Introduction to Human Resource Management

By Dr. Kumkum Mukherjee

What is Human Resource Management?

HRM

is the process of acquiring, training, appraising, and compensating employees, and attending to their labour relations, health and safety, and fairness concerns

The Changing Role of HR: The Strategic Partner

In

todays fiercely competitive scenario, the human resource is the only resource that lends the sustainable competitive advantage over other firms Human resource becomes asset when they add value, are rare, inimitable and organization oriented.

Personnel Function
Maintenance oriented Independent function with sub-functions

Points of Distinction
Orientation Structure

HRD
Development oriented Interdependent parts

Reactive function

Philosophy

Proactive functions

Exclusive responsibility Responsibility All managers are of personnel responsible department

Emphasis is on monetary rewards Improved performance as a result of satisfaction Motivators Outcomes Emphasis is on other higher-order needs Better use of human resources

Employee efficiency

Aims

Organizational efficiency

Human Resource Management

Staffing

Work Structure

Training & Development Employee Relations

Compensation

Why is HR Management Important to All Managers?

It is because no one can afford to Hire the wrong person for the job Experience high turnover Have people not doing their best Waste time with useless interviews Have the company taken to court because of discriminatory actions

Why is HR Management Important to All Managers? (Contd.)

It is because no one can afford to Have the company cited under occupational safety laws for unsafe practices Have some employees think their salaries are unfair and inequitable relative to others in the organization Allow a lack of training to undermine a departments effectiveness Commit any unfair labour practices

Why is HR Management Important to All Managers? (Contd.)

Apart from all the points discussed so far, managing people is a central concern of every single manager in every single organization

Role of HRM
Service: Focuses on a wide variety of routine and non-routine tasks, such as administering tests, preparing reports, ensuring people get correct bonus/payment or designing a new pay plan to improve product quality or delighting customers Advocate: Advising fair treatment of employees Business Partner/Change Agent: Understanding the business direction of the company and helping to initiate change for betterment

A Diagnostic Approach to HRM

Assessing

the situation Planning and Setting the Objectives Choosing among Alternatives Evaluating Results

Diagnostic Approach
Assess Conditions

Evaluate Results

Set Objectives

Choose Activities

Line and Staff Aspects of HRM

Following concepts are required to note: Authority: The right to make decisions, direct others work, and give orders Line Manager: A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organizations task Staff Manager: A manager who assists and advises line managers

Functions of HR Manager
A Line Function: The HR manager directs the activities of the people in his/her own department and in related service areas (canteen/ cafeteria), that is line authority They generally may not have line authority outside HR area, they are likely to exert implied authority A Coordinative Function: HR managers also coordinate personnel activities, referred as functional control

Functions of HR Manager (contd.)

Staff (assist and advise) functions: This is the core HR function. Helps CEO for strategy decisions Assists in hiring, training, evaluating, rewarding, counseling, promoting and firing employees Administers benefit programmes Helps comply with EEO and safety laws

Functions of HR Manager (contd.)

Handles grievance and labour relations Provides up-to-date information on current trends and new methods of problem solving Defines how management should be treating employees, make sure employees can contest unfair practices, represents employees interests within the framework

Cooperative Line & Staff HR Management (contd.)

Some activities are done exclusively by HR people, such as: Pre-employment Testing: 60% College Recruiting: 75% Insurance Benefit Administration: 86% Exit Interview: 84% Record Keeping: 88%

Cooperative Line & Staff HR Management (contd.)

Some activities are split between Line and HR (staff) Employment Interviews Performance Appraisal Skills Training Job Descriptions Disciplinary Procedures

The Changing Environment of HR Management

HR

Departments responsibilities have gradually become broader and more strategic than what was before

Measuring HRs Contribution

Metrics:

A set of quantitative performance measures HR managers use to assess their operations It is to note that some aspects of performance are easier to measure than some other

The HR Scorecard
HR functions and initiatives are judged on the basis of whether they create value for the company Measure the HR functions effectiveness and efficiency in producing employee behaviours needed to achieve the companys strategic goals Highlights the causal link between HR activities, the emergent employee behaviour, and the resulting firm-wise strategic outcomes and performance

Benefits of HR Scorecard

It reinforces the distinction between HR doables and deliverables It enables cost control and value creation It measures leading indicators It assesses HRs contribution to strategy implementation It lets HR professionals effectively manage their strategic responsibilities It encourages flexibility and change

Ethics and HR
Ethical lapses in companies can put them out of business (Satyam, Arthur Anderson, PWC, Enron) HR managers need to be heavily involved in implementing ethical laws including workplace safety, security of employee records,employee theft, affirmative action, comparable work and employee privacy rights