HUMAN RESOURCES MANAGEMENT (PowerPoint)

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					HUMAN RESOURCES
MANAGEMENT
- Srividya Iyengar
IMPORTANCE         OF     HRM


                             attract and retain talent
                             train people for challenging roles
                             develop skills and competencies
                             promote team spirit
 Good HR Practices help
                             develop loyalty and commitment
                             increase productivity and profits
                             improve job satisfaction
                             enhance standard of living
                             generate employment opportunities
HUMAN RESOURCE MANAGEMENT
 It is that part of the management function which
  primarily concerned with human relationships with an
  organization
 A process consisting of four functions acquisition,
  development, motivation and maintenance of human
  resources
 Human Resource Management (HRM) is the function
  within an organization that focuses on recruitment of,
  management of, and providing direction for the people
  who work in the organization. Human Resource
  Management can also be performed by line managers.
SCOPE OF HRM
   HRM mainly covers three broad
    areas
       Personnel aspect
       Welfare aspect
       Industrial relations aspect
GROWTH IN INDIA

 Early Phase
 Legal Phase
 Welfare Phase
 Development Phase
 PERSONNEL FUNCTION IN INDIA – A
 CHANGING SCENARIO
 Period                    Emphasis                    Status             Roles
1920 – 30               Welfare management            Clerical           Welfare
                        Paternalistic practices                          Administrator

 1940 – 60              Expanding the role to cover    Administrative     Appraiser
 Labour, Welfare                                                          Advisor
 Industrial Relations                                                     Mediator
  and Personnel                                                           Legal advisor
  Administration                                                          Fire fighting


 1970 – 80              Efficiency, effectiveness       Developmental     Change agent
                        dimensions added                                  Integrator
                        Emphasis on human                                 Trainer
                        values, aspirations,                              Educator


 1990s –                 Incremental productivity      Proactive,          Developer
 onwards                 gains through human           growth-oriented     Counsellor
                         assets                                            Coach
                                                                           Mentor
                                                                           Problem solver
PERSONNEL MGT VS HR MGT
Personnel Management              HR Management

   Routine maintenance              Continuous development
    oriented admin. functions.        function of HR
   Reactive Function.               Proactive Function
   Exclusive responsibility of      Concern of all managers in
    personnel department              the organization.
   Considers salary, economic       Considers informal orgn.
    rewards, job simplification       Autonomous work grps., job
    and specialization as             enrichment, job challenge &
    motivators.                       creativity as motivators.
   Considers improved               Considers improved
    satisfaction & morale as          performance as cause and
    cause of improved                 improved satisfaction and
    performance.                      morale as its results.
OBJECTIVES OF HR

 Personal  objectives
 Functional Objectives
 Organizational Objectives
 Societal Objectives
HR Manager’s Duties
   HR Manager carries out 3
    distinct functions to provide
    specialized assistance
   Line Function
   Coordinating     Function   (Functional
    Control)
   Staff Function
DOZEN HATS OF THE HR OFFICER / MGR
 The Advisory Hat       The Statutory Hat
 The Conscience         The Welfare Hat
  Keeping Hat            The Problem Solving
 The Counselling Hat     Hat
 The Mediating Hat      The Change Agent

 The Representative      Hat
  Hat                    The Decision making

 The Record Keeping      Hat
  Hat                    The Decision
                          Execution hat
       FUNCTIONS                 OF   HRM

                                                P/HRM


    Manageria                                                                            Operative Functions
    l functions:
                   Procureme      Developmen     Motivation        Maintenance                       Emerging
–   Planning                                                                         Integration:
                   nt             t:             and                                                 Issues:
                                                 Compensation:                       Grievances
                                                                   Health                            Personnel
                                                 Job design                          Discipline      records
                   Job Analysis   Training
– Organising                                                                                         Personnel
                                                 Work scheduling   Safety            Teams and
                   HR planning                                                                       audit
                                   Executive                                         teamwork
                                                 Motivation
                   Recruitment    development                                                        Personnel
                                                 Job evaluation    Welfare           Collective
                   Selection      Career                                                             research
–   Directing                                                                        bargaining
                                  planning       Performance                                         HR
                   Placement                     and potential     Social security   Participation   accounting
                                  Succession     appraisal
                   Induction                                                         Empowerment     HRIS
– Controlling      Internal                      Compensation
                                  planning       administration                      Trade unions    Job stress
                   mobility
                                  Human          Incentives                          Employers’      Mentoring
                                  resources      benefits and                        associations    International
                                  development    services                                            HRM
                                                                                     Industrial
                                  strategies                                         relations
EVOLUTION OF HRM
 Before 1900
  No importance for HRM. The dept. was taking
  care of Picnics and parties
 1900-1940

 F.W.Taylor’s contribution of Scientific
  Management
 Psychological approach by Muster burg.

