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Introduction to Human
Resource
Management
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Introduction Leon c megginson gave the definition of
Human Resource- the total knowledge, shills,
creative abilities, talents of an orgs workforce aswell as values, beliefs and attitudes of
individuals involved
HR manager- builds up an effective workforce,
handle expectations of the employees andensure they perform their best
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Definition and Concept of HRM
Definition- HRM is a function performed in orgsthat facilitates the most effective use of people to
achieve orgl and individual goals HRM consists of 4 functions-
Acquiring
Development-training, mgmt dev and career
development Motivation
Retention- providing a conducive environment
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History of HRM Scientific management Approach
Given by Fredrick Taylor
He discarded the beliefs of constant control
He suggested that managers adopt scientificand objective approach to determine howwork could be designed and carried out most
effectively Focused on study of motions, tools and time
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Fair performance standards were determined
on the basis of scientific data
More the output more the incentives
Workers solely motivated by money led to
many problems- high standardization and little
mental activity
Concepts ofeconomic man and piece-ratemethod also evolved at this time
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Human Relations Approach
Hawthrone studies- employee productivity is
affected by social and psychological factors
Elton Mayo- emotions and feelings ofemployees are influenced by group
relationships and management support
Strength of unions grew up which gave
workers a legal right to organize and bargaincollectively
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The approach was not successful for the
following reasons-
Assumption that a happy worker is a hard
worker
It did not recognize individual differences It did not recognize the need for a job
structure
Failed to recognize other factors that
influence employee satisfaction like careerdevelopment job enrichment
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Human Resource approach
Treating people as resources and human
beings will lead to real benefits for the
organization
Based on a number of principles- Employees are assets to an organization
Policies, programs and practices must cater to the
needs of employees
Create and maintain a conducive workenviornment
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Functions of HRMManaging people is one of the biggest
challenges because-
Individuals differ from each other in terms of
values, attitudes, beliefs
Motivational factors might not be same
Expectations of employees are much greatertoday
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HRM functions can be categorized in 2
categories- Managerial functions
Operative functions
MANAGERIAL FUNCTIONS Planning
Formulating future course of action (personnelprograms and changes required)
Identifying human resource requirements andforecasting personnel needs
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Organizing
Establishing roles for people in an org such as
chain org command, division of labor,
assignment of responsibility
Staffing Obtaining and maintaining capable personnel
in various positions at all levels
Directing
Directing all the available resources towards
the common orgl goals
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Controlling
Measurement and rectification of activities to
ensure that they conform to plans i.e.
measuring performance against plans
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OPERATIVE FUNCTIONS
They are relates to specific activities of HRM
1. Employment- procuring and employingindividuals with suitable knowledge,
skills, experience and aptitude. Itincludes-
Job analysis- tasks which comprise the jobare determined and the skills and abilities
required to perform it successfully areidentified
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Human Resource Planning- involves
forecasting the human resource requirements
of an org and future supply of human
resources and making adjustments between
the two
Making changes and develop the existing
employees to enable them meet future orgl
requirements
Estimating net human resource requirementson the basis of retirements transfers, attrition
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Recruitment- involves
Tapping sources of applicants
Attracting and stimulating candidates
Selection- choosing the right candidate forthe job. It includes
Scanning the application forms
Developing suitable testing techniques
Evaluating and then intimating the candidates
Employing the selected candidates
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Placement-selected candidate is thedecided about a suitable placement in anorg. it involves
Discussing the placement with functional
managers Conducting a follow up study
Induction- introducing the new employee
to the organization, org culture, valuesbeliefs, practices and procedures
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2. Human Resource Development (HRD)-
process of training and developing theemployees to improve their knowledge and skillsto perform their jobs better. It includes-
Performance Appraisal- process of
evaluating the performance of an employee onthe job and developing a plan for improvement.It includes-
Developing and implementing suitable
methods Obtaining feedback on it effectiveness
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Training- systematic development to the
knowledge, skills and attitudes required toperform a job successfully. It includes-
Identifying training needs
Designing and conducting suitable trainingprograms
Evaluating the effectiveness
Management Development- developing theemployees of an org to meet future needs andchallenges
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Career Planning and Development Planning- identifying career goals and
formulating plans of reaching them through
various means like education, work
experience (from individuals point of view)
Development- looks at individuals goals from
the point of view of org
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3. Compensation- all the extrinsic rewards
that an employee receives during and after
the course of job. It includes base salary,
incentives, bonus and benefits
Job evaluation- involves classifying a jobbased on its importance and its contribution to
the org and its requirements
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Wage and Salary administration- process offormulating and operating a suitable wage and
salary program
Incentives- rewards an employee earns inaddition to regular wages or salary based on the
performance of the individual, team or org
Bonus- share in surplus and is directly relatedto orgs performance
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Fringe benefits- monetary and non-monetarybenefits given to employees during their
employment and sometimes post employment
also. Not related to employees performance.
