Module 1

Agenda
Nature and scope of HRM Personnel management VS HR Meaning of HRM Features and roles of HRM Organization of HRM Role of personnel manager and HR manager Qualities of HR/ personnel manager

Infosys
We believe that people are our core assets and their empowerment is the key to scalability and longevity. Respect, dignity, fairness and inclusiveness are essential to get the best out of employees - Nandan Nilekani, CEO, President and Managing Director, Infosys, in 2006

Infosys
It is the energy of Infoscions that make the environment at Infosys exciting and challenging. Our attention to detail, quality, speed and customer satisfaction keep us on the top as we surf successive waves of change. With every step, we learn. By identifying and fostering learnability in Infoscions, we are enabling an agile organization, at the forefront of change." - Infosys' Annual Report 2005-06

Infosys
Infosys Technologies was voted as the best employer in the country in many HR surveys The company is well known for its good Hr practices It grew to become a US$ 2 billion(2006) company but retained the culture of a small company Attracted the best talents across India Training is an ongoing process at Infosys

Cond
One of the first companies to offer ESOP to its employees Company follows variable compensation pay structure
On the company's HR practices, Nandan Nilekani (Nilekani), CEO, President and Managing Director of Infosys, commented, "It is about creating a highly motivated workforce because this is not a factory where you can monitor the quantum of output at the end of the day. But in the intellectual business you cannot do that. So, you have to create a motivated set of people who can operate.

Background
Infosys was incorporated as Infosys Consultants Private Limited on July 02, 1981, by a group of seven professionals .
It relied heavily on overseas business. Infosys hired its first set of employees in 1982 from the Indian Institute of Technology, Chennai...

Hr practices
Most of the HR practices of Infosys were a result of the vision of its founders and the culture that they had created over the years.
The founders advocated simplicity and maintained the culture of a small company . The employees were encouraged to share their learning experiences...

Recruitment
While recruiting new employees, Infosys took adequate care to identify the right candidates .
"We focus on recruiting candidates who display a high degree of 'learnability.' By learnability we mean the ability to derive generic knowledge from specific experiences and apply the same in new situations. Nandan Nilekani

Training
Training at Infosys was an ongoing process New recruits from colleges, were trained through fresher training courses. They were trained on new processes and technologies. At the higher levels, they were trained on project management and later were sent for management development programs, followed by leadership development programs...

Training new recruits

Infosys conducts a 14.5 week technical training program for all new entrants . The company spent around Rs 200,000 per year on training each new entrant . The new recruits are trained at the Global Education Center (GEC) in Mysore, which has world class training facilities and the capacity to train more than 4500 employees at a time.

Infosys Leadership Institute (ILI)

The Infosys Leadership Institute (ILI) was set up in 2001 to nurture future leaders in the company and to effectively manage the exceptional growth that the company was experiencing.
At the Institute, the executives were groomed to handle the changes in the external and internal environment...

Performance Appraisal
The first step toward carrying out performance appraisal at Infosys is the evaluation of personal skills for the tasks assigned to an employee during the period of appraisal. To evaluate the performance, different criteria like timeliness, quality of work carried out by the employee, customer satisfaction, peer satisfaction, and business potential, are considered

Cond.
The personal skills of the employees are also evaluated based on their learning and analytical ability, communication skills, decision making, change management, and planning and organizing skills. Each of these criteria was measured on a scale of 1 to 5 (with 1 signifying above the expected performance level and 5 below the expected performance level).

Company culture
Infosys tried to preserve the attributes of a small company and worked in small groups, with decision-making remaining with those who were knowledgeable about particular processes. The managers played the role of mentors and used their experience to guide their team members.

Ritz Carlton hotel

Ritz-Carlton was counted among the top luxury hotel chains in the world, and was known for its sophisticated and elegant ambience and culture of service excellence. Only hotel company to have ever won the Malcolm Baldrige National Quality Award, and the only service company to have won it twice.

Background
Ritz-Carlton traces its history back to 1898, when Cesar Ritz, a Swiss hotelier, opened the first Ritz hotel in Paris. He designed the Ritz hotel in Paris to be one of the most elegant hotels of the time. The hotel's design, furnishings and meticulous service made it a great favorite with the wealthy and aristocratic members of society at that time.

