MCom1

Slide 1

What is Human Resource Management (HRM)?Human resource management is the effective use of human resources in order to enhance organizational performanceHRM is the art of procuring, developing and maintaining competent workforce to achieve goals of an organisation in an effective and efficient manner

Human ResourcesHR is the total knowledge, skills, creative abilities, talents and aptitudes of an organisations workforce as well as the values, attitudes and beliefs of the individuals involved

To Select,Develop,Motivate and Maintain human resources

Meaning of HRMDefinition of HRM

It is define as a process of bringing people and organization together so that the goals of each meet.

Nature of HRM

Action oriented, focus on objectives Development oriented Continuous function Future orientedHRM is a processPeople orientedMultidisplinaryBroader Function

Human Resource Management is a comprehensive function because it is about managing people in the organization. It covers all types of people in the organization from workers till the top level managementPeople Oriented

Human resource is the core of all the processes of human resource management. So HRM is the process which brings people and organizations together so that their goals can be achieved.Action Oriented

Human resource management believes in taking actions in order to achieve individual and organizational goals rather than just keeping records and procedures.

Development oriented

Development of employees is an essential function of human resource management in order to get maximum satisfaction from their work so that they give their best to the organization.Continuous Function

As human resource is a living factor among all factors of production therefore it requires continuous improvement and innovations in order to get excellence. So it requires a constant alertness and awareness of human relations and there importance in every day to day operations.Future Oriented

HRM is very important activity which helps organization to achieve its objectives in future by providing well motivated and competent employees.

Conclusion

Broader Function Think tank Increase company performance. Optimum use of human resource

Importance of HRM Put other resources to proper useSignificance for an organisationProfessional significanceSocial SignificanceHelp transform lifeless factors of production into useful productsCan help organisation achieve results quickly, efficiently & effectively

EVOLUTION OF INDUSTRIAL REVOLUTIONIndustrial Revolution: Adam Smith: specialization and division of labor.Robert Owens: Pioneer of HRM, performance appraisal and pay for performance (fair treatment of employees)

HRM in IndiaReferences about Personnel management in Artasastra which indicates job description of supervisor and performance linked pay for gold smithsTradional craftsman goods shipped to EuropeMaster servant relationship in 17th centuary

30References Evolution1828-Robert Owen father of co-operative movement wrote a book titled as New view society-Improving working conditions and work life of labourersAfter 1850 British rulers institutionalized for running the government which leads to personnel management system1890 NMLokhande1911 F W Taylor1921-Hawthorn studies1931-Role of Royal commission of labourIndustrial revolutionAwakwning of labourGovernment attitude towards labour1941-First tripartite labour conference1948-Factories ActCultural and social changesChanges in social value of labourChanges in managerial value1950-1969III five year plans-Private and public sector projects1970- Militancy in textile sector in Mumbai1980-Productivity agreements1990Personnel management and IR in public sector undertakings

After 1990 the emphasis is shifted to human values and productivity through peopleRole of Public sector companies like BHEL, SAIL and SBI1995 Progressive efforts of in HR1997- Focused on product and customerLeading to customer satisfaction, bench marking, Application TQM, core competence, empowerment and learning organisationTransition of HR- Labour relatiosPersonnel managementHuman resources managementHuman capital managementStrategic HRMHRM Environment - ExternalHRM Environment - InternalObjectives of HRM

Maximize the return on investment from the organization's human capital and minimize financial riskTo align the capabilities and behaviors of employees with the short-term and long-term goals of the organisation

Objectives of HRMSocietal objectivesTo be ethically & socially responsible to the needs of the society while minimizing the negative impact of such demands upon the organizationOrganizational objectivesTo recognize the role of HRM in bringing about organizational effectivenessFunctional objectivesTo maintain the departments contribution at a level appropriate to the organizations needsPersonal objectivesTo assist employees in achieving their personal goals in a manner that their personal goals enhance the individuals contribution to the organization

