1 Human Resource Management. People are definitely a company’s realest asset. It doesn't make any difference whether the product is cars or cosmetics.

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Human Resource

Management

People are definitely a company’s realest asset. It doesn't make any difference whether the product is cars or cosmetics. A company is only as good as the people it keeps. Mary Kay Ash

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A Thought To Share

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we can divide this term into three parts

HUMAN

RESOURCE

MANAGEMENT

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HUMAN

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Financial Resources:Financial Resources: means debt, equity, retain earnings means debt, equity, retain earnings and selected matters.and selected matters.

Physical Resources:Physical Resources: means building, machinery, vehicle means building, machinery, vehicle and other material.and other material.

Organizational Resources:Organizational Resources: include the history of groups include the history of groups in the organization, relationship, level of trust and in the organization, relationship, level of trust and associated culture dimensions, as well as formal associated culture dimensions, as well as formal reporting structure, control system and compensation reporting structure, control system and compensation system.system.

Human Resource:Human Resource: includes skills, abilities, experience and other work includes skills, abilities, experience and other work

related characteristics of people associated with the related characteristics of people associated with the organization.organization.

RESOURCE

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Management

Management is the universal process of getting activities completed with

and through other people to achieve organizational goals

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Human Resource Management

The design of formal systems in an organization to ensure effective and efficient use of talent to accomplish

organizational goals

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It is a managerial function that tries to match “Organizational Needs” to the “Skills and Abilities” of its Employees

Human Resource Management

Human Resource Management helps in maximizing productivity & reducing cost by Putting Right Person At Right Place

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Evolution of HRM

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• The Craft system (1600s-1700s)– Small level of production– Industrial Revolution

• Scientific Management (early 1900s)– One best way to accomplish the task– Putting the right person on the job with the correct tools and equipment– Having a standardized method of doing the job– Providing an economic incentive to the worker

• Human Relations (late 1920s – early 1930s)– Hawthorne studies– Employee participation program

Evolution of HRM

• Behavioral SciencesThe study of the actions of people at work; people are the most important asset

of an organization.

• Personnel ManagementInvolve in operational planning and decision making & do not incorporate all

HR activities.

• Human Resource ManagementInvolve in operational as well as strategic planning and decision making &

incorporate all HR activities(training, career development, EEO etc.)

• Intellectual Capital ManagementOrganizations need to be dynamic both in the context of the management of

individual capabilities and the management of organizational structure.11

Evolution of HRM

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Why it is important to study HRM Managing People = Managing Business

Investments in people pay off for the firm

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Goals of Human Resource Management

Complying withlegal and social

obligations

Complying withlegal and social

obligations

Facilitatingorganizationaleffectiveness

Facilitatingorganizationaleffectiveness

Enhancingproductivityand quality

Enhancingproductivityand quality

Promotingindividual growthand development

Promotingindividual growthand development

The Goals of Human Resource in Contemporary

Organizations

The Goals of Human Resource in Contemporary

Organizations

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Human Resource Functions

Staffing

Maintenance Training & Development

Motivation

H R M

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STAFFING•Strategic Human Resource Planning•Recruitment•Selection

Maintenance Training & Development

Motivation

H R M

Human Resource Functions

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STAFFING

The basic objective of the staffing function is to locate & secure competent employee

Components of Staffing

• Strategic Human Resource Planning

• Recruitment

• Selection

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Strategic Human Resource Planning

Human Resource planning is the process by which an organization ensures that it has right number and kind of people capable of effectively and efficiently completing those task that are in direct support of company’s mission and strategic goals.

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The process by which a job vacancy is identified and potential employees are notified

Objectives of Recruitment•To obtain an adequate pool of applicants there by more choice to the organization

•Providing enough information about the job such that those who are unqualified will not apply

Recruitment

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Selection

• The primary objective of selection activities is to predict

which job applicant will be suitable if hired, during the

selection process, candidate are also informed about the job

and organization

• Proper selection can minimize the cost of replacement and

training resulting in more productive workforce

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Staffing

Maintenance

Motivation

TRAINING & DEVELOPMENT

•Orientation•Employee Training•Employee Development•Organization Development•Career Development

H R M

Human Resource Functions

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The basic objective of Training & Development function is to take competent workforce, adapt them to the organization, and help them to obtain up-to-date skills,

knowledge, and abilities for their job responsibilities

TRAINING & DEVELOPMENT

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Career Development

Orientation

Employee Training

Employee DevelopmentOrganization Development

Components of Training & Development

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• Orientation: It covers the activities involve in the introducing a new employee to organization and to his or her work unit

• Employee Training: Employee training is designed to assist employee acquiring better skill for the current job

