Human Resource Management

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Why humans are called “resource”…

What is Human Resource Management?

Human Resource Management

• “HRM is the function performed in organizations that facilitates the most effective use of people to achieve organizational and individual goals.”– Ivancevich and Glueck

Introduction

• 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.

Objectives of HRM

• To improve the service rendered by the enterprise through building better employee morale, which leads to more efficient individual and group performance.

• To employ the skills and knowledge of employees efficiently and effectively.

Objectives of HRM

• To create and utilize an able and motivated workforce, to accomplish the basic organizational goals.

• To recognize and satisfy individual and group needs by providing adequate and equitable wages, incentives, employee benefits, challenging work, recognition, security, etc.

• To develop and maintain quality of work life.

Importance of HRM

• Attracting and retaining talent through effective HRP, recruitment and selection, compensation and promotional policies.

• Developing the necessary skills and right attitudes among the employees through training.

• Securing co-operation of employees through motivation.

• Effectively utilizing the available resources.

Importance of HRM

• Allocating work properly and scientifically.• Maintaining healthy relationship between

individuals and groups in the organization.• Managing change.

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Maintaining HR

Scientific management approach

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Human relations approach

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Challenges Before HR Manager

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Difference between Personnel Management and Human Resource

Management

Human Resource Planningand

Human Resource Development

• HRD is a sub set of HRM

Managerial Functions

Planning

• Planning is necessary to give the organization its goals and directions to establish best procedure to reach the goals. Planning staff levels requires that an assessment of present and future needs of the organization be compared with present resources and future predicted resources. Appropriate steps then be planned to bring demand and supply into balance.

Organizing

• After objectives have been established and plans been developed then personnel manager must design and develop organisation structure to carry out various operations. Such as-

• Grouping of personnel activity• Assignment of different groups of activities to

different individuals• Delegation according to task assigned• Co-ordination of activities of different individuals.

Directing

• The directing function of the personnel manager involves encouraging people to work willingly and effectively for the goals of the organization.

Controlling

• Controlling helps to evaluate and control the performance of the department in terms of various operative functions.

Operational

Employment HR Development Compensation Mgt Employee Relations

HR Planning

Recruitment

Selection

Placement

Induction

Performance Appraisal

Training

Management Development

Career Planning and Development

Job Evaluation

Wage and Salary Admn

Incentives

Bonus

Fringe Benefits

Operative Functions

Employment

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Human Resource Planning

• Present and future manpower requirements• Net human resource requirements• Mould, change and develop employees to

meet future organizational requirements• Attract and acquire human resources from the

market

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Recruitment

• Tapping existing sources of applicants• Identifying new sources of applicants• Attracting the candidates to apply for jobs in

the organization• Deciding the recruitment procedure

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Selection

30

Human Resource Development

31

Compensation

32

Employee Relations

• Employees in organizational context, as a social group

• Determining the job satisfaction level of the employee

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Recruitment

• Recruitment– the process of attracting a pool of qualified

applicants that is representative of all groups in the labor market.

• Selection – the process of assessing who will be successful on

the job, and– the communication of information to assist job

candidates in their decision to accept an offer.

Training and Development

– Provides new skills for the employee– Keeps the employee up to date with changes in

the field– Aims to improve efficiency

Reward system

• The system of pay and benefits used by the firm to reward workers

• Money not the only method• Fringe benefits• Flexibility at work• Holidays, etc.

Motivation

• To retain good staff and to encourage them to give of their best while at work requires attention to the financial and psychological and even physiological rewards offered by the organization as a continuous exercise.

Records and statistics

• Keeps employee training records• Achievement records• Transfer and promotion records• Absenteeism and labour turnover records

Industrial relations

Challenges for HR Professionals

Changing Customer Expectation

• The customer is impatient today and he is not ready to wait. He is not ready to accept whatever is offered, he has become choosey.

• Customer’s perception of product and services has undergone a dramatic change.

Impact of Government• Changing rules and regulations.• Changing legislation.

Competion • The nature of competition is changing.

Companies are not only facing competition for companies across the globe but the competition within the country have also intensified. Liberalization, information explosion have resulted in a dramatic change in customer expectations.

• Today efficient small companies, because of their cost advantage are also able to pose challenges to the big giants in some segments of certain industries.

Globalization

• Businesses has crossed the national boundaries and thus has become global, popularly known as Multi National Companies. This has made managing men more complex.

• Adapting to different management styles is challenging.

Quality Improvement

• The major challenge before today’s managers have to face is offering of quality products and services to the customers. This is because the delivery of quality products and services to the customers has a direct impact on the success of the organizations.

• The challenge for managers across the world is, therefore, to have human resources to deliver quality to products and services to the customers.

Workforce Diversity

• Workforce diversity can be defined as the situation that exists when members of a group or organization differ from each other in terms of age, gender, race, ethnicity and education.

• The challenge for organizations is to make themselves accommodating to diverse groups of people at work place by addressing their different lifestyles, cultural beliefs, family needs and work styles.

Changing Employee Expectation

• Employee expectations and aspirations have changed from traditional allurement such as job security, good remuneration, housing facility to empowerment, equality and QWL. Employee expect equality with management.

• The manager has to redraw new methods of motivation.

The Death of HR ?

• Traditional “personnel” function– Recordkeeping– Perceived as a dumping ground

• The death of HR?• HR’s rebirth

Sources: Caudron (2003); Schuler (1990); Schuler & Walker (1990); Stewart (1996); Sunoo & Laabs (1999); Ulrich (2000); Wells (2003)

Outsourcing HR

• Would it just make more sense to outsource HR functions?

• Many organizations are doing just this– Recordkeeping and administrative, perhaps– Basic functions…..

Sources: Caudron (2003); Stewart & Woods (1996); Zimmerman (April 2001)