 Hawthorne Studies
EVOLUTION OF HRM
 1940-1970

 Behavioral school of thought
 Abraham Mallow's Need Hierarchy theory

 Hertzberg's two factor theory

 McGregor's X& Y theory

 Peter Ducker's MBO

 Leadership Styles

 TWI

 Role playing , GDS

 Financial and Non financial incentives
EVOLUTION OF HRM
 1970 On wards
 SCA – Sustained Competitive Advantage



   Innovation and Creativity

   HRM has become a specialized branch of
    Management
EVOLUTION OF HRM
 1970 On wards
 SCA – Sustained Competitive Advantage



   Innovation and Creativity

   HRM has become a specialized branch of
    Management
SHIFT IN HR MANAGEMENT IN INDIA

        Traditional HR practice                   Emerging HR practice

  Administrative role                      Strategic role
  Reactive                                 Proactive

  Separate, isolated from company          Key part of organisational mission

    mission                                 Service focus

  Production focus                         Process-based organisation
  Functional organisation                  Cross-functional eams, teamwork
  Individuals encouraged, singled out       most important

    for praise, rewards

  People as expenses                       People as key investments/assets
RECURRING THEMES
 The strategic approach
 Increasing Globalization of HR activities

 Maintaining Ethical Culture

 Benchmark Cost Benefit Utility
1-11


       THE EVOLVING STRATEGIC ROLE OF HUMAN
       RESOURCE MANAGEMENT
                            Strategic focus

                 Strategic partner       Change agent


        System                                          People



            Administrative expert     Employee champion


                          Operational focus
STRATEGIC DECISION AND HR IMPLICATION
STRATEGIC DECISION AND HR IMPLICATION
- CONTD
CURRENT AND FUTURE CHALLENGES
TO HUMAN RESOURCE MANAGEMENT
 Corporate    Reorganizations
 Global   Competition (Globalization)
     International Joint Ventures (IJVs)
 Cyclical   Growth
 Increasing    Diversity in Workplace
 Employee     Expectations
 Organizations     as Vehicles for Reaching
 Societal Goals
QUALITIES OF HUMAN RESOURCES
MANAGERS
 Responsibilities           Competencies

  1.   Advice and counsel     1.   Business mastery
  2.   Service                2.   HR mastery
  3.   Policy formulation     3.   Change mastery
       and implementation     4.   Personal credibility
  4.   Employee advocacy
FIGURE 1–9   HUMAN RESOURCE COMPETENCY MODEL
  Clearing the Fog
 Human resource: Knowledge, skill sets, expertise                of   employees,   the
  adaptability, commitment and loyalty of employees.
 Skills: The individual abilities of human beings to perform a piece of work.
 Resource: The stock of assets and skills that belong to a firm at a point of
  time.
 Capability: The ability of a bundle of resources to perform an activity; a way of
  combining assets, people and processes to transform inputs into          outputs.
 Core competencies: Activities that the firm performs especially well when
  compared to its competitors and through which the firm adds value to its goods
  and services over a long period of time.
 Competitive advantage: It comes from a firm's ability to perform activities
    more          distinctively and more effectively than rivals. To attain competitive
    advantage, firms        need to add value to customers and offer a product or
service that cannot be      easily imitated or copied by rivals (Uniqueness).
 Value: Sum total of benefits received and costs paid by the customer in a given
  situation.
TOP CHALLENGES IDENTIFIED BY CEOS
AND TOP HR PROFESSIONALS




                                    1–26
1-21


       HRM     IN THE NEW MILLENNIUM

       HR managers in the new millennium are expected to successfully
       evolve an appropriate corporate culture, take a strategic approach
       to the acquisition, motivation and development of human resources
       and introduce programmes that reflect and support the core values
       of the organisation and its people.
        Size of work force
           Demands for better pay, benefits, working conditions




                                                                  Cont…
1-21



       HRM IN THE NEW MILLENNIUM

        Composition of workforce
           Equal pay for equal work
           Breaking down of glass ceiling
           Constitutional protection to minority groups
           Importance to factors such as age, sex, religion, region, caste especially while
           dealing with multifarious, heterogeneous, culturally diverse work groups

        Employee expectations
           Better educated, more knowledgeable, emotionally strong and demanding
           workforce
           Demand for educated, trained, experienced and knowledgeable workers
       growing
            Understand individual differences and develop appropriate policies to meet
       their    growing expectations.
                                                                                 Cont…
1-23



       HRM IN THE NEW MILLENNIUM
          Changes in technology
           Modernisation, computerisation, sophistication increasing by the day
           Knowledge and skills need to be refined constantly
           Training, retraining and mid-career counselling important
            Equip employees so as to cope with dramatic challenges brought    forward by
       rapid    advances in science and technology
          Life style changes
          Environmental challenges
          Personnel function in future
           Job redesign
           Career opportunities
           Productivity
           Recruitment and selection
           Training and development
           Rewards
           Safety and welfare                                            Cont…
1-23



       HRM IN THE NEW MILLENNIUM
          Changes in 21st century affecting HRM
           HR as a springboard for success
           Talent hunting, developing and retraining
           Lean and mean organisations
           Labour relations
           Health and benefit programmes
CHALLENGE 1: GOING GLOBAL
   Globalization
       The trend toward opening up foreign markets to
        international trade and investment
   Impact of globalization
     ―Anything, anywhere, anytime‖ markets
     Partnerships with foreign firms
     Lower trade and tariff barriers
         NAFTA, EU, APEC trade agreements
         WTO and GATT
CHALLENGE 1: GOING GLOBAL (CONT’D)
   Corporate Social Responsibility
       The responsibility of the firm to act in the best interests of
        the people and communities affected by its activities
   Impact on HRM
     Different geographies, cultures, laws, and business
      practices
     Issues:
         Identifying capable managers and workers
         Developing foreign culture and work practice training programs.

