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UNIT -1
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INTRODUCTION
Organization is made of people
An organization cannot run without people
All resources machinery ,men, money, material
are collected, coordinated and utilized throughpeople to attain common objectives.
Therefore people are the most important resource
of any company .
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ACCORDING TO L.F .URIWCK- | BUSINESS HOUSES ARE
MADEORBROKEN IN THE LONG RUN NOT BY MARKETSORCAPITAL , PATENTS OREQUIPMENTS BUT BY MEN}
HRIS THEONLYRESOURCE THATDOES NOT
DEPRECIATE WITH TIME.
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DEFINITION HUMAN RESOURCE- IS THE SUM TOTALOFALL THE
INHERENTABILITIES , KNOWLEDGE SKILLS ASEXEMPLIFIED IN THE TALENTS & APTITUDES OFEMPLOYEES.
HUMAN RESOURCE MANAGEMENT |IS CONCERNED WITHTHEPEOPLEDIMENSION IN MANAGEMENT . SINCEEVERYORGANIZATIO N IS MADE UPOFPEOPLE
ACQUIRING THEIRSERVICES DEVELOPING THEIR
SKILLS, MOTIVATING THEM,
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TO HIGH LEVELS OFPERFORMANCEAND ENSURINGTHAT THEYCONTINUE TO MAINTAIN THEIR
COMMITMENT TO THEORGANIZATION ARE ESSENTIALTOACHIEVING ORGANIZATION OBJECTIVE. THIS IS
TRUEREGARDLESS OF THE TYPEOFORGANIZATIONGOVERNMENT, BUSINESS, EDUCATION , HEALTH OR
NGO.
BY WILLIAM WERTHER& KEITDAVIS, HR& PERSONNELMANAGEMENT
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DEFINITION EDWIN B FLIPPO | HRMANGEMENT IS THE
PLANNING ORGANIZING DIRECTING AND
CONTROLLING & PROCUREMENT , DEVLOPMENT
COMPENSATION ,INTERGRATION ,MAINTENANCE
AND SEPRATION OF HUMAN RESOURES TO THE
END THAT INDIVIDUALORGANIZATION AND
SOCIALOBJECTIVES AREACCOMPLISHED.
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SCOPEOF HRM IS VERY VASTAS IT INCLUDES ALLACTIVITIES OFA
WORKERFROM THE TIME HE ENTERS INTOAN
ORGANIZATION AND TILL HE LEAVES AND SOMETIME
EVEN AFTERTHAT.
JOB ANALYSIS
JOB DESIGN
RECRUITMENT, SELECTION, ORIENTATION ,
PLACEMENT, TRAINING & DEVELOPMENT,
REMUNERATION, MOTIVATION AND SOON.
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HRM FEATURES HR IS HETEROGENEOUS
HR- IS THEPRODUCTOF THEIR BIOLOGICAL
INHERITANCEAND INTERACTION WITH THEIR
ENVIRONMENT, FAMILYRELATIONSHIP, BACKGROUND,
EDUCATIONALACCOMPLISHMENTAND SOON.
COMPREHENSIVE FUNCTION- PEOPLEOFALL LEVELS
HAVE TO BE MANAGED
ACTION ORIENTED- ITDOES NOTONLYDORECORD
KEEPING AS IN PERSONNEL MANAGEMENT ITANALYSIS
PROBLEMS AND SUGGESTS SOLUTIONS.
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QUALITYOF HRM INFLUENCES THEORGANIZATION
ACHIEVEMENT
INDIVIDUALORIENTATION
PERVASIVE FUNCTION- ALLORGANIZATION, ALL LEVELS
ANDALLDEPARTMENTS
DEVELOPMENTORIENTED- OF EMPLOYEEAND
ORGANIZATION.
CONTINUOUS FUNCTION
FUTUREORIENTED- HELPS ORGANIZATION ACHIEVE ITFUTURE GOALS
CHALLENGING FUNCTION- DYNAMIC NATUREOFPEOPLE
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Both a science and art
It helps overcome resistance to change
Staff function
Young disciple
It is the nervous system of an organization
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HRM V/S PERSONNEL MANAGEMENT
View people as asset.
People to be trainedand developed
Promotes mutuality-growth, goals andrewards
Hrm is a part ofstrategic management
of business. Human resource
department is veryessential and thereforethe employees of HR
Dept should be the best
Labor is a tool the
behavior of which can be
people manipulated for
the benefit of
organization and
replaced when worn out
Not productive
employees were madethe part of hr dept
A routine activity to hire
new employees and to
maintain records
HRM Personnel Management
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OBJECTIVES OF HRM
SOCIETALOBJECTIVE
ORGANIZATION OBJECTIVE
FUNCTIONALOBJECTIVE
PERSONNELOBJECTIVE
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HR POLICY APOLICY IS APLAN OFACTION .
