Introduction to HRM

Session 1
Definition & concept of HRM History of HRM Functions of HRM HR Policies & Procedures Emerging role of HRM Role of HR Executives Challenges to HR Professionals Strategic HRM

HRM- The Global & Indian Scenario

Akio Morita/ the founder of Sony Corporation, once said, There is no magic in the success of Japanese companies in general and Sony in particular.Their secret of success is simply the way they treat employees.

Definition & concept of HRM

HRM is the function performed in an organisations that facilitates the most effective use of people to achieve organisational and individual goals. (Ivancevich))

HRM encompasses those activities designed to provide for and coordinate the human resources of an organisation.

(Byars & Rue)

HISTORY OF HRM Scientific Management Approach

Fredrick Taylor- (1911) One Best Way to Accomplish the task Henry Fayol Principles of Management Max Webber- Bureaucracy
Economic Man gained popularity which suggested that a worker was basically motivated by economic gain and that financial incentives alone could maximise the workers output. Piece rate system where workers gets higher pay for every unit of output that exceeds daily output standard.

Proposed four principles of Scientific Management that will increase productivity:

Replace old methods of how to do work with scientifically-based work methods. They scientifically select and then train, teach, and develop the workman, whereas in the past he chose his own work and trained himself as best he could. . Cooperation of management and labour to accomplish work objectives. Equal division of responsibilities between managers and workers.

UPS

Annual revenue : $8 billion Employee strength: 1,50,000 No. of packages: 12million per day Sorter:1124/hr Error allowed: 1/2500 Time allowances specified during 120 stops per day. Rate at which they have to walk : 3feet per sec.

HISTORY OF HRM Human Relation Approach

Elton Mayo- Hawthorne Studies (19241932)
Result of the study suggested that employee productivity was affected not only by the way the job was designed and rewards but also certain social and psychological factors.

Human Relation Approach

It wasnt successful in increasing productivity and improving job satisfaction.
Based on oversimplified concept of human behaviour. It didnt recognize individual differences. Each employee is unique and his wants and needs are also different. Something that motivates one worker may not motivate another worker. The approach didnt recognize job structure. Approach also failed to recognize other factors such as career development, performance management and job enrichment.

Human Resources Approach

Human Resources Approach Approach treats organisational goals and employees needs as being mutual and compatible

Human Resources Approach is based on number of principles:

Employees are asset to an organisation Policies, programs and practices must cater to the needs of the employees. Necessary to create and maintain a conducive work environment to encourage the employees to develop and harness their knowledge and skills for the benefit of the organisation.

Human Resources Approach

Employee Motivation

Employee Rewards

Employee Performance

Org. Performance

Functions of HRM
An effective manager should be able to utilize the resources in most efficient manner:
Individuals differ from each other in terms of values, attitudes and beliefs. Stimulating and motivational factors are not the same. The expectations of employees of today are much greater compared to yesteryears.

HRM functions can be broadly classified as:

Managerial Functions Operative Functions

Managerial Functions
1. 2. 3. 4. 5. Planning Organizing Staffing Directing Controlling

Management process
1. Planning
The process of establishing goals and a suitable course of action for achieving those goals.
Determining in advance Personnel/ HR programs and changes that will be required for achieving the goals. Forecasting the needs and attitude change that will be desired.

Management process
2. Organizing: The process of engaging two or more people in working together in a structured way to achieve a specific goal or set of goals. Arrange & allocate work, authority and resources among an organisations members
CEO

Manager F&A

Manager HRD

GM-Prod

Executive

Executive

Management process
3. Staffing: This is the process of acquiring, developing & retaining competent employees. 3. Leading: The process of directing and influencing the task-related activities of group members or an entire organisations. 4. Controlling: The process of measurement and rectification activities to ensure that actual conform to planned activities.

Operative Functions
1.
i.

They are related to specific activities of HRM : Employment

Job Analysis: It is the process of determining and
recording all the pertinent information about a specific job, including the tasks involved, the knowledge and skill set required to perform the job successfully.

ii. iii. iv. v.

Human Resources Planning Recruitment Placement Induction

2.

Human Resource Development

i. Performance Appraisal ii. Management Development iii. Career Planning & development

Operative Functions
They are related to specific activities of HRM : 3. Compensation
I. II. III. IV. i. Job Evaluation Wage & Salary administration Incentives Fringe Benefits

4. Employee Relations
Designing & implementing a fast & suitable grievances management system ii. Enhancing quality of work life & personal life of the employees iii. Enforcement of policies and procedures

HR Policies & Procedure

HR policies define the role of HR department in an organisation. Polices are set of guidelines that determine the way in which employees are to be treated in the organisation They are based on the org. objectives, org. culture and the external environment HR policies helps in :
Maintaining uniformity in administration across units and departments in the organisation.

Policy & Objectivies:

Performance Appraisal System:
Policy & Objectives: Objective assessment of performance and competence of employees for the purpose of determining their: Salaries Increments, Rewards. Transfer, Promotion & Separation Potential Assessment and Career Planning Training and development needs Procedure & Responsibility : It is the responsibility of HR Department to initiate actions for: Devising appropriate appraisal system and get them approved. To train the line managers to appraise their employees objectively. To devise forms and instruments for employees appraisal periodically. Use appraisal for Salary rise, rewards, promotion , training and development and career planning.

ECC's HR Policy

Sustain motivated and quality work force through appropriate and fair performance evaluation, reward and recognition systems Maintain a quality Human Resource Management System to meet the international standards as per ISO 9001. Plan, design, train, equip and motivate the department staff to meet this standard of expectation.

Reliance Energys HR Policy

Align HR Policies to achieve organizational and business goals with firm belief that "Our Employees are our Future". Have empowered and accountable employees to take decisions in response to emerging challenges and opportunities in a competitive environment.

Emerging role of HRM

Human Resources A competitive Advantage
Business has become knowledge based, service oriented, competitive and more dynamic in this new age. The quality of human resources has become an essential factor in determining the success of any organisation.

Human Resource Accounting

Today, criticality of the contributions of human resources have been acknowledged. HRA is the measurement of cost and value of people for an organisation.

Role of HR Executives

Service Provider

Executive

Auditor

Role Facilitator Consultant

Serious People Care : Cadbury

Our philosophy is to create brands that people love and make Cadbury a fun place to work, explains HR Director Radhakrishnan Menon. To formalize this commitment, Cadbury brings in external consultants to measure their People Care Index (PCI) every year. A leadership objective, PCI is used to assess and challenge the organizations people first agenda. We would like this vision to touch every part of the organization be it the operator, the sales team, thefrontline or the managers.

Challenges to HR Professionals
Worker Productivity
Prerequisites for survival - world-class quality, flexible manufacturing, shorter product development cycle Revamp of organisation structure and culture

Quality Improvement
Every company has to strive to improve its quality sustain - GE

The Changing attitude of workforce

Employee loyalty Flexible work hours Working from home

Challenges to HR Professionals
The Impact of the government
Economic reforms introduced -1991

Quality of Work Life

Extent to which an employees work meets his professional needs. Sense of achievement, security Work more rewarding, encouraging employee participation, team building and reducing employee anxiety.

Technology and Training

Rapid & radical tech. development has forced org. to incorporate this development Banks

SHRM
Strategic human resource management has been defined as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation and flexibility .

Strategic HR means accepting the HR function as a strategic partner in the formulation of the companys strategies as well as in the implementation of those strategies through HR activities such as recruiting, selecting, training and rewarding personnel.