MBA II Semester 203: Human Resource Management Unit 1 INTRODUCTION TO HRM

NSR Murthy
MA MBA MPhil (PhD)

Study Scheme : MBA - II Semester

MBA 201 MBA 202 MBA 203 MBA 204 MBA 205 MBA 206 MBA 207 MBA 208 Business Environment Production & Ops Mgt Human Resource Management Marketing Management Financial Management Workshop on RMethodology Workshop on IT VivaViva-Voce 35 35 40 35 45 30 20 25 25 25 25 25 25 50 50 75 75 75 75 75 75 0 0 100 100 100 100 100 50 50 100 700

TOTAL 240 250 450

Syllabus
Section I -Unit 1
 Introduction: Meaning, Scope, Objectives and

Importance of Human Resource Management  Personnel Management, its Functions, Policies & Roles  Organizing the Human Resource Management Department in the Organisation.  Human Resource Management Practices in India  HR Audit

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Unit 2

 Human Resource Planning: Definition, Objectives,

Process and Importance,  Job Analysis: Description, Specification, Recruitment, Selection, Placement and Induction Process

Suggested Readings
University Study Material
 Indian Authors:

1. K Aswathappa 2. VSP Rao 3. P Subba Rao 1. Garry Dessler

 Foreign Author

Introduction
Organisations round the world are re-modelling rethemselves -- hierarchy elimination In todays competitive world SUCCESS depends on effective HRM -- Onida vs Samsung The factor that can set apart an organisation manufacturing or service, private or public is it -- Human dimension people

Introduction contd contd

HRM philosophy, policies, procedures and practices relating to the management of people within organisations HRM - Acquiring the services of people, developing their skills, motivating them to higher performance, increasing their commitment to the organisation

The Management Process (Dessler) (Dessler)

Planning

Controlling

Organizing

Leading

Staffing

Planning

Establishing goals and standards; developing rules and procedures; developing plans and forecasting-predicting or projecting some future occurrence. Giving each subordinate a specific task; establishing departments; delegating authority to subordinates; establishing channels of authority and communication; coordinating the work of subordinates. Deciding what type of people should be hired; recruiting prospective employees; selecting employees; setting performance standards; compensating employees; evaluating performance; counselling employees; training and developing employees. Getting others to get the job done; maintaining morale; motivating subordinates. Setting standards such as sales quotas, quality standards, or production levels; checking to see how actual performance compares with these standards; taking corrective action as needed.

Organizing

Staffing

Leading

Controlling

What is HRM? Human Resource people, us assets/costs for organizations

Management co-ordination and control to achieve set goals.

(But humans, unlike other resources in the context of work and management, cause problems)

But why do we need to be managed? We all know we naturally are matured and educated people. NO! it is not always so.

Because we: Disobey Misunderstand Answer back Challenge Have our own ideas about how things might be done and Have varying degrees of interest and motivation.

HRM

HRM is basically a search for best practices to generate high levels of employee commitment and performance.

Definition of HRM
HRM is defined as a strategic approach to managing employment relations which emphasises that leveraging peoples capabilities is critical to achieving sustained competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices. --- Bratton and Gold Strategic planned, deliberate, seeking to achieve set objectives people or resources with potential (knowledge, skills, abilities) by tapping into and developing these capabilities organisations give themselves an edge over their rivals that the range of things under HRM (recruitment, selection of employees, their training and development, how they are rewarded) is looked at together not as separate things.

Capabilities

Competitive advantage

Integrated

Edward Flippos Definition

Personnel management is the planning, organising, directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual, organisational and societal objectives are accomplished

Meaning of HRM
HRM is management function that helps managers to recruit, select, train and develop members for an organization. HRM is concerned with the peoples dimension in organizations. HRM refers to a set of programs, functions, and activities designed and carried out

Core Elements of HRM

People: Organizations mean people. It is the people who staff and manage organizations. Management: HRM involves application of management functions and principles for acquisitioning, developing, maintaining and remunerating employees in organizations. Integration & Consistency: Decisions regarding people must be integrated and consistent.

