HRM 1

Module-1Module-1

Strategic role of HRM & subsystemsStrategic role of HRM & subsystems

Chapter-1Chapter-1

Introduction to Human Resource ManagementIntroduction to Human Resource Management

Objectives of this ChapterObjectives of this Chapter

Overview of what is HRMOverview of what is HRM

Why it is important to all ManagersWhy it is important to all Managers

HRM activities such as hiring, training, Compensating, HRM activities such as hiring, training, Compensating, appraising & developing employees are part of every appraising & developing employees are part of every manager’s job.manager’s job.

Manager’s HRM jobsManager’s HRM jobs

Global & competitive trends affecting HRM Global & competitive trends affecting HRM

How managers use modern HRM methods to create high-How managers use modern HRM methods to create high-performance companies & work system.performance companies & work system.

““If you want 10 days of happiness, grow grain.If you want 10 days of happiness, grow grain.

If you want 10 years of happiness, grow a tree.If you want 10 years of happiness, grow a tree.

If you want 100 years of happiness, grow people.”If you want 100 years of happiness, grow people.”

What is human resource management?What is human resource management?

Most experts agree that there are five basic functions all Most experts agree that there are five basic functions all manager performs manager performs

PlanningPlanning OrganizingOrganizing Staffing Staffing LeadingLeading Controlling Controlling In total, these functions represent the Management process.In total, these functions represent the Management process.

Planning:-Planning:- Establishing goals & standards; developing rules & Establishing goals & standards; developing rules & procedures; developing plans & forecastingprocedures; developing plans & forecasting

Organizing:-Organizing:- Giving each subordinate a specific task; Giving each subordinate a specific task; establishing departments; delegating authority to subordinates; establishing departments; delegating authority to subordinates; establishing channel of authority & communication; coordinating establishing channel of authority & communication; coordinating the work of subordinates.the work of subordinates.

Staffing:-Staffing:- Determine what type of people should be hired; Determine what type of people should be hired; recruiting, selecting, setting performance standards, recruiting, selecting, setting performance standards, compensating employees, evaluating performance, counseling compensating employees, evaluating performance, counseling employees, training & developing employees.employees, training & developing employees.

Leading:-Leading:- Getting others to get the job done, motivating Getting others to get the job done, motivating employees.employees.

Controlling:- Controlling:- Setting standards such as sales quotas., quality Setting standards such as sales quotas., quality standards, or production levels, checking to see how actual standards, or production levels, checking to see how actual performance compares with these standards , taking corrective performance compares with these standards , taking corrective action as needed.action as needed.

What is human resource management?What is human resource management?

The effective use of people to achieve both The effective use of people to achieve both organizational and individual goalsorganizational and individual goals

The effective recruitment, selection, The effective recruitment, selection, development, compensation, and utilization development, compensation, and utilization of human resources by organizationsof human resources by organizations

Definition of HRMDefinition of HRM

The Policies & practices involved in carrying out the The Policies & practices involved in carrying out the “People” or hr aspects of a management position “People” or hr aspects of a management position including recruiting, screening , training, rewarding & including recruiting, screening , training, rewarding & appraisingappraising

•Human (Homo-sapiens – Social Animal)

•Resources (Human, Physical, Financial, Technical, Informational etc)

Management (Function of Planning, Organizing, Leading , Controlling of organizational resources to accomplish goals efficiently and effectively)

Human Resource Management: Objectives Human Resource Management: Objectives

To help the organization reach its goals.To help the organization reach its goals.

To ensure effective utilization and maximum development of human To ensure effective utilization and maximum development of human resources.resources.

To ensure respect for human beings. To ensure respect for human beings.

To identify and satisfy the needs of individuals.To identify and satisfy the needs of individuals.

To ensure reconciliation of individual goals with those of the organization.To ensure reconciliation of individual goals with those of the organization.

To achieve and maintain high morale among employees.To achieve and maintain high morale among employees.

To provide the organization with well-trained and well-motivated employees.To provide the organization with well-trained and well-motivated employees.

To increase to the fullest the employee's job satisfaction and self-To increase to the fullest the employee's job satisfaction and self-actualization.actualization.

To develop and maintain a quality of work life.To develop and maintain a quality of work life.

To be ethically and socially responsive to the needs of society.To be ethically and socially responsive to the needs of society.