Like- housing facilities, canteen, conveyance,
educational facilities
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4. Employee Relations- deals with employeesin the orgl context, as a social group that
contributes to the org. it includes-
Keeping employees satisfied and motivated
Developing team building and leadershipskills in employees
Grievance mgmt system
Enhancing quality of work like
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An employee desires his
managers to possess following
characteristics-
Be genuinely interested in the
employeeLend support and guidance
Clarity in job responsibilities
Identify the strength and
weaknesses of the employee
Reward employee for his
contribution
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Emerging Role of HRMThe competencies and attitudes of human
resources can make or break the business
Human resources-Competitive advantage
According to Adi godrej all corporate strengths
are dependent on people i.e. human
resources have become an essential factor indetermining success of any org
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Human Resource Accounting-measurement of the cost and value of people for
an organization it is accounting people as organizational
resources
Accounting helps mgmt to value its human
resources and use it with discretion and
wisdom
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Role of HR Executive Service Provider- interviewer, compensation
analyst, job analyst
provides info of market statistics of personnelavailability, pay rates
Executive- though HRM is a part of every
managers job, yet HR specialists typically carry
out certain activities like recruitment,
compensation
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Facilitator- in T and D and performance
appraisal Consultant- managers may seek advises of
HR specialist to resolve problems of training, job
misfit, grievances
Auditor- controlling function. Ensures that allmanagers perform their respective roles
concerned with effective use of HR
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Challenges to HR Professionals Business environment is turbulent
Markets have become competitive and serviceoriented
Challenging task is to attract, mould develop andretain valuable employees
Expectations of employees has increased-knowledge workers
They are in demand and in a position to chosetheir employer
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Worker Productivity- to increase worker
productivity Tall hierarchy and communication barriers
have been removed
Empowerment Workforce revolution- encourage employees
to be creative and proactive and willing to
take risk involved in autonomy
Self managed teams
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Quality Improvement-
Quality is imp for survival
Quality is all pervasive
Leaders like GE are setting quality standards
Welch- proactive step i.e. early adoption of'quality mantra
Needs- strong org wide commitment,
education and training, team work, top mgmt
commitment
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Changing attitudes of the Workforce
Cost cutting measures- downsizing
Concept ofjob security is outdated
Even employees are on the look out for better
opportunities Global markets- employees are moving
across the world
Workforce diversity has been the major
challenge for orgs
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Companies are becoming family friendly
E.g. ONGC- encourages employee children byrewarding scholarships
Flexible working hours- major demand of
knowledge workers, women workers and IT
companies are catering to this demand.
flexibility can prove to be more productive.
Concept ofworking from home is also
catching up
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Impact of the government
Economic reforms in 1991 have changed theface of Indian Economy
Various labor laws formed and amended has
tuned the psyche of orgs and the workforce
Quality ofWork Life
Employee has some expectations from his
wok
QWL gets better is one or more of theseneeds are satisfied
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Technology and Training
Use of computer technology is now pervasive
Companies are investing in these
technologies and also train employees for
adopting new technology
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Strategic HRM
Strategy- way of doing something. Includesformulation of goal and set of actions for
accomplishment of that goal Strategic Management- mgmt of available
resources to achieve the goals of an org in adynamic and competitive environment.
Emphasizes monitoring and evaluatingenvironmental opportunities and threats in lightof orgs strength and weaknesses
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Strategic HRM- Optimum utilization of human resources to
achieve the set goals and objectives in
business environment
HR manager is now becoming a member of
strategic mgmt process
HRM makes strategic mgmt highly effective
by supplying human resources who arecompetent and committed
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Examples
TCS- 28000 software engineers from 32
countries
Hiring people starts right at the college level TCS funds several events like seminars and
conferences in IITs and also abroad like Harvard and
Kellogg
Wipro- exit interviews Toyota- employee suggestion scheme