INTRODUCTION

TO HRM

Evolution of HRM

SCIENTIFIC MANAGEMENT

Frederick Taylor, Henry Gantt, Frank & Lillian Gilbreth

INDUSTRIAL/ORGL PSYCHOLOGY
Munsterberg, Scott, Cattell

HUMAN RELATIONS MOVEMENT

Hawthorne Studies, Mayo, Follett, Lewin

GROWTH OF GOVERNMENTAL REGULATIONS

Wages (1930s), Unionization (1940s), Employment (1960s)

PROFESSIONALIZATION OF HR MANAGEMENT

Professional HR Societies & HRCI (Certification Institute)

MANAGING & MEASURING WORKER PRODUCTIVITY

HUMAN CAPITAL MANAGEMENT

What is the effect of HR on the bottom line of the firm? Human Resource Management

Utilization of individuals to achieve organizational objectives All managers at every level must concern themselves with human resource management Five functions

Human Resource Management Functions

Human Resource 1 Management

Safety and Health

FUNCTIONAL AREAS WITHIN HR

EMPLOYMENT / STAFFING
TRAINING AND DEVELOPMENT COMPENSATION

APPRAISAL EDUCATION AND DEVELOPMENT RECRUITMENT SELECTION

EMPLOYEE RELATIONS

SALARIES, WAGES AND BENEFITS INCENTIVE PLANS

GRIEVANCE RESOLUTION UNION RELATIONS FORECASTING JOB ANALYSIS ATTITUDE SURVEYS VALIDATION STUDIES

HR PLANNING AND RESEARCH

Employment / Staffing

Staffing

- Process through which organization ensures it always has proper number of employees with appropriate skills in right jobs at right time to achieve organizational objectives

Job analysis - Systematic process of determining skills, duties, and knowledge

required for performing jobs in organization (It is a procedure by which pertinent information is obtained about job)

Human resource planning

the internal and external supply of people with job openings anticipated in the organization over a specified period of time .

- Systematic process of matching

Recruitment - Process of attracting individuals on a timely basis, in sufficient

numbers, and with appropriate qualifications, to apply for jobs with an organization

Selection - Process of choosing from a group of applicants the individual best

suited for a particular position and the organization

Training and Development

Training - Designed to provide learners with knowledge and skills needed for their present jobs Development - Involves learning that goes beyond today's job; it has more long-term focus Career development - Formal approach used by organization to ensure that people with proper qualifications and experiences are available when needed Organization development - Planned process of improving organization by developing its structures, systems, and processes to improve effectiveness and achieving desired goals Performance management - Goal-oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization Performance appraisal - Formal system of review and evaluation of individual or team task performance

Compensation

Direct Financial Compensation - Pay that person receives in form of wages, salaries, bonuses, and commissions. Indirect Financial Compensation (Benefits) - All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance. Non-financial Compensation - Satisfaction that person receives from job itself or from psychological and/or physical environment in which person works.

Safety and Health

Employees who work in safe environment and enjoy good health are more likely to be productive and yield long-term benefits to organization.

Safety - Involves protecting employees from injuries caused by work-related accidents Health - Refers to employees' freedom from illness and their general physical and mental well being

Employee and Labor Relations

Private-sector union membership has fallen from 39 percent in 1958 to 7.8 percent in 2005. Business is required by law to recognize a union and bargain with it in good faith if the firms employees want the union to represent them Is the function of HR to control workers, or to help them and act as their advocate? Resolving personnel grievances and disagreements fairly in both union and unionfree environments

Human Resource Research

Human resource research pervades all HR functional areas. Forecasting and Planning Job Analysis Attitude Surveys Validation Studies Compensation Surveys

Who Performs Human Resource Management Tasks?

Human Resource Managers Line Managers and Supervisors HR Shared Service Centers Outsourcing Professional Employer Organizations (Employee Leasing)

Human Resource Executives, Generalists, and Specialists

Vice President, Human Resources Vice President, Industrial Relations

Manager, Compensation

Manager, Training and Development

Manager, Staffing

Benefits Analyst

Executive: Generalist: Specialist:

Traditional Human Resource Functions in a Large Firm

President and CEO
Vice President, Marketing Vice President, Operations Vice President, Finance Vice President, Human Resources

Manager, Training and Development

Manager, Compensation

Manager, Staffing

Manager, Safety and Health

Manager, Labor Relations

A Possible Evolving HR Organization Example

President and CEO
Vice President, Strategic Human Resources Director of Safety and Health

Vice President, Operations

Vice President, Finance

Vice President, Marketing

Training & Development (Outsourced)

Compensation (Shared Service Centers)

Staffing (more involvement of Line Managers, etc)

AMA SARATOGA STUDY

How are HR Departments Changing?

