Professional Documents
Culture Documents
Human
Resource
Management
Human resource
Resource management
Human Resource Management
What
is
human
management?
resource
HRM: Objectives
Primary objective of HRM is to ensure the availability of
a competent and willing workforce to an organization
HRM objectives are four fold- societal, organizational,
functional and personal
Societal objectives
To be ethically and socially responsible to the needs and
challenges of the society while minimizing the negative
impact of such demands upon the organization
To ensure that the organization becomes socially
responsive
Organizational objectives
To recognize the role of HRM in bringing about
organizational effectiveness
To make sure that HRM is not a stand-alone department,
but rather a means to assist the organization reach its
primary objective
Functional Objectives
To maintain the departments contribution at a level
appropriate to the organizations needs
Remind the HRM that it has only functional value and
should not become too expensive at the cost of the
organization it serves
Personal objectives
To assist employees in achieving their personal goals, at
least insofar as these goals enhance the individuals
contribution to the organization
Assist employees in achieving their personal goals
Supporting Functions
1.
Societal objectives
1. Legal compliance
2. Benefits
3. Union-management relations
2.
Organizational objectives
1.
2.
3.
4.
5.
6.
7.
3.
Functional objectives
1. Appraisal
2. Placement
3. Assessment
4.
Personal objectives
1.
2.
3.
4.
5.
Recruitment
Recruitment
The process by which a job vacancy
is identified and potential employees are notified.
The nature of the recruitment process
is regulated and subject
to employment law.
Main forms of recruitment through advertising in
newspapers, magazines, trade papers and internal
vacancy lists.
Recruitment
Job description outline of the role
of the job holder
Person specification outline
of the skills and qualities required
of the post holder
Applicants may demonstrate their suitability through
application form, letter or curriculum vitae (CV)
Selection
Selection
The process of assessing candidates and appointing a
post holder
Applicants short listed
most suitable candidates selected
Selection process
varies according to organisation:
Selection
Interview most common method
Psychometric testing assessing the personality of the applicants
will they fit in?
Aptitude testing assessing the skills
of applicants
In-tray exercise activity based around what the applicant will be
doing, e.g. writing a letter to a disgruntled customer
Presentation looking for different skills
as well as the ideas of the candidate
Employment Legislation
Employment Legislation
Wide range
of areas for attention
Discrimination
Crucial aspects
of employment
legislation:
Race
Gender
Disability
Discipline
Discipline
Firms cannot just sack workers
Wide range of procedures and steps
in dealing with workplace conflict
Informal meetings
Formal meetings
Verbal warnings
Written warnings
Grievance procedures
Working with external agencies
Development
Development
Developing the employee
can be regarded as investing
in a valuable asset
A source of motivation
A source of helping the employee fulfil potential
Training
Training
Similar to development:
Provides new skills for the employee
Keeps the employee up to date
with changes in the field
Aims to improve efficiency
Can be external or in-house
Rewards Systems
Rewards Systems
The system of pay and benefits used by the firm to
reward workers
Money not the only method
Fringe benefits
Flexibility at work
Holidays, etc.
Trade Unions
Trade Unions
Importance of building relationships with employee
representatives
Role of Trade Unions has changed
Importance of consultation
and negotiation and working
with trade unions
Contributes to smooth change management and
leadership
Productivity
Productivity
Measuring performance:
How to value the workers contribution
Difficulty in measuring some types of output
especially in the service industry
Appraisal
Meant to be non-judgmental
Involves the worker and a nominated appraiser
Agreeing strengths, weaknesses and ways forward
to help both employee and organisation
HRD is defined as the development of people by providing the right environment where
each individual may grow to his fullest potentials
Megginson viewed human resources as the total knowledge, skills, creative abilities,
talents and aptitudes of an organizations workforce as well as the values, attitudes and
beliefs of the individual involved
Beliefs of HRD
1. Human resource is the most important asset in the organization
2. Unlike other resources, human resource can be developed and increased to an unlimited
extent
3. A healthy climate, characterized by the values of openness, enthusiasm, trust, mutuality
and collaboration is essential for developing human resource
4. HRD can be planned and monitored in ways that are beneficial both to the individuals and
the organization
5. Employees feel committed to their work and the organization, if the organization
perpetuates a feeling of belonging
6. Employees feel highly motivated if the organization provides for satisfaction of their
basic and higher level needs
7. Employee commitment is increased with the opportunity to discover and use ones
capabilities and potential in ones work
Objectives of HRD
i.
Benefits of HRD
i.
ii. It helps employees to know their strengths and weaknesses and thus
enable them to improve their performance and that of the organization
iii. It facilitates the creation of an environment where opportunities are
available for fuller utilization of the known potentials of the employees.