To develop overall personality of each employee in its multidimensional To develop overall personality of each employee in its multidimensional aspect.aspect.

To enhance employee's capabilities to perform the present job.To enhance employee's capabilities to perform the present job.

To inculcate the sense of team spirit, team work and inter-team To inculcate the sense of team spirit, team work and inter-team collaborationcollaboration

Functions of HRM Functions of HRM

Basic functions that all managers perform: planning, organizing, Basic functions that all managers perform: planning, organizing, staffing, leading, and controlling. staffing, leading, and controlling.

HR management involves the policies and practices needed to HR management involves the policies and practices needed to carry out the staffing (or people) function of management.carry out the staffing (or people) function of management.

HRM department regardless of the organization’s size must HRM department regardless of the organization’s size must perform following human resource management functions…perform following human resource management functions…

Conducting Job AnalysisConducting Job Analysis Planning labor needs & recruiting job candidatesPlanning labor needs & recruiting job candidates Selecting job CandidatesSelecting job Candidates Orienting & training new employeesOrienting & training new employees Managing wages & Salaries ( Compensating employees)Managing wages & Salaries ( Compensating employees) Providing incentives & benefitsProviding incentives & benefits Appraising performanceAppraising performance Communicating ( interviewing, counseling, disciplining)Communicating ( interviewing, counseling, disciplining) Training & developingTraining & developing Building employees commitmentBuilding employees commitment

And what a manager should know aboutAnd what a manager should know about

Employment LawEmployment Law Equal opportunity Equal opportunity Employee health & SafetyEmployee health & Safety Handling grievances & labor relationsHandling grievances & labor relations

Growing Importance of HRMGrowing Importance of HRM The success of organizations increasingly depends on people-embodied The success of organizations increasingly depends on people-embodied

know-how- the knowledge, skill, and abilities imbedded in an organization's know-how- the knowledge, skill, and abilities imbedded in an organization's members. members.

This knowledge base is the foundation of an organization' core This knowledge base is the foundation of an organization' core competencies (integrated knowledge sets within an organization that competencies (integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers). distinguish it from its competitors and deliver value to customers).

HRM HRM plays important role in creating organizations and helping them plays important role in creating organizations and helping them survive. Our world is an organizational world. We are surrounded by survive. Our world is an organizational world. We are surrounded by organizations and we participate in them as members, employees, organizations and we participate in them as members, employees, customers, and clients. customers, and clients.

Most of our life is spent in organization, and they supply the goods and Most of our life is spent in organization, and they supply the goods and services on which we depend to live. services on which we depend to live.

Organizations on the other hand depend on people, Organizations on the other hand depend on people, and without people,and without people, they would disappear.they would disappear.

Why are we concerned with HRM?, Why is HRM Why are we concerned with HRM?, Why is HRM important to all Managers.important to all Managers.

1.1. Helps you get results - through others.Helps you get results - through others.

– Different managerial techniques help mangers to direct the Different managerial techniques help mangers to direct the performance of employees in desirable direction in order to achieve performance of employees in desirable direction in order to achieve the organizational objectives. the organizational objectives.

– Through the efforts of others working in an organization, managers get Through the efforts of others working in an organization, managers get things done that require effective human resource management. things done that require effective human resource management.

2.2. Helps you avoid common personnel mistakesHelps you avoid common personnel mistakes

– Qualified HR mangers utilize organization resources in such a way Qualified HR mangers utilize organization resources in such a way that helps to avoid common personnel mistakes like the following… that helps to avoid common personnel mistakes like the following…

Hiring the wrong person for the job Hiring the wrong person for the job Experiencing high turnover Experiencing high turnover Finding employees not doing their best Finding employees not doing their best Having your company taken to court because of your Having your company taken to court because of your

discriminatory actions discriminatory actions Having your company cited under federal occupational safety Having your company cited under federal occupational safety

laws for unsafe practices laws for unsafe practices Allowing a lack of training to undermine your department’s Allowing a lack of training to undermine your department’s

effectiveness effectiveness Committing any unfair labor practices Committing any unfair labor practices

3. 3. Helps you to gain Competitive AdvantageHelps you to gain Competitive Advantage

Among all the resources possessed by the organizations it is only Among all the resources possessed by the organizations it is only Manpower or the Human resources that create the real difference. Manpower or the Human resources that create the real difference.

