HRM

Is that part of the Management which is concerned with :People at work Their relationship with the organization

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Human Resource Management

Utilization of individuals to achieve organizational objectives All managers at every level must concern themselves with human resource management Five functions

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It helps to bring the people together and enable them to explore their talent in grow individually and contribute in the success of the organization .

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3. Evolution of HRM in the west

(1)

Industrial Revolution: Adam Smith: specialization and division of labor. Robert Owens: Pioneer of HRM, performance appraisal and pay for performance (fair treatment of employees)

a.

b.

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(2) Scientific management

Frederic Taylor: Father of scientific management a. Definition: Systematic analysis and breakdown of work into the smallest mechanical components and rearranging them into the most efficient combination. b. Steps: Job 3/12/12 analysisselectiontraining

(3) Industrial psychology

a.

Hneri Fayols management functions: Planning, organizing, communicating, coordina- ting and controlling.

b.

F. & L. Gilbreths principles of work simplification (time and motion studies). Henry Gantts principles of work scheduling.

c.

d. Continuation of scientific management.

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(4) Human behavior and relations

a.

The Hawthorne Studies The happy workers are the most productive workers.

b.

Max Weber: the Ideal Bureaucracy. Affected by the theories of behavioral science and system theory.

b.

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(5) Three stages of growth of HRM

a.

File Management (1900-1964):collecting and storing data of each employee. Government Accountability (1964-1980): Compliance to government regulations. Human Resource Management: Treating human resource as an asset. Emphasizing joint responsibilities of line managers and staff managers.

b.

c. .

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Human Resource Management Functions

ffin a St

Human Resource Management

Hu m De an ve Re l op s o m urc en e t

Safety and Health

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Com p

ensa t

d e an loye ions Emp r Relat o Lab

i on

HRM is :

Planning , Controlling , Directing and organising of Procurement ,Compensation ,Development , Integration ,maintenance of Human Resource with the aim that Individual , organizational and Societal objectives are fulfilled . (Flippo)
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Objectives and Scope of HRM

To provide well trained and well motivated employees To utilize the skills and knowledge of the employees efficiently and effectively To enhance job satisfaction of the employees To develop and maintain Quality of work life

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To satisfy individual needs and group goals To enhance Job satisfaction of the employees .

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FUNCTIONAL AREAS WITHIN HR

EMPLOYMENT / STAFFING

RECRUITMENT SELECTION

TRAINING AND DEVELOPMENT

APPRAISAL EDUCATION AND DEVELOPMENT

COMPENSATION

SALARIES, WAGES AND BENEFITS INCENTIVE PLANS

EMPLOYEE RELATIONS

GRIEVANCE RESOLUTION UNION RELATIONS

HR PLANNING AND RESEARCH

3/12/12FORECASTING

Features of HRM

People oriented Action oriented Individual oriented Development oriented Pervasive function Development function Interdisciplinary
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Future oriented Challenging job Staff function Science as well as an art

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Employment / Staffing

Staffing - Process through which organization ensures it always has proper number of employees with appropriate skills in right jobs at right time to achieve organizational objectives Job analysis - Systematic process of determining skills, duties, and knowledge required for performing jobs in organization Human resource planning - Systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time . Recruitment - Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization 3/12/12

Training and Development

Training - Designed to provide learners with knowledge and skills needed for their present jobs Development - Involves learning that goes beyond today's job; it has more long-term focus Career development - Formal approach used by organization to ensure that people with proper qualifications and experiences are available when needed Organization development - Planned process of improving organization by developing its structures, systems, and processes to improve effectiveness and achieving desired goals Performance management - Goal-oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization

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Compensation

Direct Financial Compensation - Pay that person receives in form of wages, salaries, bonuses, and commissions. Indirect Financial Compensation (Benefits) - All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance. Nonfinancial Compensation - Satisfaction that person receives from job itself or from psychological and/or physical environment in which person works.
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Safety and Health

Employees who work in safe environment and enjoy good health are more likely to be productive and yield long-term benefits to organization. Safety - Involves protecting employees from injuries caused by work-related accidents Health - Refers to employees' freedom from illness and their general physical and mental well being

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Employee and Labor Relations

Private-sector union membership has fallen from 39 percent in 1958 to 7.8 percent in 2005. Business is required by law to recognize a union and bargain with it in good faith if the firms employees want the union to represent them Is the function of HR to control workers, or to help them and act as their advocate? Resolving personnel grievances and 3/12/12 disagreements fairly in both union and

Human Resource Research

Human resource research pervades all HR functional areas. Forecasting and Planning Job Analysis Attitude Surveys Validation Studies Compensation Surveys

HRM as Major System

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Administrative Sub System

Recruitment Induction Placement Working conditions Wage and salary administration

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Developmental Sub System

Man power Planning Performance appraisal Staff welfare Training and development Career planning Organizational Development
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Preventive Sub System

Grievance Handling Industrial Relations Discipline

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Evolution of HRM (Indian Context )

Beginning of 20th Century Jobbers 1931-Labour Welfare officer After Independence Personnel Management

Shifted concern from welfare to higher efficiency 1970 HRM

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1980 New technologies and HRD 1990- Human Values and Human Capital

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Personnel to HRM
Personnel Management Part of HRM Coping role reactive Maintenance and administrative function Routine Earlier form Inverted orientation Procedure designed to achieve maximum efficiency HRM Larger scope Proactive Plus developmental function Strategic Newer form Integrated Procedure designed to reduce Human wastage

Employees treated as nuts and boltsEmployees treated as a part of the who can be replaced system

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Functions of HRM
Managerial function Planning Organizing Directing Controlling Operative function Procurement Development Compensation Integration Maintenance Separation