The climate of such an organization is one of mutuality, trust,
collaboration, openness, etc.
iv. It generates valid data about employees for personnel functions like
training, placement, selection, promotion, etc
v. It insists on the provision of feedback and guidance by the superior to
the employees for the improvement of their performance
vi. It leads to greater organizational effectiveness
HRD Mechanisms
or
Sub-systems
or Instruments
HRD Outcomes
Variables
Role Clarity
Planning
of
Development by Every
Employee
Awareness
of
Competencies Required
for Job Performance
Proactive Orientation
More Trust
Collaboration & Team
Work
Authenticity
Openness
Risk-taking
Value Generation
Clarification of Norms
and Standards
Increased
Communication
More
Objective
Rewards
Generation
of
Objective,
Data
on
More Competent
People
Higher
Workcommitment & Job
Involvement
More
Problem
Solving
Better Utilisation of
Human Resources
Higher
Jobsatisfaction and Work
Motivation
Better Generation
of Internal Resources
Better
Organisational Health
More Team Work,
Synergy and Respect
for Each Other
HRD Department
Performance
Appraisal
Review Discussions,
Feedback Counselling
Sessions
Role
Analysis
Exercises
Potential
Development
Exercises
Training
Communication
Policies
Job Rotations
OD Exercises
Rewards
Job-enrichment
Programmes
Other Mechanisms
4
Organisation
al
Effectiveness
Dimensions
Higher
Productivity
Growth and
Diversification
Cost Reduction
More Profits
Better Image
Other factors
Other factors
Personnel
Policies,
Top
Management
Styles,
Investments on HRD. Top
Managements
Commitments,
History,
Previous
Culture,
Line
Managers Interest etc.
Environment,
Technology,
Resource
Availability, History,
Nature of Business
etc.
Individualdevelopmentplan
Organizationaldevelopmentplan
Skill+Knowledge+Attitudedevelopment
Workculture+Developmentplans+
Facilitydevelopment+qualityofworking
life
Trainedanddevelopedemployees
Healthyorganizationalclimate
Organizationaleffectiveness
HRD FUNCTIONS
HRM
HRD
HRM deals with all aspects of the human HRD only deals with the development
resources function
part.
HRMfunctionsaremostlyformal
HRM is a
process.
routine
and
HRDfunctionscanbeinformallike
mentorship.
Personnel Management
1.
Employment contract
Careful
delineation
written contracts
2.
Rules
Importance
clear rules
3.
Guide
action
4.
Behavior referent
5.
Nurturing
6.
Key relations
Labor management
Customer
7.
Initiatives
Piecemeal
Integrated
8.
Speed of decision
Slow
Fast
to
of
Human
Management
Resource
management Procedures
Norms/customs
practices
Business need
and Values/mission
Dimension
Personnel Management
Human Resource
Management
11.
Prized management
skill
Negotiation
Facilitation
12.
Selection
13.
Pay
Performance related
14.
Conditions
Separately negotiated
Harmonization
15.
Labor management
Collective bargaining
contracts
Individual contracts
16.
Many
Few
17.
Job design
Division of labor
Team work
18.
Conflict handling
19.
Training and
development
Learning companies
20.
Focus of attention
for interventions
Personnel procedures
Wide-ranging cultural,
structural and personnel
strategies
Dimension
Personnel management
21.
Respect for
employees
22.
Shared interests
Interests of the
Mutuality of interests
organization are uppermost
23.
Evolution
Precedes HRM
24.
Locus of control
External
Internal
25.
Organizing
principles
Mechanistic
Top-down
Centralized
Organic
Bottom-up
Decentralized
Organization of HR Department
Two issues become relevant in a discussion on organization of an
HR department
1. Place of the HR department in the overall set-up
2. Composition of the HR department itself
.Status of the HR department in the overall organizational
structure depends on the,
.Size of the firm
.Nature of business
.Management-philosophy
.Global presence
Size of Business
In small start up organizations where employee strength is around 100, the
HR activities are very basic
The functions are largely transactional
Mid-sized firms with a head count of 200-500 each will have a structured
HR function
Key HR activities are clearly established and responsibilities assigned
Service Level Agreements (SLAs) are defined for HR deliverables and
tracked to ensure that business objectives are not compromised
In large organizations with employee strength of 1000 to 3000, HR function
is highly matured and organized
HR processes are well documented, defined and implemented meticulously
Sophisticated HR tools are in place and technology is leveraged to ensure
that HR is contributing to the goal realization
Nature of business
Nature of business largely determines the HR department
structure
HR functions are commonly distributed to three categories
i.
of
the
Global presence
Organizations with global presence tend have fully
blown and highly elevated HR structures
Sales
manager
Office manager
Personnel
Assistant
Accountant
Director
operations
Director
finance
Director
Personnel/
HRM
Director
Marketing
Director
R&D
What Managers Do
Managers (or administrators)
Individuals who achieve goals through other
people.
