Human Resource Management=by Prashant Dwivedi

7/27/2019 Human Resource Management=by Prashant Dwivedi

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Human Resource Management



This presentation includes:

Introduction to HRM & HRD

Concept of HRM

Objectives

Process

HRM vs. Personnel Management

HRM vs. HRD

Objectives of HRD

Focus on HRD System

Structure of HRD Role of HRD manpower



This presentation includes:

HRM Policies & Strategies Introduction

Role of HR in strategic management

HR Policies & Procedures

HR Programme

Developing HR policies and strategies

Strategic Control

Types of Strategic Control

Operational Control System

Functional & Grand Strategies

Strategy Factors



Fundamentals of Human

Resource Management



Human Resource Management

A process of bringing people and organisation

together so that the goals of each one is met,

effectively and efficiently.



Why is human resource important?Why is human resource important?

© 2007 Prentice Hall, Inc. All rights reserved.

12–6

Can help in

transforminglifeless factors of

production into

useful products

They are capable of

enlargement i.e. are

capable of producing an

output that is

greater than the

sum of inputs

They can help an

org. achieve resultsquickly efficiently

and effectively



Why is HRM Important to an

Organization?The role of human resource managers has changed.

HRM jobs today require a new level of sophistication. Employment legislation has placed new requirements on

employers. Jobs have become more technical and skilled. Traditional job boundaries have become blurred with the

advent of such things as project teams and telecommuting. Global competition has increased demands for

productivity.




Organization? The Strategic Nature – HRM must be

a strategic business partner and represent employees.

forward-thinking, support the business strategy, and assist theorganization in maintaining competitive advantage.

concerned with the total cost of its function and for determining

value added to the organization.




Organization? HRM is the part of the organization concerned with the

“people” dimension.

HRM is both a staff, or support function that assists line

employees, and a function of every manager’s job.

HRM Certification

Colleges and universities offer HR programs.




12–10

What is “Human Resource”?

Differences from other resources

- Human resources have intellect andemotion

- Human resources can be developed through

development and training

Importance of Effective HumanResource Management in Business




12–11

Importance of Effective HumanResource Management in Business

What is “Human Resource”?

Human Resource Management handles…

i) Employment, ii) Relations among Departments,

iii) Promotion and Career Path, iv) Salary,

v) Job Evaluation and Standards,

vi) Performance Measurement, vii) Training,

viii) Selection of Human Resources, ix) Dismissal,

and, x) Job Description



Why is HRM Important to an Organization?

Four basic functions:

Staffing

Training andDevelopment

Motivation

Maintenance



How External Influences Affect HRM

Strategic EnvironmentGovernmental LegislationLabor UnionsManagement Thought




HRM Strategic Environment includes: Globalization

Technology

Work force diversity Changing skill requirements

Continuous improvement

Work process engineering

Decentralized work sites Teams

Employee involvement

Ethics




Governmental Legislation

Laws supporting employer and employee actions

Labor Unions

Act on behalf of their members by negotiating contracts withmanagement

Exist to assist workers

Constrain managers

Affect non unionized workforce




Management Thought

Management principles, such as those from scientific

management or based on the Hawthorne studies influence the

practice of HRM.

More recently, continuous improvement programs have had a

significant influence on HRM activities.



Staffing Function Activities Employment planning

ensures that staffing will contribute to the organization’s mission

and strategy

Job analysis

determining the specific skills, knowledge and abilities needed to

be successful in a particular job

defining the essential functions of the job



Staffing Function Activities

Recruitment the process of attracting a pool of qualified applicants that is

representative of all groups in the labor market

Selection the process of assessing who will be successful on the job,

the communication of information to assist job candidates

in their decision to accept an offer



Goals of the Training and

Development FunctionActivities in HRM concerned with assisting

employees to develop up-to-date skills, knowledge,and abilities

Orientation and socialization help employees toadaptFour phases of training and development Employee training Employee development Organization development Career development



The Motivation FunctionActivities in HRM concerned with helping employees

exert at high energy levels.

