MODULE 1

INTRODUCTION
Human Resource Management (HRM) is a relatively modern label for the range of themes and practices involved in managing people and people with required skills to make an organization are referred as Human resources. e.g.: Indian software professionals made significant strides in the information technology industry of USA.

MEANING OF HUMAN RESOURCES(HR)

According to Leon C.Megginson, the term HR can be thought of as the total knowledge, skills, creative abilities, talent and aptitudes of an organizations workforce, as well as the value, attitudes and beliefs of the individuals involved. Management:- The process of efficiently achieving the objectives of the organization with and through people.

MEANING OF HRM

HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in turn with the job and organizational requirements with a view to contribute to the goals of the organization, individual and the society.

DEFINITION OF HRM

HRM is Managing(planning,organizing,directing and controlling) the functions of employing, developing, compensating and utilizing human resources, resulting in the creation and development of human and industrial relations which would shape the future policies and practices of human resource management, with a view to contribute proportionately to the organizational, individual and social goals. In short HRM is The art of procuring, developing maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner.

NATURE & SCOPE OF HRM & HRD

Nature of HRM 1. Features of HRM: Pervasive force Action oriented Individually oriented People oriented Future oriented Development oriented Integrating mechanism Comprehensive function Auxiliary service Inter-disciplinary function Continuous function

SCOPE OF HRM

Personnel aspect Welfare aspect Industrial relations aspect

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 employees job satisfaction and self-actualization To develop and maintain a quality of work life To communicate HR policies to all employees To be ethically and socially responsive to the needs of society

IMPORTANCE OF HRM

1.

At the enterprise level:

The HR practices can help in attract and retain talent Train people for challenging roles Develop skills and competencies Promote team spirit Develop loyalty and commitment Increase productivity and profits Improve job satisfaction Enhance standard of living Generate employment opportunities

2.
3. 4.

5.
6. 7.

8.
9.

Contd..
1. 2. 3. 1.

2.
1.

At the individual level: To promote team work and team spirit among employees It offers excellent growth opportunities to people who have the potential to rise It allows people to work with diligence and commitment At the society level: Employment opportunities multiply Scarce talents are put to best use At the national level: Human resources helps in exploitation of natural, physical values help the nation in a better way. People with right skills, proper attitude and appropriate values help the nation to get ahead and compete with the best in the world leading to better standard of living and better employment.

EVOLUTION OF HRM

The term HRM emerged during the 1970s. Growth In India:

1.

2.

Early phase: Origin dating back to 1800 B.C. e.g:The minimum wage rate and incentive wage plans were included in the Babylonian Code of Hammurabi around 1800 B.C. Kautilya, in his book Arthasastra made reference to various concepts like job analysis, selection procedures, executive development, incentive system and performance appraisal. Legal phase: The period after 1920.The royal commission on labour in 1931 suggested the appointment of labour officer to protect workers interests. After Independence, The Factories Act 1948, made it obligatory for factories employing 500 or more workers. The IIPM Kolkata AND NILM Mumbai have come into existence in 1950s.

Contd.
3. Welfare phase: During the 1960s the scope of personnel functions has expanded to covering labour welfare, participative management, industrial harmony etc and slowly gave way to harmonious Industrial relations and good Hr practices. In this period, the human relations movement of the west had its impact on Indian organizations. 4. Development phase: In 1960s and 70s the Hr professionals focused more on developmental aspects of Human Resources. The IIPM and NILM were merged to form NIPM at Kolkatta.

PERSONNEL MANAGEMENT

Personnel management views the man as economic man who work for money and salary. It may be Defined as A set of programmes, functions and activities designed to maximize both personal and organizational goals. HRM treats the people as human beings having economic, social and psychological needs.

DIFFERENCE BETWEEN PM & HRM

Dimensions
Employment Contract
Rules Guide to Management action Behavioral Reference Key Relations

PM
Careful delineation of written contracts

HRM
Aim to go beyond contracts

Importance of devising Can do outlook, clear rules Impatience with rule Procedures Business need

Norms/customs &practices Labour management

Values/Mission Customer

Initiatives

Piecemeal

Integrated

Speed of Decision
Management role Communication

Slow
Transactional Indirect

Fast
Transformational Direct

Selection
Pay

Separate, marginal task

Fixed Grade

Integrated, key task

Performance related

Labour management
Job Categories and grades Job design Conflict Handling

Collective Bargaining contracts

Many Division of Labour Reach Temporary truce

Individual contracts
Few Team work Manage climate and culture

Contd.
T&D Focus of attention Controlled access to Learning companies courses Personnel procedures Wide-ranging cultural, structural and personnel strategies People are treated as assets to be used for the benefit of an organization, its employees and the society as a whole internal Organic, Bottom-up, decentralized

Respect for employees

Labour is treated as a tool which is expendable and replaceable

Locus of control Organizing principles

External Mechanistic, Topdown, centralized

HRM FUNCTIONS

Functions of HRM

1.Managerial Functions

2.Operative Functions


1. 2. 3. 4.

Managerial Functions Planning Organizing Directing controlling


1.

2.

3.

4.

5.

6.

Operative Functions Procurement:-Job Analysis, HRP, R&S, Placement, Induction and Orientation, Internal Mobility Development:- Training, Executive Development, Career Planning and Development, HRD Motivation and compensation:-Job design, Job evaluation, Performance Appraisal, Incentives and benefits, Work Scheduling Maintenance:-Health and safety, Employee welfare, Social welfare measures Integration:- Discipline, Teams and Teamwork, Collective bargaining, IR,Trade unions and Employee associations Emerging issues:- Personal records, HR audit, Human Resources research, HRA, HRIS, IHRM,Stress and Counseling

POLICIES, PROCEDURES & PROGRAMMES

A policy is a plan of action. Brewster and Richbell defined HRM policies as, A set of proposals and actions that act as a reference point for managers in their dealings with employees. Example: One of the personnel objectives of Indian Railways is to provide equal employment opportunities to the people of minority sections.

