Human Resource Management

Ashok Leyland

The case discusses the age diversity issues at Ashok Leyland Limited (ALL), Indias second largest commercial vehicle manufacturers. Ashok Leyland Limited (ALL) is a company with a long standing history in Indias industrial development. Started as an establishment aimed at Industrial development of India, the group grew into the manufacturers of Heavy Commercial Vehicles (HCV). The company's growth, though slow, was marked by innovations. To compete with the foreign commercial vehicle manufacturers and stay fit in the market, company decided to recruit more youngsters. Soon, 40% of ALLs workforce constituted of people less than 35 years of age. But the increasing attrition rate of its younger employees puzzled ALL. Searching for the reason ALL found out that the younger employees were undergoing a cultural shock. The system which revolved over experience was in need of change. A negligence in management of age diversity can spell serious troubles in an organisation. With more and more youngsters entering the workforce, managing age diversity has become a serious responsibility of managements across the globe. Discuss steps ALL can take to resolve the issue.

Does it matter? Why?

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

Many organizations are doing just this..

Recordkeeping and administrative, perhaps Basic functions..

Defining Human Resource Management

A strategic and coherent approach to the management of an organization's most valued assets-the people working there who individually and collectively contribute to the achievement of its objectives.

General Management Vs HRM

General Management 1.Holistic view of organisation 2.Managerial 3.Constituion of the organisation 4.Face of the organisation 5. Spokes person (figure head) 1.Focused 2.Functional 3.Strategiest 4.Integrators 5.Executors

HRM

Understanding of HRM

HRM is a management function concerned with Hiring, Motivating, and Maintaining people in the organisation. It focuses on people in the organisation. HRM is broad concept Personnel Management (PM) & Human Resource Development are part of HRM.

Functions of Personnel Management

Operative Functions: Procurement Development Compensating Utilizing Maintaining Managerial Functions: Planning Organizing Directing Co-ordination Motivating Controlling

Evolution of HRM in India source :- C.S.V.Ratnam & B.K. Srivastava, PM & HRM,p.5

Period
1920s 1930s 1940s 1960s

Development Status
Beginning Struggling for reorganization

Emphasis
Statutory, Welfare, paternalism Introduction of Techniques

Status
Clerical Administration

1970s-1980s Achieving sophistication

Regulatory, Conforming, Standards on functions

Human values, productivity through people

Managerial

1990s and Promising / Way Ahead.. Inspiring

Executive

Composition of HR/Personnel Department

Director HRM

Managerial Personnel

Manager Administration

Manager-HRD

Manager- IR

Appraisal

T & D

PR

Canteen

Medical

Welfare

Transport

Legal

HRP

Hiring

Grievance Handling

Compensation

Origin & Growth of HR Function in India

Report of the Royal Commission on Labor in India recommended appointment of labor officers to deal with recruitment check corruption practices hire and fire labor as his responsibilities administer welfare measures. Appointment of LO functioned as IR officers to handle grievances.

2nd World War - Felt its necessity to handle working conditions hygiene medical facilities canteens/ration shops housing & recreation facilities.
Enactment of ID Act 1947. (To handle disputes, strikes and lock outs) Enactment of Factories Act 1948. (Health, Safety and Welfare) 1960s and after Employment exchange act 1959 for recruitment, Apprentice Act 1961 for training of workers etc.

Evolution of HRM
Police Man Evolution of HRM in India dates back to 1929-1931 when Report of Royal Commission on Labour recommended appointment of labour officers to deal with and check for corrupt labour recruitment practices.

Once appointed, such labour officers were given the responsibility of promoting welfare activities. They largely functioned in the capacity of industrial relations (IR) officers to handle grievances and settle disputes.

Welfare Man During the second world war, the role of labour officers were enriched based on economys need to work towards welfare along with labour administration. They then needed to deal with working conditions, canteen, ration shops, recreation facilities, medical facilities, housing for workers etc. During this era the role of welfare officers included welfare, personnel and industrial relations.

Law Man The industrial disputes Act was introduced in 1947 which made adjudication compulsory. This made welfare officers also start handling dispute cases against conditions of service, wages and benefits. Thus, a welfare officer transformed into an IR Officer with legal background. Liaison Man Factories Act was introduced in 1948, which made it obligatory for factories with more than 500 employees to appoint a welfare officer who had predefined list of roles to perform.

1960s onwards when industries started to grow rapidly and Employment exchange act and Apprentice Act were introduced, IR officers role started to step beyond IR/welfare into recruitment /training and such other HR functions that exist today.

