Human Resource Management

Introduction to HRM & Its Environment

Human Resource Management

Assets make things possible, people make things happen

Human Resource Management

Human Resource Management

Every organization consists of three basic components i.e. Purpose, People and Structure Human Resource Management (HRM) is the study of activities undertaken by the people working in an organization

It is a managerial function that helps organizations to assess its need and its solution of the organization. It is responsible to hire people for the organization, train them to perform their assignments, provide benefits

Human Resource Management

Human Resource Management

Resource

Human

Management

HRM
Human Resource Management

Human Resource Management

Let us elaborate the terms human, resource and management Human (The Social Animal characterized by superior intelligence) Resources (Financial, Physical Technical and informational etc) Management (Planning, Organizing, Leading and Controlling functions)
Human Resource Management

Human Resource Management

Management Function that tries to match an organizations needs to the skills and abilities of its employees

Human Resource Management

Human Resource Management

To meet the needs of the business and management (rather than just serve the interests of employees); To link human resource strategies / policies to the business goals and objectives; To find ways for human resources to "add value" to a business;

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Human Resource Management evolution

The early part of the century saw a concern for improved efficiency through careful design of work. During the middle part of the century emphasis shifted to the employee's productivity. Recent decades have focused on increased concern for the quality of working life, total quality management and worker's participation in management..

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Human Resource Management - Nature

Human Resource Management is a process of bringing people and organizations together so that the goals of each are met Its focus is on results rather than on rules. It tries to help employees develop their potential fully. It is all about people at work, both as individuals and groups. It tries to put people on assigned jobs in order to produce good results. It helps an organization meet its goals in the future by providing for competent and well-motivated employees.

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What HR Managers can DO ?

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Human Resource Management- central challenge

Global environment is becoming complex and complex Our country will have to face further demands to compete globally Hunger, energy crisis, political crisis, terrorism, cure diseases, unemployment other challenges that we cannot imagine
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Human Resource Management- central challenge

Population growth challenges Workforce diversity challenges Global competitive challenges

Unemployment challenges

Central challenge Better organizations

Social responsibility challenges

Ethical challenges Unknown challenges

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Medical, food, housing challenges

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Human Resource Management- central challenge

We can respond to these challenges with our most creative invention : organizations The better our organizations work, the more easily we can meet challenges and opportunities. Increase Productivity ,efficient and effective use of resources Efficient : means use minimum resources needed Human Resourceto produce maximum goods and services
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Human Resource Management- central challenge

Productivity = output = goods & services input

People, capital, materials &energy

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Human Resource Management- central challenge

Productivity increases as an organization finds new ways to use fewer resources to produce its output. Through productivity gains, managers can reduce costs, save scarce resources and enhance profits.

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Purpose of Human Resource Management

The purpose of human resource management is to improve productive contribution of people to the organization in ways that are strategically, ethically and socially responsible.

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Functions of HRM

HR Planning

Recruitment & Selection

Selection & Staffing

Orientation

Compensation & Benefits

Performance Management

Training & Development

Safety & Wellness

Employee Motivation, Communication & Administration

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Functions of HRM

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Factors Contributing to Growing Importance of HRM

Accommodation to Workers Needs Increased Complexity of the Managers Job Legislation and Litigation Consistency Expertise Cost of Human Resource

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Accommodation to Workers Needs

Workers are demanding that organizations accommodate their personal needs by instituting such programs as Flexible Work Schedules Casual/Sick Leave Child-Care and Eldercare Assistance Job Sharing The human resource department plays a central role in establishing and implementing policies designed to reduce the friction between organizational demands and family responsibilities.

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Increased Complexity of the Managers Job

Management has become an increasingly complex and demanding job for many reasons, including foreign competition, new technology, expanding scientific information, and rapid change. Therefore, organizations frequently ask human resource managers for assistance in making strategic business decisions and in matching the distinctive competencies of the firm's human resources to the mission of the organization. Executives need assistance from the human resource department in matters of recruitment, performance evaluation, compensation, and discipline.
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Legislation and Litigation

state laws has contributed enormously to the importance of human resource functions. Four areas that have been influenced most by legislation include Equal Employment Compensation Safety Labor Relations An organization's failure to comply with laws regulating these areas can result in extremely suits, and penalties.

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Consistency

Human resource policies help to maintain consistency within an organization. Consistency is particularly important in compensation and promotion decisions. When managers make compensation decisions without consulting the human resource department, the salary structure tends to become very uneven and unfair promotion decisions also may be handled unfairly when the HR department does not coordinate the decision of individual manger.

