efficiency • Confidence • Speedy decisions • Coordinating devices

32. Obstacles in Administering Personnel Policies • Reluctant managers • Conflicts in policy specially employment • Difficult to review and update • Freedom to managers dangerous

33. Characteristics of Personnel Policy • Related to objectives • Easy to understand • Precise • Stable and flexible • Based on facts • Appropriate number • Just, fair and equitable • Reasonable • Review

34. Coverage of Personnel Policies- Michael Armstrong • Social responsibility • Equity • Consideration • Quality of Work Life • Employment policies • Promotion policies • Development policies • Relations policies

35. Line and Staff Relationships • Line Relationships exists between superior and subordinate. Line refers to those positions of an organization which have responsibility, authority and are accountable for accomplishment of primary objectives.

36. Line and Staff Relationships • Staff Relations When positions are created to secure advice, guidance, information, help or assistance, counseling etc. in the process of attaining organizational goals Staff authority is advisory. A staff manager helps serve, investigate, plan, solve special problems, supports line effort, provides ideas and has special expertise.

37. Personnel Management- Line or Staff • The personnel management is a line management responsibility but a staff function. Personnel managers perform the various functions of personnel management viz. employment, training, development, wage and salary administration, motivation, grievance redressal, workers’ participation in management, collective bargaining etc. • Also personnel managers perform certain staff functions relating to management of personnel like advising, assisting, guiding, suggesting, counseling and providing information to line managers.

38. Human Resource Planning • The process of getting the right number of qualified people into the right job at the right time.

39. Objectives • Forecast personnel requirements • Cope with changes • Use existing manpower productively • Promote employees in a systematic manner

40. Benefits • Reservoir of Talent • Prepare people for future • Expand or contract • Cut costs • Succession Planning

41. HRM at Different Levels • National level • Sectoral Level • Industry Level • Unit level • Departmental level • Job Level

42. The Process Of HRP • Forecasting the demand for Human resources • Preparing Manpower Inventory • Determining Manpower Gaps • Formulating Manpower Plans

43. Human Resource Planning (cont’d) • Small Business and HR Planning Issues • Attracting and retaining qualified outsiders • Management succession between generations of owners • Evolution of HR activities as business grows • Family relationships and HR policies

44. HR Planning Process

45. Manpower Plan: Strategies • Recruitment Plan • Redeployment Plan • Redundancy plan • Training Plan • Productivity Plan • Retention Plan • Control Points

46. Benefits of HR Planning • Better view of the HR dimensions of business decisions • Lower HR costs through better HR management. • More timely recruitment for anticipate HR needs • More inclusion of protected groups through planned increases in workforce diversity. • Better development of managerial talent

47. Responsibility for HRP Prof. Geisler outlined the responsibilities- • Assist and counsel operating managers to plan and set objectives • Collect and summarize manpower data keeping long run objectives and organizational interests in mind • Monitor and measure performance against the plan and keep top management informed • Provide proper research base for effective manpower and organizational planning

48. Problems in HRP • Accuracy • Support • Number’s game

49. Indian Organizations • Inadequate records • Improper retrieval systems • Non-computerized personnel information • Current technologies and knowledge not put to use optimally • Changes in labor market • Difficulties in forecasting resignations, deaths, turnovers etc.

50. Guidelines • Objectives • Top Management Support • Manpower Inventory • Human Resource Information System • Coordination