Cond.
In 1900s, Cesar Ritz opened the Carlton Hotel in London, in addition to other hotels under the Ritz name across Europe. He also set up the Ritz-Carlton Management Corporation (RCMC) to franchise the Ritz-Carlton name and logo to interested parties who wished to establish hotels of their own. The franchisees were required to adhere strictly to the service and culinary standards set by the RCMC. Under the direction of the RCMC, a Ritz-Carlton hotel was established in New York in 1910. This was followed by several other hotels across the US and Europe.

Quality and service

Quality management was undertaken by the senior management at the Ritz-Carlton. The President and other members of the top management formed the senior quality management team. This team usually met every week to review product and service quality and guest satisfaction across the chain, as well as to analyze factors like market growth and development, profitability, and competitive status.

HR Practices and work culture

Ritz-Carlton regarded employees as the cornerstone of its exceptional service culture.
Being a service company , it took care to see that it not only recruited the right kind of employees, but also provided them with the necessary inputs to enable them to provide exceptional service.

HR Practices and work culture

According to Ritz-Carlton, the company did not 'hire' its employees; it 'selected' them. Ritz-Carlton invested significant time and resources on orientation and training. The company believed that a comprehensive training program was necessary to instill its values in employees and educate them about its service standards...

Ongoing Training
After the first year, employees received an average of 100 hours of training every year. Equal importance was given to imparting technical skills and helping employees assimilate Ritz-Carlton's culture.

The company conducted workshops and classes on a monthly or quarterly basis on subjects like 'Appreciating Individual Differences,' 'Planning and Running Team Meetings,' 'Assessing Your Co-worker's Performance,' etc...

Employee Empowerment
All employees of the company, regardless of position or rank, were empowered to spend up to $2,000 of the company's money to correct a problem or handle a complaint, without having to ask permission from a superior... The company was a preferred employer because of its organizational culture and the way it treated its employees. Ritz-Carlton's organizational culture not only helped the company provide exemplary customer service, but also created an atmosphere where employees felt valued...

Human Resource Management

It is a process of bringing people and organizations together so that the goals of each are met. It may be defined as the art of procuring, developing, and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner.

Features of HRM
Pervasive force : present in all enterprises. Action oriented : HRM focuses attention on action rather than record keeping , written procedures, or rules. Individually oriented :It tries to help employees develop their potential fully. It motivates employees through a systematic process People oriented : HRM is all about people at work , both as individuals and groups.

Cont
Future oriented : Effective HRM helps an organization meet its goals in the future by providing for competent and well motivated employees. Development oriented : HRM intends to develop the full potential of employees. Integrating mechanism : HRM tries to build and maintain cordial relations between people working at various levels in the organization. Comprehensive function : It is a function concerned with any organizational decision which has an impact on the workforce or the potential workforce.

Scope of HRM
All major activities in the working life of a worker from the time of his entry into an organization to his/ her exit come under the purview of HRM Activities include HR planning Job analysis and design Recruitment and selection Orientation and placement

Cond
Training and development Performance appraisal and Job evaluation Employee and executive remuneration Motivation and communication Welfare, safety and health Industrial relations. HRM is a broad concept personnel management (PM) and Human resources development(HRD)are a part of HRM

Scope of HRM
Personnel aspect : Concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives and prodctivity etc. Welfare aspect : It deals with working conditions and amenities such as canteens, creches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc. Industrial relations aspect : This covers union management relations,joint consultation, collective bargaining, grievance and discipliniary procedures, settlement of disputes etc.

Cond
PM viewed labor as a tool , the behavior of which could be manipulated for the benefit of the organization and replaced when it was worn out. Personnel dept in the past was filled with non productive employees

Cond
HRM function can be seen as the amalgam of Organizational Behaviour Personnel Management Industrial Relations and Labour Legislations

Cond
Organizational Behaviour It is a field of study that tries to examine why people behave
the way they do It focuses on the behaviour of the employees at the level of an individual, group, and total organization Personnel Management It studies Policy formulation and implementation on such issues as Human resource planning, recruitment and selection, training and development , performance appraisal, promotions, transfers, quality of work life , compensation management.

Scope of HRM
Nature of HRM
Prospects of HRM Employee Hiring

Industrial Relations

HR M

Employee & Executive Remuneration

Employee Maintenance

Employee Motivation

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History of personnel/HRM
The industrial revolution Scientific managements Trade unionism Human relations movement Human resources approach

Growth in India
Early phase Legal Phase 1 The early roots of HRM in India could be traced back to 1920. 2 The royal commission of labour in 1931 suggested the appointment of labour officer to protect workers interests 3 The Factories Act of 1948, made it obligatory for factories employing 500 or more workers.

