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The strategic role of HRM

SHRM
It involves making the function of managing human assets the most important priority in the organization .
Integrate ( get together) all human resource policies and programs in the frame work of a companys strategy. The way the business needs marketing and IT strategy , it also requires human resource or people strategy.

Two important questions must be addressed when developing Human resource strategy: What kind of people do you need to manage & run your business to meet your strategic business objectives. What people programs and initiatives must be designed and implemented to attract, develop and retain staff to compete effectively.

Nature of HRM

Pervasive Force

It is present in all activities. It seeps into all levels of management in an organization

Action Oriented People Oriented


Development Oriented

It focuses more on action, rather than on record keeping , written procedure. The Problems of employees at work are solved through rational policies.

HRM is all about people at work, both as individuals and groups. It tries to put people on assigned jobs in order to produce good results. The resultant gain are used to reward people & motivate them towards further improvements in productivity. HRM intends to develop the full potential of employees. Reward is structured in tuned to the needs of employees. Training is offered. Employee rotation is promoted , so that they gain experience and exposure. Every attempt is made to use their talents fully to achieve the organizational goal.

Integrating Mechanism

HRM tries to build and maintain cordial relations between people working at various levels in the organization. It tries to integrate human assets in the best possible manner in the service of the company. HRM is concerned with managing people at work . Work may be of different type by different levels in the organizational hierarchy .But, basic objective of achieving organizational effectiveness is through effective and efficient utilization of HR. The employees should get maximum satisfaction out of their work and give their best efforts to the organization. HR department exists to assist and advice the line and operating managers to do their personnel work more effectively.HR is a specialized advisor . It is a staff function.

Comprehensive function

Auxiliary service

Inter-disciplinary functions

HRM utilizes knowledge and inputs drawn from psychology, sociology, economics etc. HRM should be able to unravel the mystery surrounding the human brain. Managers need to understand and appreciate the contribution of all such soft disciplines. HRM is not a one shot deal to crack. It cannot be practised in a day or a week. It requires constant alertness and awareness of human relations and their importance in every day operations.

Continuous function

Future Oriented

Effective HRM helps an organization meet its goals in the future by providing for competent and well motivated employees.

Individually Oriented

It helps in developing employees full potential. It encourages employees through proper process of recruitment, selection , T&D couples with fair wage policies.

Scope of HRM
Manpower planning , recruitment, selection, placement , transfer, promotion, training and development ,lay off & retrenchment, incentives, productivity etc.

Personnel aspect

Welfare aspect

It deals with working conditions & amenities like: -Canteen , Crech - rest and lunch rooms -housing & transport -medical assistance ,education - health & safety - recreation facilities etc.

Industrial relations aspect

Union management relations, joint consultation, collective bargaining ,grievances & disciplinary procedures and settlement of disputes etc.

Objectives of HRM
To help the organization reach its goal

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
At the enterprise level:
Good HR practices can help in attracting & retaining best people in the organization. Planning alerts the company for the types of people it will need in the short, medium & long run. It helps in training people for challenging roles, developing right attitudes towards the job and the company.

Promoting team spirit among employees and developing loyalty and commitment through appropriate reward scheme.

At the individual level:


HRM promotes 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 . Companies that pay and treat people well always race ahead of others and deliver excellent results.

At the national level :


Effective use of HR helps in exploitation of natural, physical & financial resources in a better way. People with right skills, proper attitudes and appropriate values help the nation to get ahead and compete with best in the world leading to better standard of living and better employment .

Functions of HRM
P/HRM
Operative Functions
Procurement Job Analysis HR planning
Organising

Managerial functions:

Planning

Development: Training Executive development

Motivation and Compensation: Job design Work scheduling Motivation Job evaluation Performance and potential appraisal Compensation administration

Maintenance: Health Safety Welfare Social security

Integration: Grievances Discipline Teams and teamwork Collective bargaining Participation Empowerment

Emerging Issues: Personnel records Personnel audit Personnel research HR accounting HRIS Job stress Mentoring International HRM