ONLY 30% STILL DO ALL STANDARD IN-HOUSE HR FUNCTIONS 32% HAVE ESTABLISHED AN IN-HOUSE UNIVERSITY ONLY 27% HAVE RETAINED THE TRAINING AREA AS IS

BENEFITS HAVE BEEN OUTSOURCED OR MOVED TO SHARED SERVICE CENTERS

STAFFING IS BEING DELEGATED BACK TO LINE MANAGERS

RATIO OF EMPLOYEES SERVED PER HR EMPLOYEE HAS INCREASED

AMA SARATOGA STUDY

How are HR Departments Changing?

ONLY 30% STILL DO ALL STANDARD IN-HOUSE HR FUNCTIONS 32% HAVE ESTABLISHED AN IN-HOUSE UNIVERSITY ONLY 27% HAVE RETAINED THE TRAINING AREA AS IS

BENEFITS HAVE BEEN OUTSOURCED OR MOVED TO SHARED SERVICE CENTERS

STAFFING IS BEING DELEGATED BACK TO LINE MANAGERS

RATIO OF EMPLOYEES SERVED PER HR EMPLOYEE HAS INCREASED

A RECENT SURVEY OF TOP HRM CONCERNS (Helman)

84% COMPENSATION 80% SUCCESSION PLANNING 68% MANAGEMENT STAFFING 40% HR STRATEGIC PLANNING 40% EMPLOYEE COMMUNICATIONS 34% WORKFORCE MANAGEMENT 28% BENEFITS 26% PERFORMANCE EVALUATION 24% EMPLOYEE RELATIONS 20% PERSONNEL POLICIES 18% LABOR RELATIONS 16% TRAINING AND DEVELOPMENT 4% EEO/AFFIRMATIVE ACTION 9% OTHER

CURRENT TRENDS IN HR

EMPHASIS ON STRATEGIC PLANNING & SUCCESSION

VP of HR is a Strategic Manager, Management Succession Planning

EMPHASIS ON COST-RELATED ISSUES / COST CONTROL

Global Competition, Outsourcing and Downsizing

NEW SPECIALTIES EMERGING IN HR

HR Planning, International HR, Employee Assistance Programs

GROWTH OF GOVERNMENTAL REGULATIONS

Wages (1930s), Unionization (1940s), Employment (1960s)

PROFESSIONALIZATION OF HR MANAGEMENT
Professional HR Societies & HRCI (Certification Institute)

THE INTERNET REVOLUTION

Electronic Recruiting, Records Management, and HRIS

HUMAN RESOURCE CERTIFICATION INSTITUTE (HRCI)

PROFESSIONAL IN HUMAN RESOURCES (PHR)

Need 4+ yrs HR experience (full-time, exempt position) or 2+ yrs HR experience w/ appropriate bachelors degree or 1+ yr HR experience w/ appropriate masters degree Students may sit for PHR exam; and have 5 years to get experience Must pass comprehensive PHR examination (need a score of 500+) Certified for 3 years / Re-certification required every 3 years

SENIOR PROFESSIONAL IN HUMAN RESOURCES (SPHR) Need 8+ yrs HR experience (full-time, exempt position) or 6+ yrs HR experience w/ appropriate bachelors degree or 5+ yrs HR experience w/ appropriate masters degree SPHR candidates also need 3+ yrs experience at policy-making level Must pass comprehensive SPHR examination (need a score of 500+) Certified for 3 years/ Re-certification required every 3 years

WHAT IS HRM? MEANING OF HRM HRM is a management function that helps organisation to recruit, select, train, develop and manage its members. Simply stated, HRM is all about management of people in the organisation from Recruitment to Retirement. HRM refers to set of programs, functions, and activities designed and carried out in order to maximise both employee as well as organisational effectiveness.
From Recruitment to Retirement of an employee in the organization HRM is planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished.