Cont
Welfare phase : 1960s the scope of personnel function has expanded a bit , covering labour welfare, participative management, industrial harmony. Development phase : 1960s 70s the HR professionals focused more on developmental aspects of human resources . The emphasis was on striking a harmonious balance between employee demands and organisational requirements

Cont..
1990s Organizational restructuring and cost cutting effort have started in a big way due to the pressures of liberalization, privatisation and Globalisation. This forced companies to focus attention on employee capabilities , product/service quality , speedy response, customer satisfaction etc. Changing demographics and increasing shortages of workers with the requisite knowledge, skills and abilities have grown in importance.

 Issues like workforce diversity, has assumed greater importance in view of the cultural , religious, social and regional backgrounds of workers especially in global sized companies.

Objectives of HRM
Personal Objective s
Function al Objectiv Organisation es al Objectives Societal Objectiv es 39

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Objectives of HRM
To help the organization reach its goals. To employ the skills and abilities of the workforce efficiently. To provide the organization with well trained and well motivated employees.

To increase to the fullest the employees job satisfaction and self actualization. To develop and maintain a quality of work life. To communicate Hr policies to all employees. To be ethically and socially responsive to the needs of the society.

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

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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

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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

Traditional Vs Emerging HR
Traditional HR practices 1 Administrative in nature 2 Reactive in nature 3 Separate and isolated from the organization 4 Functional form of organization 5 Individual oriented Emerging Hr Practices 1More strategic role 2Proactive in nature 3 HRM is a key part of the organizations mission 4 HRM has process based design 5 Focuses on teamwork. Cross functional teams and teamwork is encouraged

Cont
Individuals oriented . Individuals were encouraged and singled out for praise and rewards. Human beings were considered costs Focuses on teamwork Cross functional teams and teamwork is encouraged. Human beings are the key and most important investments and assets in the modern oganizations.

HR Department in the overall Organizational setup

A HR Manager carries out 3 distinct functions 1 A Line function 2 A Cooperative function 3 Staff function

Composition of a HR / Personnel Department

Owner/Manager

Manager-Personnel

Manager-Administration

Manager-HRD

Manager-IR

Appraisal

Training & Development

PR

Canteen

Medical

Welfare

Transport

Legal

HRP

Hiring

Grievances Handling

Compensation

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HRM Small-scale Unit

Owner/Manager

Production Manager

Sales Manager

Office-Manager

Accountant

Personnel Assistant

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HRM Large-scale Unit

Chairman and Managing Director

Director Production

Director Finance

Director Personnel/HRM

Director Marketing

Director R&D

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Personnel Policies at ABB India

Role clarity Empowerment Take responsibility Competence development Clearly defined objectives for individual and the work team

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Personnel Policies at ABB India

The local unions as natural co-operation partners Planning discussions held at least once a year Internal mobility and employee development Ethics, equal opportunities and an open and honest exchange of thoughts and ideas A strategic issue
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Challenges in HRM
Globalization Technological changes Political and legal factors Social factors Trends in the nature of work Work force diversity Composition Women at work Changes in the employee values Level of education

Jobs & Careers in HRM

HR Specialist HR Manager HR Executive Why Study HRM?

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Integrating HR Strategy with Business Strategy

Traditional HRM vs. Strategic HRM

Traditional HRM Strategic HRM

Responsibility for HRM

Focus Role of HR

Staff specialists Employee relations Transactional, change follower and respondent

Line managers Partnership with internal and external customers Transformational, change leader and initiator

Initiatives
Time horizon Control Job design Key investments Accountability
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Slow, reactive, fragmented

Short term Bureaucratic roles, policies, procedures Tight division of labour, independence, specialisation Capital, products Cost centre

Fast, proactive, integrated

Short, medium, long Organic-flexible, whatever is necessary to succeed Broad, flexible, crosstraining teams People, knowledge Investment centre

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HR Role in Strategic Management

In strategy formulation HR manager supplies competitive intelligence that is useful In strategy implementation Encouraging proactive behaviour Explicit communication goals Stimulate critical thinking Productivity Quality and Service Proficient strategic management
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Components of Building A Capable Organisation

An organisation capable of good strategy execution
Staffing the Organisation Putting together a strong management team Hiring and retaining talented people

Building Core Competencies and Competitive Capabilities Developing a competency/capability portfolio suited to current strategy Updating and reshaping the portfolio as external conditions and strategy change

Structuring the Organisation and Work Effort Organising business functions and process, value chain activities and Human Resource Management, 56 decision making 5E