Implications are:

Individual

Managerial

Organizational



The Motivation FunctionManaging motivation includes:

Job design

Setting performance standards

Establishing effective compensation and benefits programs

Understanding motivational theories



The Motivation Function

Classic Motivation Theories

Hierarchy of Needs –Maslow

Theory X – Theory Y –McGregor

Motivation – Hygiene – Herzberg

Achievement, Affiliation, and Power Motives – McClelland

Equity Theory – Adams

Expectancy Theory - Vroom



How Important is the Maintenance

Function?Activities in HRM concerned with maintaining

employees’ commitment and loyalty to the organization.

Health

Safety Communications

Employee assistance programs

Effective communications programs provide for 2-way

communication to ensure that employees are wellinformed and that their voices are heard.



Translating HRM Functions into

Practice Four Functions: Employment

Training and development

Compensation/benefits

Employee relations



HRM in a Global Village HRM functions are more complex when employees are

located around the world.

Consideration must be given to such things as foreign

language training, relocation and orientation processes, etc. HRM also involves considering the needs of employees’

families when they are sent overseas.



HR and Corporate Ethics HRM must:

Make sure employees know about corporate ethics policies

Train employees and supervisors on how to act ethically



History of Personnel/Human Resource

Management (P/HRM)

The field of P/HRM as it currently exists, represents a crystallization of a variety of historical and contemporary factors :

•The industrial revolution : During this period machines were brought in.

•Technology made rapid progress.

•Jobs were more fragmented where the worker did only a small portion of the total job.

•Efficiency but left workers with dull.

•Boring and monotonous jobs.

•Workers were treated like ‘ glorified machine tools’. Employer were keen to meet production targets rather than satisfy workers’ demands.



7. Government did very little to protect the interests of workers.

2. Scientific Management : To improve efficiency and speed F. W.

Taylor advocated scientific management. Scientific management isnothing but a systematic analysis and breakdown of work into its

smallest mechanical elements and rearranging them into their most

efficient combination. In addition to the scientific study of the task

itself, Taylor argued that individuals selected to perform the tasksshould be as perfectly matched, physically and mentally, to the

requirement of the task as possible and that overqualified individuals

should be excluded. Employees should also be trained carefully by

supervisors to ensure that they performed the task exactly specified

by prior scientific analysis. A differential piece rate system was also

advocated by Taylor to provide an incentive for employees to follow

the detailed procedures specified by supervisors.

3 Trade unionism : Workers joined hands to protect



3. Trade unionism : Workers joined hands to protectagainst the exploitative tendencies of employers andthe prohibitive, unfair labour practices throughunions. Unions tried to improve the lot of workers

through collective bargaining , resolving thegrievances of workers relating to working conditions,pay and benefits, disciplinary actions, etc.

4. Human relation movement : The famousHawthorns experiments conducted by Elton Mayo and

his Harvard colleagues during 1930s and 1940sdemonstrated employee were rewarded economically,but by certain social and psychological factors as well.

The human relations movement led to the wide scaleimplementation of behavioral science techniques in

industry for the first time which included supervisorytraining programmers, emphasizing support andconcern of workers, programmes to strengthen thebonds between labour and management andcounselling programmes whereby employees were

encouraged to discuss

both work and personal problems with trained counselors The



both work and personal problems with trained counselors. The

movement was also influenced by the growing strength of unions

during the late 1930s and 1940s. The rise of unionism during this

period was due to the passage of the Wagner Act. Which gave

workers the legal right to bargain collectively with employers over matters concerning wages, job security, benefits and many other

conditions of work.

5. Human resources approach : However, during early 60s the ‘pet

milk theory’, (advocating that happy workers are productive workersor happy cows give more milk) of human religionists had been

largely rejected. Recognising the fact that workers are unique in

their own way – having individual needs. It was recognized that each

employee is a unique and highly complex individual with differentwants, needs and values. What motivates one employee may not

motivate another and being happy or feeling good may have little or

no impact on the productivity certain employees.

Slowly but steadily the trend towards treating employees as resources or



Slowly but steadily, the trend towards treating employees as resources or

assets emerged.

Evolution of the Concept of HRM

The early part of the century saw a concern for improved efficiencythrough careful design of work. During the middle part of the

century emphasis shifted to the availability of managerial personnel

and employee productivity. Recent decades have focused on the

demand for technical personnel, responses to new legislation and

governmental regulations, increased concern for the quality of

working life, total quality management and a renewed emphasis on

productivity.