Because all organizations can have the same technology, they can possess Because all organizations can have the same technology, they can possess same type of financial resources, same sort of raw material can be used to same type of financial resources, same sort of raw material can be used to produce the goods and services but the organizational source that can really produce the goods and services but the organizational source that can really create the difference is work force of the organization. create the difference is work force of the organization.

Therefore they are the main sources of innovation creativity in the Therefore they are the main sources of innovation creativity in the organizations that can be used as a competitive advantage.organizations that can be used as a competitive advantage.

In today’s competitive environment, these are the people which can create In today’s competitive environment, these are the people which can create competitive advantageous for the organizations.competitive advantageous for the organizations.

PERSONNEL VS HUMAN RESOURCES MANAGEMENTPERSONNEL VS HUMAN RESOURCES MANAGEMENT

Personnel ManagementPersonnel Management Human Resources Human Resources ManagementManagement

1) Personnel means persons 1) Personnel means persons employed. Personnel management employed. Personnel management is the management of people, skills is the management of people, skills

employedemployed

Human Resources management is Human Resources management is the management of employees’ the management of employees’ knowledge, abilities, talents, knowledge, abilities, talents, aptitudes, creative abilities etc. aptitudes, creative abilities etc.

2) Employee in personnel 2) Employee in personnel management is mostly treated as an management is mostly treated as an economic man as his services are economic man as his services are exchanged for wage / salary. exchanged for wage / salary.

Employee in human Employee in human resource management is treated not resource management is treated not only as economic man but also only as economic man but also as social and psychological man. as social and psychological man. Thus, the complete man is viewed Thus, the complete man is viewed

under this approachunder this approach. . 3) Employee is viewed as a 3) Employee is viewed as a commodity or tool or equipment commodity or tool or equipment which can be purchased. which can be purchased.

Employee is treated as a resourceEmployee is treated as a resource

4) Employees are treated as cost 4) Employees are treated as cost centre and therefore management centre and therefore management controls the cost of labour controls the cost of labour

4) Employees are treated as profit 4) Employees are treated as profit centre and therefore, invests capital centre and therefore, invests capital for human resource development for human resource development and future utility and future utility

5) Employees are used mostly for 5) Employees are used mostly for the organizational benefit. the organizational benefit.

Employees are used for the multiple Employees are used for the multiple benefits of the organisation, benefits of the organisation, employees and their family employees and their family members members

6) Personnel function is treated as 6) Personnel function is treated as only an Auxiliary function. only an Auxiliary function.

Human resources management is a Human resources management is a Strategic Management function Strategic Management function

Scope of HRMScope of HRM

The scope of HRM is very wide:The scope of HRM is very wide:

1.1.Personnel aspect-Personnel aspect- This is concerned with manpower This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and remuneration, incentives, training and development, layoff and remuneration, incentives, productivity etc.productivity etc.

2.2. Welfare aspect- Welfare aspect- It deals with working conditions and It deals with working conditions and amenities such as canteens, rest and lunch rooms, housing, amenities such as canteens, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, transport, medical assistance, education, health and safety, recreation facilities, etc.recreation facilities, etc.

3.3. Industrial relations aspect- Industrial relations aspect- This covers union-management This covers union-management relations, joint consultation, collective bargaining, grievance and relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc. disciplinary procedures, settlement of disputes, etc.

What motivates employees?What motivates employees?

RankRank

Good wagesGood wages 11 Good working conditionsGood working conditions 44 Job securityJob security 22 Full appreciation of work that is doneFull appreciation of work that is done 55 Tactful discipliningTactful disciplining 88 Employer loyalty to employeesEmployer loyalty to employees 77 Interesting workInteresting work 33 Promotion and growth in the organizationPromotion and growth in the organization 66

(Karl and Sutton, 1996)(Karl and Sutton, 1996)

Challenges/Issues of Managing HR in present era Challenges/Issues of Managing HR in present era

Following are the main issues that are faced by the Following are the main issues that are faced by the mangers to manage the workforce of today’s mangers to manage the workforce of today’s organization for achievement of objectives.organization for achievement of objectives.

1) 1) To Attract PeopleTo Attract People

People will be interested to join any organization if it is providing People will be interested to join any organization if it is providing them quality working environment, attractive benefit and them quality working environment, attractive benefit and opportunities to excel in future. opportunities to excel in future.

