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17th Oct 2017

IBS Gurgaon
HRM vs HCM (Human Resource management to
Human Capital Management)
Human Resources to Human
 Brilliant Business Plan

 Set up world class processes

 Sophisticated accounting control

 Great Marketing Strategy

Results through People

Capital intensive to People Intensive

Finance /Marketing Managers
knowing HRM -- important to all
 You may spend some time as HR Manager

 HR for Entrepreneurs
More than half the people working in the USA work for small firms. Small
businesses account for the most of the new businesses created every
year. In India SMEs account for 95% of Industrial units. Therefore in next
few years statistically speaking graduates passing out from colleges either
work largely in Small firms and starting on their own.
Finance /Marketing Managers
knowing HRM -- important to all
 Wrong Hire ????

 Experience High Turnover

 People Productivity

 Unfair Salaries ????

 Compliance of labour law

HR – Critical Role
 Start up Org.

 Merger & Acquisition.

 Daily operations of the Organisation.

 Closure/ Restructuring of Organisation.

Evolution of HR
 HR Management is a field that has evolved since 1900
Evolution of HR - Contnd ---
 Wave 1 - Administrative work ( delivery of HR Services,
regulatory compliance, managing terms & conditions of
work)- transactional only.
 Wave 2 - Re design HR Practices ( Innovations in
recruitment,selection,career planning,HR services)
 Wave 3 - Integration of HR practices with business
success. ( assessing, improving Talent ,culture and
leadership to accomplish strategy.)
 Promises ------Wave 4 - ( HR from outside In ) ( customer
share , investor confidence, community reputation,HR
reputation – drawn from outside the Org)
Role of HR Function
Managerial Role :
 Planning future manpower needs – expansion, startups- develop manpower planning
 Hiring best fit - develop methods for recruitment & selection. Ensure availability of
 Utilizing resources - right person @ right place. Ensure productivity.
 Retaining & motivating - Integrate with org culture , ensure role clarity, reward on merit ,
assess contribution.
 Planning growth of people – career development & career planning
 Developing healthy Industrial relations.

HRD (Developing competence Role) :

 Technical competence
 Managerial competence / Leadership competence
 Counseling / coaching

Custodian of culture / Values

respect, openness, transparency, performance ,speedy decision , implement Value system of
the org in the Performance Management & values :
Ensuring culture of. Reward and encourage value orientation.
Changing Boundaries of HR
 Business conditions - Reorganization & Restructuring ( redeploy,
downsizing,upsizing,right sizing, outsourcing etc.
 Managing Mergers & Acquisitions - changing HR policies- realigning,
redrafting -
 Assessing org climate - surveys
 Compensation and Reward system – ESOPS
 High volume recruitment
 Outsourcing
 Introducing new technology of training - E learning, web based learning etc.
 Starting In house training institute
 Introduction of 360 degree of feedback
 Use of assessment centre & development centre
 Emphasis on mentoring & coaching
 Leadership development
 Participation in strategic thinking , business planning , M&A etc.
Key stakeholders of HR
HR As a Profit Centre
You can do everything right as a Manager – brilliant
plans,set up world class processes,systems, use
sophisticated accounting control, but can still fail by
hiring wrong people and low morale of people----

 Cost
 Quality
 Efficiency
HRM (Scope)
 Job & Salary ( Job Analyses , Role description, compensating
employees,salary administration

 Planning & Administration ( Manpower planning

recruitment,selection, career planning , performance
appraisal,succession planning)

 Human Resource Development ( Training,Leadership

development,Org Development, coaching,Performance

 Worker Affairs ( Ind Relations, welfare, worker participation,

 Recruitment

 Performance Management

 Training

 Compensation & Benefit

 Employee Welfare

 Corporate Social Responsibility

HR Organisation
Design principles :
1. HR org follows the logic and structure of the
business org.
2. HR org follow the flow of any professional org
service org.
3. Differentiate between transactional and
transformational work.
Hr Org - structure
HR Org - contnd ---

 Corporate HR - Top management Integration, corporate

initiatives ,HR careers

 Centre of Expertise / Excellence - Talent Acquisition,

Learning & Development , Talent Management
compensation & Benefit

 Embedded HR (Strategic business Partner, HR


 Shared Services Centre ( Employee self service,

Employee assistance, benefits administration, PF,Pension
processing, payroll management etc.)
Business Alignment – “ Tell us
about your business “

 HR must create and deliver value in real business terms --------

 Who are the stakeholders ---- Employees,Investors,Community

,Line Managers,customers,Partners .

