Introduction to HRM

An organization functions on the basis of several factors of production. Land Machinery Need for HRM Capital Labor/ Human factors.

What is HRM?
A Part of management
Human Resource-

Sum Total of Knowledge, skills, creative ability, talents and aptitudes of an Organizations work force What is the Main aim of every Organization?????

 SO it is a process of

A-? T-? A-? C-? Of employee concerns

Elements of Human Capital

Intellectual Capital
Social Capital Emotional Capital

What's the nature of US ????

Social being(Hawthorne studies-Mayo)
We are rational people(Edgar Schein) We are complex beings

SO BEWAE OF YOUR COMPANY IN ANY ORGANISATION YOU GO

Management Assumptions

Theory X

Inherent dislike for work Lazy and avoids responsibility Indifferent to organization goals They prefer to be directed and has very little ambition

Theory Y

They don't dislike work They will exercise self-direction Commitment to objectives If given proper working conditions and motivation people do fairly well

Managers reactions on HRM

(Source: Box 1.1 Pg. 2 V.S.P. Rao)
Philips: according to Rama Chandran, MD, Philips India, my

human resource department is the centre of competence. A.F. Ferguson & Co: Arvind Mahajan, Director, the only way you can be different is in the way you manage people. HLL: at HLL the accent is on hiring people who are even better than the ones at HLL. Marico Industries: Harsh Mariwala, Owner, Im very sensitive about losing star performers. If the guy is valuable, we give him far higher remuneration to keep him happy. THE LIST GOES ON

Nature of HRM
HRM is a pervasive force- present in all organizations

and at all levels.

themselves to their full potential. Auxiliary Service- assists managers to do their personal work more effectively.
Continuous function

Action Oriented Individual Oriented People Oriented Futuristic Development Oriented: helps employees to develop

Scope of HRM
(Source: V.S.P. Rao pg. 3)
Personnel Aspect
Manpower planning Recruitment & Selection T&D Remuneration Promotion &Incentives etc

HRM

Welfare Aspect

Canteens/ Cafeteria Education Health & Safety Recreation facilities Transport etc

Industrial Relations Aspect

Collective Bargaining Grievance Handling Discipline Dispute settlement

Objectives of HRM
(Source: K. Awsathappa pg. 8)
Societal Objectives: to be ethically and socially responsible to the needs and challenges of the society while minimizing the negative impact of such demands on the organization. Organizational Objectives: to recognize the role of HRM in bringing about organizational effectiveness. Functional Objectives: to maintain the departments contribution at a level appropriate to the organizations needs. Personal Objectives: to assist employees in achieving their personal goals, at least in so far as the goals enhance the individuals contribution to the organization.
Societal objectives Organizatio nal objectives

Functional objectives

Personal objectives

Functions of HRM
Identifying and developing persons
Retaining suitable employees Creating a Cohesive work culture Educating Managerial Personnel Conducting Research Developing a Communication System.

Difference
Human Resource Management

AND Human Resource Development

HRM Vs. HRD

HRM is a wider term than HRD.
An HRD programme is meant to sharpen the

potentialities of people to perform well on their jobs. HRM is the process of acquiring, training, appraising and compensating employees and attending to their labor relations, health and safety and fairness concerns.

Importance of HRM?
We dont Hire wrong person Experience high turnover Have your people not doing their best Have some employees think their salaries are unfair Waste time with useless interviews Commit any unfair labor practices

Importance of HRM
Attract and retain talent Train people for challenging roles Develop skills and competencies Promote team spirit Develop loyalty and commitment Increase productivity and profits Improve job satisfaction Enhance standard of living Generate employment opportunities

Good HR Practices Help

Organization for HR
When the HR Director has to set up a new HR

Organizational Structure, the questions to be answered are the following: What are the real needs of the internal customers? What are the costs the organization wants to carry? What kind of the HRM Intervention the organization wants? What future development can be expected?

In a Small Org.
Manager HR

HR Coordinator

Office Generalist

Line and Staff Aspects of HRM

What is AUTHORITY?

Difference between Line authority and Staff authority???

New Approach to Organizing HR

The Transactional HR
Corporate HR The Embedded HR

The centers for Expertise

 Companies like Infosys BPO have developed the capability

to create internal BPOs to meet in-house HR transactions. The HR outsourcing(HRO) practice of Infosys has the capability of acquiring, administering and developing talent for companies. The payroll support activity of Infosys BPO provides support to employees located in more than 70 countries.

