Why HRM?
Basic
need to study this subject?
Module 1 Strategic role of HRM & Subsystems
Introduction to HRM Job analysis HR planning & recruiting Employees testing & selection Interviewing Candidates Training & Development
Introduction to Human Resource Management
Meaning of HRM
HRM is the process of acquiring, training, appraising, compensating employees, attending labour relations, health and safety and fairness concern. The policies and practices involved in carrying out the people or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising.
How do people lend a competitive advantage
People offer skills and capabilities that help execute firms strategies Align HR plans to business plans Innovation is key to competitive advantage Convert adverse situation into an opportunity Organisational designs HR executive is becoming an effective change agent Types of change: Initiative change Process change Cultural change
Evolution of HRM
People management has matured from IR to PM to HRM to HCM
Time period
1920 1930s 1940 1960s
Status
Clerical Administrative
1970 1980s 1990s
Present
Managerial Executive
Human Capital
Scope/Subsystems of HRM
Job analysis HR planning & recruitment Employees testing & selection Training and development Performance management system Career development & Motivation Compensation & Remuneration Industrial relations Labour legislations
Line and Staff Aspects of HRM
Line manager
A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organizations tasks.
Staff manager
A manager who assists and advises line managers.
Line Managers Duties:
Placing the right person on the right job Starting new employees in organisation Training Employees Improving job performances Gaining cooperation & developing smooth working relations Interpreting companys policies & procedures Controlling labor costs Developing abilities of each person Creating labor costs Protecting employees health & physical condition
Difference between PM & HRM
Dimensions Employment contract PM Careful delineation of written contracts Rules Importance of devising clear rules Guide to management Procedures action Behaviour referent Norms/customs & practices Key relations Labour management Conditions Separately negotiated HRM Aim to go beyond contract Can do outlook, impatience with rules Business need
Values/Mission
Customer Harmonisation
Contd
Dimensions Managerial task Initiatives Speed of decision Management role Communication Prized management skill Selection Pay PM Monitoring Piecemeal Slow Transactional Indirect Negotiation
Separate
HRM Nurturing Integrated Fast Transformational Direct Facilitation
Integrated
Job evaluation Performance related (fixed grades)
Contd
Dimensions PM Focus of attention Personnel for interventions procedures HRM Wide ranging cultural, structural & personnel strategies Respect for Labour is treated as People are treated employees a tool which is as assets rather than expendable & liabilities replaceable Shared interests Interest of the Mutuality of organisation are interest uppermost
Contd
Dimensions Labour management PM Collectivebargaining contracts Job categories & Many grades Job design Division of labour Conflict handling Reach temporary truce T&D Controlled access to courses HRM Individual contracts
Few Team work Manage climate & culture Learning
Contd
Dimensions Evolution PM Precedes HRM HRM Latest in the evolution followed by HC Internal Organic Bottom up Decentralised
Locus of control Organising principles
External Mechanistic, Top down Centralised
HRM: Objectives & Functions
Objectives Societal Functions Legal compliance Benefits Union management relations
Appraisal Placement Assessment
Functional
Contd
Objectives
Organisational
Functions
HRP Employee relations Selection T&D Appraisal Placement Assessment T&D Appraisal Placement Compensation Assessment
Personal
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).
A coordinative function
HR managers also coordinate personnel activities, a duty often referred to as functional control. Assisting and advising line managers is the heart of the HR managers job.
Staff (assist and advise) functions
So in a nutshell, HRM functions constitute
Planning Staffing Developing Motivating Managing change Maintaining relations Evaluating
Human Capital Management
Employees are treated more like investors of their own capital. HCM recognizes that people are investors of their personal human capital and this provides the main source of value for an organisation.
Compare among PM, HRM & HCM
Benchmarks Evolutionary PM Succeeds IR & Preceded HRM Human beings are resources Value for money HRM Succeeds PM & Preceded HCM Human beings are valued assets Added value HCM Latest development after HRM Human beings are capital Created value
Emphasis Outcomes of people management Assumptions about environment, organizations and people management
Simple & stable, people are cost, financial reward
Dynamic systems, people seen as assets, learning organizations & employment value proposition
Complex systems, people seen as investors, search for meaning
Compare among PM, HRM & HCM
Benchmarks People management activities PM Focused on service delivery HRM Numerous small tactical project, believes in project management Effectiveness of hr outputs against business plan Investors & Stakeholders HCM Strategic programmes
Measurement
Compliance
Organisational capability, potential for transformation Board, Managers & Employees
Reporting
Regulators
HR Department Organisational Chart (Large Company)
HR Organisational Chart (Small Company)
HRM Specialties:
Recruiters Human Resource Development specialists Engagement & Fun Specialist Employee Welfare Officer Job Analyst Compensation Managers Training Specialist Employment/ Industrial relations Specialist
Trends in HRM/Challenges
Globalization & competition trends Reasons for it sales expansion New foreign products Cut labor costs Forming partnerships(IBM Lenovo) Pros n cons: consumers, job off shoring, business owners.
Trends in HRM/Challenges
Indebtedness & deregulation Technological trends; Indian railways, online hotel accommodation, BRTS, network of ATMs Trends in nature of work:
High tech jobs Service Jobs: shifting to developing countries EG: levis
Knowledge Work & Human Capital(JIT, automation) eg: bank installs software
Trends in HRM/Challenges
Workforce & Demographic Trends Demographic Trends Generation Y Retirees Nontraditional workers Economic Challenges & Trends
HRM & its Environment External Internal
Political Legal Economic
Suppliers Competitors Customers Economic growth Industrial labour Diversity Globalisation
Strategy, task & leadership Unions Organisational culture & conflict Professional bodies
Technological Cultural
Measuring HRs Contribution
The HR Scorecard
Shows the quantitative standards, or metrics the firm uses to measure HR activities. Measures the employee behaviors resulting from these activities.
Measures the strategically relevant organizational outcomes of those employee behaviours.
