8/12/2019 unit 1-HRM
1/77
8/12/2019 unit 1-HRM
2/77
What is Human Resource Management?
Human resource (HR) management
refers to the practices and policies one needs to carryout to deal with the personnel aspects of the
management job
Humanresource management (HRM) is the
effective management of people at work
The goal: make workers more satisfied and
productive
When an organization is concerned about people, its
total philosophy, culture, and orientation reflect it
Every manager must be concerned with people,
whether or not there is a human resources department
8/12/2019 unit 1-HRM
3/77
Human Resource Management (HRM) is amanagement function that helps managersrecruits, select, train and develop members foran organization. Obviously, HRM is concerned
with the peoplesdimension in organization.Human Resource Management (HRM) is the
function within an organization that focuses onrecruitment of, management of, and providing
direction for the people who work in theorganization. HRM can also be performed byline managers.
8/12/2019 unit 1-HRM
4/77
HRM 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.
8/12/2019 unit 1-HRM
5/77
According to Flippo,Human Resource/ personalManagement is the planning, organizing, directingand controlling of the procurement, development,compensation, intergration, maintenance and
separation of human resources to the end thatindividual, organizational and social objectives areaccomplished,
According to E.F.L. Breach, PersonnelManagement is the part of management processwhich is primarily concerned with the humanconstituents of an organization.:
8/12/2019 unit 1-HRM
6/77
In the words of Richard Calhoon,Personnelmanagement involves the task of handing thehuman problems of an organization and isdevoted to acquiring, developing, utilizing and
maintaining an efficient work-force.
According to R.G. Gokhle, PersonnelManagement is the specialized intelligent
handing of the human factor by a separatedepartment which could devote its full time forresearch along the line of improvement isindustrial relations.
8/12/2019 unit 1-HRM
7/77
8/12/2019 unit 1-HRM
8/77
Scope of HRM
8/12/2019 unit 1-HRM
9/77
To develop a thorough knowledge of corporate culture,plans and policies.
To act as an internal change agent and consultant.
To initiate change and act as an expert and facilitator.
To actively involve himself in companys strategyformulation.
To keep communication lines open between the HRDfunction and individuals and groups both within andoutside the organisation.
8/12/2019 unit 1-HRM
10/77
To identify and evolve HRD strategies inconsonance with overall business strategy.
To facilitate the development of various
organizational teams and their working relationship
with other teams and individuals.
To try and relate people and work so that the
organization objectives are achieved effectively
and efficiently.
To diagnose problems and to determine
appropriate solution particularly in the human
resources areas.
8/12/2019 unit 1-HRM
11/77
To provide co-ordination and support
services for the delivery of HRD
programmes and services.
To evaluate the impact of an HRDintervention or to conduct research so as to
identify, develop or test how HRD in general
has improved individual or organisationalperformance.
8/12/2019 unit 1-HRM
12/77
Problem solving skills.Business knowledge/organisation sensitivity.
Knowledge of compensation techniques to
reinforce business plans.
Strategic and conceptual skills.
Knowledge of succession.
Career planning systems.
Established relationships and acknowledgedleadership skills.
8/12/2019 unit 1-HRM
13/77
Ability to analyze data and plan from it.
Computer literacyCompetence in HR functional area.
Awareness of the financial impacts in the
HR function as well as to the organisation.
