Session 1

Scheme of Classes & EvaluationEvaluation: 1. Group formation 2. Each Group to have a maximum of 6 members 3. Group Presentation/Discussion of Cases & Articles (03) 4. Discussions to have one representation from each group 5. Consistent performance expected, any act of indiscipline may result in serious penalty 6. Mid term exam to be held after 10 sessions comprising a mix of MCQs, Case & or subjective type questions from the course covered till the 10th session 7. End term exam to be held after 20 sessions / the 20th session comprising of a mix of MCQs, Case & or subjective type questions from the entire course 8. Of total 50 marks 15 shall be the Mid Term, 15 End Term & other 20 presentations, discussions , punctuality & participation

BUDGET HIGHLIGHTS 2011-12ALLOCATION FOR SOCIAL SECTOR INCREASED BY 17% TO RS. 1,60,887 CRORE. ALLOCATION FOR BHARAT NIRMAN PROGRAMME INCREASED BY RS. 10,000 CRORE. PLAN ALLOCATION FOR EDUCATION HIKED BY 24% AND HEALTH BY 20%. ELIGIBILITY FOR OLD AGE PENSION SCHEME REDUCED FROM 65YEARS TO 60. ALLOCATION FOR INFRASTRUCTURE INCREASED BY 23.3% TO RS. 2,14,000 CRORE. CREDIT TO FARMERS TO BE INCREASED TO RS. 4,75,000 CRORE. FISCAL DEFICIT PEGGED AT 4.6% OF GDP. GOVERNMENT TO BORROW RS. 3.43 LAKH CRORE FROM THE MARKET. EXTENSION OF NUTRIENT BASED SUBSIDY TO COVER UREA UNDER ACTIVE CONSIDERATION. EXEMPTION LIMIT FOR INCOME TAX RAISED BY Rs. 20,000 TO RS. 1,80,000 MINIMUM ALTERNATE TAX INCREASED FROM 18 TO 18.5%. ONE PERPCENT CENTRAL EXCISE DUTY IMPOSED ON 130 ITEMS. LOWER RATE OF EXCISE DUTY RAISED FROM 4 TO 5%. SERVICE TAX HIKED ON DOMESTIC AND INTERNATIONAL AIR TRAVEL. DIRECT TAXES CODE TO BE EFFECTIVE FROM APRIL 2012 AND IMPLEMENTION OF GST IS ON COURSE

The biggest differentiator resource is Human Resource for any Organization The biggest challenge is to quantify the contributions of the HR

Questioning the Existence of HRM Is touted to have moved from welfare function to HRM and HCM with PM & IR in the background Were earlier called health and happiness department Mere change in terminology not on Ground Zero Still bargaining hard for a significant place on floor space In many organizations still an ancillary function as a consultative body Still lacks in roles of professional practices and strategic role unlike finance or marketing Can be performed by line managers Has gained some ground: 1. In the 1990 ASPA was rechristened as SHRM to have a strategic role in Organizations 2. In India an emergence of HR bodies was seen like IIPM & NILM later merged to form NIPM Prominent companies like Maruti & Nokia did not have an Exclusive HR role or department till late 90s and most of the HR activities being outsourced ** should all HR functions be outsourced?

Meaning and DefinitionHuman Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. People s dimension Organisational effectiveness

Scope of HRMNature of HRM Prospects of HRM Employee Hiring

HRMIndustrial Relations Employee & Executive Remuneration

Employee Maintenance

Employee Motivation

Objectives of HRMPersonal Objectives

Functional Objectives

Organisational Objectives

Societal Objectives

HRM Function

Strategic business partner Change Agent Employee champion Administration Expert

Dave Ulrich

Workforce planning Recruitment(sometimes separated into attraction and selection) Induction, Orientation and Onboarding Skills management Training and development Personnel administration Compensation in wage or salary Time management Travel management (sometimes assigned to accounting rather than HRM) Payroll (sometimes assigned to accounting rather than HRM) Employee benefits administration Personnel cost planning Performance appraisal Labor relations

Models of HRM HR competency model, Christopher Mabey

Business Mastery Business Acumen Customer Orientation Knowledge in all functional Areas External relations

