Introduction to Human Resource Management - E-Learning ...

Introduction to Human Resource Management

Human Resource Management

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What is Human Resource Management [HRM]What is Human Resource Management [HRM]

Objectives of this sessionObjectives of this session

What is Human Resource Management [HRM]

Functions involved in HRM

How HR has evolved over the years

What is Human Resource Management [HRM]

Functions involved in HRM

How HR has evolved over the yearsHow HR has evolved over the years

Differentiate among Personnel

Management, Industrial Relations, HRM

How HR has evolved over the years

Differentiate among Personnel

Management, Industrial Relations, HRMg , ,

and HRD

Process of HRM in an organization

g , ,

and HRD

Process of HRM in an organization

Factors affecting HRM in an organization

Future of HRM – Strategic HRM and HCM

Factors affecting HRM in an organization

Future of HRM – Strategic HRM and HCM


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Structure of this session

1. Nature of HRM

Structure of this session

1. Nature of HRM1. Nature of HRM

2. Functions in HRM

3. Evolution of HRM

1. Nature of HRM

2. Functions in HRM

3. Evolution of HRM

4. Difference among Personnel Management,

Industrial Relations, HRM and HRD

4. Difference among Personnel Management,

Industrial Relations, HRM and HRD

5. Process of HR

6. Factors affecting HRM

5. Process of HR

6. Factors affecting HRM

7. Future of HRM

8. Summary

7. Future of HRM

8. Summary


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1 1 Nature of HRM1 1 Nature of HRM

HRM is a process where people andorganizations are brought together so

1.1 Nature of HRM1.1 Nature of HRM

organizations are brought together sothat goals of each are met .

Organizations have realized that they maybe technologically advanced but it is thepeople who offer competitive advantageto an organizationto an organization.

People offer skills, capabilities, systems,practices, bonding, behaviours forp geffective execution of organization’sstrategies.


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F F 1.2 Functions in HRM1.2 Functions in HRM

Planning : Preparing forecasts of future HRon the basis of an organization’senvironment, mission, objectives andstrategiesstrategies.Staffing : Obtaining people with theappropriate skills, abilities, knowledgeappropriate skills, abilities, knowledgeand experience to fill jobs in theorganization. This involves human resourceplanning, job analysis, recruitment and

selection.


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F F 1.2 Functions in HRM1.2 Functions in HRM

Developing : Analyzing learningrequirements to ensure that employeespossess the knowledge and skills to performthe jobs satisfactorily and advance inthe jobs satisfactorily and advance intheir career.Monitoring : Job evaluation, performanceMonitoring : Job evaluation, performanceappraisal, pay and benefits.Maintaining : Work place safety, health andwelfare policies, and statutory compliance.


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E l f E l f 1.3 Evolution of HRM1.3 Evolution of HRM

Key Milestones :1890 . 1910 – Scientific Managementdeveloped by Taylor. Workers’ Welfaredepartments Industrial psychology borndepartments. Industrial psychology bornwith World War I.

1930 . 1945 – Hawthorne Studies focus onsocial and informal aspects of workplacethat affect productivity. Job satisfaction

raises productivity.


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Key Milestones :1945 . 1965 – Surge in union membership inthe US. Focus on collective bargaining andlabour relations Compensation and benefitslabour relations. Compensation and benefitson forefront as Unions negotiate withmanagement.management.

1965 . 1985 – Civil Rights movement in theUS Equal employment opportunities &US. Equal employment opportunities &affirmative action become HR

responsibilities.


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responsibilities.



Key Milestones :1985 onwards – Increasing diversity inlabour force, globalization of businesswith technological revolution and focus onwith technological revolution and focus onHR as a strategic function dramaticallyimpact the HRM function.impact the HRM function.HRM concepts and concerns integrated intooverall strategic planning to cope withrapid change, intense competition, and

pressure for increased efficiency.


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1 4 P l M t I d t i l R l ti HRM1 4 P l M t I d t i l R l ti HRM1.4 Personnel Management, Industrial Relations, HRMand HRD – Difference.

1.4 Personnel Management, Industrial Relations, HRMand HRD – Difference.

Personnel Management : concerned withPersonnel Management : concerned withmanpower planning, recruitment, selection,transfer, promotion, training anddevelopment, lay off, retrenchment,remuneration and incentives.

Industrial Relations : cover union-management relations, joint consultations,g , j ,collective bargaining, grievance and

disciplinary procedures.


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1 4 P l M t I d t i l R l ti HRM1 4 P l M t I d t i l R l ti HRM1.4 Personnel Management, Industrial Relations, HRMand HRD – Difference.

1.4 Personnel Management, Industrial Relations, HRMand HRD – Difference.

Human Resource Management : includesHuman Resource Management : includespersonnel management, industrial relationsplus welfare covering working conditionsand amenities.

Human Resource Development : more concernedHuman Resource Development : more concernedwith training and development , careerplanning and development and organizationalp g p gdevelopment.