8/12/2019 unit 1-HRM
14/77
8/12/2019 unit 1-HRM
15/77
HRM
FACILITATES & FOCUSSES
ON
GROWTH &
DEVELOPMENT OFINDIVIDUALS
GROWTH &
DEVELOPMENT
OFORGANISATION
S
BY BY
DEVELOPING
CAPABILITIES IN
INDIVIDUALS
DEVELOPING
CAPABILITIES IN
ORGANISATIONS
FO
R
FO
R
8/12/2019 unit 1-HRM
16/77
IMPROVED
PERFORMANCE &JOB SATISFACTION
OPTIMUM & EFFECTIVE
UTILISATION OF
HUMAN & ORGN
RESOURCEAS
TO IMPROVE
ORGANISATIONAL
STRENGTH &POTENTIAL
THROUGH
FOCUSSED
COLLABORATION
FOR
MUTUAL
PROSPERITY
8/12/2019 unit 1-HRM
17/77
8/12/2019 unit 1-HRM
18/77
Functions of HRM
Planning
Organizing
Directing
Controlling
Operative Functions
P/HRM
Managerial
functions:Procurement
Job Analysis
HR planning
Recruitment
Selection
Placement
Induction
Internal
mobility
Development:
Training
Executivedevelopment
Career
planning
Succession
planning
Human
resources
development
strategies
Motivation and
Compensation:
Job design
Work scheduling
Motivation
Job evaluation
Performance and
potential
appraisal
Compensation
administration
Incentives
benefits and
services
Maintenance:
Health
Safety
Welfare
Social security
Integration:
Grievances
Discipline
Teams andteamwork
Collectivebargaining
Participation
Empowerment
Trade unions
Employersassociations
Industrialrelations
Emerging
Issues:
Personnel
records
Personnel
audit
Personnel
research
HR
accounting
HRIS
Job stress
Mentoring
International
HRM
8/12/2019 unit 1-HRM
19/77
Sustainability Challenge-- Attraction and Retention-- Attaining Financial Objectives
Global ChallengeIssues:-- Different Geographies, culture, laws and business
practices-- Gauging the knowledge and skills of international
workers-- Re-locating managers to direct
Technology challenge-- Human resources and their capabilities-- New Technology and its opportunities-- Efficient work structure
8/12/2019 unit 1-HRM
20/77
Managing Human Resource
Acquiring and Preparing Human Resource
Assessment and Development
Compensating Human Resources
Special Issues
8/12/2019 unit 1-HRM
21/77
8/12/2019 unit 1-HRM
22/77
The Early Years(i.e., before 1900)
The Growth Years(i.e period between 1900
and 1946)
The Maturation Years(i.e period between 1946and 1970)
The Transition Years Years(i.e period between
1970 to till today)
8/12/2019 unit 1-HRM
23/77
Upto 1930s, various malpractices in the
recruitment of workers and payment ofwages were prevalent in India which
caused a colossal loss in production due
to industrial disputes.
In 1931, the Royal Commission of Labour
was established in India under the
Chairmanship of J.H.Whitely. In India, HRM emerged mainly because of
governmental interventions and compulsions.
8/12/2019 unit 1-HRM
24/77
After Independence, in 1948 the FactoriesAct have been legislated.
In 1980, the two professional bodies in India,the Indian Institute of Personnel Mgt(IIPM)and the National Institute of LabourMgt(NILM) merged to form the National
Institute of Personnel Mgt(NIPM). In 1980, the focus is shifted to HRM
challenges and Human ResourceDevelopment(HRD).
From 1990s, the emphasis have been shiftedto human values and productivity throughpeople.
8/12/2019 unit 1-HRM
25/77
Importance of HRM
retain talent
train people for challenging roles
developskills and competencies
promote team spirit
develop loyalty and commitment
increaseproductivity and profits
improvejob satisfaction
enhance standard of living
Good HR Practices help
8/12/2019 unit 1-HRM
26/77
8/12/2019 unit 1-HRM
27/77
Objectives of HRM
8/12/2019 unit 1-HRM
28/77
To provide more employment opportunities.
To provide maximum productivity.To provide maximum material and mental
satisfaction to workforce.To control wastage of effort.To help to maintain ethical policies and socially
responsible behaviour.To encourage healthy human relations and
social welfare.To manage change to the mutual advantagesof individuals,groups, the enterprise and thepublic.
8/12/2019 unit 1-HRM
29/77
To help the organisation to reach its goals.
To efficiently employ the skills and abilities of
the workforce.
To provide well trained and well motivatedemployees to the organization.
To develop and maintain a quality of work life.
To communicate HRM policies to all employees.
8/12/2019 unit 1-HRM
30/77
Functional objectives try to maintain the
departments contribution at a level
appropriate to the organization's needs.
Human resources are to be adjusted to suitthe organization's demands.
The departments level of service must betailored to fit the organization it serves.
8/12/2019 unit 1-HRM
31/77
To provide adequate remuneration to the
employees.
To provide job security.
To provide facilities for proper training anddevelopment.
To increase the employees job satisfactionand self Actualization.
To provide congenial working environment.