HR Mastery Staffing Performance Appraisal Reward Systems Communication Organization design

Personal Credibility Competence Sound academic credentials Trust Ethical Conduct Courage

Change Mastery Interpersonal Skills Problem Solving Skills Reward Systems Innovativeness and creativity

Models of HRM The Fombrun, Tichy & Devanna model (1984)Human resource development

Selection

Appraisal

Organizational Development

Rewards

Models of HRM The Harvard ModelStakeholders Interests Shareholders Management Employee Groups Government Community Unions HRM Employee Influence HR flow Reward systems Work systems HR outcomes Commitment Competence Congruence Cost- Effectiveness Long Term Consequences Individual well being Organizational well being Societal well being

Situational Factors Workforce characteristics Business strategy and conditions Management Philosophy Labor market Unions Task technology Laws and Societal Values

Models of HRM The DavidGuest Model (1997)

HRM Strategies

HRM Practices Hiring Training Appraisal Compensation Relations

HR Outcomes Commitment Quality Flexibility

Behavioral Outcomes Motivation Cooperation Organizational Citizenship

Performance Outcomes Positive Productivity Innovation Quality Negative Low productivity Absenteeism Turnover

Financial Outcomes Profits ROI

Models of HRM Outer ContextThe Warwick Model (Hendry & Pettigrew)Socio-economic Technical Political-legal Competitive Inner ContextCulture Structure Politics/leadership Task-technology Business outputs

Business Strategy Context Objectives Product market Strategy and tactics HRM Content HR flows Work systems Reward systems Employee relations

HRM Context Role Definition Organization HR Outputs

Difference between PM and HRM Personnel Management Careful delineation of written contracts Importance of devising clear rules Procedures Norms/customs and practices Monitoring Labour management Piecemeal Slow Transactional Indirect Negotiation Separate, marginal task Job evaluation HRM Aim to go beyond contract Can do outlook, impatience with rule Business need Values/mission Nurturing Customer Integrated Fast Transformational leadership direct facilitation Integrated key tasks Performance related

Difference between PM and HRM Personnel Management Separately negotiated Collective bargaining contracts Many Division of labour Reach temporary truce Controlled access to courses personnel procedures Labour is treated as a tool which is expendable and replaceable Interests of the organisation are uppermost Precedes HRM external HRM harmonisation Individual contract Few Team work Manage climate and culture Learning companies wide ranging culture, structural and personnel strategies. People are treated as assets to be used for the benefit of an organisation, its employees and the society as a whole. Mutuality of interests Latest in the evaluation of the subject internal

Composition of a HR / Personnel DepartmentOwner/Manager

Manager-Personnel

Manager-Administration

Manager-HRD

Manager-IR

Appraisal

Training & Development

PR

Canteen

Medical

Welfare

Transport

Legal

HRP

Hiring

Grievances Handling

Compensation

HRM Small-scale UnitOwner/Manager

Production Manager

Sales Manager

Office-Manager

Accountant

Personnel Assistant

HRM Large-scale UnitChairman and Managing Director

Director Production

Director Finance

Director Personnel/HRM

Director Marketing

Director R&D

Paradoxes in HRM Only hype but low on content Has grown from IR to PM to HRM. But HRM is brilliant ambiguity. HR Manager is change agent and transformationalist. Finance overtakes personnel function.

Evolution of HRM in India1920s 30sPragmatism of capitalists

1940s 50sTechnical, legalistic

1970s 80sProfessional, legalistic, impersonal

1990sPhilosophical

Jobs & Careers in HRM HR Specialist HR Manager HR Executive Why Study HRM?

Reality Check It is good to read that people management has matured from IR to PM to HRM to HCM. But has the change been only cosmic or real? Have a debate.

Reality Check Should this happen? Would this happen? Could this happen? How could all HR activities be outsourced? Can a firm function with a HR department organised on perfunctionary basis? Answer these questions.

Reality Check Looking at the four models described in this section, what similarities and dissimilarities do you notice among them? What assumptions to they make? What lessons do they carry to practising HR managers and students of HRM?