Human Resource Management Functions

On October 3, 2003, Anant Dalvi and Akhtar Khan, who worked as contract workers in Tata Electric Company until they were laid off in 1996, doused themselves with kerosene and set themselves ablaze even as their co-workers protested before the companys offices. While Dalvi died on the spot, Khan died a few days later. The Tata Electric Company said they were no longer on their payroll and were not permanent workers. Employees union had taken up their case and filled petition in the Labour Court before their contracts were terminated. The court directed the company not to terminate their services without following the due process of law. Despite this their services were terminated on June 30, 1996. The company union promised the workers that they would renegotiate. Yet on the night before they killed themselves when Khan and Dalvi spoke to the union leader Shinde, they were told that nothing more could be done for them. It is this that led them to take their lives. Dalvi has been in service as a peon for17 years and Khan had been employed for 19 years. But their services were not regularized. Such workers draw salary much less than the permanent employees. This is an example of the problem that comes under the purview of Human Resource Management- the main concept elaborated in this chapter. Objectives of HRMHuman capital : assisting the organization in obtaining the right number and types of employees to fulfill its strategic and operational goals Developing organizational climate: helping to create a climate in which employees are encouraged to develop and utilize their skills to the fullest and to employ the skills and abilities of the workforce efficiently Helping to maintain performance standards and increase productivity through effective job design; providing adequate orientation, training and development; providing performance-related feedback; and ensuring effective two-way communication. Helping to establish and maintain a harmonious employer/employee relationship Helping to create and maintain a safe and healthy work environmentTo communicate HR policies to all employees. HRM Objectives Supporting Functions HRM ObjectivesSupporting Functions Societal Objectives Legal compliance Benefits Union- management relations Organizational Objectives Human Resource Planning Employee relations Selection Training and development Appraisal Placement Assessment Functional Objectives Appraisal Placement Assessment Personal Objectives Training and development Appraisal Placement Compensation AssessmentHRM in Global SettingHuman resource PlanningRecruitmentStaffingEmployee orientationPerformance appraisalTraining & developmentCompensationScope of HRMVery vast Covers all major activities in the working life of a worker - from time an individual enters into an organization until he or she leaves, comes under the purview of HRM

Prospects of HRMHRMNature of HRMIndustrial RelationsEmployee MaintenanceEmployee HiringEmployee & Executive RemunerationEmployee MotivationRecruitment

RecruitmentThe process by which a job vacancy is identified and potential employees are notifiedThe nature of the recruitment process is regulated and subject to employment lawMain forms of recruitment: through advertising in newspapers, magazines, trade papers and internal vacancy lists, company websitesRecruitmentJob description outline of the role of the job holderPerson specification outline of the skills and qualities required of the post holderApplicants may demonstrate their suitability through application form, letter or curriculum vitae (CV)Selection

SelectionThe process of assessing candidates and appointing a post holderApplicants short listed most suitable candidates selectedSelection process varies according to organisationSelectionInterview most common methodPsychometric testing assessing the personality of the applicants will they fit in?Aptitude testing assessing the skills of applicantsIn-tray exercise activity based around what the applicant will be doing, e.g. writing a letter to a disgruntled customerPresentation looking for different skills as well as the ideas of the candidate

Employment Legislation

Discipline

DisciplineFirms cannot just sack workersWide range of procedures and steps in dealing with workplace conflictInformal meetingsFormal meetingsVerbal warningsWritten warningsGrievance proceduresWorking with external agencies

Development

DevelopmentDeveloping the employee can be regarded as investing in a valuable assetA source of motivationA source of helping the employee fulfil potential

Training

TrainingSimilar to development:Provides new skills for the employeeKeeps the employee up to date with changes in the fieldAims to improve efficiencyCan be external or in-house

Rewards Systems

Rewards SystemsThe system of pay and benefits used by the firm to reward workersMoney not the only methodFringe benefitsFlexibility at workHolidays, etc.Trade Unions

Trade UnionsImportance of building relationships with employee representativesRole of Trade Unions has changedImportance of consultation and negotiation and working with trade unionsContributes to smooth change management and leadershipProductivity

ProductivityMeasuring performance:How to value the workers contributionDifficulty in measuring some types of output especially in the service industryAppraisalMeant to be non-judgmentalInvolves the worker and a nominated appraiserAgreeing strengths, weaknesses and ways forward to help both employee and organisationMotivationMotivating employees to perform up to their potential is the key to maintaining a productive, successful business Ways in which you can motivate employees Interact - Talk to your employees regularlyRecognition & Appreciation - A job well done should be appreciated and encouragedPay them Right - Pay employees for what they are worth and they will be happy to work. New challenges - Give employees new and interesting challenges to keep them stimulated and learning