 HR credibility - outside the Company as well as inside.

 Integrated HR practices - on Talent, Culture,Leadership to

achieve strategy.

 Understand competition , market , spend time with

customers,investors and community leaders leading to HR
innovations .
Internal Customer
 Who is a line Manager - Responsible for business
outcomes .

 Support to Line Managers - resource planning,

Training , performance feedback etc.

 Responsive ,speed ,time are important factors .

 Feedback of Line Managers is critical .

Line vs Staff Authority
Authority is ---- right to make decisions

 Line Authority - right to issue order manager to


 superior to subordinate

 Staff Authority – right to advice, supportive role

Line Manager’s HR duties
 Placing right person in the right job

 New employee’s orientation

 Job performance,training

 Development,motivation,morale
Line and staff
 Hiring (line + staff)
HR Management
 Selection tools implementation (staff)

 Training (Line+ staff)

 Compensation – staff

 Performance appraisal (line+staff)

HRM is whether part of every Manager’s job ?????

Trends Shaping today’s HRM
 Technological Advancement ( HR Portal,analytics etc)

 Globalization ( offshore,international trade, outsourcing


 Nature of work ( High Tech jobs are replacing factory jobs

 Service Jobs ( two thirds of the US workforce is already

employed in protecting and delivering services, not
products by 2020 in India service providing industries are
expected to account for 131 million out of 150 million of
wage and salary jobs
Workforce Trends
 Demographic Trends : talent supply crunch, demand of skilled labour, shift to
non traditional skill sets.

 Generation Y: high cost , high maintenance however High IT skill and high
performing millennial, by 2020 average age in India would be 29 in comparison
to 37 in China and USA, 45 in western Europe and 48 in Japan.

 Retirees : back to workforce

 Non traditional workers : Temporary, part time,working from home, remote

locations, co working sites

 Workers from Abroad : USA,Middle East ---specialized workforce

HR Professional competencies
The New HR Manager

 Strategic – Big Picture – Business Aligned

 Focus on improving performance – HR function’s
performance, Employee cost, Strategic results
 The measure HR performance & Result Performance
Metrics of HR
 Evidence based HRM
The New HR Manager
 They add Value

 Adopt new ways to provide HR services

 Take Talent Management approach to manage HR

 Manage Employee Engagement

 Manage Ethics
Human Resource Planning

 Is a process of systematically reviewing Human

Resources need to ensure the required nos of
employees with required skills, experience and
competencies - available for the right jobs at right
time at right cost .
Human Resource planning - Model
 Understand Business plan :

 Forecasting demand - The number and type of resources needed to meet

the organisational requirements

(factors like technology ,competitive strategy,org structure and productivity

norms , job analysis , workforce analysis – attrition trend, retirements, leave
etc to be considered)

 Forecasting supply - planning for sourcing ( Internal & external)

 Finding Gaps
 Recruitment plan

 Redeployment plan

 Redundancy plan

 Training plan

 Compensation Plan

 Productivity Plan ( benchmarking, zero basing, outsourcing)

 Retention Plan


Jobs ( Tasks,Duties & Responsibilities)

Work Analysis

 INPUT (Jobs & (Goods &
( People,Money,Material etc) activities)

Helps in understanding different steps taken to

achieve Output)
 Job is a set of tasks with specific results /performance/outputs .
An individual is attached to a job.

 Task is set of activities with a time frame and target .

 Work is a set of Jobs.

 Position is a specific point or office in the organisation . Which

specifies the authority , level or power . A job ( description of
activities) is assigned.