8/12/2019 unit 1-HRM
32/77
HRM Objectives Supporting Functions
Societal Objectives Legal ComplianceBenefits
Union Management relations
Organizational Objectives Human resource planning
Employee relations
Selection
Training & development
Appraisal
Placement
Assessment
Functional Objectives Appraisal
PlacementAssessment
Personal Objectives Training & development
Appraisal
Placement
Assessment
Compensation
8/12/2019 unit 1-HRM
33/77
KEY ROLE CRITERIA FOR SUCCESS
BUSINESS PERSON
SHAPER OF CHANGE IN
ACCORDANCE WITH
BUSINESS
Shows concerns for
organization growth.
Knows the market and what
the business is.
Has long term vision ofwhere business is headed.
Can create change in
strategy.
Can think conceptually andarticulate thoughts.
Has sense of purpose.
8/12/2019 unit 1-HRM
34/77
KEY ROLE CRITERIA FOR SUCCESS
CONSULTANT TO
ORGANISATION
STRATEGY/BUSINESS
PLANNER
Has ability to build
commitment into action. Responds to organization
needs.
Recognizes importance of
team work.
o Knows plan of top
executives.
o Develops and sells own
plans and ideas.o Has 30 to 50 year focus.
8/12/2019 unit 1-HRM
35/77
KEY ROLE CRITERIA FOR SUCCESS
TALENT MANAGER
HR ASSET MANAGER /
COST CONTROLLER
Is capable of educating
management.
Knows high potential people
and anticipating their
concerns.
Initiates action.
Can educate and sell
management
Can creatively measure
effectiveness. Can use automation
effectively
8/12/2019 unit 1-HRM
36/77
THE CONSCIENCE ROLE
THE MEDIATOR
THE SPOKESMAN
THE PROBLEM SOLVERTHE CHANGE AGENT
8/12/2019 unit 1-HRM
37/77
Human resource policies are systems ofcodified decisions, established by anorganization, to support administrative
personnel functions, performancemanagement, employee relations andresource planning.
Each company has a different set ofcircumstances, and so develops anindividual set of human resource policies
8/12/2019 unit 1-HRM
38/77
HR policies provide an organization with a
mechanism to manage risk by staying up todate with current trends in employment
standards and legislation.
The policies must be framed in a manner that
the companies vision & the human resource
helping the company to achieve it or worktowards it are at all levels benefited and at the
same time not deviated from their main
objective.
8/12/2019 unit 1-HRM
39/77
1. Related to Objectives
2. Easy to Understand3. Precise
4. Stable as well as Flexible
5. Based on Facts6. Appropriate Number
7. Just, Fair and Equitable
8. Reasonable9. Review
8/12/2019 unit 1-HRM
40/77
E-Business
Neural Networks
E-HRM
E-Job design E-Job analysis
E-HR planning
E-Recruitment
E-Selection
E-HRD & career planning
E-Performance
management
E-Training & development E-Compensation & benefits
E-Grievance redressal
E-HR records
E-HR information E-HR audit
8/12/2019 unit 1-HRM
41/77
Computer technology enables organisations
to combine human resource information into
a single database.
A wide variety of information needs of a
business are recognized into Management
Information System.
8/12/2019 unit 1-HRM
42/77
A HRIS is an integrated system designed to
provide information used in HR decisionmaking.
HRIS evolve from previously separatecomputer systems such as
Payroll processing
Employee skills inventories
HR auditing files
8/12/2019 unit 1-HRM
43/77
8/12/2019 unit 1-HRM
44/77
An HRIS may be defined as the system
used to acquire, store, manipulate, analyze,
retrieve and distribute pertinent information
regarding an organization's humanresources.
8/12/2019 unit 1-HRM
45/77
To acquire, store, manipulate, analyze,retrieve and distribute pertinent information
regarding an organisations human
resources.
To facilitates HR decisions making in the
following areas:
8/12/2019 unit 1-HRM
46/77
Man power planning
Recruitment and selection
Employment including
Promot ions
Transfers
Discip l inary procedures
Terminat ion
Redundancy
Education and training
Salary and wages administration
Labour relations
8/12/2019 unit 1-HRM
47/77
RECRUITIN
8/12/2019 unit 1-HRM
48/77
PAYROLLBENEFI
TS
PERFORMAN
CE
APPRAISAL
TRAINING &
DEVELOPME
NT
RECRUITIN
G
PLACEMEN
T
LABOUR
RELATION
S
RELATIONAL
DATABASE
EMPLOYEE
DATA
JOB DATA
PAY ROLLRECRUITING
EFFECTIVENESS
BENEFITS COST
APPRAISALS DUE TO
THIS MONTH
HOW MANY CURRENT EMPLOYEES
HAVE COMPLETED OUR TRAINING
PROGRAMS ON SAFETY AND
HEALTH?