Contd
Policies are general instructions whereas procedures are specific applications. Procedures are called action guidelines. Pay Policy of Wipro(from the first quarter of fiscal year 2010 ): The variable pay policy in Wipro, which is known as the Quarterly Performance Linked Compensation (QPLC), is decided every year and given to the employees on a quarterly basis. Wipro decides the QPLC of employees based on their level and seniority in the organization. The company has decided to give variable pay to a certain band of employees (e.g. project managers) only when their respective business units achieve 80 per cent of the business targets set for the quarter.

Pay scale of employees at Wipro

Employee class No of employees Salary(Rs/mt)

A+ class A class B+ class B class Technician Zero level Total

128 1240 33000 22000 4000 3440

120000U.S$ 150000 60000 40000 35000 10000

TYPES OF PERSONAL POLICIES

Originated policies Appealed policies Imposed policies General policies Specific policies Written or implied policies

Their sources

scope

Behavioral form

COVERAGE OF PERSONNEL POLICIES

1.
2. 3.

Social Responsibility Equity Consideration: Seniority, Self respect Quality of work life Employment Policies Promotion Policies Development Policies Relations Policies

FORMULATION OF PERSONNEL POLICIES

Identifying the needs Collecting data Specifying alternatives Communicating the policy Evaluating the policy

The procedures-Fix the pay of clerks, cashiers, typists equal to the lowest pay given by any public sector in the country. Fix the pay of officers according to the recommendations of the Committee. Programmes are complex set of goals, policies,procedures,rules, steps to be taken, resources to be employed and other elements necessary to carry out a given course of action.

FACTORS INFLUENCING HRM

Size of workforce Composition of workforce Employee expectation Changes in technology Life-style changes Environmental challenges Personnel function in future Changes in 21st century impacting HRM

QUALIFICATION &QUALITIES OF HR
1.Personal attributes
a)

b)
c) d)

Intelligence Educational skills Discriminating skills Executing skills

2. Experience and training 3. Professional attitudes

ROLE OF PERSONNEL MANAGER & HR MANAGER

1. 2. 3. 4. 5. 6. 7.

Administrative roles
Policy maker Administrative expert Advisor House keeper Counsellor Welfare officer Legal consultant

Contd..

1. 2. 3. 4. 5.

1. 2.

Operational roles Recruiter Trainer, Developer, Motivator Coordinator/linking pin Mediator Employee champion/company morale officer/employee advocates Strategic roles (Planning) Change agent: Implementing new technology Strategic partner: Deliver strategic services cost effectively by building a competent, consumeroriented workforce.

ORGANIZATION OF HRM

Steps in Designing organizational structure: External environment-economic, political, legal etc. Overall aims and purpose of the enterprisesurvival, growth, profit max, wealth max etc. Objectives-target achievement. Activities-assessment of work being done and what need to be done to achieve organizational Objectives. Decisions to be taken across horizontal and vertical dimensions. Relationships- through communication.

Contd

Organization structure- group activities, management levels etc Job structure- job design, job analysis, job description, job specification etc. Organization climate-working atmosphere i.e.: conflict resolution, team work, commitment, communication, confidence trust etc Management style-democratic, autocratic Human resources-availability of hrs marked by skills, knowledge, commitment, aptitude etc.

LINE & STAFF RESPONSIBILITY

Line Relationship: The Relationship exist between two managers due to delegation of authority and responsibility and giving or receiving instructions or order. It exists b/w superiors and subordinates. Line Responsibility: The Responsibility of line manager is to attain effective goals of their respective departments by the proper management of machine, materials,money,man. The line employees are directly involved in the process. Staff Relationship: The Relationship between a line manager and the staff authority is to help, investigate, plan, solve special problems, support line effort, provide ideas etc.The staff employees job is to support the work done on the line. Thus HRM is a line responsibility but staff function

OPPORTUNITIES & CHALLENGES IN HRM

1.

Challenges In HRM: Environmental: Rapid change Work force diversity Globalization Legislation evolving work and family roles Skills shortages and the rise of the service sector

Contd
2. Organizational: Competitive position Decentralization downsizing/ Layoff Organizational Restructuring Organizational Structure Mergers/Acquisitions (takeover or a buyout) Technology Outsourcing Organizational culture

Contd
3. Individual:

Matching people and organization Ethics and Social Responsibility Productivity Empowerment (increasing the spiritual, political, social or economic strength of individuals) Job Insecurity

Contd..
1. 2. 3.

4.
5.

Opportunities in HRM: Job and career opportunities Supervisor/officer level Junior Management Level Jobs Middle Management Level Jobs Senior Management Level General Management Level

HR Manager as a Strategic partner

SHRM is the pattern of planned HRDs and activities intended to enable an organization to achieve its goals. Strategy: It is a unified course of action to achieve the goals. Strategic Partner: Leading the development and implementation of strategies, systems and processes to support the long-term goals and success of the organization. Outcomes are: Increased performance, enhanced customer and employee satisfaction and increased share holder value.

E.g.: Wipro enters into a strategic partnership with BJs Wholesale Club Signs a five year agreement to transform its IT infrastructure and applications management services for BJs Wholesale Club, Inc is a leading operator of warehouse clubs in the eastern United States. The Company currently operates 182 clubs and 103 gas stations in 15 eastern states. E.g.: Infosys Australia announced that it has been

chosen by Telstra as a key strategic partner to support its five-year $450 million AUD application development and maintenance contracts. Telstra is Australia's leading telecommunications and information services company, with one of the best known brands in the country.

Thank you