Employees of Rourkela Steel Plant turned the

loss making unit into a profit making company

Violence at Maruti Suzuki's Manesar Plant July
2012


Two contract workers at the Tata Electric
company who were laid off set themselves
ablaze even as their co workers protested before
the company offices October 2003



Wipro finds out reasons for people leaving the
company, helps them find placements with a
guarantee that they can always come back

People make or mar an organisation



We need people to make an organisation.


So , how do we do it?
WHAT DOES THIS ALL MEAN?
Getting the people who can make an
organization

Enabling them to acquire required
capabilities

Motivating them to contribute their
resources


What is HR all about??
INTRODUCTION TO HRM
According to P Subba Rao, HRM is managing the
functions of employing, developing and
compensating human resources resulting in
creating and developing human relations and
utilization of human resources with a view to
contribute proportionately to the organizational,
individual and social goals.
Who are these people?

How to attract them?

How to retain them?

How to motivate them?

SCOPE OF HRM
HRM
CONTROL
Human Resource Audit
Human Resource Accounting
Human Resource Information
System

ACQUISITION
Human Resource Planning
Recruitment Selection
Placement
DEVELOPMENT
Training
Career Development
Organization Development
Internal Mobility
MAINTENANCE
Remuneration
Motivation
Safety
Social Security
Industrial Relations
Performance Appraisal
ANALYZING THE HRM CONTEXT
THE PEST MODEL:


It is a good tool to examine the general HRM context.

It captures the four important elements that shape and
influence broad HR decisions which are as follows:
Political
Economic- suppliers,competitors,customers
Social/Cultural
Technological


Political
Legislature
Executive
judiciary
TECHNOLOGICAL
FIVE WAYS OF LEVERAGING HR TECHNOLOGY
Use technology to change HR
Make employees self-reliant
Communicate with employees when monitoring
performance
Use more data to get more answers
Pay attention to appearance and functionality

SOCIAL AND CULTURAL
The TATA SURVEY
CULTURE COMES FIRST. REST IS JUST NOISE-
SAPIENT CORP.
Culture was so integral that when the company
finally reached 49 employees, Sapient dedicated
two of them to keeping it intact. Today, Sapient has
a global workforce of more than 11,500 people and
culture remains, as ever, an integral part of the
business.

Here are six values Sapient has found help its
culture remain solid, even as the business has
grown.
Always be open
Let people lead
Focus on clients
Nurture employees
Inspire creativity
Forge relationships

IMPORTANCE OF HRM
The Evolving Business Paradigm:

One of the factors behind organizations giving a lot of
attention to their people is the nature of the firms in the current
business environment.

The changed business landscape has come about as a result
of a paradigm shift in the way businesses and firms view their
employees as more than just resources and instead adopt a
people first approach.
CONTD
Strategic Management and HRM:

There is a need to align organizational goals with that of the
HR strategy to ensure that there is alignment of the people
policies with that of the management objectives.

This means that the HR department can no longer be viewed
as an appendage of the firm but instead is a vital organ in
ensuring organizational success.
CONTD
Importance of HRM for Organizational Success:

The practice of HRM needs to be integrated with the overall
strategy to ensure effective use of people and provide better
returns to the organizations in terms of ROI (Return on
Investment) for every rupee or dollar spent on them.


1960s Personnel Management

1970s- shift from welfare to efficiency due to
accelerated growth of the public sector in the
economy

1980s- professionals began talking about new
technologies, HRM challenges and HR (Uday
Pareek and T.V. Rao , pioneers of the HR movement
in India)
FROM PERSONNEL TO HRM
Public sector companies such as Bharat Heavy
Electricals Ltd. (BHEL) , State Bank of India -
early adopters of HRM

1990s- emphasis shifted to human values
and productivity through people

21
st
century arrival of the knowledge and IT
era emphasising the need for alignment of
people, processes and performance

Traditional approaches
Mechanical approach

Systems Approach


Integrated approach (Modern )
Strategic HRM
No difference between men and machines

Workers treated as workers

Workers hired as cheaply as possible then
discarded after exploitation
MECHANICAL APPROACH
System is the linking of interrelated and
interdependent components affecting one or
more processes

Components in HRM are of various subsystems
recruitment, training & development,
compensation, security measures, industrial
relations etc

Input- throughput- output-feedback-input within a
surrounding environment

SYSTEMS APPROACH
Example: Industrial Relations (IR) is the outcome of
HRM policies and practices (interrelated)

Developmental activities depend on the type of
candidates (interdependent)

These subsystems are linked to each other based on the
corporate strategies and departmental strategies

STRATEGIC HRM
New business environment -widespread use of
computers and internet for commercial applications,
technology freely available ,radically altered ways of
doing business

Increase of service-oriented firms, the infusion of more
and more women into the workforce, highly skilled
workforce etc


Skill of such workers becomes the major source of
competitive advantage for firms-also brings with
challenges

STRATEGIC HUMAN RESOURCE MANAGEMENT
(21
ST
CENTURY )
Retention of such knowledgeable workers

The Harvard Model of Beer et. al. (1984), advocates
leading people through communication and motivation
rather than managing them; it underlines the strategic
human resource management approach

This approach considers employees as assets, far more
valuable than resources

THE HARVARD MODEL
TRADITIONAL HRM VS. STRATEGIC HRM
Focus on employee
relations
Slow,reactive,fragment
ed

Cost centre
Tight division of labour,
specialisation
Partnership with
internal and external
customers
Fast,proactive,integrate
d
Investment centre
Broad,flexible,cross-
trainig
traditional strategic
THE CULTURE EMPOWERMENT MODEL
ADOPTED BY NIKE
Nike's approach to worker empowerment - giving
factory workers the skills and abilities needed to
manage production and immediately address
issues as they arise, such as quality or process
improvements..


Google (innovative ideas to encourage creativity-
employees to use 20 % of their time for creative ideas)

L & T ( recently awarded the Asia Pacific HR Conclave
Award for most innovative HR practices- rigorous and
continuous training in general management, technical
disciplines and business policy )

Infosys BPO Ltd ( recent World HRD Congress held in
Mumbai won 7 awards for its human resource
management practices-innovative talent hunting,
recruitment, retention process)


SOME OF THE COMPANIES WITH INNOVATIVE HRM
PRACTICES
RAPIDLY CHANGING WORKFORCE- HOW WILL
WE MANAGE?