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Expertise

Now a days there exist sophisticated personnel activities that require special expertise. For example, researchers have developed complex procedures for making employee-selection decisions; statistical formulas that combine interviews, test scores etc, have replaced the subjective interviews traditionally used in making selection decisions.

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Cost of Human Resource

Human resource activities have become increasingly important because of the high cost of personal problem. The largest single expense in most organizations is labor cost, which is often considerably higher than the necessary because of such problems as absenteeism

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Human Resource Management

Environment of HRM

Environmental Factors Affecting HRM

External Environment
The Labor Force Legal Considerations Society & Communities Shareholders Competition Customers Technology Economy Managing Diversity Equal Opportunity
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Internal Environment
Mission Policies Code of Conduct Corporate Culture Management Style of Managers Unions Managing Conflict

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Why are we concerned with HRM

Helps you get Results through others Helps you avoid common Personnel Mistakes Helps you to gain Competitive Advantage

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Helps you get Results through others

Different managerial techniques help mangers to direct the performance of employees in desirable direction in order to achieve the organizational objectives. Through the efforts of others working in an organization, managers get things done that require effective human resource management.

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Helps you avoid common Personal Mistakes

Qualified HR mangers utilize organization resources in such a way that helps to avoid common personnel mistakes like the following
Hiring the wrong person for the job Experiencing high turnover Finding employees not doing their best Having your company taken to court because of your discriminatory actions Having your company cited under federal occupational safety laws for unsafe practices Allowing a lack of training to undermine your departments effectiveness Committing any unfair labor practices

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Helps you gain Competitive Advantage

Among all the resources possessed by the organizations it is only Manpower or the Human resources that create the real difference. Because all organizations can have the same technology, they can possess same type of financial resources, same sort of raw material can be used to produce the goods and services but the organizational source that can really create the difference is Work Force of the organization. Therefore they are the main sources of innovation creativity in the organizations that can be used as a competitive advantage. In todays competitive environment, these are the people which can create Competitive Advantage for the organizations

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Challenges of Managing HR in this Era

To Attract People

To Develop People

Challenges

To Motivate

To Keep Talented People

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Challenges of

People will be interested to join any organization if it providing Managing HR inisthis Erathem quality working environment, attractive benefit and opportunities to excel in future. Keeping in view the opportunities in the market, the first issues will be to attract good people for your organization.

To Attract People

To Develop People

Challenges

To Motivate

To Keep Talented People

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 Development requires careful Challenges of Managing HR in this Era need assessment for training and selecting effective training methods and tools. After attracting/selecting, Continuous development of workforce of the organization leads towards development of To Develop To Attract the organization.

People

People

Challenges

To Motivate

To Keep Talented People

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Challenges of Managing HR in this Era

To Develop To Attract Motivation means to influence People performance of others and to redirect the People
efforts in desirable direction by using different motivational tools that can help in fulfilling the mission of organization.

Third important issues/concern will be Challenges to keep your workforce motivated so that they should keep on delivering effectively

To Motivate

To Keep Talented People

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Challenges of Managing HR in this Era

To Attract People

To Develop People This is related to retention of

workforce in organization and to take steps that can prevent undesirable detachments of talented and motivated workers from the organization

Challenges

To Motivate

To Keep Talented People

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Human Resource Management-importance

 1-HR as a Business Function  At the very least, when an HR function is available in an organization, it is responsible for managing employee data, takes care of payroll, time and attendance and the setting of company policies.  The role is largely that of Personnel Administration focused on Compliance both internal & external, and on Management of employee records.

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Human Resource Management-importance 2-HR as a Business Partner

As a Business Partner, the role of HR is to meet the existing business needs of the organization so that the organization could grow at a measurable rate. The focus of the HR shifts to competency based Recruitment, Total Compensation, Employee Development, Communication and Organization Design. To facilitate, HR uses tools such as Employee Portals for communication, Management Systems for training & development Organizations even have well defined Job Descriptions with details of qualifications, experience, special skills required for the job and job roles
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Human Resource Management-importance -HR as a Strategic Partner

Organizations that view their HR as a strategic business partner believe in full maturity of their HR function Such organizations are focused on attaining leadership positions rather than an year-on-year growth. Bottom-line and top-line growth are expected to be achieved automatically

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