ORG NEED TO EVOLVE HRPOLICIES AS THEY ENSURE
CONSISTENCY & UNIFORMITY IN TREATING PEOPLE.
THEY MOTIVATE & BUILD LOYALTY
POLICIES BECOME BENCHMARKTOCOMPARE &
EVALUATEPERFORMANCE.
POLICIES HOWEVERDONTDESCRIBE HOW IT SHOULD BE
IMPLEMENTED.
SOUNDPOLICY HELPRESOLVECONFLICTS
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POLICIES SHOULD BE STABLEAS ITCREATESSECURITY & REMOVES UNCERTAINTY FROM THE MINDS
OF THE EMPLOYEES
SHOULD NOT BERIGID
SHOULDREFLECT THE GOALS & VALUES OF
ORGANIZATION
SHOULD BEREALISTIC & EASY TO IMPLEMENT
SHOULD HELPKEEP BOTH EMPLOYEEAND EMPLOYERSATISFIED
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EXAMPLE- HULPOLICY
|CHILD LABOUR-OURRECRUITMENTPOLICY
DOESN'TPERMIT ENGAGEMENTOFCHILD LABOUR
DIRECTLYOR INDIRECTLY. REGULARAUDITSENSURECOMPLIANCEATOUROWN SITES ANDAT
THIRDPARTY LOCATIONS/SITES.}-
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DIVERSITY
WEARECOMMITTED TO MAINTAINING DIVERSITY IN OURWORKING
ENVIRONMENT. WEAGGRESSIVELYPURSUE THE TARGETOFINCREASING THEPROPORTION OF WOMEN IN MANAGEMENT
CADRES. WE HAVEA NUMBEROF GENDER-FRIENDLYPOLICIES SUCH
AS MATERNITY BENEFIT, CAREERBREAK, FLEXI-WORKING, PART-
TIME WORK;
IN 2009, 19% OFOURMANAGERS AND 9% OFOUROFFICERS WERE
WOMEN. OUREIGHT-MEMBERMANAGEMENTCOMMITTEE HAS A
WOMAN MEMBER.
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OURFORMAL EMPLOYMENTAND FITMENTPOLICY
ABSOLUTELYPROHIBITS GENDER-BASED
DISCRIMINATION. NO INCIDENTS OFDISCRIMINATION ORCOMPLAINTS HAVE BEEN
REPORTED IN 2009.
WEAREA MERITDRIVEN ORGANISATION ANDTHIS IS REFLECTED IN THEPOLICIES CONCERNING
RECRUITMENT, TRAINING, ANDPROMOTION WHICH
ENSURE THAT THE BESTPERSON GETS THE JOB,
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FORMULATING HR POLICIES
Past practices in the organization
Prevailing practice in rival company
Attitude and philosophy of founder and existing
top management. Knowledge & experience gained from past
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HRM FUNCTIONS
Planning
Organizing
Staffing
Directing
controlling
MANAGERIALFUNCTIONS
Employment
Human resource development Compensation management
Employee relationsOperativefunction
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ENVIRONMENT OF HRM
Enviroment of hr are all those forces which have
a bearing on the functioning of the HR
department
Internal
External
Environmentof HRM
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EXTERNAL ENVIRONMENTOF HRM
Political &legal
Economic
growth
suppliers
competitors
cultureglobalizatio
ntechnol
ogy
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strategy
Leadership- get the best peopleand set them free-JRD Tata
Organization culture
Growth position of company
INTERNAL FORCES
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LINE&STAFF
THEDEPARTMENTAND EMPLOYEEOFA FIRM
THATPERFORM THECOREACTIVITIES AND
CONTRIBUTE TO ITS BUSINESS DIRECTLYARE
CALLED LINE FUNCTION.
DEPARTMENTAND EMPLOYEES THATPERFORM
FUNCTION ANDCONTRIBUTE INDIRECTLY TO THE
BUSINESS OFA FIRM ARE TERMEDAS STAFF
HRM AS LINERESPONSIBILITY
HRM AS STAFF
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CHALLENGES OF HRM
INADEQUATE SUPPLYOF WORKERS WITH NEEDED
SKILLS
INCREASING WORKFORCEDIVERSITY- MELTING
BOWL TO SALADPOTMORE WOMEN WORKFORCE
WORKING MOTHERS ANDCHILDCARE
RIGHT SIZING
FLATTERORGANIZATION
REDUCED LOYALTY
MERGERS
DUALCARRERCOUPLES
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OURSOURCING OUTSOURCING IS AN ALLOCATION OF SPECIFIC
BUSINESS PROCESSES TOA SPECIALISTEXTERNAL SERVICEPROVIDER. MOSTOF THE
TIMES AN ORGANIZATION CANNOT HANDLEALL
ASPECTS OFA BUSINESS PROCESS INTERNALLY.
