Ch-1 Introduction to Human Resource Management

7/28/2019 Ch-1 Introduction to Human Resource Management

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What is HRM? The Policies and practices involved in carrying out

the People or human resource aspects of amanagement position, including recruiting, selecting,training, developing, and appraising.

There are five basic functions all managers perform:- planning- organizing- staffing- leading- controlling


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Planning: establishing goals and standards,developing rules and procedures, developing plansand forecasting

Organizing: giving each subordinate a specific task:establishing departments, delegating authority tosubordinates, establishing channels of

communication, coordinating the work Staffing: determining what should type of employees

should be hired, recruiting, selecting, setting performance standards, compensating, evaluating,

counseling, training, and developing Leading: getting others to get the work done,maintaining morale, motivating subordinates

Controlling: setting standards such as sales quotas,

quality standards, or production level, comparing


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Definition Human Resource Management is the Process of

acquiring, training, appraising, and compensatingemployees, and of attending to their labour relations,health and safety, and fairness concerns.

Human Resource Management is the planning,

organizing, directing, and controlling of the procurement, development, compensation,integration, maintenance, and separation of humanresources to the end that individual, organizational

and social objectives are accomplished.


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Objectives To act as a liaison between the top management and

the employees. To arrange and maintain adequate manpower

inventory, which, in turn, ensures the smooth workingof the organization.

To offer training as a way of developing skills,enhancing productivity and, most importantly,increasing individual and organizational performanceto achieve the desired results.

To devise employee benefit schemes for improvingemployee motivation and group morale andenhancing employer-employee cooperation.


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To ensure and enhance the quality of work life, whichrefers to the employees perception of their physicaland psychological well-being at work.

to help keep up ethical values and behaviour amongst employees both within and outside theorganization.


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Function of HRM

Function of HRM

Managerial Function Planning Organizing Staffing Directing Controlling

Operative Functions Procurement

Development Compensation Maintenance andMotivation Integration Industrial Relation


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Planning : the process of predetermining the personal

programmer that are necessary to attain theorganizational goals.

It is an effective tool to deal with the future. Planning is such a crucial function for an

organization that it is the key to all other managerialfunctions.

The steps involved in planning are:

Establishing goals and objectives to be achieved Developing rules and procedures Determining plans and forecasting techniques


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Organizing : it is a process through which the firmestablishes its structure and determines the authority,responsibility and accountability of each members inrelation to the job.

It is a next step to organize the men and material inorder to accomplish those plans.

It involves: Giving each members a specific tasks

Establishing departments and divisions Delegating authority to the members Establishing channels of authority and communication Creating a system to coordinate the works of the

members


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Staffing: This function is deal with the creation and

maintenance of human resources throughemployment, compensation, benefits, training, anddevelopment and industrial relations measure.

It include: Determine the type of people to be hired Recruiting prospective employees and selecting the

best ones from them Compensating the employee Training and developing the employees Setting performance standard Evaluating employee s performance Counseling the employee


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Directing: Is the sum of several activities likecommunication, leadership and motivation.

It includes following activities: Getting work done through subordinates Ensuring effective two-way communication for the

exchange with the subordinates Motivating subordinates to strive for better

performance Maintaining the group morale


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Controlling : controlling is the process of checking

the efficiency of the individual and the groups infulfilling the plans and goals through follow-upmeasures.

It is essential for continuous improvement in themanagerial activities.

The process include: Establishment of standard performance

Measurement of actual performance Comparison of actual performance with the standardone to find the deviation

Initiation of corrective actions, if there are any

deviations


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Why is HRM important to allManagersThe concepts and techniques are important to managers

for not committing the following mistakes whilemanaging:

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 taken to court because of

discriminatory actions Have your company cited under federal occupational

safety laws for unsafe practices Have some employees think their salaries are unfair andinequitable relative to others in the organization

Allow a lack of training to undermine your department s effectiveness

Commit any unfair labor practices


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Qualities of an HR Managers Knowledge Intelligence Communication skills

Objectivity and fairness Leadership and Motivational Qualities Emotional Maturity

Empathy


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Line Manager s Human ResourceDuties The direct handling of people is an integral part of every line

manager s duties. For effective human resource management,following are the general headings:

- Placing the right person on the right job- Orientation of employees- Training of employees- Improving their job performance- Gaining creative cooperation and developing smooth working

relationships

- Interpreting the companies policies and procedures- Controlling labor costs- Developing their abilities- Creating and maintaining department morale

- Protecting employees health and physical condition


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Human Resource Manager s Duties The Human Resource Manager carries out three distinct

functions: A line function:- The HR Manager executes the role of Line manager - They are likely to exert implied authority- Has access to top management in areas like testing andaffirmative action A Coordinative function:- HR Manager coordinates personnel activities, a duty

often referred to as Functional authority (functionalcontrol)- He or she acts as right arm of the top executive toensure the line managers are implementing the firm s human resource policies and practices (For e.g. adheringto its sexual harassment policies)


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Cont.

