Human Resource Management

Human Resource Management

Salient Tasks of Human Resource Management

Conducting job analyses Planning labor needs and recruiting job candidates Selecting job candidates Orienting and training new employees Managing wages and salaries Providing incentives and benefits Appraising performance Communicating Training and developing managers Building employee commitment
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Salient Tasks of Human Resource Management

Handling Grievances and labour relations Ensuring employee health and safety Complying with all the requirements of law Ensuring fairness and equity through appropriate policies and practices Maintaining healthy and professional interface with Labour and other Government Departments

Personnel Mistakes
Hire the wrong person for the job Experience high turnover Have your people not doing their best Waste time with useless interviews Have your company in court because of discriminatory actions Have your company cited by labor inspectors 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 your departments effectiveness Commit any unfair labor practices

Human Resource Management at Work

Acquisition

Fairness Human Resource Management (HRM)

Training

Health and Safety

Appraisal

Labor Relations

Compensating
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Human Resource Management at Work

What Is Human Resource Management (HRM)?
The policies and practices involved in carrying out the people or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising.

Human Resource Specializations

Recruiters Employment/ Industrial Relations Specialist

Human Resource Specialties

Human Resource Development Specialists

Training Specialists

Job Analysts

Compensation Managers

Employee Welfare Officers

Human Resource Managers Duties

Line Function
Line Authority Implied Authority

Coordinative Function
Functional Authority

Functions of HR Managers

Staff Functions
Staff Authority Innovator Employee Advocacy
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Basic HR Concepts
The bottom line of managing: Getting results

HR creates value by engaging in activities that produce the employee behaviors that the company needs to achieve its strategic goals.
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Line Managers HRM Responsibilities

1. 2. 3. 4. 5. 6. 7. 8. 9. Placing the right person on the right job Starting new employees in the organization (orientation) Training employees for jobs that are new to them Improving the job performance of each person Gaining creative cooperation and developing smooth working relationships Interpreting the firms policies and procedures Controlling labor costs Developing the abilities of each person Creating and maintaining department morale

10. Protecting employees health and physical condition

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Line Managers HRM Responsibilities

11. Retention of employees 12. Interview job applicants 13. Provide and communicate job performance ratings 14. Recommend salary increases 15. Carry out disciplinary procedures 16. Settle grievances 17. Investigate accidents

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The Changing Environment of Human Resource Management

Globalization Trends

Changes and Trends in Human Resource Management

Technological Trends

Trends in the Nature of Work

Workforce Demographic Trends

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FIGURE 18

Effects CFOs Believe Human Capital Has on Business Outcomes

Source: Steven H. Bates, Business Partners, HR Magazine, September 2003, p. 49. Reproduced with permission of the Society for Human Resource Management via Copyright Clearance Center.

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Management Challenges for Indian CEOs

A study among Indian CEOs identified the following challenges:
Creating a high-performance culture Retaining talent Recruiting Moving from a patriarchic and hierarchical management style to a more team-based, informal organizational culture Linking training with performance Compensating knowledge workers Building interpersonal relationships/managing 16

Source: Aneeta Madhok, Similar Challenges cited by Robert J. Grossman in HRs Rising Star in India, available at http://www.shrm.org/india.

Human Resource Management

The Strategic Management Process

Strategic Management
The process of identifying and executing the organizations mission by matching its capabilities with the demands of its environment.

Strategy
A chosen course of action.

Strategic Plan
How an organization intends to balance its internal strengths and weaknesses with its external opportunities and threats to maintain a

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Business Vision and Mission

Vision
A general statement of an organizations intended direction that evokes emotional feelings in organization members.
MAKING PEOPLES LIFE BETTERBY UNLEASHING THE POWER OF CUMMINS
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Business Vision and Mission

Mission
Spells out who the company is, what it does, and where its headed. MOTIVATIONG PEOPLE TO ACT LIKE OWNERS WORKING TOGETHER EXCEEDING CUSTOMER EXPECTATIONS BY ALWAYS BEING FIRST TO MARKET WITH THE BEST PRODUCTS PARTNERING WITH OUR CUSTOMERS TO MAKE SURE THAT THEY SUCCEED 20 DEMANDING THAT EVERYTHING THAT WE DO

Types of Strategies
Corporate-Level Strategies

Diversification Strategy

Vertical Integration Strategy

Consolidation Strategy

Geographic Expansion Strategy

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Types of Strategies (continued)

Business-Level/ Competitive Strategies

Cost Leadership

Differentiation

Focus/Niche

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FIGURE 38

Relationships Among Strategies in Multiple-Business Firms

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Strategic Human Resource Management

Strategic Human Resource Management
The linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility.
Involves formulating and executing HR systemsHR policies and activitiesthat produce the employee competencies and behaviors that the company needs to achieve its strategic aims.

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FIGURE 36

Linking Company-Wide and HR Strategies

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FIGURE 52

Linking Employers Strategy to Plans

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Planning and Forecasting

Employment or Personnel Planning
The process of deciding what positions the firm will have to fill, and how to fill them.

Succession Planning
The process of deciding how to fill the companys most important executive jobs.

What to Forecast?
Overall personnel needs The supply of inside candidates
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Forecasting Personnel Needs

Forecasting Tools

Managerial Estimate

Trend/ Ratio Analysis

Scatter Plotting

Delphi Technique

Markov Model

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FIGURE 53 Determining the Relationship Between Hospital Size and Number of Nurses

Note: After fitting the line, you can project how many employees youll need, given your projected volume. Size of Hospital (Number of Beds) 200 300 400 500 600 700 800 900 Number of Registered Nurses 240 260 470 500 620 660 820 860

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Using Computers to Forecast Personnel Requirements

Computerized Forecasts
Software that estimates future staffing needs by:
Projecting sales, volume of production, and personnel required to maintain different volumes of output. Forecasting staffing levels for direct labor, indirect staff, and exempt staff. Creating metrics for direct labor hours and three sales projection scenariosminimum, maximum, and probable.
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Drawbacks to Traditional Forecasting Techniques

They focus on projections and historical relationships. They do not consider the impact of strategic initiatives on future staffing levels. They support compensation plans that reward managers for managing ever-larger staffs. They bake in the idea that staff increases are inevitable.
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Forecasting the Supply of Inside Candidates

Qualification Inventories

Manual Systems and Replacement Charts

Computerized Information Systems

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FIGURE 54 Management Replacement Chart Showing Development Needs of Potential Future Divisional Vice Presidents

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Forecasting Outside Candidate Supply

Factors affecting Supply of Outside Candidates
General economic conditions
Expected unemployment rate

Sources of Information
Periodic forecasts in business publications Special Reports of the Government/ Study Groups
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Strategies to handle Shortages/ surpluses

SHORTAGES Recruit permanent employees Postpone retirement Rehire retirees Attempt reducing staff turnover Employ current staff on overtime Subcontract work Hire temporary employees Redesign job process SURPLUSES Freeze hiring No replacement against separations Offer VRS Reduce working hours Leave of absence Across the board paycuts Layoff Reduce outsourced work Employee training Switch to variable pay Expand operations

Source: Reproduced from K Aswathappa, Human Resource Management , 6th edition, Fig. 4.7, p. 109

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