ADDITIONALLY SOMEPROCESSES ARE
TEMPORARYAND THEORGANIZATION DOES NOTINTEND TO HIRE IN-HOUSEPROFESSIONALS TO
PERFORM THE TASKS. ONCE THE TASK IS
OUTSOURCED TO THE SERVICEPROVIDER, HE WILLTAKE THERESPONSIBILITYOFCARRYING OUT
THE TASKS AND MAINTAINING THE
ORGANIZATIONS ASSETS
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SWIFTNESS ANDEXPERTISE
CONCENTRATING ON
COREPROCESS
RATHERTHAN THESUPPORTING ONES:
REDUCEDOPERATIONALAND
RECRUITMENTCOSTS
RISKOF EXPOSING
CONFIDENTIALDATA
LACKOFCUSTOMER
FOCUS
LACKOFCONTROL
HIDDEN COSTS
ADVANTAGES OFOUTSOURCING
DISADVANTAGES OFOUTSOURCING
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OUTPLACEMENT
OUTPLACEMENT IS A TERM USED TODESCRIBEEFFORTS MADE BYADOWNSIZING COMPANY TO
HELP FORMEREMPLOYEES BY HELPING THEM
FIND NEW JOBS AND HELP THEM RE- ORIENTATE
TO THE JOB MARKET
ACONSULTANCY FIRM USUALLYPROVIDES THE
OUTPLACEMENT SERVICES WHICH AREPAID FORBY THE FORMEREMPLOYERANDAREACHIEVED
THROUGH PRACTICALADVICEAND
PSYCHOLOGICAL SUPPORT.
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ASSISTANCEPROVIDED THROUGH A
THIRD-PARTYCOMPANY
PAID BY THE FORMERCOMPANY.
TO HELPA LAID-OFF EMPLOYEE TOFINDA NEW JOB.
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OUTPLACEMENT FORMER EMPLOYER
29
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OUTPLACEMENT IS EITHER
DELIVERED THROUGH
INDIVIDUALONE-ON-ONE
SESSIONS OR IN A GROUP
FORMAT.
TOPICS INCLUDECAREER
GUIDANCE, RESUME
WRITING AND INTERVIEW
PREPARATION,
DEVELOPING NETWORKS
AND SOON.
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HISTORY OF OUTPLACEMENTTHE TERM "OUTPLACEMENT" WAS COINED MORE
THAN THIRTY YEARS AGO BY THE FOUNDEROFANEW YORKBASEDCAREERCONSULTANCY.
WITH THE INCREASEDRATES OFDOWNSIZING,
RIGHTSIZING,LAYOFFS, PARTICULARLYDURING
THE 1980S BUSINESSES INCREASINGLY FOUNDANEED FORSOME FORM OFASSISTANCE IN
REDUCING THE TRAUMAOF BOTH DEPARTINGEMPLOYEES AND THOSE WHOREMAIN.
RESEARCH SHOWS THAT LOSING ONE'S JOB IS ONEOF THE MOST STRESSFUL EXPERIENCES A
PERSON CAN FACE, RANKED THIRD BEHIND
DEATH ANDDIVORCE.
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But what does the former
company gains???32
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REASON NO.1
To build the reputation of a caring
company.
(Corporate Social Responsibility)
33
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REASON NO.2
CHARGES OF DISCRIMINATION AND LAWSUITS
INITIATED BYFORMER COMPANY EXECUTIVES CAN
BE EMBARRASSING AND EXPENSIVE.34
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REASON NO.3
Providing outplacement support
for existing staff helps retain
remaining staff.
35
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REASON NO.4
Provides moral support and
motivation to the employees36
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Services offered by
Outplacement firm:37
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CAREER EVALUATION
38
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CAREER GUIDANCE39
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RESUME WRITING& RESUME DISTRIBUTION
40
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INTERVIEW PREPARATION41
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Other services such as preparing a profile
for career networking platforms like
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SOME INDIAN OUTPLACEMENT FIRMS ABC International Placement Services
Times International Inc
Bhardwaj & Company Chartered Accountants
International Manpower Resources Pvt. Ltd.
Total Strategic Solutions India Pvt. Ltd.
Designing Solutions, Gurgaon
Esource Global HR
BRAINSTORM PLACEMENTS
Suven Consultants
M-Power HR Solution
Cindy Placements & consultancy Smart Serve H.R. Consultant
Horizon hr Solution Pvt. Ltd.