Core Elements of HRM

Influence: Decisions must influence the effectiveness of organization resulting into betterment of services to customers in the form of high quality products supplied at reasonable cost. Applicability: HRM principles are applicable to business as well as non-business organizations nontoo, such as education, health, recreation and the like.

Objectives of HRM
The first and foremost objective of human resource management is to have highly committed, eligible, talented and happy work force Development of employees who come into the organization with abilities, attitude, behavior, personality etc.,

Objectives of HRM
Societal Objectives: To be ethically and socially responsible to the needs and challenges of the society while minimizing the negative impact of such demands upon the organization. Organizational Objectives: To recognize the role of HRM in bringing about organizational effectiveness.

Objectives of HRM
Functional Objectives: To maintain departments contribution and level of services at a level appropriate to the organizations needs. Personal Objectives: To assist employees in achieving their personal goals, at least in so far as these goals enhance the individuals contribution to the organization. This is necessary to maintain employee performance and satisfaction for the purpose of maintaining, retaining and motivating the employees in the organization.

Scope of HRM from Entry to EXIT

Scope of HRM can be described based on the following activities of HRM.
HR Planning Job Analysis Job Design Recruitment & Selection Orientation & Placement Training & Development Performance Appraisals Job Evaluation Employee and Executive Remuneration Motivation Communication Welfare Safety & Health Industrial Relations

7 Categories of Scope of HRM

1. 2. 3. 4. 5. 6. 7. Introduction to HRM Employee Hiring Employee and Executive Remuneration Employee Motivation Employee Maintenance Industrial Relations Prospects of HRM

Role of HRM
Advisory Role: HRM advises management on Role: the solutions to any problems affecting people, personnel policies and procedures.
 Personnel Policies: Organization Structure, Social

Responsibility, Employment Terms & Conditions, Compensation, Career & Promotion, Training & Development and Industrial Relations.  Personnel Procedures: Relating to manpower Procedures: planning procedures, recruitment and selection procedures, and employment procedures, training procedures, management development procedures, performance appraisal procedures, compensation procedures, industrial relations procedures and health and safety procedures.

Role of HRM
Functional Role:
 communicate personnel policies. It provides

guidance to managers, which will ensure that agreed policies are implemented.

Service Role:
 Services constitute the main activities carried out by

personnel departments and involve the implementation of the policies and procedures described above.

Role of HR Manager
Humanitarian Role
 Reminding moral and ethical obligations to

employees

Counselor
 Consultations to employees about marital, health,

mental, physical and career problems.

Mediator
 Playing the role of a peacemaker during disputes,

conflicts between individuals and groups and management.

Spokesman:
 To represent of the company because he has better

overall picture of his companys operations.

Role of HR Manager
Problem Solver  Solving problems of overall human resource management and long-term organizational longplanning. Change Agent  Introducing and implementing institutional changes and installing organizational development programs Management of Manpower Resources  Broadly concerned with leadership both in the group and individual relationships and labourlabour-management relations.

HR Audit

Start to End...

"The unexamined work life is not worth living."

Socrates (469-399 BC)

The things that get measured gets managed

Kaplan (2000)

HR Audit Measurements and Their Organizations Underlying Indicators

Turnover Rate Rate Personnel functions to examine Quit rate Salary and benefits package Termination rate Supervisory practices Layoff rate Job design Retirement rate Retirement plan Length of service rate

HR Audit Measurements and Their Organizations Underlying Indicators

Job Attendance Rate Rate Personnel functions to examine Exit interviews Absence rate Discipline Tardiness rate Convenience of lunchroom and rest room Sick-pay policy Sick-

HR Audit Measurements and Their Organizations Underlying Indicators

Overtime Rate Rate Personnel functions to examine Overtime rate Employee planning and scheduling Shortage of staff Selection and training process

HR Audit Measurements and Their Organizations Underlying Indicators

Position/Vacancy Rate Rate Personnel functions to examine Position Recruitment and Vacancy Rate selection process Salary and benefit package Company image in community

HR Audit Measurements and Their Organizations Underlying Indicators

Error/Scrap Rate Rate Personnel functions to examine Error/scrap rate Recruitment selection and placement Training and development Job satisfaction

HR Audit Measurements and Their Organizations Underlying Indicators

Training and Development Rate Rate Personnel functions to examine Training and Recruitment and selection Training and development development rate

HR Audit Measurements and Their Organizations Underlying Indicators

Grievance Rate Rate Personnel functions to examine Grievance rate Supervisory practices Job dissatisfaction

HRD Audit

What is HRD?...