         Adjusting compensation plans for overseas work
CHALLENGE 2: EMBRACING NEW TECHNOLOGY

   Knowledge Workers
       Workers whose responsibilities extend beyond the
        physical execution of work to include planning,
        decision making, and problem solving.
   Knowledge-Based Training
         Online instruction
         ―Just-in-time‖ learning via the Internet
          on company intranets
INFLUENCE OF TECHNOLOGY IN HRM
   Human Resources Information System (HRIS)
     A computerized system that provides current and
      accurate data for the purposes of control and decision
      making.
     Benefits:
           Store and retrieve of large quantities of data.
           Combine and reconfigure data to create new information.
           Institutionalization of organizational knowledge.
           Easier communications.
           Lower administrative costs, increased productivity and
            response times.
 HIGHLIGHTS IN HRM 2


Most Common HR Information Systems
Applications
    Payroll                         76.7%
    Benefits administration         57.1
    Benefits enrollment             41.4
    Recruiting—applicant tracking   39.1
    Personnel administration        39.1
    Training and development        31.6
    Employee self-service           24.8
    Manager self-service            18.0
    Other                            3.8
HRM IT INVESTMENT FACTORS
   Fit of the application      Time required to
    to the firm’s employee       implement and train
    base.                        staff members to use
   Ability to upgrade           HRIS
    Increased efficiency        Initial and annual
    and time savings             maintenance costs
   Compatibility with          Training time
    current systems              required for HR and
   Availability of              payroll
    technical support
CHALLENGE 3: MANAGING CHANGE
   Types of Change
       Reactive change
           Change that occurs after external forces have already
            affected performance
       Proactive change
           Change initiated to take advantage of targeted
            opportunities
   Managing Change through HR
       Formal change management programs help to keep
        employees focused on the success of the business.
CHALLENGE 4: MANAGING TALENT, OR
HUMAN CAPITAL
   Human Capital
       The knowledge, skills, and capabilities of individuals that
        have economic value to an organization.
       Valuable because capital:
         is based on company-specific skills.
         is gained through long-term experience.

         can be expanded through development.
CHALLENGE 5: RESPONDING TO THE
MARKET
   Total Quality Management (TQM)
       A set of principles and practices whose core ideas
        include understanding customer needs, doing things
        right the first time, and striving for continuous
        improvement.
   Six Sigma
       A process used to translate customer needs into a set
        of optimal tasks that are performed in concert with
        one another.
CHALLENGE 5: RESPONDING TO THE MARKET
(CONT’D)
   Reengineering and HRM
       Fundamental rethinking and radical redesign of business
        processes to achieve dramatic improvements in cost,
        quality, service, and speed.
           Requires that managers create an environment for change.
           Depends on effective leadership and communication processes.
           Requires that administrative systems be reviewed and modified.
CHALLENGE 6: CONTAINING COSTS
   Downsizing
     The planned elimination of jobs (―head count‖).
     Layoffs

   Outsourcing
       Contracting outside the organization to have work
        done that formerly was done by internal employees.
   Offshoring
       The business practice of sending jobs to other
        countries.
CHALLENGE 6: CONTAINING COSTS
(CONT’D)
   Employee Leasing
       The process of dismissing employees who are then
        hired by a leasing company (which handles all HR-
        related activities) and contracting with that company
        to lease back the employees.
CHALLENGE 6: CONTAINING COSTS
(CONT’D)
   Hidden Costs of Layoff
       Severance and rehiring costs
       Accrued vacation and sick day payouts
       Pension and benefit payoffs
       Potential lawsuits from aggrieved workers
       Loss of institutional memory and trust in
        management
       Lack of staffers when the economy rebounds
       Survivors who are risk-averse, paranoid, and political
CHALLENGE 6: CONTAINING COSTS
(CONT’D)
   Benefits of a No-Layoff Policy
       A fiercely loyal,more productive workforce
       Higher customer satisfaction
       Readiness to snap back with the economy
       A recruiting edge
       Workers who aren’t afraid to innovate, knowing their
        jobs are safe.
HIGHLIGHTS IN HRM 4
CULTURAL CHANGES

    Employee                  Concern for
     Rights                     Privacy



                   Cultural
                   Changes


  Balancing Work                Attitudes
    and Family                towards Work

				
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