The Trends Changing HR Management

Trends Globalization Increased competition Deregulation and increased indebtedness Technological innovation More high-tech jobs More service jobs More knowledge work An aging workforce Dramatic economic downturn in 2007-08 Slower economic growth in many countries So companies must be More competitive Faster and more responsive Human-capital oriented Quality conscious Downsized Organized flatter Leaner More scientific in how they make decisions Employers expect from HR team Focus more on big picture helping companies to achieve strategic goals Find new ways to provide transactional services Create high performance work systems Take steps to help employer better manage challenging times Manage ethically

Mr. Dhirubhai Ambani-Global Star

Business Secret No. 1: Gather information, whatever it

may be Business Secret No. 2: Find an opportunity(According to him, " There is no invitation for making profits". You have to find it.) Business Secret No. 3: Jump from an orbit to the next(. This is the way to success at faster pace. Caution: Do not jump from one orbit to another in hurry before mastering the present orbit. It could be proved dangerous. Do it patiently.)

 Business Secret No. 4: Complete projects on time

Business secret No. 5: Think big. Think global Business Secret No. 6: Hire the best people. Pay them

well.(Human resource is the best resource, according to him.)

Dhirubhai Ambani followed these secret techniques of business through out his lifetime.

HR policies provide an organization with a mechanism to manage risk by staying up to date with current trends in employment standards and legislation.

Purposes
HR policies allow an organization to be clear with employees on: The nature of the organization What they should expect from the organization What the organization expects of them How policies and procedures work What is acceptable and unacceptable behavior The consequences of unacceptable behavior

Each company has a different set of circumstances, and so develops an individual set of human resource policies

Recruitment Policies
Sourcing Candidates
1) Internal Recruitment
2) External Recruitment 3) Buddy Recruitment

 Interview
Joining Formalities Salary Account

Appointment Letter
Personal File Probation Period

Identity Card Policy

Eligibility of ID Card
General Guidelines

Working Hours and Attendance

Hours of work -Lunch break -Tea break -Weekly off Attendance Use of swipe card Late coming

Dress Code Policy

Business Office Attire

Monday to Thursday Friday and Saturday

Leave Policy

Annual Leave upto 21 days Accumulate/Carry forward

maximum 42 days

Maternity Leave
Paternity Leave

Salary Policies
Statutory Deduction

Provident Fund- 12% on Basic salary

E.S.I.C.-1.75% on Gross salary

Professional Tax-with the Slabs Prescribed Income Tax

Performance Appraisal Policy

Have to review on foll Parameters
Job knowledge Quality Of work Committment Dependability & Confidence Interpersonal Skills Time Management Teamwork And Initiative

Misconduct Policy
To provide guidelines and procedures within which the employees have freedom to operate and provide transparency in attitude, skill and behaviour requirements

Penalties
Verbal warning Recorded warning Final warning Dismissal Demotion Transfer

Office Equipment Usage And security Policy

Telephone Calls Internet Usage Printer and photocopier Usage

Exit Policy
Resignation

15 days + in case of probation period 30+ for confirmed employee 60+ for senior management

Exit Interview Termination Retirement

SEXUAL HARASSMENT POLICY

Established to further emphasize the commitment of HiTech ensure proper treatment of employees in the workplace and to set clear guidelines.

Purpose:
The purpose of this policy is to stress on HiTechs strong opposition to sexual harassment and to provide the complaint procedures available to victims, as well as the disciplinary penalties that could be imposed for sexually harassing conduct or behavior by managers, co-worker, or visitors.

Grievancea Handling Policyall its It seeks to foster quality work environment for
associates and encourages a high level of individual and team contribution in support of business goals.
If one encounter such difficulties, they are encouraged to

discuss them with immediate manager

Absconding Policy
Abandonment Of Services

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49

Federal Employment Laws

HR began to play a significant role with the early

enactment of these employment-related laws:

The Workers Compensation Act of 1923 ensured that

employers compensate employees for work-related injuries.