Keeping in view the opportunities in the market, the first issues Keeping in view the opportunities in the market, the first issues

will be to attract good people for your organization.will be to attract good people for your organization.

2) 2) To Develop PeopleTo Develop People Development is related to provide the opportunities for training Development is related to provide the opportunities for training

and development to match the skills to job in particular areas. and development to match the skills to job in particular areas.

It requires careful need assessment for training and selecting It requires careful need assessment for training and selecting effective training methods and tools. effective training methods and tools.

After attracting/selecting, continuous development of workforce After attracting/selecting, continuous development of workforce of the organization leads towards development of the of the organization leads towards development of the organization. organization.

So that they will start playing their important role in the So that they will start playing their important role in the organization. organization.

3) 3) To Motivate To Motivate

Motivation means to influence performance of others and to Motivation means to influence performance of others and to redirect the efforts in desirable direction by using different redirect the efforts in desirable direction by using different motivational tools that can help in fulfilling the mission of motivational tools that can help in fulfilling the mission of organization. organization.

Third important issues/concern will be to keep your workforce Third important issues/concern will be to keep your workforce motivated so that they should keep on delivering effectively. motivated so that they should keep on delivering effectively.

4)4) To Keep Talented People To Keep Talented People

This is related to retention of workforce in organization and to This is related to retention of workforce in organization and to take steps that can prevent undesirable detachments of take steps that can prevent undesirable detachments of talented an motivated workers from the organization. talented an motivated workers from the organization.

Line & Staff Aspects of HRMLine & Staff Aspects of HRM

All managers are, in a sense, hr managers, since they All managers are, in a sense, hr managers, since they get involved in activities likes recruiting, interviewing, get involved in activities likes recruiting, interviewing, selecting & training.selecting & training.

Yet most firms also have HR depts. With their own top Yet most firms also have HR depts. With their own top managers.managers.

How do the duties of this HR manager & his or her How do the duties of this HR manager & his or her staff relate to “line” managers’ hr duties.staff relate to “line” managers’ hr duties.

Authority Authority Authority is the right to make decisions, to direct the Authority is the right to make decisions, to direct the

work of others, and to give orders. work of others, and to give orders.

Authority refers to the rights inherent in a managerial Authority refers to the rights inherent in a managerial position to give orders and expect the orders to be position to give orders and expect the orders to be obeyed. obeyed.

Line Authority :- Line Authority :- gives managers the right to issue orders to gives managers the right to issue orders to other managers or employees. It creates a superior-subordinate other managers or employees. It creates a superior-subordinate relationship.relationship.

Staff Authority:-Staff Authority:- Staff authority gives the manager the right Staff authority gives the manager the right (authority) to advise other managers or employees.(authority) to advise other managers or employees.

Line Manager:-Line Manager:- A manager who is authorized to direct the work A manager who is authorized to direct the work of subordinates & is responsible for accomplishing the of subordinates & is responsible for accomplishing the organization tasks.organization tasks.

Staff Manager :-Staff Manager :- A manager who assists & advises line A manager who assists & advises line managers managers

The early management writers distinguished between two The early management writers distinguished between two forms of authority. forms of authority.

a. Line Authority a. Line Authority

b. Staff Authority b. Staff Authority

c. Functional Authority c. Functional Authority

Let’s have brief view about the different types of authorities. Let’s have brief view about the different types of authorities.

a. a. Line AuthorityLine Authority Line authority entitles a manager to direct the work of an Line authority entitles a manager to direct the work of an

employee. employee.

It is the employer-employee authority relationship that extends It is the employer-employee authority relationship that extends from top to bottom. from top to bottom.

A line manager directs the work of employees and makes A line manager directs the work of employees and makes certain decisions without consulting anyone. certain decisions without consulting anyone.

Sometimes the term line is used to differentiate line managers Sometimes the term line is used to differentiate line managers from staff managers. from staff managers.

Line emphasizes managers whose organizational function Line emphasizes managers whose organizational function contributes directly to the achievement of organizational contributes directly to the achievement of organizational objectives. objectives.

bb Staff Mangers and Staff AuthorityStaff Mangers and Staff Authority

Staff managers have staff authority. A manager's function is Staff managers have staff authority. A manager's function is classified as line or staff based on the organization's objectives. classified as line or staff based on the organization's objectives.