Growth in India 5

Early phase : Though it is said that P/HRM a discipline is of recent

growth, it has had its origin dating back to 1800 B. C. for example :

the minimum wages rate and incentive wage plans were included in

the Babylonian Code of Hammurabi around



1800 B. C. The Chinese, as early as 1650 B. C. had originated the

principle of division of labour and they understood labour turnover

even in 400 B. C., Kautilya, in India (in his book Arthashastra) madereference to various concepts like job analysis, selection procedures,

executive development, incentive system and performance appraisal.

Legal Phase : The early roots of HRM in India could be traced back to

the period after 1920. The Royal Commission on labour in 1931suggested the appointment of labour officer to protect workers

interests factories employing 500 or more workers.



Welfare phase : During the 1960s the scope of personnel function has

expanded a bit, covering labour welfare, participative management,

industrial harmony, etc. “In this period, the human relationsmovement of the West had also had its impact on Indian

organisation”. The legalistic preoccupations slowly gave way to

harmonious industrial relations and good HR practices.

Development Phase : In 1960 and 70s the HR professionals focusedmore on developmental aspects of human resources. The emphasis

was on striking a harmonious balance between employee demands

and organisational requirements. HRD has come to occupy a centre

stage and a focal point of discussion in seminars, conference and

academic meets. The two professional bodies. IIPM and NILM, weremerged to form the National Institute of Personnel Management

(NIPM) at Kolkatta.



During the 1990’s organizational restructuring and cost

cutting efforts have stared in a big way-thanks to the

pressures of liberalization, privatization and

globalisation (LPG era) forcing companies to focus

attention on employee capabilities, product/service

quality, speedy response, customer satisfaction etc.Changing demographics and increasing shortages of

workers with the requisite knowledge, skills and ability

have grown in importance demographics and

increasing shortages of workers with the requisiteknowledge, skills and ability have grown in

importance.

Difference b/w HRM & PM



Difference b/w HRM & PMBasis of

differenceHRM PM

Outlook Big part, includes PM. A part of HRM

Meaning HRM is management of employee’s qualities skills, attitude and personality skills

Management of people

Philosophy It develops as per their aspirations and individual goals and motivatethem to help in achieving goals.

Concerned with procurement anddevelopment of personnel for attainment of organisational goals.

Views HRM views man as socio-economic psycho-physical person withmotivators and dissatisfies It had a narrow view about the man aseconomic person with unlimited wants

Function A part of every line function. The primary job of every manager isactivating and HRM cannot be isolated from activating

It is done by the personnel managers whois supposed to know rules and regulationsof personnel practices and he advices topmanagement on personnel policies

Cost Effect It takes man as a profit centers. It understands that money expensed onemployee is money invested

It manages and control s the cost of personnel in the organisation

Treatment withEmployee

It treats employees as resource. It develops and upgrades employee for better work.

Employees are like m/c and tools whichcan be used, purchased and erased

Benefits Employees work with organisation and achieve personal goals too. Employees are taken only for the

achievement of organisational goals.

vo ut on o oncept



p

Difference b/w HRD and HRM



Difference b/w HRD and HRM

HRD

1. HRD focuses on training andoptimizing work performance.

2. HRD is more proactive; it copes withthe changing needs of the people as wellas anticipate these needs

3. HRD is sub-system of a large system,more organizational oriented

4. HRD is developing the wholeorganization .

5. HRD is continuous process . 6. HRD is involvement of the entire

work force from top to bottom is moreand a must in most of the cases

HRM

1. HRM focuses on whom you hire,whom you fire and remediation toemployees who need discipline andretooling to continue their employment.

2. Mainly a reactive functionresponding to the demands which mayrise.

3. HRM is function more independentwith separate roles to play.

4. HRM is concerned with people only. 5. HRM is a routine and administrative

function 6. HRM is basically the responsibilities

of the HR department.

Human Resource Development



Human Resource Development

HRD may be defined as to development of people by

providing the right environment where each individual maygrow to his fullest potentialities. Human resources are viewed

as total knowledge, skills, creative abilities, talents and

aptitude of an organization's work force as well as values,

attitudes and beliefs if individuals involved.

HRD involves

Ways to better adjust the individual to his job and environment

The greatest involvement of an employee in various aspects of

his work

The greatest concern for enhancing the capabilities of the

individual

Objectives of HRD



Objectives of HRD

To provide a comprehensive framework for the all round development

of human resources in an organization for the full utilization of their

talent and potential.