HRD is any process or activity that, either initially or over the longer-term, has the potential to longerdevelop adults work-based knowledge, expertise, workproductivity, & satisfaction, whether for personal or group/team gains or for the benefit of an organisation, community nation or ultimately the whole humanity

- Mclean & Mclean

What is HRD?...
Competence Building Commitment Building Culture Building

What ?...
An HRD Audit is like an annual health check-up, it plays a vital role checkin instilling a sense of confidence in the Management and the HR functions of an organisation. organisation.

What is HRD Audit?...

HRD Audit is a comprehensive evaluation of the existing HRD
Structure,  Strategies,  Systems,  Styles,  Skills / Competencies &  Culture


and their appropriateness to achieve the shortshort-term and long-term goals of the longorganisation. organisation.

HR Audit v/s HRD Audit...

HRD Audit is evaluation of only few activities : Strategies, Structure, Systems, Styles Skills & Competencies Culture

HR Audit is a comprehensive evaluation of the entire gamut of HR activities : HR Cost HRD activities Health, Env. & Safety Legal Compliance Quality Compensation & Benefits

How ?...

In HRD Audit the skills, styles, systems, strategies, structure is studied and analysed using a variety of methodologies like
 interviews, (Individual and group, Top Management, Line Managers,
HRD Staff, Workmen and others)

   

questionnaires, observations, available records, workshops etc. etc.

This evaluation helps the organisation have a clear understanding of the lacunae and better align the HR processes with business goals. goals.

SHRENUJ

Why ?...
Organisations undertake HR audits for many reasons : To make the HR function business-driven. business-driven. Change of leadership. leadership. To take stock of things & to improve HRD for expanding, diversifying, & entering into a fast growth phase. phase. For growth & diversification. diversification. For promoting professionalism among employees & to switch over to professional Management. Management. To find out the reasons for low productivity & improve HRD strategies. strategies. Dissatisfaction with a particular component. component. To become employer of choice. choice.

Role of HRD Audit in Business Improvements

HRD audit is cost effective. It can give many insights into a company's affairs. It could get the top management to think in terms of strategic and long term business plans. Changes in the styles of top management Role clarity of HRD Department and the role of line managers in HRD

SRENUJ

Role of HRD Audit in Business Improvements

Improvements in HRD systems Increased focus on human resources and human competencies Better recruitment policies and more professional staff More planning and more cost effective training Strengthening accountabilities through appraisal systems and other mechanisms

HRD Score Card

This model is based on the assumption that: Competent and committed employees are needed to provide quality products & services at competitive rates & ways that enhance customer satisfaction.

HRD Score Card

Name of the Organisation

HRD System Maturity Grade B* HRD Competence Score HRD Culture Grade

ABC
Business Linkage Grade Overall HRD Maturity rating B*CB*B

B*

These four indices consist of the four pillars of HRD effectiveness. All the four dimensions are assessed using following ten point rating system. A* Highest Score and Highest Maturity Level A Very High Maturity level B* High Maturity Level B Moderately High Maturity Level C* Moderate Maturity Level C Moderately low Maturity level D* Low Maturity Level D Very low Maturity level F Not at all present U Ungraded

Components to be audited

SHRENUJ

HRD Systems Maturity

The HRD systems maturity assesses the extent to which various HRD subsystems and tools are well designed & are being implemented. implemented.
The systems should be appropriate and relevant to business goals. goals. It should focus on current and future needs of the corporation. corporation. The HRD strategies and systems should flow from the corporate strategies. strategies.

HRD Systems Maturity

The systems should be well designed and should have a structural maturity. They should be implemented well.
The employees should be taking them seriously implemented well. The employees should be taking them seriously and follow meticulously what has been envisaged in each system. The overheads of implementation should be low.

The subsystems should be well integrated and should have internal synergy. They should be adequate and should take care of the HRD requirements of the organisation.

