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INTRODUCTION TO HUMAN RESOURCE
MANAGEMENT
BY NISHA HARIYANI
•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
Managerial
Planning Organizing Staffing Directing Controlling
Functions of HRM - 2
Operational
Employment HR Development Compensation Mgt Employee Relations
HR Planning
Recruitment
Selection
Placement
Induction
Performance Appraisal
Training
Management Development
Career Planning and Development
Job Evaluation
Wage and Salary Admn
Incentives
Bonus
Fringe Benefits
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
President
VicePresident
VicePresident
VicePresident
Division Managers
Division Managers
Division Managers
Division Managers
Division Managers
Division Managers
Division Managers
Division Managers
Division Managers
Department Managers
Department Managers
Department Managers
Department Managers
Department Managers
Department Managers
Department Managers
Department Managers
Department Managers
Informal organization
Bowling team
Informal organization Chess group
Formal organization
Tall Vs Flat structureCMD
ED ED ED
GM GM GM
CM
CM
Manager
Manager
Officer
Officer
Executive
Executive
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 Traditional concept
Service oriented firmService oriented firm
Which are line and staff functionsWhich are line and staff functions
Both needs to support each otherBoth needs to support each other
Line staff conflict
Different perceptionDifferent perception
HR professional to bring change HR professional to bring change
Understand market & organizationBe empatheticBuild trust and transparencyWin – win approach
The Role of Human Resources Department
As a specialistAs a specialist
As a facilitatorAs a facilitator
As a change agentAs a change agent
As a controllerAs a controller
HUMAN RESOURCE MANAGEMENT AND OTHER
ORGANIZATIONAL FUNCTIONS
Product & HRProduct & HR
Production & HRProduction & HR
Marketing & HRMarketing & HR
Management Techniques & HRManagement Techniques & HR
Organization structure & HROrganization structure & HR
summary
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
Think before others think
Human Resource Planning
Point to ponder
Definition of Human Resource Planning
Objectives of Human Resource Planning
The Process of Human Resource Planning
Managing the Forecasted Demand/Surplus
Growing 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 numberRight number
Right SkillsRight Skills
Right TimeRight Time
Right CostRight 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 CostRight Cost
Right SkillsRight Skills
Right numberRight number
Right TimeRight Time
HRP at different planning levels
Corporate – level planningIntermediate – level planningOperations planningPlanning short-term activities
Organizational plans and objectives
Organizational plans and objectives
Identify future humanresource requirements
Identify future humanresource requirements
Compare with the current HR inventory
Compare with the current HR inventory
Determine the redundantnumbers
Determine the redundantnumbers
Determine the numbers,levels & criticality of vacancies
Determine the numbers,levels & criticality of vacancies
Analyze the cost & time involvedin managing the demand
Analyze the cost & time involvedin managing the demand
Analyze the cost & time required for managing surplus
Analyze the cost & time required for managing surplus
Retrench Retrench
Choose the resources & methods of recruitment
Choose the resources & methods of recruitment
RedeployRedeploy
HUMAN RESOURCE
PLANNING MODEL
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 demandManaging future demand
Managing Future SurplusManaging Future Surplus
Dealing With Surplus Manpower
RetrenchmentRetrenchment
outplacementoutplacement
layoffslayoffs
Leave of absence without payLeave of absence without pay
Loaning Loaning
Work SharingWork Sharing
Reduced work hoursReduced work hours
attritionattrition
Early/voluntary retirementEarly/voluntary retirement
Growing importance of HRP
Thank you