WHAT ARE OUR PROJECTIONS OF
EMPLOYEE NEEDS IN OUT
MANUFACTURING DIVISION FOR
THE NEXT YEAR?HOW MANY EMPLOYEES ARE
8/12/2019 unit 1-HRM
49/77
1 HARDWARE2 SOFTWARE3 DATABASE
8/12/2019 unit 1-HRM
50/77
Personal dataRecruitment/selection data
Work experience data
Compensation dataPerformance appraisal
Attitude/morale data
Benefit plan data
Health/safety/accident data
8/12/2019 unit 1-HRM
51/77
NEED
ANALYSIS
DESIGN ANDDEVELOPMEN
T
IMPLEMENTATION AND
MAINTENANCE
PHASE III PHASE
I
PHASEII
8/12/2019 unit 1-HRM
52/77
Evaluate HR department and business
needsForm project teamDetermine automation needsDevelop system specificationsAnalyze current and future reporting needs Identify and evaluate vendor packagesSelect vendor
Develop proposal for management/decision makersEstablish formal guidelines and
procedures to resolve inefficiencies
8/12/2019 unit 1-HRM
53/77
Develop detailed project plan
Develop user groupsPurchase hardwareDevelop independent, focused computer
applications
Implement independent applications as readyModify in house formsModify initial systemEstablish procedures and guidelines to support
systemTest user acceptanceConvert dataTrain HR staff and project team
8/12/2019 unit 1-HRM
54/77
Implement HR coreTrain other HR usersMake system available to HR functional
specialistsEstablish mainframe-micro linkDevelop user documentation
Conduct field analysisDevelop procedures for distributed processingPrepare technical documentationDevelop other modulesTest system and user acceptance Implement additional modulesMaintainDistribute to the fieldEvaluate success
8/12/2019 unit 1-HRM
55/77
8/12/2019 unit 1-HRM
56/77
8/12/2019 unit 1-HRM
57/77
8/12/2019 unit 1-HRM
58/77
8/12/2019 unit 1-HRM
59/77
A human resource audit evaluates the
personnel activities used in an organization.The audit may include one division or entire
company. It gives feedback about :
The function of operating managers.
The human resource specialists.
How well managers are meeting their human
resource duties.
8/12/2019 unit 1-HRM
60/77
In short, the audit is an overall quality control checkon human resource activities in a division orcompany and how those activities support theorganizationsstrategy
60
8/12/2019 unit 1-HRM
61/77
Identifies the contribution of the personnel
departments to the organization
Improves professional image of the personneldepartment
Encourages greater responsibility andprofessionalism among members of the personneldepartment
Clarifies the personnel departments duties andresponsibilities
Finds critical personnel problems
61
8/12/2019 unit 1-HRM
62/77
Audit of Corporate Strategy
Corporate Strategy concerns how the organization is going to gaincompetitive advantage.
Audit of the Human Resource Function
Audit touches on Human Resource Information System, Staffing andDevelopment, and Organization Control and Evaluation.
Audit of Managerial Compliance
Reviews how well managers comply with human resource policies and
procedures.
Audit of Employee Satisfaction
To learn how well employee needs are met.
62
8/12/2019 unit 1-HRM
63/77
Human resource professionals do not set
corporate strategy, but they strongly determine itssuccess.
By assessing the firms internal strengths and
weaknesses and its external opportunities andthreats, senior management devises ways ofgaining an advantage, such as :
stresses superior marketing channels, low-cost production, etc.Understanding the strategy has strong
implications for human resource planning, staffing,compensation, employee relations, and other
human resource activities 63
8/12/2019 unit 1-HRM
64/77
1. Human Resource Information System- Human Resource Plans : Supply and demandestimates; skill inventories; replacement charts
and summaries
- Job Analysis Information : Job standards, Jobdescriptions, Job specifications
- Compensation Management : Wage, salary, and
incentive levels; Fringe benefit package;
Employer-provided services
64
8/12/2019 unit 1-HRM
65/77
Recruiting : sources of recruits, availability ofrecruits, employment applications
Selection : selection ratios, selection procedures,
equal opportunity.