 Role is a relationship between the individual and the org . Role is

a position or an office a person occupies to fulfill certain
expectations described for the role . ( Responsibility /Accountability )
Job Analysis – Building Block of
 Is a systematic process of gathering information about
the job the information include :
 Fundamental purpose of the job.
 Details of the tasks /responsibilities.
 Identification of key performance areas / KRAs .
 Working relationship with supervisor /team members.
 Any specific method ,tool , knowledge required for the
 Competencies / behavioral attributes required to perform
the job.
Job Analysis ----
 Analysis of the Job leads to :

Job Description ( JD) and Job Specification

Job Description : It includes the tasks ,duties and responsibilities of a job.

Performance standards or Key Result Areas (KRAs) can flow directly from JDs.

Job Specification : It list the knoweldge ,skill,abilities (KSAs) include

education,experience,skill requirements, personal abilities required to
perform the job.

These are the tools or basic information necessary for Recruitment ,

Performance Management ,Compensation Management, Training &
Job Analysis
 Job Analysis is an useful tool for :

1. Recruitment
2. Compensation Management
3. Performance Appraisal
4. Training & Development
Job Analysis-----
 Planning to do JA – Reasons /objectives ( update JDs,revise
compensation programs,job redesign etc

 Preparations - identifying the set of jobs, sources of

informations,how to communicate,scheduling

 Conducting - interviews,data analysis, survey

 Developing JDs and Job specification

Job Design(Enlargement,Enrichment,Rotation)
Effective Recruitment
 Getting right person at right time at right cost !
 Even if the unemployment rate is high getting a right
fit is challenging!
 Survey says in manufacturing sector about 2/3rd of
manufacturing executives faced moderate to severe
shortage of skilled labour.
 “Talent and skill shortages” as the number 2 risk
facing business today ( loss of customer being No 1)
 High end technology skill, effective leaders are
difficult to be hired!
Factors of Recruitment
 Human Resource Planning
How many , when, what KSAs, special goals – viz Diversity.

 Organizational Responsibilities
Role of HR ,Role of Line Managers, How you recruit (centralize/decentralize)
Creating an Employer Brand, creating recruiting presence,
training of recruiters / consultants.

 Strategic Recruiting Decisions

sources for recruiting ( hiring from within), Rehiring, flexible staffing, diversity agenda

 Recruiting Methods
Internal methods : organizational database, job posting,promotion,transfer,current employeee referral,
re hire former empls, external methods , web based methods ( job sites,social media), Campus Hiring
 Creative Recruiting Methods
For a niche skill or in a tight labor market employers turn to be creative.

 Effectiveness of Recruitment process :

Yield Ratio , selection rate, acceptance rate, success base rate ( cost,quality,time)
How you recruit
 Internal vs External
 Temp/Full time/contract
 Recruiting online
 Social Media
 Through HRIS using Applicant Tracking System
 Referral / Walk ins
 Campus Hiring
 Internship
 Outsourcing/off shoring
 Appointing Executive recruiter
Essentials to Recruitment
 Cost

 Legalities ( Local laws / recruiting women, disabled ,contract empls etc. )

 Recruiting Retired employees

 Remote locations candidates

 Recruiting Ex Employees

 It is a process of choosing individuals who have the

required Knowledge ,skill and attributes to fill the job
in the organization.
 Why Employee selection is important : person job fit,
matching Knoweldge,skill,attitude.

 Right for the job may not be right for the Org.

 Selecting right person is important for 3 main

reasons: performance,cost and legal obligations.
Basics of Testing and Selecting
 Reliability: A consistency

 Validity : If it measures, what you think it suppose to

1. Criterion validity
2. Content Validity
3. Construct Validity
Factors in Selection/Testing
 Biases

 Utility Analysis

 Test Security

 Diversity if counts

 How do employers use test at Work

Types of Tests
 Test of cognitive abilities : Intelligence, reasoning,
mental ability etc.
 Test of Motor and Physical abilities: testing finger
dexterity, manual dexterity viz hiring pilots , hiring for
armed forces etc.
 Managing personality and Interests
 Achievement Test
 Improving performance through HRIS:
computerisation,online testing ATS etc.

 Data Analytics :

 Crowd sourcing:

 Work sampes/Simulations
 Management Assessment Centre

 Situational Testing and Video based situational testing

 Background check

 Reference Check