Introduction to HRM Final PDF

Introduction to Human Resource Management Contents  Introduction  Definition  History  Functions of HRM,Policy Procedure and Practices  Line and Staff,Org Chart,Roles and deliverables  Personnel and HRM differences,Challenges to HRM,SHRM-improving Performance...

Introduction to Human Resource Management Contents  Introduction  Definition  History  Functions of HRM,Policy Procedure and Practices  Line and Staff,Org Chart,Roles and deliverables  Personnel and HRM differences,Challenges to HRM,SHRM-improving Performance,  4 codes of grouped employment laws Introduction  Human Resource is one of the most valuable and unique resource of an organization  HRM is one of the most complex and challenging fields of modern management Definition Human Resources Management History Scientific Management  Friedrick Taylor used the study of motions required for each job, the tools used, and the time needed to accomplish each task. Fair performance standards, additional incentive pay for outstanding work  High degree of standardisation  Economic Man-Worker was basically motivated by economic gain and financial incentives alone could maximize the workers output. Personnel staff did job analysis, developed job specifications and designed wage incentive programs, welfare programs were introduced. Human Relations Approach  The Hawthorne studies conducted by Elton Mayo in 1927 , formed the basis for the Human Relations Approach  Employee productivity-Not only by job design and economic rewards but also by social and psychological factors  Group relationships and Management support were important factors  Treating employees with respect would improve productivity and improve employee satisfaction  The growing strength of unionism also led to the reise of human relations approach.It did not recognize employees are unique and procedures , standards and rules  It did not recognize factors like performance management, career dvt and planning etc Human Resources Approach  Organizational goals and employee needs are mutual and compatible and which can be pursued in unision  People treated as resources rather than factors of production  Employees are assets to an organization. They need to be invested upon to reap better returns in the present and future  Policies should cater to the needs of the employees, should help them in achieving goals and personal development  Conducive environment Progress of The personnel function Managerial Functions The four main functions of HR are  Acquiring  Developing  Motivating  Retaining employees  Functions of HRM P/HRM Manageri Operative Functions al functions: Procureme Developme Motivation Maintenanc Integration: Emerging – Planning nt nt: and e: Issues: Job Compensatio Grievances Training n: HR Analysis Health Discipline accountin – Executive Job design g HR Organising Teams and planning Work Safety HRIS developme teamwork scheduling Recruitme nt Job stress nt Collective Motivation Welfare Career Mentoring – Directing Selection planning Job bargaining Internatio Placement evaluation Social Participatio Succession nal HRM Performance security n Induction planning Mental – and potential Empowerm Internal Health Controlling Human appraisal ent mobility resources HR and Compensatio Trade developme Techno;og n unions nt y administratio strategies n Employers’ AI and HRM Roles and Deliverables(Ulrich 1997)  Administrative Expert Role-  Change Agent Role-Deliverable is Deliverables are design and effectively managing delivery of efficient processes transformation and change, acting as cultural catalysts and for staffing, training, guardians appraising, rewarding,  Strategic Partner Role- promoting and managing the flow of employees in the Deliverable is aligning HRM strategies and practices with the organization organizations strategy, to ensure  Employee Champion Role- success of those strategies Deliverable –dealing with day to day problems, concerns and needs of employees, employee contributions to org success  The World of Work - continues to change, but at an even more rapid pace.  HR must understand the implications of:  globalization  technology changes  workforce diversity  changing skill requirements  continuous improvement initiatives  the contingent work force Understanding Cultural Environments  Today’s business world is truly a global village. This term refers to the fact that businesses currently operate around the world. The Changing World of Technology  Has altered the way people work.  Has changed the way information is created, stored, used, and shared  Knowledge Worker - individuals whose jobs are designed around the acquisition and application of information.  