Chap 1 Introduction to Human Resource Management

8/8/2019 Chap 1 Introduction to Human Resource Management

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Introduction to Human

Resource

Management


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Introduction Leon c megginson gave the definition of

Human Resource- the total knowledge, shills,

creative abilities, talents of an orgs workforce aswell as values, beliefs and attitudes of

individuals involved

HR manager- builds up an effective workforce,

handle expectations of the employees andensure they perform their best


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Definition and Concept of HRM

Definition- HRM is a function performed in orgsthat facilitates the most effective use of people to

achieve orgl and individual goals HRM consists of 4 functions-

Acquiring

Development-training, mgmt dev and career

development Motivation

Retention- providing a conducive environment


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History of HRM Scientific management Approach

Given by Fredrick Taylor

He discarded the beliefs of constant control

He suggested that managers adopt scientificand objective approach to determine howwork could be designed and carried out most

effectively Focused on study of motions, tools and time


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Fair performance standards were determined

on the basis of scientific data

More the output more the incentives

Workers solely motivated by money led to

many problems- high standardization and little

mental activity

Concepts ofeconomic man and piece-ratemethod also evolved at this time


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Human Relations Approach

Hawthrone studies- employee productivity is

affected by social and psychological factors

Elton Mayo- emotions and feelings ofemployees are influenced by group

relationships and management support

Strength of unions grew up which gave

workers a legal right to organize and bargaincollectively


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The approach was not successful for the

following reasons-

Assumption that a happy worker is a hard

worker

It did not recognize individual differences It did not recognize the need for a job

structure

Failed to recognize other factors that

influence employee satisfaction like careerdevelopment job enrichment


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Human Resource approach

Treating people as resources and human

beings will lead to real benefits for the

organization

Based on a number of principles- Employees are assets to an organization

Policies, programs and practices must cater to the

needs of employees

Create and maintain a conducive workenviornment


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Functions of HRMManaging people is one of the biggest

challenges because-

Individuals differ from each other in terms of

values, attitudes, beliefs

Motivational factors might not be same

Expectations of employees are much greatertoday


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HRM functions can be categorized in 2

categories- Managerial functions

Operative functions

MANAGERIAL FUNCTIONS Planning

Formulating future course of action (personnelprograms and changes required)

Identifying human resource requirements andforecasting personnel needs


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Organizing

Establishing roles for people in an org such as

chain org command, division of labor,

assignment of responsibility

Staffing Obtaining and maintaining capable personnel

in various positions at all levels

Directing

Directing all the available resources towards

the common orgl goals


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Controlling

Measurement and rectification of activities to

ensure that they conform to plans i.e.

measuring performance against plans


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OPERATIVE FUNCTIONS

They are relates to specific activities of HRM

1. Employment- procuring and employingindividuals with suitable knowledge,

skills, experience and aptitude. Itincludes-

Job analysis- tasks which comprise the jobare determined and the skills and abilities

required to perform it successfully areidentified


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Human Resource Planning- involves

forecasting the human resource requirements

of an org and future supply of human

resources and making adjustments between

the two

Making changes and develop the existing

employees to enable them meet future orgl

requirements

Estimating net human resource requirementson the basis of retirements transfers, attrition


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Recruitment- involves

Tapping sources of applicants

Attracting and stimulating candidates

Selection- choosing the right candidate forthe job. It includes

Scanning the application forms

Developing suitable testing techniques

Evaluating and then intimating the candidates

Employing the selected candidates


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Placement-selected candidate is thedecided about a suitable placement in anorg. it involves

Discussing the placement with functional

managers Conducting a follow up study

Induction- introducing the new employee

to the organization, org culture, valuesbeliefs, practices and procedures


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2. Human Resource Development (HRD)-

process of training and developing theemployees to improve their knowledge and skillsto perform their jobs better. It includes-

Performance Appraisal- process of

evaluating the performance of an employee onthe job and developing a plan for improvement.It includes-

Developing and implementing suitable

methods Obtaining feedback on it effectiveness


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Training- systematic development to the

knowledge, skills and attitudes required toperform a job successfully. It includes-

Identifying training needs

Designing and conducting suitable trainingprograms

Evaluating the effectiveness

Management Development- developing theemployees of an org to meet future needs andchallenges


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Career Planning and Development Planning- identifying career goals and

formulating plans of reaching them through

various means like education, work

experience (from individuals point of view)

Development- looks at individuals goals from

the point of view of org


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3. Compensation- all the extrinsic rewards

that an employee receives during and after

the course of job. It includes base salary,

incentives, bonus and benefits

Job evaluation- involves classifying a jobbased on its importance and its contribution to

the org and its requirements


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Wage and Salary administration- process offormulating and operating a suitable wage and

salary program

Incentives- rewards an employee earns inaddition to regular wages or salary based on the

performance of the individual, team or org

Bonus- share in surplus and is directly relatedto orgs performance


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Fringe benefits- monetary and non-monetarybenefits given to employees during their

employment and sometimes post employment

also. Not related to employees performance.