Recruitment Selection Placement

Career planning
Succession planning Human resources development strategies

Directing

Induction Internal mobility

Controlling

Incentives benefits and services

Trade unions
Employers associations Industrial relations

Functions of HRM
Staffing :
Both the job description and the job specification are useful tools for the staffing process. In large organizations, an employee requisition must be submitted to the HR department that specifies the job title, the department, and the date the employee is needed. From there, the job description can be referenced for specific job related qualifications to provide more detail when advertising the positioneither internally, externally, or both. Not only must the HR department attract qualified applicants through job postings or other forms of advertising, but it also assists in screening candidates' resumes and bringing those with the proper qualifications in for an interview

Performance Appraisals:
HRM comes into playcreating an environment that will motivate and reward exemplary performance. One way to assess performance is through a formal review on a periodic basis, generally annually, known as a performance appraisal or performance evaluation. Because line managers are in daily contact with the employees and can best measure performance, they are usually the ones who conduct the appraisals. Other evaluators of the employee's performance can include subordinates, peers, group, and self, or a combination of one or more .

Performance Appraisal
Some of the popular appraisal methods include (1) ranking of all employees in a group; (2) using rating scales to define above-average, average, and below-average performance; (3) recording favorable and unfavorable performance, known as critical incidents; & (4) managing by objectives . Performance appraisals serve several purposes, including: (1) guiding human resource actions such as hiring, firing, and promoting; (2) rewarding employees through bonuses, promotions, and so on; (3) providing feedback and noting areas of improvement; (4) identifying training and development needs in order to improve the individual's performance on the job; & (5) providing job related data useful in human resource planning.

Compensation and Benefits: Compensation (payment in the form of hourly wages or annual salaries) and benefits (insurance, pensions, vacation, modified workweek, sick days, stock options, etc.) can be a catch. An employee's performance can be influenced by compensation and benefits, and vice versa.

In the ideal situation, employees feel they are paid what they are worth, are rewarded with sufficient benefits, and receive some intrinsic satisfaction (good work environment, interesting work, etc.).
Compensation should be legal and ethical, adequate, motivating, fair and equitable, cost-effective, and able to provide employment security.

Training and Development: As the structure of organizations continues to changethrough downsizing or expansionthe need for training and development programs continues to grow. Improving or obtaining new skills is part of another area of HRM, known as training and development. "Training focuses on learning the skills, knowledge, and attitudes required to initially perform a job or task or to improve upon the performance of a current job or task, while development activities are not job related, but concentrate on broadening the employee's horizons" .

Education, which focuses on learning new skills, knowledge, and attitudes to be used in future work, also deserves mention .
Because the focus is on the current job, only training and development will be discussed. Training can be used in a variety of ways, including: (1) orienting and informing employees, (2) developing desired skills, (3) preventing accidents through safety training, (4) supplying professional and technical education, & (5) providing supervisory training and executive education .

Employee and labour relations -There are groups of employees organized as unions to address and resolve employment-related issues. -Those who join unions usually do so for one or both of two reasons to increase wages and/or to eliminate unfair conditions. - Some of the outcomes of union involvement include better medical plans, extended vacation time, and increased wages.

-The Taft-Hartley Act gives employers the right to file unfair labor practice complaints against the union and to express their views concerning unions.
- Not only do HR managers deal with union organizations, but they are also responsible for resolving collective bargaining issuesnamely, the contract. The contract defines employment related issues such as compensation and benefits, working conditions, job security, discipline procedures, individuals' rights, management's rights, and contract length.

Safety & Health Company should provide a safe and healthy working environment.

Safety is defined as protecting employees from injuries caused by work-related accidents and health as keeping employees free from physical or emotional illness.
Health problems recognized in the workplace can include the effects of smoking, alcohol and drug/substance abuse, AIDS, stress, and burnout. Through employee assistance programs (EAPs), employees with emotional difficulties are given "the same consideration and assistance" as those employees with physical illnesses.

Human Resource Research -In addition to recognizing workplace hazards, organizations are responsible for tracking safety- and health-related issues and reporting those statistics to the appropriate sources.
-The human resources department seems to be the storehouse for maintaining the history of the organization everything from studying a department's high turnover or knowing the number of people presently employed, to generating statistics on the percentages of women, minorities, and other demographic characteristics. -Data for the research can be gathered from a number of sources, including surveys/questionnaires, observations, interviews, and case studies. -This research better enables organizations to predict cyclical trends and to properly recruit and select employees.

