UNIT -1

INTRODUCTION

Organization is made of people An organization cannot run without people All resources machinery ,men, money,

material are collected, coordinated and utilized through people to attain common objectives.

Therefore people are the most important resource of any company .

According to L.F .URIwCK- “ Business houses

are made or broken in the long run not by

markets or capital , patents or equipments

but by men”

HR is the only resource that does not

depreciate with time.

DEFINITION Human resource - Is the sum total of all the

inherent abilities , knowledge skills as exemplified in the talents & aptitudes of employees.

Human resource management “is concerned with the people dimension in management . Since every organization is made up of people acquiring their services developing their skills, motivating them,

To high levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organization objective. this is true regardless of the type of organization government, business, education , health OR NGO.”By William Werther & keit Davis, HR & PERSONNEL

MANAGEMENT

DEFINITION EDWIN B FLIPPO – “ HR MANGEMENT IS THE

PLANNING ORGANIZING DIRECTING AND

CONTROLLING & PROCUREMENT ,

DEVLOPMENT

COMPENSATION ,INTERGRATION ,MAINTENANC

E AND SEPRATION OF HUMAN RESOURES TO

THE END THAT INDIVIDUAL ORGANIZATION

AND SOCIAL OBJECTIVES ARE ACCOMPLISHED.

SCOPE OF HRM is Very vast as it includes all activities of a

worker from the time he enters into an

organization and till he leaves and

sometime even after that.

Job analysis

Job design

Recruitment, selection, orientation ,

placement, training & development,

remuneration, motivation and so on.

HRM FEATURES Hr – is heterogeneous

Hr- is the product of their biological

inheritance and interaction with their

environment, family relationship, background,

educational accomplishment and so on.

Comprehensive function- people of all levels

have to be managed

Action oriented- it does not only do record

keeping as in personnel management it

analysis problems and suggests solutions.

Quality of hrm influences the organization

achievement

Individual orientation

Pervasive function- all organization, all levels

and all departments

Development oriented- of employee and

organization.

Continuous function

Future oriented- helps organization achieve it

future goals

Challenging function- dynamic nature of people

Both a science and art It helps overcome resistance to change Staff function Young disciple It is the nervous system of an organization

HRM V/S PERSONNEL MANAGEMENT

View people as asset. People to be trained

and developed Promotes mutuality-

growth, goals and rewards

Hrm is a part of strategic management of business.

Human resource department is very essential and therefore the employees of HR Dept should be the best

Labor is a tool the behavior of which can be

people manipulated for the benefit of organization and replaced when worn out

Not productive employees were made the part of hr dept

A routine activity to hire new employees and to maintain records

HRM Personnel Management

OBJECTIVES OF HRM Societal objective Organization objective Functional objective Personnel objective

HR POLICY A policy is a plan of action .

Org need to evolve HR policies as they ensure

consistency & uniformity in treating people.

They motivate & build loyalty

Policies become benchmark to compare &

evaluate performance.

Policies however don’t describe how it should

be implemented.

Sound policy help resolve conflicts

Policies should be stable as it creates security & removes uncertainty from the minds of the employees

Should not be rigid Should reflect the goals & values of

organization Should be realistic & easy to implement Should help keep both employee and

employer satisfied

EXAMPLE- HUL POLICY

“Child labour-Our recruitment policy

doesn't permit engagement of child

labour directly or indirectly. Regular

audits ensure compliance at our own

sites and at third party

locations/sites.”-

Diversity

We are committed to maintaining diversity in our

working environment. We aggressively pursue the

target of increasing the proportion of women in

management cadres. We have a number of gender-

friendly policies such as Maternity Benefit, Career

Break, Flexi-working, Part-time work ;

In 2009, 19% of our managers and 9% of our officers

were women. Our eight-member management

committee has a woman member.

Our formal employment and fitment policy

absolutely prohibits gender-based

discrimination. No incidents of

discrimination or complaints have been

reported in 2009.

We are a merit driven organisation and this

is reflected in the policies concerning

recruitment, training, and promotion which

ensure that the best person gets the job,

FORMULATING HR POLICIES

Past practices in the organization Prevailing practice in rival company Attitude and philosophy of founder and

existing top management. Knowledge & experience gained from past

HRM FUNCTIONS

ENVIRONMENT OF HRM

Enviroment of hr are all those forces which have a bearing on the functioning of the HR department

INTERNAL FORCES

LINE & STAFF The department and employee of a firm

that perform the core activities and

contribute to its business directly are

called line function.

Department and employees that perform

function and contribute indirectly to the

business of a firm are termed as staff

HRM AS LINE RESPONSIBILITY

HRM AS STAFF

CHALLENGES OF HRM

INADEQUATE SUPPLY OF WORKERS WITH NEEDED SKILLS

INCREASING WORKFORCE DIVERSITY- MELTING BOWL TO SALAD POT

MORE WOMEN WORKFORCE WORKING MOTHERS AND CHILD CARE RIGHT SIZING FLATTER ORGANIZATION REDUCED LOYALTY MERGERS DUAL CARRER COUPLES

OURSOURCING Outsourcing is an allocation of specific

business processes to a specialist external service provider. Most of the times an organization cannot handle all aspects of a business process internally. Additionally some processes are temporary and the organization does not intend to hire in-house professionals to perform the tasks. Once the task is outsourced to the service provider, he will take the responsibility of carrying out the tasks and maintaining the organization’s assets

Swiftness and Expertise

Concentrating on core process rather than the supporting ones:

Reduced Operational and Recruitment costs

Risk of exposing

confidential data

Lack of customer

focus

Lack of control

Hidden costs

Advantages of outsourcing Disadvantages of outsourcing

OUTPLACEMENT Outplacement is a term used to

describe efforts made by a downsizing

company to help former employees by

helping them find new jobs and help

them re- orientate to the job market

A consultancy firm usually provides the

outplacement services which are paid

for by the former employer and are

achieved through practical advice and

psychological support.