To Develop capabilities of every individual working in the

organization for their present and future job.

To develop better inter-personal relationship in the organization such

as employee-employer relations, customer-seller relations.

To develop and secure team-sprit, team-creation system, inter-term

relations, motivational levels

To develop all round organizational health, culture and climate with

the inputs of manpower obsolescence and technological changes

To generate systematic information about human resource for the

purpose of HR planning, HR audit, recruitment, promotion and work

study





Traditional HR vs. Strategic HR



Basis Traditional HR Strategic HR

Focus Employee Relations Partnerships with internal &external customers

Role of HR Transactional change follower andrespondent

Transformational changeleader and initiator

Initiatives Slow, reactive, fragmented Fast, proactive and integrated

Time Horizon Short Term Short, Medium and Long (asrequired)

Control Bureaucratic-Roles, Polices,Procedures

Organic-Flexible, Whatever necessary to succeed

Job Design Tight Division of Labour,

Independence, Specialization

Board, Flexible, Cross-

Training teams

Key Investment Capital, Products People, Knowledge

Accountability Cost Centre Investment Centre

Responsibility of HR Staff specialist Line Managers



Human Resource Planning and

Job Analysis



IntroductionHuman resource planning is

a process by which anorganization ensures that it has the right number and

kinds of people at the right place

at the right time

capable of effectively and

efficiently completing thosetasks that will help theorganization to achieve itsoverall strategic objectives.



Introduction

Linked to the organization’s overall

strategy and planning to compete

domestically and globally.

Overall plans and objectives must

be translated into the number and

types of workers needed.

Senior HRM staff need to lead top

management in planning for HRM

issues.

An Organizational Framework



O ga at o a a ewo



NATURE OF H.R.M NATURE OF H.R.M

Pervasive process Action oriented Individually oriented People oriented Future oriented Development oriented Integrating mechanism Auxiliary service Interdisciplinary function

Continuous function

Objectives of HRMObjectives of HRM



Objectives of HRMObjectives of HRM

To help the organisation reach its goals To employ the skills and abilities of the workforce efficiently

To provide the organisation with well trained and well motivated

employees

To increase the fullest employee’s job satisfaction and self-actualisation :

To develop and maintain a quality of work life

To communicate HR Policies to all employees

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



Importance of HRM

1. At the enterprise level• Good human resource practices can help in attracting and

retaining the best, people in the organisation. Planning alertsthe company to the types of people it will need in the short,

medium and long run.• It helps in training people for challenging roles, developing

right attitudes towards the job and the company, promotingteam spirit among employees and developing and

commitment through appropriate reward schemes.



2. At the individual level• It promotes team work and team spirit among employees.

• It offers excellent growth opportunities spirit among employees.

• It allows people to work with diligence and commitment.

3. At the society level : Society, as a whole, is the major beneficiary of good human resource practices.

Employment opportunities

• Scarce talents are put to best use. Companies that pay and treatwell always race ahead of others and deliver excellent results.



4. At the national level

Effective use of human resources helps in exploitation of natural,

physical and financial resources in a better way. People with right

skills. Proper attitudes and appropriate values help the nation to

get ahead compete with the best in the world leading to better

standard of living and better employment.





Professional Significance



Professional Significance It lies in developing people and providing appropriate environment

for effective utilization of their capabilities. This can be done by :

Organizational Significance



Organizational Significance HRM is of vital importance to individual organizations as means for

achieving their objectives. It contributes to the achievement of

organizational objectives in the following way:

Social Significance



Social Significance Social significance of HRM is welfare of society . Social significance

of HRM is achieved by:



HRM as a Central Subsystem in an Enterprise



HRM as a Central Subsystem in an Enterprise





Problems in acquiring human power in India

Remedies to avoid the problem



Remedies to avoid the problem

Definitions of HRM:



Acc to Flippo”personnel mgmt or Hrm is the planning, Organising, directing,and

controlling of the procurement,development,compensation,integration,maintenance and separation of human resources to the end that individual,organisational and social objectives are accomplished”.

