INTRODUCTION TO HUMAN RESOURCE

MANAGEMENT

•According to Adi Godrej,

“all corporate strengths are dependent on people.”

Human Resource Management

• ‘The real sources of competitive leverage are the culture and capabilities of your organization that derive from how you manage your people.’

Points to Ponder

• Definition and Concept of HRM• History of HRM• Functions of HRM• HR Policies and Procedures• Emerging Role of HRM• Role of HR Executives• Challenges to HR Professionals• Strategic HRM

Human Resource Management• “HRM is the function performed in

organizations that facilitates the most effective use of people to achieve organizational and individual goals.”– Ivancevich and Glueck

History of HRM - 1

• Scientific Management Approach (mid 1900s) – – Study of motion and fatigue– ‘one-best-way’ to accomplish the task– Piece-rate system– Welfare programmes– Failed to bring behavioural changes and increase in

productivity• Human Relations Approach (1930-40)

– Effect of social and psychological factors– Relations and respect High Productivity

History of HRM - 2

• Human Resources Approach (1970s)– Principles

• Employees are assets• Policies, programmes and practices - help in work and

personal development• Conducive environment

Challenges of HRM

• Individuals differ from one another

• Customization of stimulation and motivation

• Demanding personnel

Functions of HRM - 1

Functions of HRM - 2

Emerging role or HRM

• Value of Human Resource• Competitive advantage• Human Resource

Accounting – It is measurement of the cost and value of people for an organization

ROLE OF HR EXECUTIVES

• Service provider

• Executive

• Facilitator

• Consultant

• Auditor

Challenges to HR Professionals

• Worker productivity• Quality improvement• The changing attitudes of workforce• The impact of the government • Quality of work-life• Technology and Training

Organizational Structure &

HRM

Why structure ???

What structure signifies?

No directions Leads to

confusionChaos

Why???????????

MAIN POINTS OF CHAPTER

Organizational Structure and Human Resource Management

Formal and Informal OrganizationsTall and Flat Organizational StructuresResponsibility, Authority and

AccountabilityLine and Staff FunctionsHuman Resource Management and other

Organizational Functions

Mechanistic Vs organic organization

Rigid structureEmployees are tied

by rules & regulations

High degree of centralization

Suitable for operating in static environment

Decision-making is done by superiors

Ex: Public sector in the pre-reforms era

Flexible structureEmployees are not

tied by rules & regulations

Decentralized style of management

Suitable for operating in dynamic environment

Decision-making is done by junior level employees also

Ex: Marico`s Saffola

Informal organizationBowling team

Informal organization Chess group

Formal organization

Tall Vs Flat structure

TALL STRUCTURE

COO

PM PM PM PM

TeamLead

TeamLead

TeamLead

TeamMember

TeamMember

TeamMember

TeamMember

FLAT STRUCTURE

RESPONSIBILITY, AUTHORITY & ACCOUNTABILITY

Responsibility:It is the obligation of a manager to carry out the duties assigned to him.

Authority:It refers to the right to give orders and

the power to exact obedience from others in the process of discharging responsibility.

Accountability:The employee's answerability on using

the authority in discharging the responsibility is termed accountability.

LINE AND STAFF FUNCTIONS

Departments or employees of a firm that perform core activities

Contributes directly to the business of the firm

Ex: Manufacturing and Marketing departments

Departments or employees of a firm that perform a support function

Contributes indirectly to the business of the firm

Ex: HR and Finance departments

Line & Staff Relationship

Traditional concept

Service oriented firm

Which are line and staff functions

Both needs to support each other

Line staff conflict

Different perception

HR professional to bring change

Understand market & organizationBe empatheticBuild trust and transparencyWin – win approach

The Role of Human Resources Department

As a specialist

As a facilitator

As a change agent

As a controller

HUMAN RESOURCE MANAGEMENT AND OTHER

ORGANIZATIONAL FUNCTIONSProduct & HR

Production & HR

Marketing & HR

Management Techniques & HR

Organization structure & HR

summaryOrganizational Structure and Human

Resource ManagementFormal and Informal OrganizationsTall and Flat Organizational

StructuresResponsibility, Authority and

AccountabilityLine and Staff FunctionsHuman Resource Management and

other Organizational Functions

Think before others think

Human Resource Planning

Point to ponderDefinition of Human Resource

PlanningObjectives of Human Resource

PlanningThe Process of Human Resource

PlanningManaging the Forecasted

Demand/SurplusGrowing Importance of Human

Resource Planning

Opening case• HRP??? NO, Thank you

• A reputed south Indian university appointed 218 people on temporary basis and paid them Rs 750/month later increased to 1575/month.

• University already had surplus of these employees eating away 22% of budget allocation

• 33% of temporary staff already working for 10 years

– No laid down procedure for recruitment or appointment, go to vice chancellor and get your name scribbled on it and your are taken in

• They then realised the guilt of violating Equal Remuneration Act and supressing human rights

• What to do with this 218 temoparay staff...??

• University can dismiss services of 33% as there have been breaks in their services. Will they take it?????

• While 67% of temporary staff, university can not terminate them, as there were no breaks

• University decides to regularize their services, with 50 available vacancies

• This would cost the university an exra expenditure of Rs 30 lakh/year. And 1.2 crore for rest remaining...

Human Resource planning

Right number

Right Skills

Right Time

Right Cost

HRP defined• Process of anticipating and making provision for the movement of people into, within, and out of an organization

Objectives of HRP• To maintain

• To forecast

• To optimize

• To utilize Right Cost

Right Skills

Right number

Right Time

HRP at different planning levels

Corporate – level planningIntermediate – level planningOperations planningPlanning short-term activities

Organizational plans and objectives

Identify future humanresource requirements

Compare with the current HR inventory

Determine the redundantnumbers

Determine the numbers,levels & criticality of vacancies

Analyze the cost & time involvedin managing the demand

Analyze the cost & time required for managing surplus

Retrench

Choose the resources & methods of recruitment

Redeploy

HUMAN RESOURCE PLANNING MODEL

Assessing current human resources and making

inventory• Job analysis• HR inventory – HRIS• Generate a fairly accurate

picture existing situation

Forecasting• Compare future needs with

current availabity• Analyze companies change

plan• Forecasting methods used

are Time Series Analysis, Regression Analysis and Productivity Ratios

Matching the inventory with future requirements

• If the current inventory exceeds the future requirements

• Natural attrition cannot bring down resource to match

• What to consider then????

MANAGING THE FORECASTED DEMAND / SURPLUS

Managing future demand

Managing Future Surplus

Dealing With Surplus Manpower

Retrenchment

outplacement

layoffs

Leave of absence without pay

Loaning

Work Sharing

Reduced work hours

attrition

Early/voluntary retirement

Growing importance of HRP

Thank you