INTRODUCTION TO HUMAN RESOURCE MANAGEMENT BY NISHA HARIYANI

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

President

Formal organization

Informal organization Chess group

Vice President

Vice President

Vice President

Division Managers

Division Managers

Division Managers

Division Managers

Division Managers

Division Managers

Division Managers

Division Managers

Division Managers

Department Managers

Department Managers

Department Managers

Department Managers

Department Managers

Department Managers

Department Managers

Department Managers

Department Managers

Informal organization

Bowling team

Tall Vs Flat structure

CMD COO ED ED ED

GM

GM

GM

CM

PM

PM

PM

PM

CM

Manager

Team Lead

Team Lead

Team Lead

Manager

Officer
Team Member Officer Team Member Team Member Team Member

TALL STRUCTURE

Executive

Executive

FLAT STRUCTURE

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 Right number Right Skills Right Cost To maintain To forecast To optimize 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 Compare with the current HR inventory HUMAN RESOURCE PLANNING MODEL

Determine the numbers, levels & criticality of vacancies Analyze the cost & time involved in managing the demand Choose the resources & methods of recruitment

Determine the redundant numbers Analyze the cost & time required for managing surplus

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