Acc to Decenzo and Robbins”hrm is concerned with the people dimension inmanagement ,since every org is made up of people, acquiring their services,

developing their skills, motivating them to higher levels of performance andensuring that they continue to maintain their commitment to the organisation areessential to achieving organisational objectives this is true regardless of the type of organisation –govt, business,education,health,recreation,or social action”.

Acc to NIPM “hrm is that part of the management which is concerned with thepeople at work and with their relationship within the enterprise, its aim is to bringtogether and develop into an effective organisation of the men and women whomake up an enterprise and having regard for the well being of the individuals andof working groups ,to enable them to make their best contribution to its success”





Personnel / Human Resource Management – Personnel / Human Resource Management –

FunctionsFunctions

Managerial Functions

•PlanningPlanning

•OrganisingOrganising

•DirectingDirecting

•ControllingControlling



OPERATIVE FUNCTION

1.PROCUREMENT FUNCTION

Job analysis

Human resource planning

Recruitment

Selection

Placement

Induction and orientation

Internal mobility

Transfer

Promotion



2 Development

•Training

•Executive development

•Career planning and development

•Human resource development

•Performance appraisal



3. Motivation and compensation

• Job design

• Work scheduling

• Motivation

• Job evaluation

• Performance appraisal

• Compensation administration

• Bonus, Incentives and benefits

•

Payroll



4. Maintenance (it is concerned with protecting and

promoting employees while at work)

• Health

• Employee welfare

• Social security measures

• Welfare schemes

•Personnel records

• Personnel audit

• Personnel research



5. Integration function

• Grievance redressal

• Conflict management

• Discipline

• Teams and team work

• Collective bargaining

• Employee participation and empowerment

•

Trade unions and employees association• Industrial relations

• Participation of employees



6.Emerging issues :

•Personnel records

•Human resource audit

•Human resources research

•Human resources accountings (HRA)

•Human resource information system

•Stress and counseling

•International human management

Model of Strategic HR Management



Model of Strategic HR ManagementOutcomes

•Increased

Performance

•Customer

Satisfaction

•Employee

Satisfaction

•Enhanced

Share Holder

Value



HR Value Chain





The Five P’s Model of SHRM

Philosophy

Statements of how organization values & treats

employees; essentially culture of the organization Policies

Expressions of shared values & guidelines for action

on employee-related business issues

Programs Coordinated & strategized approaches to initiate,

disseminate, & sustain strategic organizational

change efforts necessitated by strategic business

needs




PracticesHR practices motivate behaviors

that allow individuals to assume

roles consistent with organization’s

strategic objectives




Processes

Continuum of participation by allemployees in specific activities to

facilitate formulation &

implementation of other activities



The Five P’s Model of SHRM Successful SHRM efforts begin with identification

of strategic needs

Employee participation is critical to linkingstrategy & HR practices

Strategic HR depends on systematic & analytical

mindset

Corporate HR departments can have impact onorganization’s efforts to launch strategic initiatives

Personnel Policies Procedures and Programme



Personnel Policies, Procedures and Programme

POLICY:- is a plan of action

Policy Acc to Flippo is a man made rule of predetermined course of action that is

established to guide the performance of work towards organisational objectives.it is a

type of standing plan that serves to guide the subordinates in the execution of their

tasks.”

Policies are statements of the organisations overall purposes and its objectives in the

various areas wit which its operations are concerned –personnel, finance, production,

marketing and so on.”

Management policies are developed by working org. to keep them on course headedand directed towards their org. objectives these define the intentions of the org and

serve as guidelines to give consistency and continuity to total operations .

D fi i i f P l P li



Definition of Personal Policy

Personnel policies guide action. They offer the

general standards or parameters based on which

decisions are reached. They serve as a road map for

managers on a number of issues such as recruitment

(the job for physically challenged only), selection

(Selection based on merit only), promotion

(performance leads to promotion) and compensation.

“personnel policies constitute guides to action they furnish the

general standards or bases on which decisions are reached.their genesis lies in an organisation’s values, philosophy,

concepts and principles”.

After the establishment of objectives of personal management personal policies



After the establishment of objectives of personal management, personal policies

are to be formulated .

Personnel policies refer to the principles and rules of conduct which

formulate ,redefine, break into details and decide the number of actions thatgovern the relationship with employees in the attainment of organisational

objectives.

