Human Resource Management

MODULE 1Strategic role of HRM – Nature and scope of HRM – objectives of HRM – Functions of HRM – HRM & HRD, Difference Between HRM & Personnel Management - HR Inventory. Organization of HRM, line and staff responsibility role of personnel manager and HR manager, qualities of HR Manager as a Strategic partner, factors influencing HRM, Opportunities and Challenges in Human Resource Management.

Evolution of concepts

Commodity conceptFactor of production conceptGoodwill conceptPaternalistic concept/paternalismHumanitarian conceptHuman resource conceptEmerging concept

Shifts in HRM in India

Administrative roleReactiveIsolated from

company missionProduction focusFunctional orgnisationSingled out for rewardPeople as expenses

Strategic roleProactiveKey part of org.

missionService focusProcess based org.Team/cross functionalPeople as key asset

Strategic HRM

Strategic Management:

It is formulating and implementing strategies.

Strategy may be based on opportunities provided and threats/challenges posed by External environment, strengths in various areas ascertained on scanning internal environment.

Strategic management is a continuous, interactive, cross functional process aimed at keeping an organization as a whole appropriately matched to its environment

Strategic Human Resource Issues

EmploymentDevelopmentPerformance AppraisalCompensation Industrial relationsWork systemsOrganizational culture

Scope of HRM

The scope is very wide. According to Dale Yoder it consists of :

- Setting up general and specific policies - Collective Bargaining, Contract negotiation, grievances etc. - Staffing - Employees Development and Growth - Motivation - Manpower Management ( review and audit - Industrial Relations

The different objectives of HRM can be

categorized into various heads as follows:

1. Primary objective:

2. Societal objective:

3. Organizational objective:

4. Functional objective:

5. Personal objectives:

Objectives of HRM

Functions of HRM

Broadly the functions are divided in two categories : 1. Managerial 2. Operative

1. Managerial functions are :a. Planningb. Organisingc. Directingd. Controllinge. Co-ordination (In fact it is the essence of mgnt and not a separate function)

a) Planning:

o It is a mental process which requires intellectual faculties, foresight, sound judgment etc.

o It is systematic thinking about the ways and means for accomplishment of pre-determined objectives.

o It involves determination of course of action for results.

o It is deciding in advance as to what, when, how and by whom. Also evaluation by whom.

o Requires a clear vision of the entire perspective.

b) Organizing

o It is bringing together different resources for attaining objectives.

o It is process of establishing relationship among members of enterprise in terms of authority and responsibility.

o It involves: determination of objectives division of activities fitting individuals into jobs developing relationship in terms of authority and responsibility

c) Directing

o Means moving into actiono It deals with influencing, guiding, supervising and

motivatingo It is manner in totality in which you influence

action of subordinates

d) Controlling : o It deals with measurement and correction against pre

determined standardso It ensures things occurring in conformity with the plans

adopted, instructions issued & principles established o It involves: *establishment of standards of performance *measurement of performance *comparing actual performance with standards *taking corrective measures

Operative functions

1. Staffing and employment: -manpower planning - recruitment - selection - placement and induction2. Training and development: - technical skill for jobs - developing for higher jobs i.e promotion - on the job/off the job training

3. Integration:

- integrate personal interest with that of organization

- provide two way communication

4. Wage and salary administration: * adequate and equitable remuneration * job evaluation to determine worth * comparing wage in enterprise with industry * formulation of policy regarding profit sharing,

monitory and non- monitory benefits5. Welfare activities: - it relates to physical and social well being - it includes medical, first aid, rest room, crèche,

recreation, education to children, canteen, counseling, housing, group insurance, etc.

6. Good working environment: - safety, lighting, hygiene, drinking water, bathroom facilities, etc. 7. Human relations: - collective bargaining - joint consultation - settlement of disputes - grievance procedure - labour laws and its implementation8. Records and statistics9. Separations

Dimension Personnel management Human resource management

Employment contract

Careful delineation of written contracts

Aim to go beyond contract

Rules Importance of devising clear rules

Can do, outlook, impatience with rule.

Guide to mgmt action

Procedures Business need

Behaviour referent

Norms/customs and practices

Values/mission

Managerialtaskvis-à-vis labour

Monitoring Nurturing

Key relations Labour management CustomerInitiatives Piecemeal Integrated

Difference between HRM and PM

Speed of decision Slow FastManagement role Transactional Transformational

leadershipCommunication Indirect DirectPrized skills Negotiation FacilitationSelection Separate, marginal task Integrated key

taskPay Job evaluation (fixed

grades)Performance

relatedConditions Separately negotiated Harmonization

Labour management Collectivebargaining contracts

Individual contracts

Job categories and grades

Many Few

Job design Division of labour Team workConflict handling Reach temporary

truceManage climate and

cultureTraining and

developmentControlled access to

coursesLearning companies

Focus of attention for interventions

Personnel procedures

Wide-ranging, cultural, structural and personnel strategies

Shared interests Interest of the organization are uppermost

Mutuality of interests

Evolution Precedes HRM Latest in the evolution of the subject

HR inventory contains data about each employee’s skills, abilities, work preferences and other items of information.

HR inventory helps in assessing the extent of deploying the resources optimally.

HR INVENTORY

Organizational design

Place of HR in organisational set up depends upon size of organisation. The HR executive guides and provides specialised assistance to various functionaries and perform three distinct functions

a) line function

b) staff function

c) coordinative function

broadly depends on the size of the organization.

The composition may consist of: HR (planning, compensation, recruitment &

selection), - administration ( PR, canteen, medical, welfare,

transport), - HRD (performance appraisal, T&D), industrial

relations (grievance, disputes).

Composition of HR department

In order to perform the critical role, HR manager HR competencies, business competencies, and change management competencies. In addition he should have the following qualities:

1. Personal attributes: initiative, resourcefulness, depth of perception, maturity of judgment, and analytical ability, intelligence, discriminating skill, executing skills, leadership skill, etc.

2. Understanding of human behaviour

3. Experience and training

4. Professional attitude

QUALITIES OF HR MANAGER

Influencing factors of HRM

Size of workforceComposition of work forceEmployees expectationChanging technologyChanging life styleEnvironmental challenges

Future Personnel functions

Job designCareer opportunitiesProductivityRecruitment and selectionTraining and developmentRewardsJob satisfaction

Challenges ahead

HR as spacing board for success- Persons with HR skills will be in hi demand as they help integrate corporate goals with employees expectations.

Talent hunting, developing and retaining – Demand will be for people with cross functional

expertise and team management skills. Realization of Human element in gaining sustainable competitive advantage will cause mad scramble for Talent. Compelled to pay close attention to skill/ talent acquisition, dev. & retention.

Lean and mean organisation- eliminate low end jobs, outsourcing to save cost, good-bye to limited skill-sets. Lay offs, retrenchment, mergers and acquisition will be order of the day.

Labour relations- Employment related issues will be dictated by market force, govt. influence will have only historical significance. Deregulation, privatisation, global competition etc will impact & adversely affect trade unionism.

Healthcare benefits- wellness programs will need to be designed to help employees identify potential health risks and deal with them.