Personnel Management Vs HRM

Dimension 1.Employment contract 2.Rules 3.Management action

Personnel Management Written contract

HRM Aim to go beyond contract

Importance of devising clear Impatience with rule rules Procedures Business need

4.Behaviour referent
5.Managerial task

Norms/customs and practices

Monitoring

Values/mission
Nurturing

7.Initiative 8.Speed of decision

Piecemeal Slow

integrated Fast Transformational Direct Facilitation

9.Management role Transaction 10.Communication Indirect 11.Prized management skills Negotiation

12.Selection
13.Pay

Separate, marginal task Job evaluation

Integrated, key task

Performance related

14.Labour management

Collective bargains Performance based contract

Studying Human Factor is the MOST Complex Task!!

Each individual is different environment, background etc.

from

culture,

education,

We cant purchase the loyalty, dedication, devotion towards the organization. Recent developments like legislation, trade unions enhanced their importance.

Objectives of the HRM Function

HRM contributions to organizational effectiveness:

Reach Organizational Goals Efficient employment/deployment of workforce Provide job satisfaction & quality of work life

4 Level Significance of HRM

Corporate Professional

Social
National

HRM and Organizational Effectiveness

For a firm to survive and prosper, reasonable goals must be achieved in:
Performance

Legal

compliance Employee satisfaction Absenteeism Turnover Training effectiveness and ROI Grievance rates Accident rates

Strategic Importance of HRM

Key concepts that must be applied:

Analyze and solve problems from a profit-oriented point of view Assess and interpret costs and benefits of HRM issues Planning models must include realistic, challenging, specific, and meaningful goals Prepare reports on HRM solutions to problems encountered by the firm

Strategic Importance of HRM

Key concepts that must be applied (continued): Train the human resources staff Emphasize the strategic importance of HRM Show managers that they contribute to the goals/mission of the firm

The actions, language, and performance of the HRM function must be: Measured Precisely communicated Evaluated

Strategic Importance of HRM

The

era of HRM accountability resulted from:

Concerns

about productivity Organizational downsizing and redesign An increasingly diverse workforce The need to effectively use all organizational resources to compete in an increasingly complex and competitive world

Strategic Importance of HRM

For the HRM function to be successful, managers in other functions must be knowledgeable and involved:

Managers play a major role in setting the direction, tone, and effectiveness of the relationship between: The employees The firm The work performed Without managerial participation, there are likely to be major human resource problems

Objectives of the HRM Function

HRM contributions to organizational effectiveness (continued):

Employee

Communication Policy/Procedures

Maintaining

Policies & Ethical Behaviour - Lead/Show by example - Fair, truthful, and honourable - No discrimination & protection of basic rights

Effective

Change Management

Objectives of the HRM Function

Essence of increased Job satisfaction

Being into the right job Being treated equitably

Objectives of the HRM Function

Quality of work life (QWL)

Management and supervisory style

Freedom and autonomy to make decisions on the job

Satisfactory physical surroundings

Job safety
Satisfactory working hours

Meaningful tasks

Need for HRM

Firms are placing a growing emphasis on: Increasing customer service Developing new products

and services Training and educating technicians, managers, and decision makers Reducing Cost

Learning provides a framework for decreasing cycle time

Summary - HRM Objectives & Functions HRM Objectives 1.Societal Supporting Functions 1.Legal compliance 2.Benefits 3.Union-Mgmt relation 1.HR Planning 2.Employee relation 3.Selection 4.T &D 5.Appriasal 6.Placement & 7.Assessment 1.Apprisal 2. Placement 3.Assessment

2.Organisational

3.Functional

4.Personal

1.T&D 2.Placement 3.Compemsation 4.Assessment

Job categories
Job design Conflict handling T&D Respect for employees Shared interest Locus of control

Many
Division of labor Reach temporary truce Controlled access to courses Labor is treated a tool

Few
Team work Manage climate & culture Learning companies People are as assets

Interest of organisation Mutual interest most External Internal

Organizing principles

top-down,centralised

Decentralized

For years, the HRM function was not linked to corporate profit

Organizations focused only on current performance

HR managers did not have a strategic perspective

Executives categorized HRM in a traditional manner

It was difficult to develop metrics for HRM activities

HRM and Organizational Effectiveness

It is important to remember that the people who do the work and create the ideas allow the organization to survive

Reasons for slow growth of HRM in India

Late arrival of the factory system Low status of Industrial worker

Slow emergence of professionalism in HR

Setting up social responsibilities of business Fair wages, benefits, good working conditions, growth opportunity, recognition of workers rights, co-operation.

Government attitude
Technological backwardness Instability in employment Unhealthy growth of trade unions Migratory characteristic of Indian Labour.

Factors impeding growth of HRM in India

Abundance of Cheap Labour Weak Labour Movement Highly Authoritarian Culture Technological Backwardness Instability in employment Unhealthy growth of TU Migratory character of Labour