Assistance provided through a third-party company

Paid by the former company.

To help a laid-off employee to find a new job.

OUTPLACEMENT FORMER EMPLOYER

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Outplacement is

either delivered

through individual

one-on-one sessions

or in a group format.

Topics include career

guidance, resume

writing and interview

preparation,

developing networks

and so on.

HISTORY OF OUTPLACEMENT

The term "outplacement" was coined more than thirty years ago by the founder of a New York based career consultancy.

With the increased rates of downsizing, rightsizing,lay offs, particularly during the 1980s businesses increasingly found a need for some form of assistance in reducing the trauma of both departing employees and those who remain.

research shows that losing one's job is one of the most stressful experiences a person can face, ranked third behind death and divorce.

But what does the former company gains???

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REASON NO.1

To build the reputation of a caring company.

(Corporate Social Responsibility)

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REASON NO.2

CHARGES OF DISCRIMINATION AND LAWSUITS INITIATED BY FORMER COMPANY EXECUTIVES CAN BE EMBARRASSING AND EXPENSIVE.

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REASON NO.3Providing outplacement support for existing staff helps retain remaining staff. 

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REASON NO.4

Provides moral support and motivation to the employees

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Services offered by “Outplacement” firm:

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CAREER EVALUATION

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CAREER GUIDANCE

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RESUME WRITING& RESUME DISTRIBUTION

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INTERVIEW PREPARATION

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Other services such as preparing a profile for career networking platforms like LinkedIN

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SOME INDIAN OUTPLACEMENT FIRMS ABC International Placement Services Times International Inc Bhardwaj & Company Chartered Accountants International Manpower Resources Pvt. Ltd. Total Strategic Solutions India Pvt. Ltd. Designing Solutions, Gurgaon Esource Global HR BRAINSTORM PLACEMENTS Suven Consultants M-Power HR Solution Cindy Placements & consultancy Smart Serve H.R. Consultant Horizon hr Solution Pvt. Ltd. M.K.CONSULTANT JOBKOMPASSE

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TCS CASE STUDYRef: SiliconIndia Wednesday, 11 March

2009,

Chennai: The employees of Tata Consultancy Services (TCS), who would be the victims of the company's recent announcement of massive layoff, may find some relief as the firm plans to help them in outplacement. The company had said that it will be slashing around 1,300 employees or one percent of its workforce across its global centers. The software giant will aid in outplacement, counseling and alternate positions in subsidiaries if available and it has also tied up with a few placement agencies across the country. It has already sacked around 100 employees in Chennai in the last two weeks. "Recruitment of experienced professionals has been frozen unless these are approved by the respective business heads for project-specific skills. Wherever possible, we look to retain experienced professionals within the company to take on these roles," Ajoy Mukherjee, Vice President and Head, Global HR, TCS told.

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SAPIENT CASE STUDY 11 feb,2009 Software major Sapient has laid off 500 employees globally,

of which around 300 are from the offices in India - Bangalore, Noida and Gurgaon - during the weekend.

Sapient, in an official statement, confirmed the lay off and said that it has laid off 300 employees at its offices in Bangalore, Noida and Gurgaon.

"In order to adjust to this changing demand environment, Sapient has exited about 8 per cent of its people. Sapient employs approximately 6,400 globally and as a result of this rationalization, 300 people in India have been impacted," the company spokesperson said.

According to the spokesman of the software major, the laid off employees have received severance packages and full outplacement services, and would be considered for rehiring on a fast track basis if the company finds that it again needs their skills and experience.

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INTERNATIONAL HUMAN RESOURCE

MANAGEMENT

IHRM

“Broadly defined, international human

resource management (IHRM) is the

process of procuring, allocating, and

effectively utilising human resources in

a multinational corporation.”

If the MNC is simply exporting its

products, with only a few small offices

in foreign locations, then the task of the

international HR manager is relatively

simple.

However, in global firms human resource managers must achieve two somewhat conflicting strategic objectives.

First, they must integrate human resource policies and practices across a number of subsidiaries in different countries so that overall corporate objectives can be achieved.

At the same time, the approach to HRM must be sufficiently flexible to allow for significant differences in the type of HR policies and practices that are most effective in different business and cultural settings.

BARRIERS/ FEATURES OF

IHRM

Cultural awareness

Legal awareness

Responsibility towards family

Different expectations and requirement

of employee across cultures

Managing cross cultural teams

Diluting risk on business front and

increasing risk on people front

INTERNATIONAL HUMAN RESOURCE

MANAGEMENT MODEL

Given by Morgan-

He defined Ihrm as the interplay among

3 dimensions – human resource

activities, type of employees and

country of operations”

An employee who is working and temporarily residing in a foreign country

Some firms prefer to use the term “international assignees”

WHAT IS AN EXPATRIATE?

1.Inability of spouse to adjust 2.Manager’s inability to adjust 3.Other family problems 4.Manager’s personal or

emotional maturity 5.Inability to cope with larger

overseas responsibility 6.Lack of technical competence 7.Difficulties with new

environment

REASONS FOR EXPATRIATE FAILURE

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APPROACHES TO MANAGING AND

STAFFING SUBSIDIARIES

Ethnocentric

Home country approach Polycentric

Local approach Regiocentric

Regional approach Geocentric/Global

Global approach

Employee and family adjustment Selecting the right person for the foreign

assignment Culture and communication Language and communication

ISSUES IN IHRM

HRM FUNCTIONS