Human Resources Management

According to Narayanmurthy, the success of Infosys was due above all to its ability to attract, develop , retain human capital’

Some Changes in the World of Business

•Knowledge Work Versus Assembly Line

•IT, IT, IT, IT, IT / Commuciation / Communication…..

•Service Industry

•Globalisation Quality, Customer, Competition

•Reduced Barriers to entry

•Talent Famine… Labour Imbalances

•Virtual Workplaces

What is HRM?

What is HRM?

Why is it important?

•People as important organisational resources

•Value from people – function of way they are managed

-At Organisation Level

-At the level of individual Managers

STRATEGY IN PEOPLE MANAGEMENT

HR Strategies Supporting Business Strategy

•Infy TCS leverage freshers

•Globalisation strategy of Infy – next slide

•L & T uses training / foreign assignments to manage attrition

•Mass Recruitment at ICICI

•Escorts – Trehan – retaining Nurses

•Upgrading Human Resources – Banks, Manufacturing Companies Go to

W W

Why did Infosys CFO move to HR in May 2006 ? His Goals…

ET 2/5/2006

•increase the bonding between the people and organisation by

•better communication

•Structuring so that managers will have more responsibility for people — delegation of authority and training.

•Globalise workforce rapidly. - more local hiring in US and Europe, take in more engineers and delivery people. Set up HR organisations in the US (Plano) and Europe(London).

Raise the number of expats in Banagalore

etc etc

Naik on Attrition at Larsen and Toubro - 2006

L&T attrition due to boom in infrastructure activities special human resource strategy to reduce attrition - 15 % design & engineering division-8.9 % construction - 10 % manufacturing-14 % IT/infotech division-12.5 % - whole company “… We would have been comfortable with a rate of below 5 per cent, but we have accepted the fact that attrition is here to stay," The company's HR strategy includes accelerating training, and giving Overseas opportunities

Relationship between business perfomance and personnel policy

Mark Huselid (USA) – 1995

• Data of 965 firms

• Related HR practices to

• Attrition

• Productivity

• Financial results

• Analysis showed 1σ in ‘index of work

practices’ accounted for 16 % increase in

productivity.

• Where people development is an actively

pursued strategy - the organisation performs

better

The Human Value of the enterprise – Andrew Mayo

• Human Capital Index (HCI – STARTED

1999) - set of measures quantifying

exactly which HR practices and policies

have the greatest correlation to

shareholder value.

• Concluded that Superior practices

precede shareholder value creation

Watson Wyatt Human Capital Index®: Human Capital As a Lead Indicator of Shareholder Value

Watson Wyat Study - 2002Asia Pacific Human Capital Index Survey

• review of the people practices and financial performance 500 publicly traded companies in 12 Asia Pacific countries

• Responses to a questionnaire – analysis + statistical correlation between responses and the financial performance

• Over a five year period, companies

• High HCI score - 107 % increase in shareholder value

• Medium - 38 %

• Low – decrease of 3 %

W and W’s 2004 Human Capital Research – Asia Pacific

Source - HRM Text and Cases, K Ashwathapa

THE BEST COMPANIES TO WORK FOR(BT Survey - 2000)

• Egalitarian Work Practices

• Stock Options

• Information Sharing

• On going Upgradation of skills

• Learning Organisations - Knowledge

Management

• Empowerment

• Great Work Content

• Performance Driven Culture

• No Lay-off policy

Therefore HRM must be concerned with

HRM Must be concerned with

• attracting and retaining RIGHT people

• developing them to contribute -changing

mindsets

• motivating /engaging them to give their

best

• Ensuring the existence of factors facilitating

performance

• ensuring that human endeavour is

effective

Scope of HRMA Dynamic Interaction of …

• HR Planning

• Recruitment & Selection

• Development

• Managing and Assessing Performance

• Culture Building

• Participation & Involvement

• Motivation &

Reward

• Communication

• Correction

• Employee

Relations

• Employee

WelfareHRM versus Personnel Management

HRM VS PERSONNEL MANAGEMENT

• People are resources to be developed, respected and used with care versus people as an instrument / a factor of production

• Mutuality of interest versus organisation’s interest

• Proactive, strategic function versus reactive administrative stand alone function