HRD Systems Maturity

The following subsystems are assessed and depending upon the extent to which they meet the requirements a score is assigned. assigned.
Manpower planning and recruitment Performance Management Systems Feedback and Coaching Mechanisms Training Career development and Succession planning

HRD Systems Maturity

JobJob-rotation OD Interventions HR Information systems Worker Development methods and systems HR Information Systems Potential Appraisal and Development Other subsystems if any

HRD Competencies in the Corporation

This dimension indicates the extent to which competencies are well developed in the organisation. organisation. The HRD Staff The Top Management Line managers and Supervisory Staff Union and Association leaders Workmen, Operators and Grass root level employees HRD

HRD Competencies in the Corporation

Each of the groups is assessed on : The level of HRD skills they possess Their attitudes and support to learning and their own development Extent to which they facilitate learning among others in the corporation and those who work with them. Their attitudes and support to HRD function and systems Internal efficiency of the HRD function (HRD Department)

HRD Staff
y How professionally qualified are they? y Do they seem to demonstrate adequate knowledge base? y Are adequately trained in the appropriate HRD systems? y Are they sensitive to internal customer requirements? y How good is their skill base in implementing various systems? y Do they demonstrate OCTAPACE values? y Are they quality conscious?

HRD Staff
y Are they familiar with the business goals of the corporation? y Are they cost conscious? y Are they empathetic? Do they spend adequate time trying to understand the requirements of all categories of employees?

Top Management
Do they understand HRD and its significance in achieving business goals? y How supportive are they of HRD interventions and values? y Are their leadership styles facilitative of a learning culture?

y Are they willing to give the time needed for HRD? y How well do they subscribe to the HRD values like the OCTAPACE values?

y How well do they practice HRD values. y How committed are they to create a learning culture in the organisation? y Do they invest their time, effort and energies in employee development?

Line Managers and Supervisory Staff

y How much do they understand the significance of HRD? y Are they interested and motivated to develop themselves? y Are they willing to spend their time and effort in developing their subordinates? y How supportive are they of HRD efforts? Do they have listening and other skills required facilitating development of their juniors?

Union and Association Leaders

y How much developmental role are they playing? y Do they see their own role in HRD? y Are they committed to create a learning organisation? y Are they willing to promote employee development? y Are they positive in their approach and perceive their own roles a supportive of organisation building? Do they perceive the significance of Employee development for organisation building?

HRD Function

Adequacy of manpower Appropriateness of the structure Cost consciousness of staff Quality consciousness of the HRD staff Responsiveness of the HRD department to the needs of employees, Managers, Staff, Workmen, Union Leaders? Level of Internal customer satisfaction Internal operational efficiency of the department? Level of internal synergy among staff? Are they the first to implement HRD systems? Do they implement them in an exemplary way?

HRD Competencies in the Corporation

A HRD Competency maturity core is assigned on the basis of the competency levels of all categories. categories. A* = All categories of employees have extremely high competence base in HRD (knowledge, attitudes, values and skills) and the HRD department has a high internal efficiency and satisfaction levels. levels. B = The competence levels of every group is at an acceptable level and the internal efficiency of the HRD department and the internal customer satisfaction are acceptable levels. levels. D = The competencies of more than one group are below acceptable levels and/or the HRD department is not internally efficient and does not meet the requirements of the minimum internal customer satisfaction. satisfaction. F = Total failure on almost

HRD Styles, Culture and Values

The extent to which the leadership and managerial styles are empowering and competence building is assessed by studying the leadership and supervisory styles. styles. The extent to which the HRD culture and values are practised and stabilised in the corporation are measured. measured.
 The

HRD culture is culture that promotes Human potential development. development.  It is also a culture that promotes a learning organisation. organisation.

Business Relevance of HRD

This score indicates the extent to which HRD efforts (tools, processes, culture etc.) are driven to etc. achieve business goals. goals. The business goals includes: includes:
Business Excellence including profitability and other outcomes the organization is expected to achieve; achieve; y Internal operational efficiencies; efficiencies; y Internal Customer satisfaction; satisfaction; y External Customer satisfaction; satisfaction; y Employee motivation and commitment; commitment; y Cost effectiveness and cost consciousness among employees; employees;  Quality orientation;
y

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