• Employee Development: The focus of employee development is on a future position with in the organization for the which employee require additional competencies

• Career Development: The focus of career development is to provide the necessary information and assignment in helping employees realize their career goals

• Organizational Development: Organizational Development is the part of HRM that deals with facilitating system wide change in the organization

Components of Training & Development

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Staffing

Maintenance

MotivationMotivation and Job DesignPerformance managementReward & Compensation

Employee Benefits

H R MTraining

& Development

Human Resource Functions

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Motivation: The basic objective of motivation function is to retain good staff and to encourage them to give of their best while at work requires attention to the financial and psychological and even physiological rewards offered by the organization as a continuous exercise.

Job design: A job should be designed in a such a way that it should facilitate the achievement of the organizational objective, stimulate performance and recognize the capacity and needs of those who are to perform it

Performance Management: process used to identify, encourage, measure, evaluate and improve employees through performance appraisal.

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• Compensation Management: Compensation is what employee receives in exchange for their contribution to the organization. Compensation management help the organization to obtain, maintain and retain a productive

Workforce • Employee Benefit: Employees benefit are generally

membership based ,non financial reward offered to attract and keep the employees, regardless their performance level.

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Motivation

StaffingMaintenance•Health & safety•Communication•Employee relations

Training & Developmen

tH R M

Human Resource Functions

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The last phase of HRM process is called maintenance function. The main objective of this function is to do such HRM

activities that maintain employees commitment and loyalty with the organization.

• Health and Safety – Designing and implementing programs to ensure employee

health and safety

• Communication– Designing and implementing employee communication system

• Employees/labor relation– Serving as an intermediary between the organization and its

union

– Designing discipline and grievance handling systems

MAINTENANCE FUNCTION

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Different Roles for HR Management

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HR Management Roles

• Administrative Role– Clerical and administrative support operations

(e.g., payroll and benefits work)

• Employee Advocate Role– “Champion” for employee concerns

• Employee crisis management• Responding to employee complaints

• Operational Role– Identification and implementation of HR

programs and policies—hiring, training, compensating and other activities that support

the organization.

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Strategic Role for HR

• HR becomes a strategic business partner by:– Focusing on developing HR activities

that enhance organizational performance .

– Involvement in strategic planning

– Participating in decision making on mergers, acquisitions, and downsizing.

– Redesigning organizations and work processes

– Accounting and documenting the financial results of HR activities.

HR Management Challenges

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• Economic and Technological Changes– Shift in jobs for manufacturing and agriculture to service

industries and telecommunications.– Pressures of global competition causing firms to adapt by

lowering costs and increasing productivity.– Growth of information technology.

• Workforce Availability and Quality– Inadequate supply of workers with needed skills for “knowledge

jobs”– Education of workers in basic skills

HR Management Challenges

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• Growth in Contingent Workforce– Increases in temporary workers, independent contractors,

leased employees, and part-timers caused by:• Need for flexibility in staffing decisions• Increased difficulty in firing regular employees.

• Demographics and Diversity Issues– More diversity of race, gender, age etc

• Balancing Work and Family– Dual-career couples– Single-parent households– Decline in the “traditional family”– Working mothers and family/childcare– Single employee “backlash” against family-oriented programs.

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• Organizational Restructuring, Mergers, and Acquisitions– “Right-sizing”—eliminating of layers of management, closing

facilities, merging with other organizations, and out placing workers

• Intended results are flatter organizations, increases in productivity, quality, service and lower costs.

– HR managers must work toward ensuring cultural compatibility in mergers.

International Human

Resource Management

Function of International HRM:

Highlighting the broad functions of HRM, Morgan (1986) has presented a model that consist of three dimensions which are:

1. The three broad human resource activities:

2. The three major country categories involved in international HRM activities:

3. The three type of employee of an international firm:

Procurement Allocation Utilization

Host country Home Country Other Country

Host country Nationals

(HCNs)

Parent CountryNationals

(PCNs)

Third Country National(TCNs)

Host country Nationals(HCNs)

Parent Country Nationals(PCNs)

Third Country National(TCNs)

Procurement Allocation Utilization

HOST

HOME

OTHER

MODEL OF International HRM

Domestic Vs International HRM

HRM functions-Domestic as well as International

Complexity Involved in operating in different countries and

employing different national categories of employees.

Extent of reliance of the MNC on its home country

of domestic market. Attitude of Senior management

CulturalEnvironment

Industry within which the MNC is primarily involved

Waves are inspiring not because they rise and fall but because each time they fall they never fail to rise again.

So keep your spirits high always!!

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Thought of the Day