Personnel policies are :

1. The key stone in the arch of management and the life blood for the

successful functioning of the personnel management because without these

policies there cannot be any lasting improvements in the labour management

relations.

2. The statements of intention indicating an agreement to a general course of

action ,indicating specifically what the organisation proposes to do and thussuggests the values and viewpoints which dominate the organisations

action.

3. A positive declaration and a command to an organisation .They translate

the goals of an organisation into selected routes and provide general

guidelines that prescribe and proscribe programmes which in turn dictate

Test of policy



p y

According to Dale Yoder, the following tests can be applied to

judge whether a policy is good or otherwise :

(a) Is it stated clearly ?

(b) Is it consistent with public policy ?

(c) Is it uniform throughout the organisation ?

(d) Is it having high level of acceptability among the membersof the organisation ?

(e) Is it having a sound base in appropriate theory ? For

example, wages be paid on piece-rate basis.

(f) Is it having a sound base in appropriate theory ? For Example, wages may be paid on piece – rate basis.

(g) The positive answers to the above will mean that the

personnel policy is good.

Important of an effective personal policy can be broadly outlined as :



(i) It is generally derived from the personnel objectives of aorganisation.

(ii) It summaries past experience in the form of useful guidelines thahelp managers to speed-up the decision making process. It helpmanagers as well subordinates to dispose of repetitive problems inconsistent manner without getting into trouble. It serves as a standin

plan that can be put to use repeatedly while solving problems of recurring nature

(iii) As a guide to executive thinking it permits managers to transfer somof the recurring problems to subordinates. In a way, a personal policis an important management tool that facilitates some transfer o

decision making to lower levels of organisation.(iv) It helps in achieving coordination of organisational members an

help predict more accurately the actions and decisions of others

p p p y y

Types of Personal Policies



Advantage of Personnel Policies

D l i



Delegation

Uniformity

Better control Standards of efficiency

Confidence

Speedy decisions

Coordinating devices

Facilitate decision making

Confidence in employees.

Consistency of Action

Continuity and stability

Promptness of action

Policies in various personnel areas



Personal policies must cover all areas of manpower

management. Usually personnel policies are framed

with regard to :

• Recruitment and Selection (Employment Policy)

(i) Minimum qualification required in prospective

employees.

(ii) The sources from where labour supply could be

tapped.

(iii)Selection tests.

• Promotion and Transfer Policy

(i) Relevance of seniority

(ii) Relevance of merit.

(iii)Bases of transfer



Personal policies must cover all areas of manpower management.

Usually personnel policies are framed with regard to :• Training Policy

(i) Induction

(ii) Type of training

(iii) Training of executives and operative employees• Compensation Policy

(i) Minimum wages

(ii) Non – financial incentives.

(iii) Incentive plans.(iv) Bonus, Profit-sharing, etc.

(v) Employee Stock Option Plan (ESOP)



• Employee Services Policy

(i) Types of employee services

(ii) Financing of employee services.

(iii)Welfare measures(iv)Safety measures.

• Human Relations Policy

(i) Handling of grievances.

(ii) Recognition of labour unions.(iii)Workers’ participation in management

(iv)Discipline and conflict rule

(v) Suggestion system.





• Personnel policies are not easy to communicate. From the

time policies are initiated to the time they are used, there is

always the danger of falling into ‘generalities and

pleasantries’.

In order to overcome these obstacles, it is necessary to

understand the basics in policy formulation and revision. It

would be pertinent to look into the essentials of a sound

personnel policy at this stage.

Characteristics of a Sound Personnel Policy



While developing sound personnel policies, management should

pay attention to the following :

1. Related to objectives

2. Easy to understand

3. Precise

4. Stable as well as flexible5. Based on facts

6. Just, fair and equitable

7. Reasonable

PERSONNEL POLICIES



PUT THE RIGHT MAN AT THE RIGHT PLACE

TRAIN EVERYONE FOR THE JOB TO BE DONE

MAKE THE ORGANISATION A COCORDINATED TEAM

SUPPLY THE RIGHT TOOLS AND THE RIGHT CONDITIONS OF

WORK

GIVE SECURITY WITH OPPORTUNITY, INCENTIVE,

RECOGNITION

LOOK AHEAD,PLAN AHEAD FOR MORE AND BETER THINGS

Coverage of Personnel Policies



Coverage of Personnel Policies

The coverage of Personal policies has been classified on the basis of

functions of HRM by Michael Armstrong and is outlined as :

1. Social responsibility

• Equity : Treating employees fairly and justly by adopting an even-

handed approach.

