SIKKIM MANIPAL UNIVERSITY MBA-I

1. SIKKIM MANIPAL UNIVERSITYMBA-I MB0027 HUMAN RESOURCE MANAGEMENT

2. UNIT-1 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

4. THE DEFINITION Human Resource Management is to "ensure that at all times the business is correctly staffed by the right number of people with the skills relevant to the business needs"

5. Objectives and scope of HRM To effective utilization of the human resources To establish and maintain an organizational structure To secure integration to the individuals and organization by reconciling individual group goals To generates maximum development of individuals groups To recognize and satisfy individual needs and group goals To maintain high morale and better human relations To develop and maintain a quality of work life To establish and maintain productive self-respecting working relationships

6. IN ABSENCE OF GOOD HRM, PEOPLE ARE:- • under valued • under trained • under utilized • poorly motivated • perform well below their true capability

7. HR PLANNING RECRUITMENT AND SELECTION TRAINING AND DEVELOPMENT MOTIVATION FUNCTION COMPENSATION AND BENEFITS CAREER AND SUCCESSION PLANNING PERFORMANCE APPRAISAL REWARD AND RECOGNITION QUALITY MANAGEMENT HR AUDIT IMPORTANT HR FUNCTIONS

8. Distinction b/w Personnel Management & HRM Personnel management was the politically correct term used by most large organizations that dealt with most of the people who worked for that organization. Personnel departments normally did rather routine tasks such as payroll, salaries, attendance, time cards, employee insurance, and some big ones acted as liaisons for management and employees and unions.Human Resources encapsulates everything that is mentioned in the personnel management description; however, with a bit of flare, and a whole load of other responsibilities vis-a-vie employee counseling, stock options, pension planning, actual interviewing for job placement, and membership to the Society of Human Resource Managers, there really is basically nothing different whatsoever. Now the distinction between the two is growing wider. Personnel management deals with a more individualized approach which eventually leads to such positions as agents, bookers, basically, less people but a closer relationship.Human resources is really macro in size; although, there are more issues to address anytime when working with people, human resources normally refers to employee business on the bigger scale.

9. Some experts assert that there is no difference between human resources and personnel management. They state that the two terms can be used interchangeably, with no difference in meaning. In fact, the terms are often used interchangeably in help-wanted ads and job descriptions. For those who recognize a difference between personnel management and human resources, the difference can be described as philosophical. Personnel management is more administrative in nature, dealing with payroll, complying with employment law, and handling related tasks. Human resources, on the other hand, is responsible for managing a workforce as one of the primary resources that contributes to the success of an organization. When a difference between personnel management and human resources is recognized, human resources is described as much broader in scope than personnel management. Human resources is said to incorporate and develop personnel management tasks, while seeking to create and develop teams of workers for the benefit of the organization. A primary goal of human resources is to enable employees to work to a maximum level of efficiency.

10. Personnel management can include administrative tasks that are both traditional and routine. It can be described as reactive, providing a response to demands and concerns as they are presented. By contrast, human resources involves ongoing strategies to manage and develop an organization's workforce. It is proactive, as it involves the continuous development of functions and policies for the purposes of improving a company’s workforce. Personnel management is often considered an independent function of an organization. Human resource management, on the other hand, tends to be an integral part of overall company function. Personnel management is typically the sole responsibility of an organization’s personnel department. With human resources, all of an organization’s managers are often involved in some manner, and a chief goal may be to have managers of various departments develop the skills necessary to handle personnel-related tasks.

11. Elton Mayo's Hawthorne Studies The Hawthorne Studies (also known as the Hawthorne Experiments) were conducted from 1927 to 1932 at the Western Electric Hawthorne Works in Cicero, Illinois (a suburb of Chicago).  This is where professor Elton Mayo examined the impact of work conditions in employee productivity. Elton Mayo started these experiments by examining the physical and environmental influences of the workplace (e.g. brightness of lights, humidity) and later, moved into the psychological aspects (e.g. breaks, group pressure, working hours, managerial leadership) and their impact on employee motivation as it applies to productivity.

12. The Hawthorne Effect In essence, the Hawthorne Effect, as it applies to the workplace, can be summarized as "Employees are more productive because the employees know they are being studied." Elton Mayo's experiments showed an increase in worker productivity was produced by the psychological stimulus of being singled out, involved, and made to feel important. Additionally, the act of measurement, itself, impacts the results of the measurement. Just as dipping a thermometer into a vial of liquid can affect the temperature of the liquid being measured, the act of collecting data, where none was collected before creates a situation that didn't exist before, thereby affecting the results.

13. Human Relations Human Relations in Management is a process that brings workers into contact with and causes them to be influenced by their leaders, their jobs, and other aspects of the organizations which they work. It includes everything in the work environment that influences the behavior of workers. It refers to the interaction of people in all walks of life-in schools, homes, business and government. A Human Relations Programme represents an attempt at improving employee morale and motivation through employee participation in the decision making processes. The human relation approach emphasizes policies and techniques designed to improve employee morale and job satisfaction.