Why the emphasis on technology:  makes organizations more productive  helps them create and maintain a competitive advantage  provides better, more useful information Workforce Diversity  The challenge is to make organizations more accommodating to diverse groups of people. Labor Supply  Why Do Organizations Lay Off During Shortages?  Downsizing is part of a larger goal of balancing staff to meet changing needs.  Organizations want more flexibility to better respond to change.  This is often referred to as rightsizing, linking employee needs to organizational strategy. Labor Supply  How Do Organizations Balance Labor Supply?  Organizations are increasingly using contingent workers to respond to fluctuating needs for employees.  Contingent workers include  Part-time workers  Temporary workers  Contract workers Labor Supply Labor Supply  Issues Contingent Workers Create for HRM  How to attract quality temporaries  How to motivate employees who are receiving less pay and benefits  How to have them available when needed  How to quickly adapt them to the organization  How to deal with potential conflicts between core and contingent workers Continuous Improvement Programs  Continuous improvement - making constant efforts to provide better products and service to customers  Quality management concepts have existed for over 50 years and include the pioneering work of W. Edwards Deming. Continuous Improvement Programs  Key components of continuous improvement are:  Focus on the customer  Concern for continuous improvement  Improvement in the quality of everything  Accurate measurement  Empowerment of employees Continuous Improvement Programs  Work Process Engineering involves radical, quantum changes to entire work processes.  How HRM Assists in Work Process Engineering  Helps employees deal with the emotional aspects of conflict and change  Provides skills training  Adapts HR systems, such as compensation, benefits, and performance standards. Employee Involvement  Delegation – having the authority to make decisions in one’s job  Work teams – workers of various specializations who work together in an organization  HRM must provide training to help empower employees in their new roles.  Involvement programs can achieve:  greater productivity  increased employee loyalty and commitment Changing Attitudes of Workforce  Changing Career Paradigms Old Paradigms New Paradigms Job/Person fit Person /Organization fit Longitudinal Career Alternate career paths paths Organizational Job task loyalty Loyalty Career Success Work/Family Balance Academic Degree Continuous Relearning Position/Title Competencies/ Development Full time Employment Contract Employment Retirement Career Sabbatical Single job Career Multiple job Careers Promotion tenure Promotion performance  Impact of the Government  1991 reforms  Labor laws and codes  Quality of work life  Technology and Training  Strategic Human Resources  Personnel Mistakes  Hire the wrong person for the job  Experience high turnover  Your people not doing their best  Waste time with useless interviews  Have your company sued for discriminatory actions  Personnel Mistakes  Have your company fined for unsafe practices  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 employment practices  Video- HRM at Patagonia  https://www.youtube.com/watch?v=RKVi25WtemE  Basic HR Concepts  Getting results  The bottom line of managing  HR creates value by engaging in activities that produce the employee behaviors the company needs to achieve its strategic goals.  Line and Staff Aspects of HRM  Authority  The right to make decisions, direct others’ work, and give orders.  Staff authority (Advisory)  The authority gives right to the HR manager to advise other managers or employees.  Line authority (Superior-Subordinate)  The authority of managers to direct people in his or her own department.  Line and Staff Aspects of HRM  Line manager (Line Authority)  A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks.  Staff manager (Staff Authority)  A manager who assists and advises line managers.  