As organizations get larger and more complex, line managers As organizations get larger and more complex, line managers find that they do not have the time, expertise, or resources to find that they do not have the time, expertise, or resources to get their jobs done effectively. get their jobs done effectively.

They create staff authority functions to support, assist, advice, They create staff authority functions to support, assist, advice, and generally reduce some of the informational burdens they and generally reduce some of the informational burdens they have. have.

c. c. Functional controlFunctional control The authority exerted by a personnel manager as a coordinator The authority exerted by a personnel manager as a coordinator

of personnel activities. of personnel activities.

Here the manager acts as “the right arm of the top executive.”Here the manager acts as “the right arm of the top executive.”

Line versus Staff AuthorityLine versus Staff Authority

1.1. Line VS Staff Authority –Line VS Staff Authority – Authority is the right to Authority is the right to make decisions, to direct the work of others, and to make decisions, to direct the work of others, and to give orders. give orders.

Line managers are authorized to direct the work of Line managers are authorized to direct the work of subordinates. subordinates.

Staff managers are authorized to assist and advise Staff managers are authorized to assist and advise line managers in accomplishing their basic goals. HR line managers in accomplishing their basic goals. HR managers are generally staff managers. managers are generally staff managers.

Line Managers’ HRM ResponsibilitiesLine Managers’ HRM Responsibilities

1. Placement 1. Placement 2. Orientation 2. Orientation 3. Training 3. Training 4. Improving job performance 4. Improving job performance 5. Gaining creative cooperation 5. Gaining creative cooperation 6. Interpreting policies and procedures 6. Interpreting policies and procedures 7. Controlling labor costs 7. Controlling labor costs 8. Developing employee abilities 8. Developing employee abilities 9. Creating and maintaining departmental morale 9. Creating and maintaining departmental morale 10. Protecting employees’ health and physical condition10. Protecting employees’ health and physical condition

Responsibilities Of Staff Managers Responsibilities Of Staff Managers

Staff managers assist and advise line managers in Staff managers assist and advise line managers in accomplishing these basic goals.accomplishing these basic goals.

They do, however, need to work in partnership with each other They do, however, need to work in partnership with each other

to be successful. to be successful.

Some examples of the HR responsibilities of staff managers Some examples of the HR responsibilities of staff managers include assistance in hiring, evaluating, rewarding, counseling, include assistance in hiring, evaluating, rewarding, counseling, promoting, and firing of employees, and the administering of promoting, and firing of employees, and the administering of various benefits programs. various benefits programs.

Cooperative line and staff hr management: Cooperative line and staff hr management:

In recruiting and hiring, it’s generally the line manager’s In recruiting and hiring, it’s generally the line manager’s responsibility to specify the qualifications employees need to fill responsibility to specify the qualifications employees need to fill specific positions. specific positions.

Then the HR staff takes over. Then the HR staff takes over.

They develop sources of qualified applicants and conduct initial They develop sources of qualified applicants and conduct initial screening interviews. They administer the appropriate test. screening interviews. They administer the appropriate test.

Then they refer the best applicants to the supervisor (line Then they refer the best applicants to the supervisor (line

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

The Changing Envt. of HRMThe Changing Envt. of HRM

Changes are occurring today that are requiring HR managers to Changes are occurring today that are requiring HR managers to play an increasingly central role in managing companies.play an increasingly central role in managing companies.

These changes or trends includeThese changes or trends include

Globalization TrendsGlobalization Trends Changes in the nature of workChanges in the nature of work TechnologyTechnology

1.1. Globalization TrendsGlobalization Trends

The tendency of firms to extend their sales, ownership, and/or The tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroad.manufacturing to new markets abroad.

Sony, Apple, Nike & Mercedes Benz are some firms that Sony, Apple, Nike & Mercedes Benz are some firms that market all over the World.market all over the World.

Indian firms like Infosys, Wipro, TCS & Satyam serve Indian firms like Infosys, Wipro, TCS & Satyam serve customers around the world.customers around the world.

Tata Steel & Mittal Steel have acquired steel plants around Tata Steel & Mittal Steel have acquired steel plants around the worldthe world

Companies like GE, Dell & Google have located back office Companies like GE, Dell & Google have located back office support operations in India & other countries.support operations in India & other countries.

