HUMAN RESOURCE MANAGEMENT

What is Management?

Five basic functions of :

•planning,

•organization,

•staffing,

•leading and

•controlling.

HUMAN RESOURCE MANAGEMENT

What is Human Resource Management? HRM is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns. These include :

•Conducting job analyses;

•Planning labor needs and recruiting job candidates

•Selecting job candidates;

•Orienting and training new employees

•Managing wages and salaries (compensating employees)

•Providing incentives and benefits

•Appraising performance

•Communicating (interviewing, counseling, disciplining)

•Training and development

•Building employee commitment

HUMAN RESOURCE MANAGEMENT

Why is HRM important to all Managers

It is so important that you don’t want to :

•Have the wrong person for the job;

•Experience high turnover;

•Have your people not doing their best

•Waste time with useless interviews;

•Have some employees think their salaries are unfair and inequitable relative to others in the organization;

•Allow a lack of training to undermine your department’s effectiveness;

•Commit any unfair labor practices.

HUMAN RESOURCE MANAGEMENT

Line and Staff Aspects of HRM

All Managers are, in a sense, HR Managers. Since they all get involved in activities like recruiting, interviewing, selecting, and training. Yet most firms also have HR departments with their own top managers. How do the duties of this HRM and his or her staff relate to “line” managers’ HR duties?

Authority is the right to make decisions, to direct the work of others, and to give orders. In Management, we usually distinguish between line authority and staff authority.

Line authority gives managers the right (authority) to issue orders to other managers or employees. It creates a superior-subordinate relationship.

Staff Authority gives the manager the right (authority) to advise other managers or employees.

HUMAN RESOURCE MANAGEMENT

HR Manager’s Duties?

The HR Manager carries out three distinct functions :

•A line function : The HR manager directs the activities of the people in his or her own department and in related service areas. In other words, he exerts line authority within the HR department.

•A coordinative function : HR managers also coordinate personnel activities, a duty often referred to as functional authority (or functional control). He or she acts as the “right arm of the top executive” to ensure that line managers are implementing the firm’s human resource policies and practices.

•Staff (assist and advise) functions : Assisting and advising line managers is the heart of the HR manager’s job. He or she advises the CEO to better understand the personnel aspects of the company’s strategic options. HR assists in hiring, training, evaluating, rewarding, counseling, promoting, and firing employees.

HUMAN RESOURCE MANAGEMENT

Examples of HR Management specialties include :

• Recruiters. Search for qualified job applicants.

•HR Development specialists. Managing employee-development activities in an integrated manner.

•Job analysts. Collect and examine information about jobs to prepare job descriptions.

•Compensation managers. Develop compensation plans and handle the employee benefits program.

•Training specialists. Plan, organize, and direct training activities.

•IR specialist . Advise management on all aspects of union-management relations.

•Employee welfare officers. Handle welfare activities in factors, as required by law.

HUMAN RESOURCE MANAGEMENT

Changing Environment of HRM :

Globalization trends :

Extending sales across geographies/continents;

Exporting manufacturing products to various

other countries

Implications :

More globalization means more competition, more competition means more pressure to be “world-class” – to lower costs, to make employees more productive, and to do things better and less expensively.

HUMAN RESOURCE MANAGEMENT

Changing Environment of HRM :

Technological trends :

Internet based worldwide distribution network,

linked to the checkout registers at its stores

around the world.

Computerized ticket booking facilities to

passengers

Implications :

Highly skilled & trained workforce to cope up with technological changes

HUMAN RESOURCE MANAGEMENT

Changing Environment of HRM :

Trends in the Nature of work :

High-tech jobs (IT, Telecom)

Service jobs (consultants, hotels, airlines)

Knowledge work and human capital (JIT

manufacturing systems)

Implications

More skill based training to employees,

effective sales/service training to meet

customer’s requirements/expectations

HUMAN RESOURCE MANAGEMENT

Changing Role of HRM :

Strategic HRM : Strategy: The company’s long term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.

Strategic HRM : means formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims.

Top managements wants to see, precisely, how the human resource manager’s plans will make the company more valuable, for instance by boosting factory skill levels, and, thereby, improving performance.

HUMAN RESOURCE MANAGEMENT

Changing Role of HRM :

High Performance Work Systems (HPWS) : A high-performance work systems is an integrated set of human resource management policies and practices that together produce superior employee performance.

These include following practices :

Employment security;

Selection & hiring

Extensive training

Self-managed teams and decentralized decision making

Reduced status distinctions between managers and workers

Information sharing

Contingent (pay-for-performance) rewards

Transformational leadership (for instance, in terms of inspirational motivation)

Measurement of management practices

Emphasis on high-quality work.

HUMAN RESOURCE MANAGEMENT Measuring the HRM team’s performance:

HR Metric How to Calculate it Absence rate # days absent/month /

(Avg.no.of employees during mth)X

(No.ofworkdays)X100

Cost per hire (Advt.+Agent fees+empl.referral+

travel cost of applicants and staff+

relocation costs+recruiter pay) /

no. of hires

HR expenses factor HR expense / total oprtg.expense

Turnover rate (# of separations during mnth)/

(Avg no.of employees during mnth)X100

Time to fill Total days elapsed to fill requisitions/

no. hired

HUMAN RESOURCE MANAGEMENT HRM Proficiencies : HRM role, as you can see today, is challenging, and requires several proficiencies :

Four Proficiencies :

1. HR proficiencies represent traditional knowledge and skills in areas such as employee selection, training, and compensation.

2. Business proficiencies reflect HR professionals’ new strategic role.

For ex; to assist top management team in formulating strategies, the HR Manager needs to be familiar with strategic plng, marketing, production, and finance. They must also be able to “speak the CFO’s language,” by explaining HR activities in financially measurable terms.

3. HR managers also require leadership proficiencies. For ex: they need the ability to work with and lead management groups, and to drive the changes required – for instance, to implement new world-class employee screening and training systems (Assessment Centres etc.)

4. Finally, because the competitive landscape is changing rapidly, the HR manager needs learning proficiencies. He or she must have the ability to stay abreast of and apply all the new technologies and practices affecting the profession.