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Human Resource Executives, Generalists, and Specialists

Vice President, Human Resources Vice President, Industrial Relations

Manager, Compensation

Manager, Training and Development Executive: Generalist: Specialist:

Manager, Staffing

Benefits Analyst
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Traditional Human Resource Functions in a Large Firm

President and CEO
Vice President, Marketing Vice President, Operations Vice President, Finance Vice President, Human Resources

Manager, Training and Development

Manager, Compensation

Manager, Staffing

Manager, Safety and Health

Manager, Labor Relations

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A Possible Evolving HR Organization Example

President and CEO
Vice President, Operations Vice President, Strategic Human Resources Vice President, Finance Vice President, Marketing Director of Safety and Health

Training & Development (Outsourced)

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Compensation (Shared Service Centers)

Staffing (more involvement of Line Managers, etc)

Roles and Responsibilities of HRM

1. As a specialist - Should be a source of Information - Facilitator 2. As a change agent 3. As a controller 4. As a liaison man 5. As house keeper 3/12/12

Strategic role of HR

Recruiting talented , experienced and deserving people well in advance Improved analysis and HR related cost Stability and mobility of workforce employed Organizational effectiveness Untapped potential of HR
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Recruitment

It is the process of attracting potential employees for the organization It is a positive process It is to find the right man for the right job

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Objectives of recruitment

To meet the most ideal source of recruitment Should be cost effective Fair and accurate information to the employees Should conform to the changing needs of the organization
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Factors affecting recruitment

The size of the company Employment conditions around Salary and perks offered Working conditions Stage of the organization

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The sources of recruitment

Internal source Promotions Transfers External source Press advertisements Educational Institutions Employment agencies Individual applications Recommendations Recruitment at the factory gate

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Techniques of recruitment

Direct Indirect Third party Internet

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Steps in recruitment process

Requisition for recruitment from other department Identifying the source of recruitment Communicating the information about the organization Encouraging the employees to apply for the job Evaluating the effectiveness of the recruitment process . 3/12/12

Selection

It is a process of choosing the most suitable candidate from the lot It is a process of matching the qualifications with the job requirement It is a negative process

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Selection process

Initial screening Application blank Selection test Employment interview Medical Examination Reference check Final interview
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Methods of selection

1)Tests Apptitude test

Mental test Mechanical test - Job knowledge test - Work sample test

2)Achievement Test

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3)Personality test

Objective test Projective test Situation test

4)Interest test

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Methods of selections (cont..)

Interviews

Formal interview Informalinterview Structured interview Unstructured interview Depth interview stress interview Group interview Panel ointerview

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IMPACT OF PERSONAL DIFFERENCES ON HRM

INDIVIDUAL SKILLS & ABILITIES

PERSONALITY

EXPECTATIONS AND ASPIRATIONS

MOTIVATION
Equity Theory Expectancy Theory Reinforcement Theory
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EQUITY THEORY

(ADAMS 65)

I compare my work outcomes (Om) with my perception of what others outcomes are (Oo). I also compare my work inputs (Im) with what I think others are contributing to their jobs (Io). If the relative ratio of my outcomes/inputs (Om/Im) is similar to the perceived outcomes/inputs (Oo/Io) of others at work, EQUITY exists and the organization is perceived to be fair.
I feel fairly treated

(Om/Im) = (Oo/Io)
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(content)

POSITIVE & NEGATIVE INEQUITY

If I believe my outcomes/inputs ratio is more generous than the outcome/input ratio of others, I feel guilty and overrewarded. This is POSITIVE INEQUITY, and this perception may or may not motivate one to action. (Om/Im) > (Oo/Io)
I feel over-rewarded

(guilty)

If I think my outcomes/inputs ratio is less than the outcome/input ratio of others, I feel frustrated and under-rewarded. This is NEGATIVE INEQUITY, and this perception 3/12/12 usually motivates one to act to resolve

LIKELY RESPONSES WHEN INEQUITY IS PERCEIVED

CHANGE MY OUTCOMES

CHANGE MY INPUTS

RECONSIDER THE PERCEIVED RATIOS

CHANGE OTHERS INPUTS OR OUTCOMES

CHANGE COMPARISON OTHER

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LEAVE THE ORGANIZATION OR WITHDRAW

EXPECTANCY-VALENCE THEORY
THREE PERCEPTIONS

EXPECTANCY

(E P)

If I put forth effort (E), whats the probability that I can achieve the performance objective (P)?

INSTRUMENTALITY

(P O)

If I achieve the performance objective (P), whats the probability that a specific outcome (O) or reward will be given to me?

VALENCE

(V)

How much value (positive or negative) do I attach to receiving this outcome?

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REINFORCEMENT THEORY
(SKINNER 72)

ASSUMPTIONS: The consequences of past actions will influence our future actions We repeat behaviors which lead to rewards and are satisfying We reduce behaviors which go unrewarded or lead to punishment Thus, tie valued rewards to desired behaviors in the workplace

TYPES OF REINFORCEMENT
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POSITIVE

SCHEDULES OF REINFORCEMENT
CONTINUOUS (every time)

INTERMITTENT (not every time) Fixed-Ratio Fixed-Interval Variable-Ratio Variable-Interval

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CURRENT TRENDS IN HR

EMPHASIS ON STRATEGIC PLANNING & SUCCESSION

VP of HR is a Strategic Manager, Management Succession Planning

EMPHASIS ON COST-RELATED ISSUES / COST CONTROL

Global Competition, Outsourcing and Downsizing

NEW SPECIALTIES EMERGING IN HR

HR Planning, International HR, Employee Assistance Programs

PROFESSIONALIZATION OF HR MANAGEMENT

3/12/12Professional HR Societies & HRCI (Certification Institute)