SCOPE OF HRM
From Entry to Exit or Recruitment to Retirement of an employee in the organization

Following are the areas of operation of HRM: Human Resource Planning Job Analysis Recruitment & Selection Orientation & Placement Training & Development Performance Appraisals Job Evaluation Employee and Executive Remuneration Motivation Communication Welfare Safety & Health Industrial Relations

ROLE OF HRM

Advisory Role: HRM advises management on the solutions to

any problems affecting people, personnel policies and procedures.

Personnel Policies: Organization Structure, Social Responsibility, Employment Terms & Conditions, Compensation, Career & Promotion, Training & Development and Industrial Relations. Personnel Procedures: Relating to manpower planning procedures, recruitment and selection procedures, and employment procedures, training procedures, management development procedures, performance appraisal procedures, compensation procedures, industrial relations procedures and health and safety procedures.

Functional Role: The personnel function

formulates personnel policies in accordance with the companys doctrine and management guidelines. It provides guidance to managers to help them ensure that agreed policies are implemented.

Service Role: Personnel function provides

personnel services. These services constitute the main activities carried out by personnel department, like payroll, disciplinary actions, etc.

ROLE OF HR MANAGERS

Humanitarian Role:
employees.

Reminding moral and ethical obligations to

Counsellor:

Consultations to employees about marital, health, mental, physical and career problems.

Mediator: Playing the role of a peacemaker during disputes, conflicts

between individuals and groups or management.

Spokesman:

To represent the company in Media and other forums because he has better overall picture of his companys operations.

Problem Solver: Solving problems of overall human resource

management and long-term organizational planning. installing organizational development programs

Change Agent: Introducing and implementing institutional changes and

Management of Manpower Resources: Broadly concerned with
leadership both in the group and individual relationships and labourmanagement relations.

Personnel Role: Advisory Manpower Planning Training & Development Assessment of Individual & Group Behaviour

Welfare Role: Research in Personnel & Organizational problems Managing Services Canteen, Grain Shops, Cooperatives, Transport, Crches, etc. Group Dynamics Group Counseling, Motivation, Leadership, Communication etc.

Clerical Role: Time Keeping Salary & Wages Administration Maintenance of Records Man-Machine Relationship

OBJECTIVES

OF HRM

Organizational Objectives: To assist the

organization to achieve its primary objectives, whether it is profit making or charity or social agenda.

Societal Objectives: To be responsive to the

needs and challenges of the society while minimizing the negative impact, if any, of such demands upon the organization.

Functional Objectives: To maintain

departments contribution and level of services at a level appropriate to the organizations needs.

Personal Objectives: To assist employees in

achieving their personal goals, at least in so far as these goals enhance the individuals contribution to the organization. This is necessary to maintain employee performance and satisfaction for the purpose of maintaining, retaining and motivating the employees in the organization.

Policy

In simply policy is a plan of action and that plan is a policy.

A policy is a pre-determined, selected course established as a guide towards accepted goals and objectives.

Human Resource policies

Human resource policies lay down the decision making criteria in line with the overall purpose of the organization in the area of HRM. HRM Policies are developed by the top management to assist the managers at various levels to deal with the people at work.

objectives of H R Policies

To offer reasonable return to shareholders To provide the customers with good and services they desire at reasonable prices To provide steady employment at good wages to workers and maintain healthy relation with them To discharge social responsibilities arising out of interaction with the society

Characteristics of a policy
Policy Is an expression of intentions of top Management Policy is stated in broad terms Policy is long lasting Policy is in writing Policy is linked with objectives

Types of policies

Functional policies Internal policies External policies Appealed policies Stated or explicit policies Unstated or implied policies

Human Resource Accounting

Accounting for people as an organizational resource. It involves measuring the costs incurred by an organization to recruit, select,hire,train and develop human assets and also involves measuring the economic value of people in the organization.

Objectives of HRA

Developing new measures of effective manpower utilization Better human resource planning, enabling long-term opportunity for planning & budgeting For fixing right person for the right job To motivate individual human being in the organisation to increase his worth by training

Benefits of HRA

The adoption of the system of HRA discloses the value of human resources
Adoption of HRA

Human Resource Auditing

Human resource audit refers to an examination and evaluation of policies,practices,procedures to determine the effectiveness and efficiency of the human resource management

Objectives

To review the performance of human resources department and its activities to determine its effectiveness To locate the gaps, lapses, shortcomings in the implementation of the policies,procedures,practices,directives of the personnel department To take corrective steps in future to rectify the mistakes To evaluate the personnel staff and employees