14. UNIT-2 HRM in India The managerial ideologies in Indian dates back at least four centuries. Arthãshastra written by the celebrated Indian scholar-practitioner Chanakya had three key areas of exploration, 1) public policy, 2) administration and utilization of people, and 3) taxation and accounting principles. Parallel to such pragmatic formulations, a deep rooted value system, drawn from the early Aryan thinking, called Vedanta, deeply influenced the societal and institutional values in India. Overall, Indian collective culture had an interesting individualistic core while the civilization values of duty to family, group and society was always very important while vedantic ideas nurtured an inner private sphere of individualism.

15. Over many centuries India has absorbed managerial ideas and practices from around the world. Early records of trade, from 4500 B.C. to 300 B.C., not only indicate international economic and political links, but also the ideas of social and public administration. The world’s first management book, titled ‘Arlhãshastra’, written three millennium before Christ, codified many aspects of human resource practices in Ancient India. This treatise presented notions of the financial administration of the state, guiding principles for trade and commerce, as well as the management of people. These ideas were to be embedded in organizational thinking for centuries. A further powerful effect on the managerial history of India was to be provided by the British system of corporate organisation for 200 years.

16. Clearly, the socio cultural roots of Indian heritage are diverse and have been drawn from multiple sources including ideas brought from other parts of the old world. Interestingly, these ideas were essentially secular even when they originated from religious bases. In the contemporary context, the Indian management mindscape continues to be influenced by the residual traces of ancient wisdom as it faces the complexities of global realities. One stream of holistic wisdom, identified as the Vedantic philosophy, pervades managerial behavior at all levels of work organizations.

17. Drivers of Contemporary Indian HRM Trends

18. HRM in India The HRM practices in Indian Organizations are no doubt unique. The cultural impact on the hiring practices, compensation standards, benefits and statutory governance, performance linked rewards and payouts and the general day to day management practices through in-step with international HRM practices have a flavor their own. HRM in India is not structurally well-researched and hence a lack of theoretical information to track and document its progress, unlike in the emerged countries like US, UK. Research is yet at its infancy in India.

19. Distinction b/w India HRM from global HRM The Indian culture is one that is deeply rooted in its societal and collectivistic values providing for a natural urge to collaborate at the workplace, work in teams and groups and achievements. The diversity that is seen in the Indian society w.r.t. diverse religions and states are reflected in the ability of the Indian and the Indian corporate to tolerate diversity of thinking & working together without inhibition. Work culture wise, hard work, long working hours and need to earn money impact the HRM policies. Availability of a educated mass of different caliber of knowledge and skill allow the country to undertake different nature of work beginning with lower skilled activities such as BPO’s & moving up the value curve to far more advanced activities as KPO’s Compensation costs as still a competitive advantage for India making it a preffered business location the world over.

20. TOPIC FOR DISCUSSION HUMAN RELATIONS MOVEMENT

21. SCOPE OF HR IN INDIA One very important trend in the recent times has been the growth of human resource outsourcing. HR outsourcing is the outsourcing of peripheral but necessary administrative tasks such as payroll, benefits, education/training, recruiting personnel, administration, to realize economies of scale and achieve standardization of services. Rapidly changing market dynamics and global competitive pressures have caused organizations to spend more time focusing on their core business. Organizations are fast realizing that they can't be all things to all people. So companies now, be it a software company, a service provider or a manufacturing firm, decide what they are good at and outsource everything else, i.e., focus on their core competency, and let someone else do the rest in a more efficient and cost-effective manner.

22. As a result, human resources outsourcing is becoming increasingly prevalent. The number of companies outsourcing HR activities continues to rise, and the scope of outsourced HR activities continues to expand. HR outsourcing can happen in HR functions, like payroll administration (producing checks, handling taxes, dealing with sick-time and vacations), employee benefits (Health, Medical, Life insurance, Cafeteria, etc), human resource management (hiring and firing, background interviews, exit interviews and wage reviews), risk management, etc. Outsourcing has become a common response to manage people and technology resources strategically, enhance services, and manage costs more effectively.

23. UNIT-3 HUMAN RESOURCE PLANNING FUTURE WORK FORCE CURRENTWORKFORCE GAP The process to determine how organization should move from current manpower to desired manpower position

24. Human Resource Planning Steps 1)Estimate future organizational structure and manpower requirements 2)Auditing Human resources 3)Planning job requirements and job descriptions 4)Developing a human resource plan

25. Need for HRP 1. Determining the numbers to be employed at a new location 2. Retaining your highly skilled staff 3. Managing an effective downsizing programme 4. Where will the next generation of managers come from? 5. In order to identify areas of surplus personnel or areas in which there is a shortage of personnel, to maintain the balance. 6. Required because of frequent labor turn over.