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manpower planning,recruitment selectionrecruitment, selection,

Personnel transfer, promotion,Management training and development,

lay off, retrenchment,dremuneration and incentives.

i t l tiunion management relations,Industrial relations joint consultations

collective bargainingi & di i ligrievance & disciplinary

procedures


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career planningcareer planning,Human Resource career developmentDevelopment training and development,

organization developmentg p.

personnel management,Human Resource industrial relationsManagement employee welfare

working conditions and

amenities


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1.5 HRM process 1.5 HRM process

Job Analysis

Separation

ManpowerPlanning

CompensationAdministration

Recruitment&

SelectionPerformance Appraisal

HRM

Motivation

Training&

Development

EmployeeWelfare


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1 5 HRM1 5 HRM1.5 HRM process1.5 HRM process

Job AnalysisThe process of collecting job related

information in order to design the job.

Manpower PlanningThe process of forecasting an

organization’s future demand for and supplyof the right type of people at the righttime.


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Recruitment & SelectionRecruitment involves attracting and

obtaining applications from eligible jobseekers While selection is choosing theseekers. While selection is choosing theright individual for the job, out of aboveapplicants.applicants.

MotivationMotivation undertakes to understand

and change employee’s behaviour forincrease in employee’s performance.


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Training & DevelopmentRefers to imparting of requisite

skills, abilities and knowledge to anemployeeemployee.

Employee WelfareEmployee welfare ensures that an

employee receives other benefits andservices like good working conditions,g g ,retirement benefits, leave, leave

encashment etc.


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Performance AppraisalIt is an objective assessment of

individual’s performance against theindividual’s objectives or benchmark laidindividual’s objectives or benchmark laiddown.

Compensation AdministrationEmployees receive compensation in

return for their contribution to theirreturn for their contribution to theirorganization. Its administrative aspect is

looked after by HRM.


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Separation

It is a process concerned with whenan employee leaves an organization eitheran employee leaves an organization eithervoluntarily or involuntarily.

Resignation is a voluntary separationwhile dismissal or retrenchment isinvoluntary separation.


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1 6 F t Aff ti HRM1 6 F t Aff ti HRM1.6 Factors Affecting HRM 1.6 Factors Affecting HRM

HRM is affected by environment in inwhich it operates. HRM professionals mustunderstand the forces which form theenvironmentenvironment.

These forces have two sources, external oneThese forces have two sources, external onefrom outside the organization and internalfrom within.

Both are equally important for HRM.


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1 6 F t Aff ti HRM1 6 F t Aff ti HRM1.6 Factors Affecting HRM 1.6 Factors Affecting HRM

External InternalEnvironment Environment.

Political factors StrategyPolitical factors StrategyLegal factors Trade UnionsJob market OrganizationalCompetitors cultureCustomersEconomic growthDiversityGlobalizationTechnological factorCultural factor


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1 6 F t Aff ti HRM E t l1 6 F t Aff ti HRM E t l1.6 Factors Affecting HRM - External 1.6 Factors Affecting HRM - External

Political & Legal factors:

1. Son’s of the soil policies.2 Reservations2. Reservations3. Equal opportunities4. No discrimination4. No discrimination5. Local regulations6. Labour laws7. Changes in political party in power


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1 6 F t Aff ti HRM E t l1 6 F t Aff ti HRM E t l1.6 Factors Affecting HRM - External1.6 Factors Affecting HRM - External

Job market

Job market consists of employmentexchanges, universities, colleges, trainingexchanges, universities, colleges, traininginstitutes or consulting firms. It providesthe supply of HR to the organization.Quality of HR of an organization depends onquality of the job market.

From the supply available in themarket HR selects the best quality forthe firm


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the firm.



Competitorsi k h j b fCompetitors make the job of

recruitment difficult for HR. Attractiveterms & conditions need to be offered toterms & conditions need to be offered tocandidates.

After selection attractive paypackages have to be structured to retainthem.

When competition makes talentedWhen competition makes talentedworkforce scarce, HR has to groomemployees through training andd l t


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development.



Customersd d l hi h liCustomers demand only high quality

products and services and at reasonableprices.prices.

Both quality and cost are determinedto a large extent by the employees.

The quality and skills of employeesThe quality and skills of employeeshave to be built by HR.


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Economic growth

In economically developed countries,governments spend large amounts ongovernments spend large amounts oneducation thereby assuring skilledworkforce to their organizations. Thisgskilled force increases their productivity.

In developing countries skilled labouris scarce and organizations have to spend

on training fresh recruits.


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Diversity

In any MNC human resources are diversein terms of nationalities, religions,in terms of nationalities, religions,cultures, languages, education, skills,age, gender etc.

Managing such diversity is a newchallenge for HRM. The diversity has to bechallenge for HRM. The diversity has to be

harnessed for creativity, innovation,increased productivity and improved


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Globalization

“Be local, Think Global” is the newmantra The hiring, training, compensationmantra. The hiring, training, compensationand retaining strategies of HR have to beadopted and followed keeping globalp p g gperspective in mind.

