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INTRODUCTION TO

HUMAN RESOURCE
MANAGEMENT

According to Adi Godrej,

all corporate strengths are


dependent on people.

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.

Points to Ponder
Definition and Concept of HRM
History of HRM
Functions of HRM
HR Policies and Procedures
Emerging Role of HRM
Role of HR Executives
Challenges to HR Professionals
Strategic HRM

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

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

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

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

Functions of HRM - 1

Managerial

Planning

Organizing

Staffing

Directing

Controlling

Functions of HRM - 2
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

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

ROLE OF HR EXECUTIVES
Service provider

Executive
Facilitator
Consultant

Auditor

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

Organizational
Structure & HRM

Why structure ???


What structure signifies?
No directions
Leads to confusion
Chaos

Why???????????

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

Mechanistic Vs organic
organization
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

Formal
organization

President

Vice
President

Division
Managers

Division
Managers

Vice
President

Division
Managers

Department
Managers

Department
Managers

Department
Managers

Division
Managers

Division
Managers

Informal
organization
Chess group
Vice
President

Division
Managers

Division
Managers

Division
Managers

Division
Managers

Department
Managers

Department
Managers

Department
Managers

Department
Managers

Department
Managers

Department
Managers

Informal organization

Bowling team

Tall Vs Flat structure


CMD
COO

GM

ED

ED

GM

GM

CM

ED

PM

PM

PM

PM

CM

Manager

Team
Lead

Team
Lead

Team
Lead

Manager

Officer
Team
Member

Team
Member

Team
Member

Officer

TALL
STRUCTURE

Executive

Executive

FLAT
STRUCTURE

Team
Member

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.

LINE AND STAFF FUNCTIONS


Departments or
Departments or
employees of a
employees of a
firm that perform
firm that perform a
core activities
support function
Contributes directly Contributes
to the business of
indirectly to the
the firm
business of the
firm
Ex: Manufacturing
and Marketing
Ex: HR and
departments
Finance
departments

Line & Staff Relationship


Traditional concept

Service oriented firm


Which are line and staff functions
Both needs to support each other

Line staff conflict


Different perception
HR professional to bring change

Understand market & organization


Be empathetic
Build trust and transparency
Win win approach

The Role of Human Resources


Department
As a specialist
As a facilitator
As a change agent
As a controller

HUMAN RESOURCE MANAGEMENT


AND OTHER ORGANIZATIONAL
FUNCTIONS
Product & HR
Production & HR
Marketing & HR

Management Techniques & HR


Organization structure & HR

summary
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

Think before others think

Human Resource
Planning

Point to ponder
Definition of Human Resource
Planning
Objectives of Human Resource
Planning
The Process of Human Resource
Planning
Managing the Forecasted
Demand/Surplus
Growing Importance of Human
Resource Planning

Opening case
HRP??? NO, Thank you
A reputed south Indian university appointed 218 people
on temporary basis and paid them Rs 750/month later
increased to 1575/month.
University already had surplus of these employees eating
away 22% of budget allocation
33% of temporary staff already working for 10 years
No laid down procedure for recruitment or appointment, go to vice
chancellor and get your name scribbled on it and your are taken in

They then realised the guilt of violating Equal Remuneration


Act and supressing human rights
What to do with this 218 temoparay staff...??
University can dismiss services of 33% as there have been
breaks in their services. Will they take it?????
While 67% of temporary staff, university can not terminate
them, as there were no breaks
University decides to regularize their services, with 50
available vacancies
This would cost the university an exra expenditure of Rs 30
lakh/year. And 1.2 crore for rest remaining...

Human Resource
planning
Right number
Right Skills

Right Time
Right Cost

HRP defined

Process of anticipating and


making provision for the
movement of people into,
within, and out of an
organization

Objectives of HRP
Right Time

To maintain

Right number

To forecast

Right Skills

To optimize

Right Cost

To utilize

HRP at different
planning levels
Corporate level planning
Intermediate level
planning
Operations planning
Planning short-term activities

Organizational plans
and objectives
Identify future human
resource requirements

HUMAN RESOURCE
PLANNING MODEL

Compare with the


current HR inventory

Determine the numbers,


levels & criticality of vacancies
Analyze the cost & time involved
in managing the demand

Determine the redundant


numbers
Analyze the cost & time
required for managing surplus

Choose the resources &


methods of recruitment
Redeploy

Retrench

Assessing current human


resources and making
inventory
Job analysis
HR inventory HRIS
Generate a fairly accurate
picture existing situation

Forecasting
Compare future needs with
current availabity
Analyze companies change
plan
Forecasting methods used
are Time Series Analysis,
Regression Analysis and
Productivity Ratios

Matching the inventory with


future requirements
If the current inventory
exceeds the future
requirements
Natural attrition cannot bring
down resource to match
What to consider then????

MANAGING THE FORECASTED


DEMAND / SURPLUS
Managing future demand

Managing Future Surplus

Dealing With Surplus


Manpower
Retrenchment

outplacement
layoffs
Leave of absence without pay
Loaning

Work Sharing
Reduced work hours
Early/voluntary retirement
attrition

Growing importance
of HRP

Thank you

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