INTRODUCTION TO HUMAN RESOURCE MANAGEMENT
Feb 07, 2016
INTRODUCTION TO HUMAN RESOURCE
MANAGEMENT
•According to Adi Godrej,
“all corporate strengths are dependent on people.”
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.’
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
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
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
History of HRM - 2
• Human Resources Approach (1970s)– Principles
• Employees are assets• Policies, programmes and practices - help in work and
personal development• Conducive environment
Challenges of HRM
• Individuals differ from one another
• Customization of stimulation and motivation
• Demanding personnel
Functions of HRM - 1
Functions of HRM - 2
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
ROLE OF HR EXECUTIVES
• Service provider
• Executive
• Facilitator
• Consultant
• Auditor
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
Organizational Structure &
HRM
Why structure ???
What structure signifies?
No directions Leads to
confusionChaos
Why???????????
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
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
Informal organizationBowling team
Informal organization Chess group
Formal organization
Tall Vs Flat structure
TALL STRUCTURE
COO
PM PM PM PM
TeamLead
TeamLead
TeamLead
TeamMember
TeamMember
TeamMember
TeamMember
FLAT STRUCTURE
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.
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
Line & Staff Relationship
Traditional concept
Service oriented firm
Which are line and staff functions
Both needs to support each other
Line staff conflict
Different perception
HR professional to bring change
Understand market & organizationBe empatheticBuild trust and transparencyWin – win approach
The Role of Human Resources Department
As a specialist
As a facilitator
As a change agent
As a controller
HUMAN RESOURCE MANAGEMENT AND OTHER
ORGANIZATIONAL FUNCTIONSProduct & HR
Production & HR
Marketing & HR
Management Techniques & HR
Organization structure & HR
summaryOrganizational Structure and Human
Resource ManagementFormal and Informal OrganizationsTall and Flat Organizational
StructuresResponsibility, Authority and
AccountabilityLine and Staff FunctionsHuman Resource Management and
other Organizational Functions
Think before others think
Human Resource Planning
Point to ponderDefinition of Human Resource
PlanningObjectives of Human Resource
PlanningThe Process of Human Resource
PlanningManaging the Forecasted
Demand/SurplusGrowing Importance of Human
Resource Planning
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
• 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...
Human Resource planning
Right number
Right Skills
Right Time
Right Cost
HRP defined• Process of anticipating and making provision for the movement of people into, within, and out of an organization
Objectives of HRP• To maintain
• To forecast
• To optimize
• To utilize Right Cost
Right Skills
Right number
Right Time
HRP at different planning levels
Corporate – level planningIntermediate – level planningOperations planningPlanning short-term activities
Organizational plans and objectives
Identify future humanresource requirements
Compare with the current HR inventory
Determine the redundantnumbers
Determine the numbers,levels & criticality of vacancies
Analyze the cost & time involvedin managing the demand
Analyze the cost & time required for managing surplus
Retrench
Choose the resources & methods of recruitment
Redeploy
HUMAN RESOURCE PLANNING MODEL
Assessing current human resources and making
inventory• Job analysis• HR inventory – HRIS• Generate a fairly accurate
picture existing situation
Forecasting• Compare future needs with
current availabity• Analyze companies change
plan• Forecasting methods used
are Time Series Analysis, Regression Analysis and Productivity Ratios
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????
MANAGING THE FORECASTED DEMAND / SURPLUS
Managing future demand
Managing Future Surplus
Dealing With Surplus Manpower
Retrenchment
outplacement
layoffs
Leave of absence without pay
Loaning
Work Sharing
Reduced work hours
attrition
Early/voluntary retirement
Growing importance of HRP
Thank you