The Trade Union Act of 1926 gave formal recognition to trade

unions.
The Industrial Disputes Act of 1947 led to the increased role

of industrial relations (employees were distinguished by the work they did such as permanent, temporary, trainee etc.).
The Factories Act of 1948 regulated the work environment in

factories to ensure the safety of employees.

The Employees Provident Funds and Miscellaneous

Provisions Act of1952 required employers to provide contributions for retirement.

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Staffing Practices
Resumes seek strong educational background.
Employee referrals (predominantly used for middle and senior

management). management). level.

Succession planning (predominantly used for middle and senior

Elaborate employment tests related to the job, especially at entry E-recruitment: Naukri.com was the first e-portal established in 1998

(naukri means job in Hindi ).

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51

Staffing Practices
Newspaper advertisements are used to brand the company to

potential applicants.

Newspaper advertisements will specify age and gender requirements. Personal questions will be asked in interviews/resumes about:

Age Marital status Family plans (women planning to start a family) Family background Caste background Photos to be included Verification of educational certificates

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Training Practices
Training (future orientation):

Education is extremely valued, and training is an

extension of it. Entry point training programs (3 to12 months of orientation). Ongoing training programs. Development programs (promotions involve training). In-house training centers are a common feature in Indian organizations. Deductive learning style in training: Known as topdown approach where learning principles start with general concepts and move toward specific application.
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SHRM 2008

Performance Appraisal
Cultural dimensions of collectivism and power distance make objective

appraisals a challenge.
Supervisors and subordinates develop close relationships. Organizational loyalty is as important as work performance. Employee promotions are frequently based on seniority.

Annual performance appraisals. Supervisors provide performance ratings that are frequently inflated

due to personal relationships. Employment at will does not exist in India. Employment termination carries a social stigma.
SHRM 2008 54

Compensation and Benefits

In addition to a base salary, compensation includes:

House rent allowance (HRA*). Medical allowance. Dearness allowance (DA*). Leave travel allowance (LTA*). Commuter allowance.

* These allowances are frequently referred by their acronyms

Several categories of leave (vacation) exist:

Sick leave: 7 days (medical certificate required). Casual leave: 7 days (for personal and family emergencies,

requires prior permission of boss). Employees can take maximum 2 days at a time Annual leave: 3 weeks (after one year of employment). Federal holidays: About 20 days.

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Compensation and Benefits

Retirement age:
55-60 years (private sector);. 60 years (public sector).

Retirement Benefits: Employees receive two lump-sum payments when they

retire:
Provident Fund (similar to 401(k))

Typical contributions: 10-12 percent of base salary (employer and employee). Payable on retirement, voluntary separation, death.

Gratuity

Only employer contributes (15 days salary per year of service). Tax-exempt for employees. Payable on retirement, voluntary separation, death.
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SHRM 2008

Compensation and Benefits

Organizations are seen as an extension of the family.
Provide both short-term and long-term personal loans. Personal loans for housing, car, home maintenance and family

emergencies.
Loan amounts vary by position and level in organization. All employees after their probation (confirmation) period are eligible.

Many medium and large organizations have cafeterias with subsidized

lunch facilities.

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Compensation and Benefits

Executives receive special benefits to reflect status such as:

Club memberships. Overseas training. Company housing. Company cars.

Provided with drivers. International cars. Operational and maintenance costs. Phone bill reimbursements. Organizations provide business and cell phones.

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Current HR Practices in India

HR managers are scrambling for workers and spending sleepless nights, worrying over compensation, recruitment and retention. Worse, almost no employee at the top 10 companies says that she is happy with the money she's making or the career counseling she's getting at her company. It includes Infosys employees, who have been promised Rs 126 crore in bonuses this year.
BUSINESS TODAY- OCTOBER 2011

Current HR Practices in India

Did you know that you can order at least six different cuisines on Infosys' campus in Bangalore? Or that you needn't even come to office every day but work from home if you are at Sapient? Or that at Mind Tree, you can question your superiors without fear of getting sacked, and that at Satyam Computer, not just your birthdays, but those of your family members are remembered and celebrated?
BUSINESS TODAY- OCTOBER 2011

As per

th 30

March 2012

TCS Infosys Wipro IBM Google India RCOM Microsoft Accenture HCL tech and L&T

(Business Today 30th March)

Role of HR Manager
Policy formulation Advisory role Linking pin role Representative role Decision role Leadership role Welfare role Research role