M.K.CONSULTANT
JOBKOMPASSE
43
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TCS CASE STUDY
Ref: SiliconIndia Wednesday, 11 March 2009,
Chennai: The employees ofTata Consultancy Services (TCS),
who would be the victims of the company's recent announcement
of massive layoff, may find some relief as the firm plans to help
them in outplacement. The company had said that it will be
slashing around 1,300 employees or one percent of its workforce
across its global centers. The software giant will aid inoutplacement, counseling and alternate positions in
subsidiaries if available and it has also tied up with a few
placement agencies across the country. It has already sacked
around 100 employees in Chennai in the last two weeks.
"Recruitment of experienced professionals has been frozen unless
these are approved by the respective business heads for project-
specific skills. Wherever possible, we look to retain experienced
professionals within the company to take on these roles," Ajoy
Mukherjee, Vice President and Head, Global HR, TCS told.
44
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SAPIENT CASE STUDY
11 feb,2009
Software major Sapient has laid off 500 employees globally, ofwhich around 300 are from the offices in India - Bangalore, Noida
and Gurgaon - during the weekend.
Sapient, in an official statement, confirmed the lay off and said
that it has laid off 300 employees at its offices in Bangalore,
Noida and Gurgaon.
"In order to adjust to this changing demand environment, Sapient
has exited about 8 per cent of its people. Sapient employs
approximately 6,400 globally and as a result of this
rationalization, 300 people in India have been impacted," the
company spokesperson said.
According to the spokesman of the software major, the laid off
employees have received severance packages and full
outplacement services, and would be considered for rehiring on
a fast track basis if the company finds that it again needs their
skills and experience.
45
I
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INTERNATIONAL HUMAN
RESOURCE MANAGEMENT
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IHRM
BROADLYDEFINED, INTERNATIONAL HUMANRESOURCE MANAGEMENT (IHRM) IS THEPROCESS
OFPROCURING, ALLOCATING, AND EFFECTIVELY
UTILISING HUMA
NR
ESO
URC
ES INA
MULTINATIONALCORPORATION.}
IF THE MNC IS SIMPLY EXPORTING ITS PRODUCTS,
WITH ONLYA FEW SMALLOFFICES IN FOREIGNLOCATIONS, THEN THE TASKOF THE
INTERNATIONAL HRMANAGER IS RELATIVELY
SIMP
LE.
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HOWEVER, IN GLOBAL FIRMS HUMAN RESOURCE
MANAGERS MUSTACHIEVE TWO SOMEWHAT
CONFLICTING STRATEGICOBJECTIVES.
FIRST, THEY MUST INTEGRATE HUMAN RESOURCE
POLICIES ANDPRACTICES ACROSS A NUMBEROFSUBSIDIARIES IN DIFFERENTCOUNTRIES SO THAT
OVERALLCORPORATEOBJECTIVES CAN BEACHIEVED.
AT THE SAME TIME, THEAPPROACH TO HRMMUST BE SUFFICIENTLY FLEXIBLE TOALLOW FOR
SIGNIFICA
NTD
IFFER
ENC
ES IN THE TYP
EO
F HR
POLICIES ANDPRACTICES THATARE MOSTEFFECTIVE IN DIFFERENT BUSINESS AND
CULTURAL SETTINGS.
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BARRIERS/FEATURES OF IHRM
CULTURALAWARENESS
LEGALAWARENESS
RESPONSIBILITY TOWARDS FAMILY
DIFFERENT EXPECTATIONS ANDREQUIREMENTOF
EMPLOYEEACROSS CULTURES
MANAGING CROSS CULTURAL TEAMS
DILUTING RISKON BUSINESS FRONTAND
INCREASING RISKON PEOPLE FRONT
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INTERNATIONAL HUMAN RESOURCEMANAGEMENT MODEL
GIVEN BY MORGAN-
HEDEFINED IHRM AS THE INTERPLAYAMONG 3
DIMENSIONS HUMAN RESOURCEACTIVITIES,TYPEOF EMPLOYEES ANDCOUNTRYOF
OPERATIONS}
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An employee who is working and temporarily
residing in a foreign country
Some firms prefer to use the terminternational assignees
WHAT IS AN EXPATRIATE?
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1.Inability of spouse to adjust2.Managers inability to adjust3.Other family problems
4.Managers personal or emotionalmaturity5.Inability to cope with larger
overseas responsibility6.Lack of technical competence7.Difficulties with new environment
REASONS FOR EXPATRIATE FAILURE
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APPROACHES TOMANAGING ANDSTAFFINGSUBSIDIARIES
ETHNOCENTRIC
HOMECOUNTRYAPPROACH
POLYCENTRIC
LOCALAPPROACH
REGIOCENTRIC
REGIONALAPPROACH
GEOCENTRIC/GLOBAL
GLOBALAPPROACH
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Employee and family adjustment
Selecting the right person for the foreign
assignment
Culture and communication Language and communication
ISSUES IN IHRM
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HRM FUNCTIONS