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What do you understand by HRM?What do you understand by HRM?

Prof Shirufi Daruwala 12

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Primary function of HRPrimary function of HR

1. Staffing

2. Performance Appraisal

3.Training and Development

4. Labour Relation/ Industrial Relation

5. Compensation

6. Employee separation7. Job Analysis

8. Change Management


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Secondary function of HRMSecondary function of HRM

1. SHRM

2. IHRM

3.HRIS

4. Talent Management

5. Career Management

6. SuccessionP

lanning7. QWL and QWB

8. Stress Management

9. Knowledge ManagementProf Shirufi Daruwala 14

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Secondary function of HRMSecondary function of HRM

10. Design and Redesign of work system

11. Culture

12. Facilities and Benefits13.Grievance Handling

14. Health and Safety


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Most Important function of HRMost Important function of HR

y People are the most important Asset of

an organization.

y HR work is tangible

y Selecting right candidate at right time at

right place.


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The Managers Human ResourceThe Managers Human Resource

Management JobsManagement Jobsy Management process

The five basic functions of planning, organizing, staffing, leading,

and controlling.

y Human resource management (HRM)

The policies and practices involved in carrying out the

people or human resource aspects of a management

position, including recruiting, screening, training, rewarding, and

appraising.

People are not your most important asset, the right people areJim Collins, Good To Great

.


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Personnel Aspects Of A ManagersPersonnel Aspects Of A Managers

JobJoby Conducting job analyses (determining the nature of eachemployees job)

y Planning labor needs and recruiting job candidates

y Selecting job candidates

y Orienting and training new employees (Mentors)

y Managing wages and salaries (compensating employees)

y Providing incentives and benefits

y Appraising performance

y Communicating (interviewing, counseling, disciplining)

y Training and developing managersy Building employee commitment

NO management function is more important than the management ofpeople


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Personnel MistakesPersonnel Mistakes

y Hire the wrong person for the job

y Experience high turnover

y Have your people not doing their best

y Waste time with useless interviews

y Have your company in court because of discriminatory actions

y Have some employees think their salaries are unfair and inequitable

relative to others in the organization

y Allow a lack of training to undermine your departments

effectiveness

y Commit any unfair labor practices


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Basic HR ConceptsBasic HR Concepts

y Getting results

The bottom line of managing

y

HR creates value by engagingin activities that produce

the employee behaviors

the company needs to

achieve its strategicgoals.

Prof Shirufi Daruwala110

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Line and Staff Aspects of HRMLine and Staff Aspects of HRM

y Line manager

A manager who is authorized to direct the

work of subordinates and is responsible for

accomplishing the organizations tasks.

y Staff manager

A manager who assists and advises line

managers. In the Corp/ Regional office.

(Mrkt, HR, Legal, Fin/ Acctg etc)


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Line Managers HRMLine Managers HRM

ResponsibilitiesResponsibilities1. Placing the right person on the right job2. Starting new employees in the organization (orientation)

3. Training employees for jobs new to them

4. Improving the job performance of each person5. Gaining creative cooperation and developing smooth working

relationships

6. Interpreting the firms policies and procedures

7. Controlling labor costs

8. Developing the abilities of each person

9. Creating and maintaining department morale

10. Protecting employees health and physical condition


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Functions of the HR ManagerFunctions of the HR Manager

y A line function The HR manager directs the activities of the

people in his or her own department and inrelated service areas.

y A coordinative function HR managers also coordinate personnel activities,

a duty often referred to as functional control.

y Staff (assist and advise) functions

Assisting and advising line managers is the heartof the HR managers job.

The HR manager can be the most important person in the company


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HR and AuthorityHR and Authority

y Authority

The right to make decisions, direct others work,and give orders.

y

Implied authority The authority exerted by an HR manager by

virtue of others knowledge that he or she hasaccess to top management.

y L

ine authority The authority exerted by an HR manager by

directing the activities of the people in his or herown department and in service areas.


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Employee AdvocacyEmployee Advocacy

y HR must take responsibility for:

Clearly defining how management should be

treating employees.

Making sure employees have the mechanisms

required to contest unfair practices.

Represent the interests of employees within

the framework of its primary obligation to

senior management.


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Examples of HR Job DutiesExamples of HR Job Duties

y Recruiters

Search for qualified job applicants.

y Equal employment opportunity (EEO)

coordinators Investigate and resolve EEO grievances, examine

organizational practices for potential violations,

and compile and submit EEO reports.

yJob analysts

Collect and examine information about jobs to

prepare job descriptions.


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Examples of HR Job Duties (contd)Examples of HR Job Duties (contd)

y Compensation managers

Develop compensation plans and handle the

employee benefits program.

y Training specialists

Plan, organize, and direct training activities.

y Labor relations specialists

Advise management on all aspects of unionmanagement relations.


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HR Department Organizational Chart (Large Company)HR Department Organizational Chart (Large Company)


Figure 11Source: Adapted from BNABulletin to Management, June 29, 2000.