Line Managers’ HRM Responsibilities 1. Place the right person on the right job 2. Orientate new employees 3. Train employees for jobs new to them 4. Improve the job performance of each person 5. Gain creative cooperation and developing smooth working relationships  Line Managers’ HRM Responsibilities 6. Interpret the company’s policies and procedures 7. Control costs 8. Develop the abilities of each person 9. Maintain morale 10. Protect employees’ health and physical condition Functions of the HR Manager  Carries out 3 distinct functions:- 1. Line function 2. Coordination function 3. Staff function Functions of the HR Manager  A line function  The HR manager directs the activities of the people in his or her own department and in related service areas (like the plant cafeteria). Functions of the HR Manager  A coordinative function  HR managers also coordinate personnel activities, a duty often referred to as functional control. Functions of the HR Manager  Staff (assist and advise) functions  Assisting and advising line managers is the heart of the HR manager’s job. Size of HR Department  Depends on company size  Small Company:  Only a few personnel  Large Company:  Full range of HR specialist for each different function Size of HR Department  Example of HR department in a small company: Size of HR Department  Example of HR department in a large company: Duties of HR Specialists  Training Specialist  Plan, organize and direct training  Advise managers on training  Job Analyst  Collect information about jobs  Prepare job description Duties of HR Specialists  Recruiter  Collect information about jobs  Interview and recommend suitable candidates  EEO (Equal Employment Opportunity) Coordinator  Investigate EEO grievances  Examine HR practices for potential violations Duties of HR Specialists  Compensation Manager  Develop compensation plans  Handle employee benefits program  Employment relations specialist  Advise managers on ER issues  Negotiate with unions Qualities of an HR manager  Knowledge  Intelligence  Communication skills  Objectivity and fairness  Leadership and motivational qualities  Emotional maturity and  Empathy Policy and Procedure  Policy:A policy is a set of rules or guidelines for your organization and employees to follow in order to achieve a specific goal (i.e. compliance).  Effective policies answer questions about what employees do (such as directions, limits, principles, and decision-making guidance) and why they do it.  Procedure: is the counterpart to a policy; it is the instruction on how a policy is followed. It is the step-by-step instruction for how, when, and where the policies outlined above will be achieved. A policy defines a rule, and the procedure defines who is expected to do it and how they are expected to do it. Difference between HRM and PM  HRM is proactive in nature while PM is reactive.  HRM is a resource-centred activity whereas PM is a employee-centred activity.  HRM emphasizes on flexible, open-ended contracts but PM emphasizes the strict observance of defined rules, procedures and contracts.  HRM views better performance as a cause of job satisfaction whereas PM considers job satisfaction as a source of better performance….  DISTINCTION BETWEEN PERSONNEL MANAGEMENT (PM) & HUMAN RESOURCES MANAGEMENT (HRM) Dimension PM HRM Perspective Short-term perspective Long-term perspective Point of View Compliance The psychological contract based on commitment Control External control Self-control Perception Pluralist perspective A utilitarian perspective Role Specialist role Strategic role Outlook Cost-minimization Maximum utilization  DISTINCTION BETWEEN PERSONNEL MANAGEMENT &. HRM (CONT’D) Dimension PM HRM Employment contract Careful delineation of Aim to go beyond written contracts contract Rules Importance of Can do outlook, devising clear rules impatience with rule Guide to management Procedures Business need action Behavior referent Norms/customs and Values/mission practices Managerial task vis-à- Monitoring Nurturing vis labour Initiatives Piecemeal Integrated  DISTINCTION BETWEEN PERSONNEL MANAGEMENT &. HRM (CONT’D) Dimension PM HRM Job design Division of labor Team work Conflict handling Reach temporary truce Manage climate and culture Training and Controlled access to courses Learning organizations development Respect for Labor is treated as a tool People are treated as employees which is expendable and assets to be used for the replaceable benefit of an organization Shared interests Interests of the organization Mutuality of interests are uppermost Evolution ‘Employee advocate' ‘Member of the management team' SOURCE Aswathappa, K., “Human Resource and Personnel Management”, Tata McGraw-Hill Publishing Company Limited, 3rd Edition, 2002, p. 6. and Guest, 1987, cited in Gamage & Pang, 2003, p.256. Four Codes of Grouped Employment Laws(new labour codes 2021)  Code on social Security,2020  The Industrial Relations code,2020  Occupational Safety, Health and working conditions code 2020  Code on Wages, 2019 Strategic Human Resource Management- Improving Performance  SHRM helps the organization in the achievement of long term and short term goals through the optimum utilization of human resources  It involves the development of HR objectives and their alignment with the organizational objectives References  Images have been sourced from Google  Pearson education  Google  Aswathappa- Book on HRM