Staff (assist and advise) functions:- Assisting and Advising Line Managers is the heart of HR Manager s job- Advises CEO to better understand the personnel aspects

of the company s strategic options- Assist in the Management process- helps line managers comply with equal employment andoccupational safety laws

- plays an important role in handling grievances and labor relations- plays an innovator role by providing up-to-dateinformation on current trends and new methods for better utilizing company s human resource


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Cont. - plays an employee advocacy role by helping todefine how management should be treatingemployees Employee Advocacy:HR must take responsibility for clearly defining how

management should be treating employees, makesure employees have the mechanisms required to

contest unfair practices, and represent the interests of employees within the framework of its primaryobligation to senior management


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The changing environment of HRM Changes occurring today are requiring human

resource managers to play an increasingly centralrole in managing companies. These changes or trends includeGlobalization Trends

Technological Trends

Trends in the nature of work Workforce Demographics Trends


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Globalization Trends Globalization is the tendency of the firms to extendtheir sales, ownership, and/or manufacturing to new

markets abroad. Sony, Apple, Nike, Mercedes Benz market all over

the world. Indian firms like Infosys, TCS, Wipro, and Satyamserve the customers by developing software codesand supporting their IT systems

Tata Steel and Mittal Steel have acquired steel plantsand have gained a place among global manufacturers GE, American Express, Dell, Google provide back-

office support operations to global customers


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Cont. Companies expand abroad for several reasons:

Sales ExpansionSeeking new foreign products and services to sellCut labor costs

Forming partnership Implications:- More globalization means more competition and

more competition means more pressure to be

World classLower costsMake employees more productiveDo things better and less expensive


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Technological Trends Computerized manufacturing system Computerized services

Virtual online communities to improve efficiency For e.g. Indian Railways (computerized ticket booking facility) and Air Deccan (low cost air traveland popularized e-ticketing)

Implications:Impart training to employeesHire technology oriented human resourceMake employees more productive than before


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Trends in the Nature of Work High-Tech Jobs

The modern Blue-collar worker Service Jobs

Dell computers and Laptop Knowledge work and Human capital

Human Knowledge and skill is considered to be themost important asset of an organization

Implications:the key to effectively utilizing this technology is not

the technology but the people


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Workforce Demographics Trends Finding and hiring good employees

IT sector, financial services sector, manufacturing,and retail business have created a huge demand for skilled labors

Implications:A demographic dividend must be carried out with thetrained workforce growing older and youngworkforce in challenge.


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The changing role of Human ResourceManagement With these trends, the human resource manager s job has

grown more broader and more strategic over time. The points to be given focus are as follows:Strategic Human Resource ManagementCreating High Performance Work Systems

Measuring the human resource management team s performanceManaging with the HR Scorecard Process


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Cont. The essence of strategic planning is to ask,

Where we are now as a business, where do wewant to be, and how should we get there?

Some companies today involve their HumanResource Managers in both designing and

executing their company s strategies.


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Creating High Performance Work Systems The emphasis on Human Resource Management is

one change in what human resource managers do, afocus on productivity and performance is another.

Effective HRM practices can improve performance inthree main ways:Through the use of technologyThrough effective human resource practices

By instituting high-performance work systems Managing with technology: Technologicalapplications improve HR s performance in four mainways: self-service, call centers, productivityimprovement, and outsourcing.


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Cont

Many firms are installing Internet and computer based system for improving HR productivity.Technology also makes it easier to outsource HR activities to specialist service providers.

Effective HR Practices: screening employees through personality testing can produce employees who perform better (people with the right traits for the jobdid the job better).

High-Performance Work Systems: An integrated setof HRM policies and practices that together producesuperior employee performance.


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Some of these practices include:

Employment security Selective hiring Extensive training

Self-managed teams Decentralized Decision Making Reduced status distinctions between managers and

workers Information sharing Contingent rewards Emphasis on high-quality work


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Measuring the human resourcemanagement team s performance In today s performance based environment,

employers naturally expect their human resourcemanagement teams to provide measurable evidence

of their efficiency and effectiveness and for that of their proposed programs. They need to answer the following questions:

How much will the new testing program help inreducing employee turnover?How much more productive the employees be if thetraining program being instituted?How productive will be the HR team as compared to

the com etitors?


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Cont. Metrics is a set of quantitative performance measures

HR managers use to assess their operations. Five sample HR metrics are as follows:

Absence Rate: measures absenteeismCost per Hire: measures costs involved with a newhireHR expense factor: measures HR expenses in relationto the total operating expenses of organizationTime to fill: measures Number of days from whichJob requisition was approved to new hire start dateTurnover Rate: measures the rate for whichemployees leave a company


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Managing with the HR Scorecard

Process For most human resource management activities, one

can similarly map out the cause-and-effect links,

from the human resource activity, to the employee behavior, to the employee performance.

Managers use The HR Scorecard Process tomeasure the HR function s effectiveness andefficiency in producing employee behaviors neededto achieve the company s strategic goal.

It is a concise measurement system.


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The Human Resource Manager s

Proficiencies Being a human resource manager today ischallenging and requires several proficiencies asfollows:HR Proficiencies: represent traditional knowledgeand skills in areas such as employee selection,testing, and compensation.Business Proficiencies: reflect human resource

professional s new strategic role.Leadership Proficiencies: lead management groupsand drive the changes required.Learning Proficiencies: ability to apply all the newtechnologies and practices affecting the profession.


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Cont. HR Qualifications Managing with the Law Managing Ethics

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Ch-1 Introduction to Human Resource Management