Human Resource Management Lecture 1

What Is Human Resource Management (HRM)?

The policies and practices involved in carrying out the people or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising.

planning, organizing, directing, controlling of procurement, development, compensation, integration , maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved. - Edwin Flippo

Scope of HRM
HRM mainly covers three broad areas:

 Personnel aspect  Welfare aspect  Industrial relations aspect

Personnel Aspect
Recruitment, selection, placement, training, appraisal, compensation, productivity.

Personnel/ HR Management

Welfare Aspect
Working conditions, amenities, facilities, benefits.

Industrial Relations Aspect

Union-management relations, disputes settlement, grievance handing, discipline, collective bargaining.

 Objectives of HRM HRM aims at achieving organisational goals, meet the expectations of employees; develop the knowledge, skills and abilities of employees; improve the quality of working life and manage human resources in an ethical and socially responsible manner.

Importance of HRM
From an organisational standpoint, good HR practices help in attracting and retaining talent, train people for challenging roles, develop their skills and competencies, increase productivity and profits and enhance standard of living

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Importance of HRM
 attract and retain talent  train people for challenging roles  develop skills and competencies  promote team spirit  develop loyalty and commitment  increase productivity and profits  improve job satisfaction  enhance standard of living  generate employment opportunities

Good HR Practices help

The Strategic Role Of Human Resources Management

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HRM as a central subsystem in an organisation

Product Subsystem

Finance Subsystem

HR Subsystem Procurement Training Compensation Appraisal Rewards

Marketing Subsystem

Technical Subsystem

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The evolving strategic role of Human Resource Management

Strategic focus Strategic partner System Change agent People

Administrative expert

Employee champion

Operational focus

Roles Played by a Personnel /HR Manager

 Administrative roles  Policy maker  Administrative expert  Advisor  Housekeeper  Counsellor  Welfare officer  Legal consultant  Operational roles  Recruiter  Trainer, developer, motivator  Coordinator/linking pin  Mediator

Roles Played by a Personnel/HR Manager

 Employee champion  Placing people on the right job  Charting a suitable career path  Rewarding good performance  Resolving differences  Adopting family-friendly policies  Ensuring fair and equitable treatment  Striking balance between employee expectations and Organisational requirements  Representing workers' problems and concerns to management  Strategic roles  Change agent  Strategic partner

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Traditional HR vs. Strategic HR

Point of distinction Focus Role of HR Initiatives Time horizon Control Job design Traditional HR Employee Relations Transactional change follower and respondent Slow, reactive, fragmented Short-term Bureaucratic-roles, policies, procedures Tight division of labour; independence, specialisation Capital, products Cost centre Staff specialists Strategic HR Partnerships with internal and external customers Transformational change leader and initiator Fast, proactive and integrated Short, medium and long (as required) Organic-flexible, whatever is necessary to succeed Broad, flexible, cross-training teams People, knowledge Investment centre Line managers

Key investments Accountability Responsibility for HR

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Evolution of the Personnel Function

Concept The Commodity concept What is it all about? Labour was regarded as a commodity to be bought and sold. Wages were based on demand and supply. Government did very little to protect workers. Labour is like any other factor of production, viz, money, materials, land, etc. Workers are like machine tools. Welfare measures like safety, first aid, lunch room, rest room will have a positive impact on workers productivity Management must assume a fatherly and protective attitude towards employees. Paternalism does not mean merely providing benefits but it means satisfying various needs of the employees as parents meet the requirements of the children.

The Factor of Production concept The Goodwill concept

The Paternalistic concept/ Paternalism

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Evolution of the Personnel Function

The Humanitarian concept To improve productivity, physical, social and psychological needs of workers must be met. As Mayo and others stated, money is less a factor in determining output, than group standards, group incentives and security. The organisation is a social system that has both economic and social dimensions.

The Human Resource concept

Employees are the most valuable assets of an organisation. There should be a conscious effort to realise organisational goals by satisfying needs and aspirations of employees.

The Emerging concept

Employees should be accepted as partners in the progress of a company. They should have a feeling that the organisation is their own. To this end, managers must offer better quality of working life and offer opportunities to people to exploit their potential fully. The focus should be on Human Resource Development.

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Personnel Function in India; Changing Scenario

Period 1920 30 Emphasis Welfare management Paternalistic practices Expanding the role to cover Labour, Welfare, Industrial Relations and Personnel Administration Efficiency, effectiveness dimensions added Emphasis on human values, aspirations, Incremental productivity gains through human assets Status Clerical Roles Welfare administrator Appraiser Advisor Mediator Legal advisor Fire fighting Change agent Integrator Trainer Educator Developer Counsellor Coach Mentor Problem solver

1940 60

Administrative

1970 80

Developmental

1990s onwards

Proactive, growth-oriented

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Shifts in HR management in India

Traditional HR practice
 Administrative role  Reactive  Separate, isolated from   

Emerging HR practice Strategic role Proactive Key part of organisational mission

  

company mission
 Production focus  Functional organisation  Individuals encouraged, singled

Service focus Process-based organisation Cross-functional teams, teamwork most important

out for praise, rewards

 People as expenses 

People as key investments/assets

HRM in the new millennium

Size of work force Composition of workforce Employee expectations Changes in technology

Life style changes Environmental challenges

Managerial Functions

Functions of HRM

 Planning  Organising  Directing  Controlling

Operative Functions
 Procurement Function
Job analysis Human resource planning Recruitment Selection Placement Induction and orientation Internal mobility  Development Function Training Executive development Career planning and development Human resource development