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Cooperative Line and Staff HRCooperative Line and Staff HR

ManagementManagement

1. The line managers responsibility is to specify the

qualifications employees need to fill specific

positions.

2. HR staff then develops sources of qualifiedapplicants and conduct initial screening interviews

3. HR administers the appropriate tests and refers

the best applicants to the supervisor (line

manager), who interviews and selects the ones heor she wants.


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HR Organizational Chart (Small Company)HR Organizational Chart (Small Company)


Figure 12

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The Changing Environment OfThe Changing Environment Of

HR ManagementHR Managementy HRs changing role:

Personnel departments

Took over hiring and firing from supervisors,

payroll, and benefit plans administration.

In the 1930s added protecting the firm in itsinteraction with unions responsibilities (laborrelations).

Assumed organizational responsibilities for equalemployment and affirmative action.


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A Changing HR EnvironmentA Changing HR Environment1.Globalization

Refers to the tendency of firms to extend their sales, ownership, andmanufacturing to new markets abroad.

Dell produces and sells Pc in china.

2.Technological Advances

Today HR faces a challenge of quickly applying technology to the task ofimproving its own operations.

Career Corporation is the worlds larges manufacturer of air conditioners.

3.Exporting (importing)Jobs

Developing call centers in abroad.

Dell, IBM, Emphasis-India Call center.

4.The Nature of Work is changing due to technology advancement.

( cost of human capital,)

5.Workforce Demographics

(diversity,people retire later,more women in the workplace, flexible work hours, etc)


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Measuring HRs ContributionMeasuring HRs Contribution

y Strategy

The companys long-term plan for how it willbalance its internal strengths and weaknesses

with its external opportunities and threats tomaintain a competitive advantage.

x HR managers today are more involved in partneringwith their top managers in both designing andimplementing their companies strategies.

Top management wants to see, precisely, how theHR managers plans will make the company morevaluable.


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HR MetricsHR Metrics

y Metrics : A set of quantitative

performance measures HR managers use

to assess their operations.

y HR managers need a set of quantitative

performance measures( metrics ) they

can use to assess their operation


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HR MetricsHR Metricsy

Absence Rate[(Number of days absent in month) (Average number of

employees during mo.) (number of workdays)] 100

y Cost per Hire

(Advertising + Agency Fees + Employee Referrals + Travel

cost of applicants and staff + Relocation costs + Recruiterpay and benefits) Number of Hires

y Health Care Costs per Employee

Total cost of health care Total Employees

y HR Expense Factor

HR expense Total operating expense


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HR Metrics (contd)HR Metrics (contd)y

Human Capital ROIRevenue (Operating Expense [Compensation cost + Benefit

cost]) (Compensation cost + Benefit cost)

y Human Capital Value Added

Revenue

(Operating Expense

([Compensation cost + BenefitCost]) Total Number of FTE

y Revenue Factor

Revenue Total Number of FTE

y

Time to fillTotal days elapsed to fill requisitions Number hired


Figure 15 (contd)

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HR Metrics (contd)HR Metrics (contd)y

Training Investment FactorTotal training cost Headcount

y Turnover Costs

Cost to terminate + Cost per hire + Vacancy Cost + Learning curve

lossy Turnover Rate

[Number of separations during month Average number of

employees during month] 100

y

Workers Compensation Cost per EmployeeTotal WC cost for Year Average number of employees


Figure 15 (contd)

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Measuring HRs ContributionMeasuring HRs Contributiony The HR Scorecard

Shows the quantitative standards,

or metrics the firm uses to

measure HR activities. Measures the employee

behaviors resulting from these

activities.

Measures the strategically

relevant organizational outcomes

of those employee behaviors.


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Benefits of a High Performance WorkBenefits of a High Performance Work

System (HPWS)System (HPWS)

y Generate more job applicants

y Screen candidates more effectively

y Provide more and better training

y Link pay more explicitly to performance

y Provide a safer work environment

y Produce more qualified applicants per position

y More employees are hired based on validated selection

tests

y Provide more hours of training for new employees

y Higher percentages of employees receiving regular

performance appraisals.


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The New HR ManagerThe New HR Manager

y New Proficiencies

HR proficiencies

Business proficiencies

Leadership proficiencies

Learning proficiencies


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The New HR ManagerThe New HR Manager

y Ethics and HR

Ethical lapses (e.g., Enron, Satyam)


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HR Professional CertificationHR Professional Certificationy HR is becoming more professionalized.

y Society for Human Resource

Management (SHRM)

SHRMs Human Resource Certification

Institute (HRCI)

x SPHR (senior professional in HR)

x PHR (professional in HR)

certificate


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HR and TechnologyHR and Technology

y Benefits of technological applications for HR

Intranet-based employee portals through whichemployees can self-service HR transactions.

The availability of centralized call centers staffedwith HR specialists.

Increased efficiency of HR operations.

The development of data warehouses of HR-

related information.

The ability to outsource HR activities tospecialist service providers.


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