Like- housing facilities, canteen, conveyance,

educational facilities


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4. Employee Relations- deals with employeesin the orgl context, as a social group that

contributes to the org. it includes-

Keeping employees satisfied and motivated

Developing team building and leadershipskills in employees

Grievance mgmt system

Enhancing quality of work like


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An employee desires his

managers to possess following

characteristics-

Be genuinely interested in the

employeeLend support and guidance

Clarity in job responsibilities

Identify the strength and

weaknesses of the employee

Reward employee for his

contribution


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Emerging Role of HRMThe competencies and attitudes of human

resources can make or break the business

Human resources-Competitive advantage

According to Adi godrej all corporate strengths

are dependent on people i.e. human

resources have become an essential factor indetermining success of any org


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Human Resource Accounting-measurement of the cost and value of people for

an organization it is accounting people as organizational

resources

Accounting helps mgmt to value its human

resources and use it with discretion and

wisdom


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Role of HR Executive Service Provider- interviewer, compensation

analyst, job analyst

provides info of market statistics of personnelavailability, pay rates

Executive- though HRM is a part of every

managers job, yet HR specialists typically carry

out certain activities like recruitment,

compensation


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Facilitator- in T and D and performance

appraisal Consultant- managers may seek advises of

HR specialist to resolve problems of training, job

misfit, grievances

Auditor- controlling function. Ensures that allmanagers perform their respective roles

concerned with effective use of HR


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Challenges to HR Professionals Business environment is turbulent

Markets have become competitive and serviceoriented

Challenging task is to attract, mould develop andretain valuable employees

Expectations of employees has increased-knowledge workers

They are in demand and in a position to chosetheir employer


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Worker Productivity- to increase worker

productivity Tall hierarchy and communication barriers

have been removed

Empowerment Workforce revolution- encourage employees

to be creative and proactive and willing to

take risk involved in autonomy

Self managed teams


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Quality Improvement-

Quality is imp for survival

Quality is all pervasive

Leaders like GE are setting quality standards

Welch- proactive step i.e. early adoption of'quality mantra

Needs- strong org wide commitment,

education and training, team work, top mgmt

commitment


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Changing attitudes of the Workforce

Cost cutting measures- downsizing

Concept ofjob security is outdated

Even employees are on the look out for better

opportunities Global markets- employees are moving

across the world

Workforce diversity has been the major

challenge for orgs


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Companies are becoming family friendly

E.g. ONGC- encourages employee children byrewarding scholarships

Flexible working hours- major demand of

knowledge workers, women workers and IT

companies are catering to this demand.

flexibility can prove to be more productive.

Concept ofworking from home is also

catching up


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Impact of the government

Economic reforms in 1991 have changed theface of Indian Economy

Various labor laws formed and amended has

tuned the psyche of orgs and the workforce

Quality ofWork Life

Employee has some expectations from his

wok

QWL gets better is one or more of theseneeds are satisfied


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Technology and Training

Use of computer technology is now pervasive

Companies are investing in these

technologies and also train employees for

adopting new technology


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Strategic HRM

Strategy- way of doing something. Includesformulation of goal and set of actions for

accomplishment of that goal Strategic Management- mgmt of available

resources to achieve the goals of an org in adynamic and competitive environment.

Emphasizes monitoring and evaluatingenvironmental opportunities and threats in lightof orgs strength and weaknesses


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Strategic HRM- Optimum utilization of human resources to

achieve the set goals and objectives in

business environment

HR manager is now becoming a member of

strategic mgmt process

HRM makes strategic mgmt highly effective

by supplying human resources who arecompetent and committed


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Examples

TCS- 28000 software engineers from 32

countries

Hiring people starts right at the college level TCS funds several events like seminars and

conferences in IITs and also abroad like Harvard and

Kellogg

Wipro- exit interviews Toyota- employee suggestion scheme

Documents

Chap 1 Introduction to Human Resource Management