Operative Functions
 Motivation and Compensation Job design Work scheduling Motivation Job evaluation Performance appraisal Compensation administration Incentives and benefits  Maintenance Function Health and safety Employee welfare Social security

Operative Functions


Integration Function Grievance redressal Discipline Teams and team work Collective bargaining Employee participation and empowerment Trade unions and employers associations Industrial relations Emerging Issues Personnel records Human resource audit Human resources research Human resource accounting Human resource information system Stress and counseling International human resource management

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Personnel Policies, Procedures And Programmes

Personnel policies are guides to action. They serve as roadmaps for managers on a number of issues such as recruitment, selection and promotion. They cover almost all functions of personnel management. A good personnel policy should be easy to understand, based on facts, equitable, reasonably flexible, precise and related to objectives.
        

Related to objectives Easy to understand Precise Stable as well as flexible Based on facts Appropriate number Just, fair and equitable Reasonable Review

The impact of human resource policies can be measured through their outcomes:

Commitment: how long an employee stays with a firm   

Competence: appraised through performance appraisal techniques Congruence: nature and frequency of grievances, disagreement, discord and conflict Cost effectiveness: measured through human resource accounting techniques

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Personnel department in a line organisation

Chief Executive Personnel Manager

Recruiting Officer Assistants

Training Manager Assistants

Compensation Manager Assistants

Welfare Officer Assistants

Total Quality Management Programmes

TQM is a way of creating an organisational culture committed to the continuous improvement of skills, teamwork, processes, product and service quality and customer satisfaction.  Do it right the first time
 

Be customer oriented

Make continuous improvement a way of life

 

Build teamwork Empower people

Create a climate of trust, an atmosphere for innovation

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Quality snaps of Indian companies

Name of Company
1. Indo-Gulf Fertilizers Ltd

Efforts toward TQM

Upgrading technology; training people; monitoring cost, quality and delivery criteria; participative management, HRD; ISO 9002 Certification, first fertilizer company to get this in India; Shaktiman Krishi Seva Kendras in UP, Bihar and West Bengal. First to get ISO 9001 certification, in Dec 93; Strict metal parts quality control; 100% checking of insulators for testing their strength; strict quality assurance tests; high quality testing labs, etc. SUMO model Jeeps manufactured here according highest priority to ISO 9000 certifications; training and self-inspection given top priority. Implemented TQM in 1995; first step was moving toward international quality system standards ISO 9000; total employee involvement; creation of self managing mini, micro and megateams; got the European Quality Award; Kaizen and suggestion schemes introduced followed by rewards and recognition system; regular surveys of employee motivation levels accompanied by customer surveys

2. Bharat Heavy Electricals Ltd (BHEL)

3. TELCO (Lucknow)

4. Philips India Ltd

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Benchmarking
Effective implementation of TQM requires benchmarking. The essence of benchmarking is striving to be the best of the best in one s area of operations. It is a continuous process of measuring products, services and practices against the toughest competitors or industry leaders with the aim of mutual improvement.

Reengineering
The primary focus of TQM is on continuous improvement or ongoing incremental change. Reengineering is all about achieving this. Actually speaking, reengineering takes place when more than 70 per cent of the work processes in an organisation are evaluated and altered. The focus is on simplifying operations and making them more efficient and customer oriented.

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Essentials of reengineering
        Give people a mission; a clear view of how to achieve that mission. Either serve the customer superbly or don t even try. Change is the way of life. It is not a process, it is a value. Technology is never really a problem. The problem is how to use technology effectively. The wrong answer rarely kills you. What it does is waste time. The weak link in reengineering is will. Once people catch on to reengineering, you can t hold them back. It s a lifetime opportunity. In India TELCO, TISCO, L&T, Ranbaxy and Crompton Greaves have successfully brought about radical changes through Reengineering.

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Designing appropriate HR systems

Issue
       

Focus on : : : : : : : : Job/Career Internal/external/both Merit/other considerations 6 months/yearly Regular/irregular/need based Top down/bottom up Individual merit/group output Lifelong employment/need-based jobs Be a model employer (offer those that are needed by law.)

Nature of employment Recruitment Selection Training and employee development actions Degree of participation Incentives Job security Employee welfare

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Qualities And Qualifications Of A Personnel Manager

HR professionals must have a thorough knowledge of the organisation and its overall functioning. To deliver effective results, they need considerable amount of knowledge, skills and expertise in tax laws, finance, statistics, social sciences etc apart from the training that they receive from reputed B-schools. Qualities  Personal attributes  Intelligence  Educational skills  Discriminating skills  Executing skills   Experience and training Professional knowledge
Cont

Personnel management: functions, policies and roles

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Qualities And Qualifications Of A Personnel Manager

 Qualifications  Business mastery  Change mastery Professionalisation of personnel management in India Attributes of a profession       Well defined body of knowledge Formal education and training Minimum qualifications Representative body Service above self Ethical conduct
Cont

Personnel management: functions, policies and roles

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Qualities And Qualifications Of A Personnel Manager

Over the years, personnel management has emerged as a highly respected profession in India. The reasons are fairly obvious;      Growth of management institutes A growing body of literature Professional bodies Self-regulatory institutions overseeing the operations of personnel people Code of conduct

Personnel management: functions, policies and roles