Training and development : orientation program,training objectives and procedures, learning rates
Career development : internal placement, career
planning program, human resource development
efforts
65
8/12/2019 unit 1-HRM
66/77
Performance appraisals : standards and
measures of performance, performance appraisal
techniques, evaluation interview.
Labor-Management Relations : Legalcompliance, management rights, dispute resolution
problems.
Human Resource Controls : employeecommunications, discipline procedures, change
and development procedures,
66
8/12/2019 unit 1-HRM
67/77
Identify who is responsible for each activity.Determine the objectives sought by each activity.Review the policies and procedures used to
achieve these activities.Prepare a report commending proper objectives,
policies, and procedures.Develop an action plan to correct errors in each
activity. Follow up the action plan to see if it solved the
problems found through the audit.
67
8/12/2019 unit 1-HRM
68/77
8/12/2019 unit 1-HRM
69/77
Employee satisfaction refers to an employees
general attitude toward his or her job.
When employee needs are unmet, turnover,
absenteeism, and union activity are more likely.
To learn how well employee needs are met, theaudit team gathers data from workers.
The team collects information about wages,
benefits, supervisory practices, career planning
assistance, and other dimensions of job
69
8/12/2019 unit 1-HRM
70/77
1. Interviewswith employees and managersare one source of information about human
resource activity. Employees and managers
comments help the audit team find that
need improvement.Another useful source of information is the
exit interview. Exit interview are conducted
with departing employees to learn theirviews of the organization.
70
8/12/2019 unit 1-HRM
71/77
Because interviews are time-consuming, costly,
and often to only few people, many humanresource departments use questionnaires. Through
questionnaire surveys, a more comprehensive
picture of employee treatment can be developed.
Questionnaire may also lead to more candidanswers than face-to-face interviews.
- employee attitude about supervisors
- Employee attitude about their jobs
- Perceived effectiveness of human resource
department
71
8/12/2019 unit 1-HRM
72/77
Not all the issues of interest to human resource
audit are revealed through interviews orquestionnaires. Sometimes insight can be
obtained by an analysis of historical records,
such as:
- Safety and health records
- Grievances records- Compensation studies
- Scrap rates
- Turnover and absenteeism records
- Selection records- Affirmative action plan records
- Training program records
72
8/12/2019 unit 1-HRM
73/77
Outside comparisons give the audit team a
perspective against which their firms activitiescan be judged.
Through Department of Labor, industryassociation, professional association numerous
statistics and report are compiled.These organizations regularly publishes
information about future employmentopportunities, employee turnover rates, work
force projection, area wage and salary survey,work force demography, accident rates, andother data that can serve as benchmark forcomparing internal information.
73
8/12/2019 unit 1-HRM
74/77
Findings of research are used todeveloped a picture of the organizations resource
activities. For this information to be useful, it iscompiled into audit report.
The audit report is a comprehensivedescription of human resource activities thatincludes both commendations for effective practicesand recommendations for improving practices thatare less effective.
Audit report often contain severalsections. One part is for line managers, another isfor manager of specific human resource function,and the final part is for the human resourcemanager.
74
8/12/2019 unit 1-HRM
75/77
How line managers handle their duties
such as: Interviewing applicants Training employees
Evaluating performance
Motivating workers Satisfying employee needs
The report also identifies people
problems. Violations of policies andemployee relations law are highlighted
75
8/12/2019 unit 1-HRM
76/77
The specialists who handle employmenttraining, compensation, and other activities
also need feedback. Such feedbacks are :
1. Unqualified workers that need for training
2. Qualified workers that need fordevelopment
3. What others company are doing
4. Attitude operating managers toward
personnel policies
5. Workers pay dissatisfaction
76
8/12/2019 unit 1-HRM
77/77
It is contains all the information given to both
operating managers and staff specialists. Inaddition, HR Mangers gets feedback about :
Attitude operating managers and employees
about services given by HRD
A review of HRD plans
Human resource problems and their implication
Recommendations for needed changes and
priorities for their implementation