Companies expand abroad for several reasonsCompanies expand abroad for several reasons

Sales Expansion is one e.g.:- Google recently expanded in Sales Expansion is one e.g.:- Google recently expanded in china.china.

Firms also go abroad for other reasonsFirms also go abroad for other reasons

Some manufacturers seek new foreign products & service to Some manufacturers seek new foreign products & service to sell, & to cut labour costssell, & to cut labour costs

Globalization’s ImplicationsGlobalization’s Implications

More globalization means more competition, & more More globalization means more competition, & more competition means more pressure to be “world class”- to lower competition means more pressure to be “world class”- to lower costs to make emps more productive, & to do things better & costs to make emps more productive, & to do things better & less expensively.less expensively.

Because of this, globalization brings benefits & threats. For Because of this, globalization brings benefits & threats. For consumer it means lower prices & higher quality, but for emps consumer it means lower prices & higher quality, but for emps to work harder, & perhaps having less secure jobsto work harder, & perhaps having less secure jobs

Job OutsourcingJob Outsourcing

Both workers & companies therefore have to work harder & Both workers & companies therefore have to work harder & smarter than they did without globalization.smarter than they did without globalization.

2.2. Technological TrendsTechnological Trends

Eg:- Indian Railways, the largest railway system in the world Eg:- Indian Railways, the largest railway system in the world has provided computerized ticket booking facility to has provided computerized ticket booking facility to passengers.passengers.

Eg:- Air Deccan, KingfisherEg:- Air Deccan, Kingfisher

3.3. Trends in the Nature of WorkTrends in the Nature of Work

High-Tech JobsHigh-Tech Jobs Service JobsService Jobs Knowledge Work & Human CapitalKnowledge Work & Human Capital

The Changing Role of HRMThe Changing Role of HRM

With these trends, the hr manager’s job has grown broader & With these trends, the hr manager’s job has grown broader & more strategic overtimes.more strategic overtimes.

In the earliest firms, “Personnel” first took over hiring & firing In the earliest firms, “Personnel” first took over hiring & firing from supervisors, ran the payroll dept, & administered benefits from supervisors, ran the payroll dept, & administered benefits plans.plans.

As technology in areas like testing & interviewing began to As technology in areas like testing & interviewing began to emerge, the personnel dept began to play an expanded role in emerge, the personnel dept began to play an expanded role in emp selection, training & promotion.emp selection, training & promotion.

Today Globalization, technological & nature of wok trends mean Today Globalization, technological & nature of wok trends mean that hr managers have taken on several new responsibilities.that hr managers have taken on several new responsibilities.

The first is that employers expect their hr functions to be more The first is that employers expect their hr functions to be more strategic.strategic.

Initially, the personnel depts. Were involved more in welfare Initially, the personnel depts. Were involved more in welfare activities, & maintaining Industrial Peace.activities, & maintaining Industrial Peace.

The focus on HRD emerged during 1985-1995, after IIM amd, The focus on HRD emerged during 1985-1995, after IIM amd, professors popularized the HRD concept in the Indian Industry.professors popularized the HRD concept in the Indian Industry.

With the development of the knowledge industry & the resulting With the development of the knowledge industry & the resulting high demand for people, the HR function started to take a high demand for people, the HR function started to take a strategic focus.strategic focus.

1.1. Strategic HRMStrategic HRM

SHRM is part of strategic planning.SHRM is part of strategic planning.

Strategy is the company’s long term plan for how it will Strategy is the company’s long term plan for how it will balance its internal strengths & weaknesses with its external balance its internal strengths & weaknesses with its external opportunities & threats to maintain a competitive advantage.opportunities & threats to maintain a competitive advantage.

Strategic plan is the company’s plan for how it will match its Strategic plan is the company’s plan for how it will match its internal strengths & weaknesses with external opportunities & internal strengths & weaknesses with external opportunities & threats in order to maintain a competitive advantage.threats in order to maintain a competitive advantage.

SHRM means formulating & executing hr policies & practices SHRM means formulating & executing hr policies & practices that produce the emp competencies & the behaviors the that produce the emp competencies & the behaviors the company needs to achieve its strategic aims.company needs to achieve its strategic aims.