26. Process of HRP Deciding the goals or objectives Estimating future organizational structure and manpower requirements Auditing Human resources Planning job requirements and job descriptions Developing a Human resource

27. Responsibility of HRP To assist, counsel and pressurize the operating management to plan and establish objectives. To collect and summarize data in total organizational terms and to ensure consistency with long-range objectives and other elements of the total business plan. To monitor and measure performance against the plan and keep the top management informed about it. To provide the research necessary for effective manpower and organizational planning.

28. HRP - WORKFORCE PLANNING PROCESS BUSINESS PLAN ANTICIPATED WORKFORCE REQUIREMENTS WORK FORECAST by Quarter and by Job code CURRENT WORKFORCE INVENTORY ADJUSTED WORKFORCE WORKFORCE ANALYSIS WORKFORCE CHANGE NEEDS HISTORICAL ANALYSIS & PROJECTION (attrition, training, etc) WORKFORCE CHANGE PLANS Employee and Management Development (Training, assessment, etc) Workforce Acquisition (Hiring, College, AAP, contract, temporary, etc.) REQUIRED WORKFORCE Needed to meet ANTICIPATED WORKFORCE REQUIREMENTS of Business Plan

29. UNIT-4 RECRUITMENT AND SELECTION

30. Recruitment Searching for, and obtaining, potential job candidates in sufficient numbers and quality, and at the right cost, for the organisation to select the most appropriate people to fill its jobs.

31. Purposes Increase size of applicant pool at minimum cost Identify & prepare potential job applicants Increase success rate of selection process by reducing over/under qualified applicants Decrease early turnover of new hires Increase individual/organisational effectiveness

32. A Simplified Model of the Recruitment Process Recruitment philosophy • Internal vs External job filling • Job vs Career orientation • St-term vs long term orientation Recruitment planning • Estimated no. of contacts needed • Job specifications Recruitment strategy development • choosing reqd. applicant qualifications • choosing recruitment sources and communication channels • choosing inducements • choosing the message : realism vs flypaper

33. Recruitment Activities • Job posting • Ads • Other recruitment sources • Follow up actions • Record keeping Screening / Selecting employees Recruitment Evaluation • No. of jobs filled ? • Jobs filled in timely fashion ? • Cost per job filled ?

34. Recruiting Yield Pyramid New hires 50 Offers made (2 : 1) 100 Candidates interviewed (3 : 2) 150 Candidates invited (4 : 3) 200 Leads generated (6 : 1) 1,200

35. How to Recruit Internal Job Postings Newsletters Succession Planning eg. promotion External • Advertising • Employment Agencies • Govt. employment exchange • Private agencies • Head-hunters • Campus • Referrals / Word of Mouth / Unsolicited Applications • Internet

36. Advantages of Internal Recruiting Better assessment of (KSAO’s) Lower cost Motivator for good performance Hire at entry-level only Familiarity with organisation Improved morale and security Can identify long-term interests

37. Disadvantages of Internal Recruiting Inability to find appropriate people Morale problems Political in-fighting Need for strong T&D programs

38. Advantages of External Recruiting Introduces new ideas and knowledge Reduced need for training Larger skilled pool available

39. Disadvantages of External Recruiting Problems of fit Morale problems for internals Adjustment period Relocation costs Decreased incentive value of promotions

40. Recruitment Evaluation Measuring past recruitment can help predict: • Timeliness of recruitment • Budget needed • Methods that yield greatest number of best quality candidates • Assess performance of recruiters

42. SELECTION Selection is the process of gathering information for the purposes of evaluating and deciding who should be hired, under legal guidelines, for the short and long term interests of the individual and the organisation.

43. Steps in Selection Process Screening of applications Tests Interviews Reference Checks Medical Examination

44. TESTS Aptitude Achievement Personality Mental Mechanical Job knowledge Work sample Objective Projective Situational Guidelines for the use of TESTS • should supplement not substitute other methods • are a screening device • are not precise measures • test conditions are important • must be conducted/assessed by competent persons

45. Types of Interviews Unstructured / Non-directive Structured / Patterned Panel Group Stress Behavioural (BDI) Situational (SI) Interviews using other media

46. Behaviour Description Interview (BDI) Assumption: "Best predictor of future performance is past performance in similar circumstances.” Overcomes excellence assumption "Experience equals excellence" (i.e. tasks have been performed well.) Requires candidate to give specificexamples of how they performed job duties.

47. Example BDI: Middle Manager “Meetings & presentations are an important part of a Manager's job. Tell me about your most successful presentation to a management meeting.” What was the topic of the presentation? What were your objectives for the meeting? When did you start preparing for the meeting? What did you do to prepare? What was your role at the meeting?

48. Situational Interview (SI) Hypothetical Questions focus on what an applicant would do in a hypothetical situation. e.g. scenario

49. Why Situational Interviewing Based on goal-setting theory which states that intentions are related to behaviour Job Experts Develop Questions and sample GOOD, AVERAGE & POOR answers.