HR strategy has to keep companyHR strategy has to keep companycompetitive and attract foreign

investments joint ventures and


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collaborations.



Technological factor

Changes in technology happen on adaily basis as result of intenseycompetition. Job seekers have become highlyknowledgeable and professional. Technologypermits these professionals to work fromhome and at outside office hours.

HR managers are required to manage andretain technologically advancedemployees through new HR strategies


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employees through new HR strategies.



Cultural factor

Attitude of human resources towardswork depends upon their culturalbackground The work ethics achievementbackground. The work ethics, achievementneeds and effort-reward expectations are aresult of culture.

Japanese are highly quality conscious,Indians are known for their loyalty toemployers.p y

HR has also to manage multi culturalwork force emerging from globalization.


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1 6 F t Aff ti HRM I t l1 6 F t Aff ti HRM I t l1.6 Factors Affecting HRM - Internal1.6 Factors Affecting HRM - Internal

Strategy

Strategy of an organization ensuresthat the objectives of organization andresources of the organization are alignedproperly.

This alignment of the strategy,This alignment of the strategy,structure, human resources and managementdecides the success of the organization.

HR h t th t it it tHR has to ensure that its recruitmentand selection policies are aligned to the

organizational strategy to achieve


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competitive edge in the market.



Trade Unions

Unions were formed to enable employeesto have a collective voice in their pay,working conditions and other benefits.

Political affiliation of unions bringsa new perspective to union-managementa new perspective to union managementrelations. Presence of more than one uniongives rise to multi union rivalry.

Th t f t li t th j bThese two factors complicate the jobof HR managers who have to be careful and

diplomatic in handling unions.


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Organizational culture

Every organization has its own culturewhich is a product of its human resources,organizational successes and failures.

HR has to proactively adjust to thep y jchanges in the organizational culture andensure there is no mismatch between goalsof the organization and those of itsof the organization and those of itsindividual employees.


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1 7 F t f HRM1 7 F t f HRM1.7 Future of HRM 1.7 Future of HRM

Strategic HRM

Strategic HRM is a combination ofStrategy and HRM. It aims to link HRM with

i ti ’ t t i th t thorganization’s strategies so that they canattain a competitive edge in the globalmarket.

Factors like globalization, increasedtechnological change, diversity in humanresources of an organization and highlyresources of an organization and highlycompetitive environment have led to

development of SHRM.


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Human Capital Management

HRM in future is going to be replacedby HCM.

HRM assumes its employees to beHRM assumes its employees to beorganizations resource that can be drawnand utilized by management to accomplish atasktask.

HCM treats employees as investors oftheir own capital. Thus management does notown this human capital but rent it fromown this human capital but rent it from

employees. HRM conceives thatemployees add to the value while HCMbelieves they create value


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believes they create value.



Human Capital ManagementHuman Capital Management

HCM is a new concept and yetto win acceptance in managementcircles.

HCM works well in people orientedorganizations enjoying large volumesorganizations enjoying large volumesof business.


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R l f HR i B d M tR l f HR i B d M tRole of HR in Brand Management Role of HR in Brand Management

Brand is defined as any name. logo,term sign or a combination of themterm, sign or a combination of themintended to identify the goods or servicesof any seller and to identify them fromthose offered by competitors.

Earlier branding was the exclusiveEarlier branding was the exclusiveforte of Marketing. Now branding of product/ services has extended to branding of the

l f h d hpeople of the company and the companyitself. This part can be handled by HRM.


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Brand value depends on what youremployees ex-employees suppliers talkemployees, ex-employees, suppliers talkabout the company in the job market. Italso depends on how your employees engagein social activities, research, teachingetc. HR can encourage employees to activelyparticipate in these activities.p p

Until recently organization wasti fi d b i f it t b tsatisfied by caring for its customers, but

now it has also to manage how the companyis perceived in the job market


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is perceived in the job market.



With well established brand value in thejob market an organization benefits asjob market an organization benefits as

skilled candidates are attracted tojoin it

attrition is well managed &ex-employees talk positively about

the organization


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1 8 S1 8 S1.8 Summary 1.8 Summary

Human Resource Management is amanagement function that helps anmanagement function that helps anorganization to manage its Human Resources.

The process of HR in an organizationconsists of manpower planning, jobanalysis, recruitment & selection,y , ,motivation techniques, training anddevelopment, employee welfare, performanceappraisal compensation administration andappraisal, compensation administration andseparation.


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1 8 S1 8 S1.8 Summary 1.8 Summary

HRM in an organization is affected byvarious factors in the externalvarious factors in the external[technological changes, globalization,political, legal] and internal[organizational strategy, trade unions,organizational culture] environment.

HRM in near future will be replaced byStrategic Human Resource Management and inthe distant future it will be replaced bythe distant future it will be replaced byHuman Capital Management.


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Next we movet i tto session twodealing with“J b A l i ”“Job Analysis”Good Luck!


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