• Consideration : Considering individual circumstances whendecisions affect the employee’s prospects, seniority or self-respect.

• Quality of Work life :

2. Employment policies

3. Promotion policies4. Development policies

5. Relations policies

Formulation of Personnel Policies





PROCEDURES AND PROGRAMMES



PROCEDURES AND PROGRAMMES

PROCEDURES INDICATE HOW A POLICY IS CARRIED

OUT

It spells out in detail the method, processes, movements and

specific rules and regulations and indicates the steps, time place and personnel responsible for implementing it .it tells us

that the where an action is to take and at what stage

Procedures go further than policies in helping to clarify what

is to be done in particular circumstances

Th I t f H R M t (HRM)



The Importance of Human Resource Management (HRM)

As a necessary part of the organizing function of management Selecting, training, and evaluating the work force

As an important strategic tool HRM helps establish an organization’s sustainable

competitive advantage.

Adds value to the firm

High performance work practices lead to both highindividual and high organizational performance.

Human Resource Management Process



Human Resource Management Process



ENVIRORNMENT OF HRM

INTERNALENVIRONMENT

UNIONS

ORGINSATIONAL

CULTURE AND

CONFLICT PROFESSIONAL

BODIES-eg NIPM

EXTERNALENVIRORNMENT

ECONOMIC-growth rate&strategy

Ind. production

National percapita income

Money and capital mkts

Competitions

Ind labour

Globlisation

POLITICAL-impact of pol.system

It includes: Legislature

Executive

Judiciary

TECHNOLOGICAL

DEMOGRAPHIC



Environmental Factors Affecting HRM Employee Labor Unions Organizations that represent workers and seek to protect their interests through

collective bargaining.

Collective bargaining agreement

A contractual agreement between a firm and a union elected to represent a

bargaining unit of employees of the firm in bargaining for wage, hours, andworking conditions.

Governmental Laws and Regulations

Limit managerial discretion in hiring, promoting, and discharging employees.

Affirmative Action: the requirement that organizations take proactive steps to

ensure the full participation of protected groups in its workforce.



Managing Human ResourcesHuman Resource (HR) Planning The process by which managers ensure that they have the right number

and kinds of people in the right places, and at the right times, who are

capable of effectively and efficiently performing their tasks.

Helps avoid sudden talent shortages and surpluses.

Steps in HR planning:

Assessing current human resources

Assessing future needs for human resources Developing a program to meet those future needs



Linking Organizational Strategy to Human Resource Planning

Ensures that people are available to meet the

requirements set during strategic planning.

Assessing current human resources

A human resources inventory report summarizes

information on current workers and their skills.

Human Resource Information Systems

HRIS are increasingly popular computerized

databases that contain important information about

employees.

Objectives of HRP





Human Resource Planning Model



FORECASTING DEMANDFORECASTING DEMAND

ConsiderationsConsiderations• TechnologyTechnology

• Financial resourcesFinancial resources

• Organizational growthOrganizational growth

• Mgmt. philosophyMgmt. philosophy

TechniquesTechniques• Trend analysisTrend analysis

• ManagerialManagerial

estimatesestimates

• Delphi techniqueDelphi technique

TechniquesTechniques

• HR inventoriesHR inventories

• Markov analysisMarkov analysis

• Skill inventoriesSkill inventories

• Replacement chartsReplacement charts

• Succession PlanningSuccession Planning

ExternalExternal

ConsiderationsConsiderations

• Wkforce changesWkforce changes

• MobilityMobility

• Govt policiesGovt policies

• UnemploymentUnemployment

FORECASTING SUPPLYFORECASTING SUPPLY

BALANCINGBALANCING

SUPPLY ANDSUPPLY AND

DEMANDDEMAND

(Shortage)(Shortage)

RecruitmentRecruitment

Full-time / Part-timeFull-time / Part-time

(Surplus)(Surplus)

ReductionsReductions

• LayoffsLayoffs

•TerminationsTerminations

• DemotionsDemotions

• RetirementsRetirements



Quantitative Approach: Trend Analysis



Quantitative Approach: Trend Analysis

Forecasting labor demand based on an organizational index: Select a business factor, e.g. sales, that best predicts human

resources needs.