• Based on support versus based on control

INTERDISCIPLINARY NATURE OF HRM

• Industrial Psychology - People at work• Social Psychology - How people affect one

another• Organisation Theory - why organisations exist,

how they function• Organisation Behaviour - causes of individual

and group behaviour- use of knowledge in organisations

• Law• Political Science• Economics

Place of HR department in Organisation Chart

Place of HR Department in an Organisation

O rg an isa tion C h art o f a M an u fac tu rin g O rg an isa tion

Vice PresidentM arketing & Sales

Vice PresidentM anufacturing

Vice PresidentR & D

Vice PresidentC om m ercial

V ice PresidentH R

C EO

Organisation Chart of an Advertising Agency

C lientServicing

C reative

PR Film s

M edia Studio

Finance

H R

System s

Language

Adm in

D irector -B om bay Office

Structure of an HR Department

© Geometric Limited | www.geometricglobal.com

Human Resource Team - Geometric

Corporate HRRishi Agarwal

PLM InstituteHemant Shah

Global Resourcing &

StaffingRavikumar D

Vice President, HRRajiv Singh

3DPLMVandana G

BombaySonalika Johri

PuneNidhi Jang

BangaloreShabri A

Location HRDelivery Center

3DPLMShivani Ayre (Mumbai)Smita / Neha/Sajiri (Pune)

PuneSholy/ Anuprita/PayalAditi / Krupa/Lata

BombayBindu / PratibhaTejaswini

BangalorePrathibha VFenil M

Geometric EngineeringMike Pelki

BangaloreShabri A/Nidhi

Comp & Ben<Vacant>

PoliciesSujata Rai

Capability Building

Naaz Mushrif

India Recruitment

Kamal Dunani

HR Functions

• Personnel Administration• Recruitment / Selection /

Performance Evaluation• Training and Development• Compensation and Benefits• Industrial Relations• Welfare

Change ChampionsCulture buildingCommunication

Org Image

Whose job is HRM?

Actual roles vary from Company to Company

Whose Job is HRM?A Shared Responsibility

Recruitment and Selection - ( some roles)

• Functional Specialist’s Role

• HR Functionary’s Role

ROLE OF HR FUNCTIONARY

• Business Partner• Problem Solver• Service Provider - develops HR

Systems, Policy• Innovator• Enabler/ Coach / Change Agent• Consistency Monitor• Guardian of the Organisation’s

values regarding people

Managing HR, Bohlander & Shell

COMPETENCIES OF A HR MANAGER

• Business Mastery

• HR Mastery

• Change Mastery

• Personal Credibility

What is Policy - Some HR Policies

Examples of HR Policy

• Hiring on MERIT, disregarding gender,

source,

• Terms of employment

• Medical Assistance

• Values and Ethics

• Training and Development

• Employee contact with customersWhy Policy?

WHY IS HR POLICY NEEDED?

• Ensures due consideration to Human Resources

• Consistency of treatment

• Ensures continuity of action

• Serves as a standard of performance

• Sound policy builds employee motivation

• Sound policy helps resolve conflicts

• Permits delegation and planning

FEATURES OF SOUND POLICY

• Definite, clear in writing

• Stable, not rigid.

• Consistent with organisation’s aims

• Regard needs of all important

stakeholders

• Consistent and uniform

• Capable of being evaluated

• Indicate scope of discretion

The End

WHAT IS HRM?

• Concerned with managing people

• individually

• group

• Across the organisation

• Aimed at getting better organisation

results through people

That being so - it must be concerned with…

DEFINITIONS

• Strategic and a coherent approach

• to the management of an

organisation’s most valuable assets

• can be regarded as

• a set of inter related activities

• with an ideological and

philosophical underpinning.

Why Strategic - HRM versus Personnel Management

Actual roles vary from Company to Company

Recruitment and Selection -

Functional Specialist’s Role• Assist Job analyst understand

duties of people• Explain to HR the future needs

and the type of people required• Perhaps – screen bio –data• Perhaps – develop technical test• Interview candidates and

decide on whom to select

Actual roles vary from Company to Company

Recruitment and Selection

HR Functionary’s Role• Write Job Description & Job

Specification• Develop Sources of recruitment• Send interview communication• conduct initial screening

interviews and refer feasible candidates to supervisor

• Arrange medical tests• Issue appointment letter

IBM – FROM bt 20/5/07

When IBM got a big SAP Implementation project in China it scanned operations across 160 countries and 1,35,000 employees in global services division and finally zeroed in on Atanu Ghosh in the Bangalore office because he had a track record of handling similar complex cases