2. 2. Creating High Performance Work SystemsCreating High Performance Work Systems

It focus on Productivity & PerformanceIt focus on Productivity & Performance

They have to focus on PerformanceThey have to focus on Performance

1.1. Managing with TechnologyManaging with Technology

2.2. Effective HR PracticesEffective HR Practices

3.3. High Performance Work SystemHigh Performance Work System

1.1. Managing with TechnologyManaging with Technology

1.1. Self Service e.g.:- DellSelf Service e.g.:- Dell

2.2. Call CentersCall Centers

3.3. Productivity ImprovementProductivity Improvement

4.4. OutsourcingOutsourcing e.g.:- ma Foi Management Consultant e.g.:- ma Foi Management Consultant

2.2. Effective HR PracticesEffective HR Practices

1.1. Well trained emps perform better than untrained onesWell trained emps perform better than untrained ones

2.2. Safe work place produce fewer lost-time accidentsSafe work place produce fewer lost-time accidents

e.g. – Toyota they are having world class training & plant safety e.g. – Toyota they are having world class training & plant safety programsprograms

3.3. High Performance Work SystemHigh Performance Work System

A high Performance work system is an integrated set of hrm policies & practices A high Performance work system is an integrated set of hrm policies & practices that together produce superior emp performance.that together produce superior emp performance.

– Employment securityEmployment security– Selective hiringSelective hiring– Extensive trainingExtensive training– Self-managed teams/decentralized decision makingSelf-managed teams/decentralized decision making– Information sharingInformation sharing– Contingent (pay-for-performance) rewardsContingent (pay-for-performance) rewards– Measurement of management practicesMeasurement of management practices– Emphasis on high-quality workEmphasis on high-quality work

– Benefits of a High-Performance Work System (HPWS)Benefits of a High-Performance Work System (HPWS)

Generate more job applicantsGenerate more job applicants

Screen candidates more effectivelyScreen candidates more effectively

Provide more and better trainingProvide more and better training

Link pay more explicitly to performanceLink pay more explicitly to performance

Provide a safer work environmentProvide a safer work environment

Produce more qualified applicants per positionProduce more qualified applicants per position

Hiring based on validated selection testsHiring based on validated selection tests

Provide more hours of training for new employeesProvide more hours of training for new employees

Conduct more performance appraisalsConduct more performance appraisals

THE HR MANAGER’S PROFICIENCIESTHE HR MANAGER’S PROFICIENCIES

New ProficienciesNew Proficiencies

– HR proficienciesHR proficiencies

– Business proficienciesBusiness proficiencies

– Leadership proficienciesLeadership proficiencies

– Learning proficienciesLearning proficiencies

HR Proficiencies:-HR Proficiencies:- represent traditional knowledge & skills in represent traditional knowledge & skills in areas such as employee selection, training & compensationareas such as employee selection, training & compensation

Business Proficiencies:- Business Proficiencies:- reflect hr professionals new reflect hr professionals new strategic rolestrategic role

Leadership Proficiencies:-Leadership Proficiencies:- They need ability to work with & They need ability to work with & lead management groups, & to drive the changes required.lead management groups, & to drive the changes required.

Learning Proficiencies:- Learning Proficiencies:- He or she must have the ability to He or she must have the ability to learn new technology & apply it learn new technology & apply it

Managing within the LawManaging within the Law

– Equal employment lawsEqual employment laws

– Occupational safety and health lawsOccupational safety and health laws

– Labor lawsLabor laws

Managing EthicsManaging Ethics

– Ethical ThingsEthical Things

QuestionsQuestions

1.1. Define HRM. Objectives & Functions & Scope of HRMDefine HRM. Objectives & Functions & Scope of HRM

2.2. Difference between Personnel Mgmt & HRMDifference between Personnel Mgmt & HRM

3.3. Explain the growing importance of HRM in today’s envt.Explain the growing importance of HRM in today’s envt.

4.4. Illustrate the HR Management responsibilities of line & staff Illustrate the HR Management responsibilities of line & staff managersmanagers

5.5. Why it is imp for companies today to make their hr into a Why it is imp for companies today to make their hr into a competitive advantage? Explain how HR can contribute to competitive advantage? Explain how HR can contribute to doing this.doing this.

6.6. Explain the changing role of HRM in today’s envt.Explain the changing role of HRM in today’s envt.