Plot the business factor in relation to the number of employees to

determine average labor productivity.

Compute labor productivity for the past five years.

Project human resources demand out to the target year(s).

Example of Trend Analysis of HR Demand



1999 Rs. 2,935 8.34 352

2000 Rs. 3,306 10.02 330

2001 Rs. 3,613 11.12 325

2002 Rs. 3,748 11.12 337

2003 Rs. 3,880 12.52 310

2004 Rs. 4,095 12.52 327

2005* Rs. 4,283 12.52 342

2006* Rs. 4,446 12.52 355

BUSINESS LABOR HRFACTOR PRODTY DEMAND

YEAR (SALES IN ‘000) (SALES/EMPLOYEE) (NO. OF EMPLOYEES)

*Projected figures

÷ =

Qualitative Approaches to Demand Forecasting

M F



Management Forecasts

The opinions (judgments) of supervisors, department managers, experts, or

others knowledgeable about the organization’s future employment needs.

Delphi Technique

A forecasting method based on the results of questionnaires sent to a panel of

experts. Several rounds of questionnaires are sent out, and the anonymous

responses are aggregated and shared with the group after each round. The

experts are allowed to adjust their answers in subsequent rounds. Because

multiple rounds of questions are asked and because each member of the panel istold what the group thinks as a whole, the Delphi Method seeks to reach the

"correct" response through consensus.

An attempt to decrease the subjectivity of forecasts by soliciting and

summarizing the judgments of a preselected group of individuals.

The final forecast represents a composite group judgment.

Forecasting Supply of Employees: Internal Labor Supply



Forecasting Supply of Employees: Internal Labor Supply

Staffing Tables

Markov Analysis

Skill Inventories

Replacement Charts Succession Planning

Forecasting Internal Labor Supply



Forecasting Internal Labor Supply

Staffing Tables It shows the number of employees in each job. It tries to classify employees on

the basis of age, sex, position, category, experience, qualifications, skills etc. A

study of table indicates whether current employees are properly utilized or not.

Graphic representations of all organizational jobs, along with the numbers of

employees currently occupying those jobs and future (monthly or yearly)employment requirements.

Markov Analysis A method for tracking the pattern of employee movements through various jobs.

This technique uses historical rates of promotions, transfers and turnover to

estimate future availabilities in the workforce. Based on past probabilities, onecan estimate the number of employees who will be in various positions with the

organization in the future

Hypothetical Markov Analysis for a Retail Company





Internal Supply Forecasting Tools

Skill Inventories

Files of personnel education, experience, interests,

skills, etc., that allow managers to quickly match job

openings with employee backgrounds.

Replacement Charts

Listings of current jobholders and persons who are

potential replacements if an opening occurs. It shows

the profile of job holders department-wise and offers a

snapshot of who will replace whom if there is a jobopening.

An Executive Replacement Chart





Linking Organizational Strategy to




Human Resource Planning Determining the Demand for Labor

A human resource inventory can be developed to

project year-by-year estimates of future HRM needs

for every significant job level and type.

Forecasts must be made of the need for specific

knowledge, skills and abilities.

?





Human Resource Planning

Predicting the Future Labor Supply A unit’s supply of human resources comes from: new hires contingent workers

transfers-in

individuals returning from leaves

Predicting these can range from simple to complex.





Human Resource Planning Predicting the Future Labor Supply Decreases in internal supply come about through:

RetirementsDismissals Transfers-out

Lay-offs

Voluntary quits

Sabbaticals Prolonged illnesses

Deaths






Where Will We Find Workers

migration into a community

recent graduates individuals returning from military service

increases in the number of unemployed and

employed individuals seeking other opportunities,

either part-time or full-time

The potential labor supply can be expanded by

formal or on-the-job training.






Matching Labor Demand and Supply

Employment planning compares forecasts for

demand and supply of workers.

Special attention should be paid to current and

future shortages and overstaffing.

Recruitment or downsizing may be used to

reduce supply and balance demand.

Rightsizing involves linking staffing levels to

organizational goals.


H R Pl i



Human Resource PlanningEmployment Planning and

the Strategic Planning Process

Human Resource Management=by Prashant Dwivedi

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