HR Asset of the organization


-Everyday business functions such as managing cash flow, making business transactions, communicating through all forms of media, and dealing with customers could not be completed without the Human Resource in the organization. -Organizations are dynamic. -In order to maximize organizational effectiveness, human potential individuals' capabilities, time, and talentsmust be managed.

-Human resource management is responsible for how people are treated in organizations. It is responsible for bringing people into the organization, helping them perform their work, compensating them for their labors, and solving problems that arise

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Evolution of the Personnel Function


Concept The Commodity concept What is it all about? Labour was regarded as a commodity to be bought and sold. Wages were based on demand and supply. Government did very little to protect workers.

The Factor of Production concept


The Goodwill concept

Labour is like any other factor of production, viz, money, materials, land, etc. Workers are like machine tools.
Welfare measures like safety, first aid, lunch room, rest room will have a positive impact on workers productivity Management must assume a fatherly and protective attitude towards employees. Paternalism does not mean merely providing benefits but it means satisfying various needs of the employees as parents meet the requirements of the children.
Cont

The Paternalistic concept/ Paternalism

Evolution of the Personnel Function


The Humanitarian concept To improve productivity, physical, social and psychological needs of workers must be met. As Mayo and others stated, money is less a factor in determining output, than group standards, group incentives and security. The organisation is a social system that has both economic and social dimensions.

The Human Resource concept

Employees are the most valuable assets of an organisation. There should be a conscious effort to realise organisational goals by satisfying needs and aspirations of employees.

The Emerging concept

Employees should be accepted as partners in the progress of a company. They should have a feeling that the organisation is their own. To this end, managers must offer better quality of working life and offer opportunities to people to exploit their potential fully. The focus should be on Human Resource Development.

HRM in India-Changing Scenario


Period 1920 30 1940 60 Emphasis Welfare management Paternalistic practices Status Clerical Roles Welfare administrator Appraiser Advisor Mediator Legal advisor

Expanding the role to cover Administrative Labour, Welfare, Industrial Relations & Personnel Administration Efficiency, effectiveness Change agent dimensions added Developmental

1970 80

Integrator 1990s onwards

Emphasis on human Incremental productivity gains through human assets values, aspirations,

Proactive, Trainer growth-oriented Educator

Developer Counselor Coach Mentor Problem solver

Environment influencing HRM


External environment consists of those factors which affect an organziations human resources from outside the organization. HR managers job is to balance the demands and expectations of the external groups with the internal requirements and achieve the job of a HR manager. The functional areas, structural changes, specific cultural issues peculiar to a unit, HR systems, corporate policies and a lot of other factors influence the way the HR function is carried out.

Environment influencing HRM External Environment


Technological Economic Challenges Political factors Social Factors Local and government issues unions Employers demands Workforce diversity

Internal Environment
Mission Policies Organizational culture Organization structure HR systems

Strategic Roles HR Manager


An organizations success depends on the knowledge , skills, and abilities of its employees. It helps in establishing core competencies organization from its competitors. that distinguish an

Company can achieve sustained competitive advantage through its people when their talents are valuable , rare, difficult to imitate and organized. Role of HR manager is to turn ordinary employees to extraordinary performers , take care of their ever changing expectations. The key area of attention in this era of global competition include effective management of key resources , while delivering cost effective ,value-enhancing solutions.

Strategic Roles HR Manager

The Service provider


The HR helps provide information on market statistics of personnel availability , pay rates etc. The HR can also interpret the complex labor laws and legislations that are applicable in day to day work.

The Executive
The HR carries out certain activities like recruitment , compensation , training and development ,performance appraisal etc.

The Facilitator
HR manager act as a facilitator whenever any training or performance appraisal has to be conducted. It helps the other managers to carry out the required task smoothly.

The consultant
Managers face a lot of problem while supervising employees. These problems may be due to lack of motivation , lack of training , job misfit or grievances related to pay. Managers seek the advice of HR specialist to resolve such problems smoothly.HR plays a role of an internal management consultant in this area.

The auditor
The HR is responsible for ensuring that all the members of the management perform their respective roles concerned with the effective use of human resource.

Qualities of HR Manager
Personal attributes Intelligence Education skills Discriminating skills Executing skills Experience and training Professional attitude Knowledge of Legal matters Qualification Well versed with the organizations business Change mastery

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