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INTRODUCTION TO HUMAN RESOURCE MANAGEMENT BY NISHA HARIYANI
44

human resource management

Jan 19, 2015

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Business

NISHA SHAH

Human resource management, organizational structure and HRM, Human resource planning
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Page 1: human resource management

INTRODUCTION TO HUMAN RESOURCE

MANAGEMENT

BY NISHA HARIYANI

Page 2: human resource management

•According to Adi Godrej,

“all corporate strengths are dependent on people.”

Page 3: human resource management

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.’

Page 4: human resource management

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

Page 5: human resource management

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

Page 6: human resource management

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

Page 7: human resource management

History of HRM - 2

• Human Resources Approach (1970s)– Principles

• Employees are assets• Policies, programmes and practices - help in work and

personal development• Conducive environment

Page 8: human resource management

Challenges of HRM

• Individuals differ from

one another

• Customization of

stimulation and

motivation

• Demanding personnel

Page 9: human resource management

Functions of HRM - 1

Managerial

Planning Organizing Staffing Directing Controlling

Page 10: human resource management

Functions of HRM - 2

Operational

Employment HR Development Compensation Mgt Employee Relations

HR Planning

Recruitment

Selection

Placement

Induction

Performance Appraisal

Training

Management Development

Career Planning and Development

Job Evaluation

Wage and Salary Admn

Incentives

Bonus

Fringe Benefits

Page 11: human resource management

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

Page 12: human resource management

ROLE OF HR EXECUTIVES

• Service provider

• Executive

• Facilitator

• Consultant

• Auditor

Page 13: human resource management

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

Page 14: human resource management

Organizational Structure &

HRM

Page 15: human resource management

Why structure ???

What structure signifies?

No directions Leads to confusionChaos

Why???????????

Page 16: human resource management

MAIN POINTS OF CHAPTER

Organizational Structure and Human Resource Management

Formal and Informal OrganizationsTall and Flat Organizational StructuresResponsibility, Authority and

AccountabilityLine and Staff FunctionsHuman Resource Management and other

Organizational Functions

Page 17: human resource management

Mechanistic Vs organic organization

Rigid structureEmployees 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 structureEmployees 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

Page 18: human resource management

President

VicePresident

VicePresident

VicePresident

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

Informal organization Chess group

Formal organization

Page 19: human resource management

Tall Vs Flat structureCMD

ED ED ED

GM GM GM

CM

CM

Manager

Manager

Officer

Officer

Executive

Executive

TALL STRUCTURE

COO

PM PM PM PM

TeamLead

TeamLead

TeamLead

TeamMember

TeamMember

TeamMember

TeamMember

FLAT STRUCTURE

Page 20: human resource management

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.

Page 21: human resource management

LINE AND STAFF FUNCTIONS

Departments or employees of a firm that perform core activities

Contributes directly to the business of the firm

Ex: Manufacturing and Marketing departments

Departments or employees of a firm that perform a support function

Contributes indirectly to the business of the firm

Ex: HR and Finance departments

Page 22: human resource management

Line & Staff Relationship

Traditional concept Traditional concept

Service oriented firmService oriented firm

Which are line and staff functionsWhich are line and staff functions

Both needs to support each otherBoth needs to support each other

Page 23: human resource management

Line staff conflict

Different perceptionDifferent perception

HR professional to bring change HR professional to bring change

Understand market & organizationBe empatheticBuild trust and transparencyWin – win approach

Page 24: human resource management

The Role of Human Resources Department

As a specialistAs a specialist

As a facilitatorAs a facilitator

As a change agentAs a change agent

As a controllerAs a controller

Page 25: human resource management

HUMAN RESOURCE MANAGEMENT AND OTHER

ORGANIZATIONAL FUNCTIONS

Product & HRProduct & HR

Production & HRProduction & HR

Marketing & HRMarketing & HR

Management Techniques & HRManagement Techniques & HR

Organization structure & HROrganization structure & HR

Page 26: human resource management

summary

Organizational Structure and Human Resource Management

Formal and Informal OrganizationsTall and Flat Organizational

StructuresResponsibility, Authority and

AccountabilityLine and Staff FunctionsHuman Resource Management and

other Organizational Functions

Page 27: human resource management

Think before others think

Page 28: human resource management

Human Resource Planning

Page 29: human resource management

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

Page 30: human resource management

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

Page 31: human resource management

• 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...

Page 32: human resource management

Human Resource planning

Right numberRight number

Right SkillsRight Skills

Right TimeRight Time

Right CostRight Cost

Page 33: human resource management

HRP defined• Process of anticipating and making provision for the movement of people into, within, and out of an organization

Page 34: human resource management

Objectives of HRP

• To maintain

• To forecast

• To optimize

• To utilize Right CostRight Cost

Right SkillsRight Skills

Right numberRight number

Right TimeRight Time

Page 35: human resource management

HRP at different planning levels

Corporate – level planningIntermediate – level planningOperations planningPlanning short-term activities

Page 36: human resource management

Organizational plans and objectives

Organizational plans and objectives

Identify future humanresource requirements

Identify future humanresource requirements

Compare with the current HR inventory

Compare with the current HR inventory

Determine the redundantnumbers

Determine the redundantnumbers

Determine the numbers,levels & criticality of vacancies

Determine the numbers,levels & criticality of vacancies

Analyze the cost & time involvedin managing the demand

Analyze the cost & time involvedin managing the demand

Analyze the cost & time required for managing surplus

Analyze the cost & time required for managing surplus

Retrench Retrench

Choose the resources & methods of recruitment

Choose the resources & methods of recruitment

RedeployRedeploy

HUMAN RESOURCE

PLANNING MODEL

HUMAN RESOURCE

PLANNING MODEL

Page 37: human resource management

Assessing current human resources and making

inventory

• Job analysis• HR inventory – HRIS• Generate a fairly accurate

picture existing situation

Page 38: human resource management

Forecasting

• Compare future needs with current availabity

• Analyze companies change plan

• Forecasting methods used are Time Series Analysis, Regression Analysis and Productivity Ratios

Page 39: human resource management

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????

Page 40: human resource management

MANAGING THE FORECASTED DEMAND / SURPLUS

Managing future demandManaging future demand

Managing Future SurplusManaging Future Surplus

Page 41: human resource management

Dealing With Surplus Manpower

RetrenchmentRetrenchment

outplacementoutplacement

layoffslayoffs

Leave of absence without payLeave of absence without pay

Loaning Loaning

Page 42: human resource management

Work SharingWork Sharing

Reduced work hoursReduced work hours

attritionattrition

Early/voluntary retirementEarly/voluntary retirement

Page 43: human resource management

Growing importance of HRP

Page 44: human resource management

Thank you