Managerial
ManagerialActivities
Activities
Make
Makedecisions
decisions
Allocate
Allocateresources
resources
Direct
Directactivities
activitiesofofothers
othersto
to
attain
attaingoals
goals
Management Functions
Planning
Planning
Organizing
Organizing
Management
Management
Functions
Functions
Controlling
Controlling
Leading
Leading
Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright 1973
by H. Mintzberg. Reprinted by permission of Pearson Education.
Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright 1973
by H. Mintzberg. Reprinted by permission of Pearson Education.
Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright 1973
by H. Mintzberg. Reprinted by permission of Pearson Education.
Functions of HR
Planning
Staffing
Developing
Monitoring
Maintaining
Managing relationships
Managing change
Evaluating
Management Skills
Technical skills
The ability to apply specialized
knowledge or expertise.
Human skills
The ability to work with,
understand, and motivate other
people, both individually and in
groups.
Conceptual Skills
The mental ability to analyze and
diagnose complex situations.
2.
2.Communication
Communication
Exchanging
Exchangingroutine
routineinformation
informationand
andprocessing
processingpaperwork
paperwork
3.
3.Human
Humanresource
resourcemanagement
management
Motivating,
Motivating,disciplining,
disciplining,managing
managingconflict,
conflict,staffing,
staffing,and
and
training
training
4.
4.Networking
Networking
Socializing,
Socializing,politicking,
politicking,and
andinteracting
interactingwith
withothers
others
HRM Models
Five major models have been identified and all these serve four
purposes.
1. They provide an analytical framework for studying HRM
2. They legitimize certain HRM practices; a key issue here being the
distinctiveness of HRM practices: It is not the presence of
selection or training but a distinctive approach to selection or
training that matters
3. They provide a characterization of HRM that establishes variables
and relationship to be researched
4. They serve as a heuristic device-something to help us discover and
understand the world for explaining the nature and significance of
key HR practices
Selection
Appraisal
Rewards
Organizational
effectiveness
Human
resource
management
policy choices
Employee
influence
Human resource
flow
Reward systems
Work systems
Human
resource
outcomes
Commitment
Competence
Congruence
Cost-effectiveness
Long-term
consequences
Individual wellbeing
Organizational
effectiveness
Societal wellbeing
HRM
STRATEG
IES
HRM
Practices
Hiring
Training
Appraisal
Compensat
ion
Relations
HR
Outcomes
Commitme
nt
Quality
Flexibility
Behavioral
outcomes
Motivation
Cooperation
Organizati
onal
citizenship
Performance
outcomes
Positive
Productivity
Innovation
Quality
Negative
Low
productivity
Absenteeism
Turnover
Financial
outcomes
Profits
ROI
Warwick Model
Outer context
Socioeconomic
Technical
Political-legal
Competitive
Inner context
Culture
Structure
Politics/
leadership
Task-technology
Business outputs
HRM content
HR flows
Work systems
Reward
systems
Employee
relations
HRM context
Role
Definition
Organization
HR outputs
Strategic Partner
Change Champion
People
Process
Employee Champion
Day-to-day
Operational Focus
Administrative
Deliverable
Strategic partner
Management of
strategic resources
Aligning HR with
business strategy
Executive strategy
Administrative
expert
Management of
firms infrastructure
Re-engineering
Building an efficient
infrastructure
Employee champion
Management of
employee
contribution
Listening to
employees
Increasing employee
commitment and
capability
Change agent
Management of
transformation and
change
Managing changing
environment
Creating a renewed
infrastructure
Evolution of HRM
Emerged during 1970s
Concern for the welfare of workers in the management of
business enterprises has been in existence since ages
Kautilyas Arthahastra states that there existed a sound base
for systematic management of resources as early as the 4th
century BC
In 1800 BC minimum wage rate and incentive wage plan
were included in the Babylonian Code of Hammurabai
In our country, the growth of the subject has been traced back
to 1920s
Royal Commission (1931) recommended the appointment of
laborwelfare officers to deal with the selection of workers and
Development
Status
Outlook
Emphasis
Status
1920s-1930s
Beginning
Pragmatism of
capitalists
Statutory,
welfare,
paternalism
Clerical
1940s-1960s
Struggling for
recognition
Technical,
legalistic
Introduction of
techniques
Administrative
1970s-1980s
Achieving
sophistication
Professional,
legalistic,
impersonal
Regulatory,
conforming,
imposition of
standards on
other functions
Managerial
1990s
Promising
Philosophical
Human values,
productivity
through people
Executive
cooperation
and
developing
smooth
working