Paper code: 2.23/5.83/3.

23

HUMAN RESOURCE MANAGEMENT

Preeti Nigam Faculty, Rai University

Acknowledgements
These notes have been prepared from the books written by the following authors: V.S.P Rao Schwind, Das, Werther, Davis

Unit-I
Concepts & Perspectives of HRM; HRM in changing environment, HRM functions, Role of HR Practitioners; HR Policies, Corporate objectives and Human Resource Planning.

People are Different

Heterogeneous Different reactions Educated (New Technology) Motivation level

Definition
Human resource may be defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner.

Features
Pervasive Force Action Oriented Individually oriented People oriented Development oriented Integrating mechanism Comprehensive Function Auxiliary Service Inter-disciplinary function Continuous function

Scope of HRM
Personnel aspect

Welfare aspect
Industrial relations aspect

Misconceptions
1. Lack of expertise 2. Alienation from the mainstream 3. Fascination with latest fads 4. Lack of respect

Objectives of HRM
1. To contribute to organizational

effectiveness 2. To be efficient and cost effective 3. To be responsive to lager societal concerns 4. To meet personal needs of its employees

Objectives of HRM
1. 2. 3.

4.
5. 6. 7.

To help the organization reach its goals To employ the skills and abilities of the workforce efficiently To provide the organization with well trained and well motivated employees To increase to the fullest the employees job satisfaction and self-actualization To develop and maintain a quality of work life To communicate HR policies to all employees To help maintain ethical policies and behavior

Importance of HRM
1.

Enterprise Level
a)

Retain best people in the organization

2.

Individual Level
a) b) c)

Promotes team work and spirit Excellent growth opportunities Work with diligence and commitment

3.

Society Level
a) b)

Employment opportunities Scarce talents are put to best use

New Management Practices

1. Boundary less organization
2. Employee empowerment 3. Diminished corporate layers 4. Changed power base 5. New Manager a sponsor, a team

leader 6. Commitment building

Role of HR Manager
Changing from protector and screener to the planner and change agent Planning and implementing downsizing, restructuring and other cost cutting activities

HRM in India
Static Legalistic Ritualistic

History of HRM
1.

Industrial Revolution
Fragmented and Dull jobs, workers did portion of the job, workers were glorified machine tools, interests of workers not protected

2.

Scientific Management
Taylor advocated, work is broken down into smallest mechanical elements and rearranging them into efficient combination. Individuals should be matched physically and mentally to the requirements of the task. Piece rate system.

History of HRM
3.

Trade Unionism
Collective bargaining, unfair labor practices, grievance handling, disciplinary procedures, pay and benefits

4.

Human Relations Movement

Hawthorne experiments by Elton Mayo demonstrated that employee productivity was affected not only by the way the job was designed and employee economically rewarded but also by certain social and psychological factors. Includes supervisory training programs, strengthen bonds between labor and management and counseling programs

History of HRM
5.

Human Resources Approach

Pet Milk theory that happy workers are productive workers or happy cows give more milk was rejected. Workers are unique with their own needs and motivation levels. This Approach assumes that job is the primary source of satisfaction and motivation to the employees. Emphasis on individual involvement in the decisions made in the organization.

Human Resources Approach

People do not dislike work if they have helped establish objectives Theory Y- Most people can exercise a great deal more self-direction, self-control and creativity than are required in their current jobs Managers job is to use untapped human potential Manager should create a healthy, safe and convenient environment Manager should provide self-direction to the subordinates Expanding subordinates influence Work satisfaction

Terminology
Management HRM Empowerment HRD Job Analysis Employee Development

Case
Does Sincerity pay?

Environmental Challenges
Economic Challenges
Government and Legal Challenges Technological Challenges

Human Resource Management

Societal Challenges

Demographic Challenges

Economic and Societal Challenges

1.

Economic Challenges
Global Trade Challenge Challenge of Productivity Improvement

2.

Technological Challenges
Computerization Automation

3.

Demographic Challenges
Increasing number of women in the workforce Shift from Primary to Service jobs Educational attainment of workers Employment of older workers More part time workers Unemployment

4.

Cultural Challenges

Steps in Dealing with Environmental Challenges

1. Monitor the environment 2. Evaluate the impact 3. Take proactive measures 4. Obtain and analyze feedback

Factors Influencing Personnel FunctionExternal Technological Economic Political Social Local & Govt. Issues Unions Employers demands Workforce diversity Internal

Rao

Mission Policies Organizational Culture Organizational Structure HR Systems

Three Dimensions of Personnel Management

Personnel Management
Industrial Relations Aspect
Union-management relations, disputes settlement, grievance handling, discipline, collective bargaining

Personnel Aspect
Recruitment, selection, placement training, appraisal, compensation, productivity

Welfare Aspect
Working conditions, amenities, facilities, benefits

Functions of Personnel Management

Managerial Functions
Planning Organizing Directing Controlling

Operative Functions 1. Employment

Job Analysis HR Planning Recruitment Selection Placement Induction and Orientation

Functions of Personnel Management

2.

Human Resource Development

Performance Appraisal Training Management Development Career Planning and Development Organization Development

3.

Compensation
Job Evaluation Wage and salary administration Incentives Bonus Fringe benefits Social security measures

Functions of Personnel Management

Human relations 5. Effectiveness of Human resource Management
4.
Organization health Human resource auditing, audit and research

Personnel Policy
Brewster and Richbell defined Personnel policies as a set of proposals and actions that act as a reference point for managers in their dealings with employees. Personnel policies constitute guides to action. They furnish the general standards or bases on which decisions are reached. Their genesis lies in an organization's values, philosophy, concepts and principles. E.g. equal employment opportunity to minorities

Procedures
Procedures are action guidelines. They are derived from policies.

Advantages of Personnel Policies

Delegation Uniformity Better control Standards of efficiency Confidence Speedy decisions Coordinating devices

Obstacles in Administering Personnel Policies

Reluctant managers Conflicts in policy specially employment Difficult to review and update Freedom to managers dangerous

Characteristics of Personnel Policy

Related to objectives Easy to understand Precise Stable and flexible Based on facts Appropriate number Just, fair and equitable Reasonable Review

Coverage of Personnel PoliciesMichael Armstrong

Social responsibility
Equity Consideration Quality of Work Life

Employment policies Promotion policies Development policies Relations policies

Line and Staff Relationships

Line Relationships exists between superior and subordinate. Line refers to those positions of an organization which have responsibility, authority and are accountable for accomplishment of primary objectives.

Line and Staff Relationships

Staff Relations When positions are created to secure advice, guidance, information, help or assistance, counseling etc. in the process of attaining organizational goals Staff authority is advisory. A staff manager helps serve, investigate, plan, solve special problems, supports line effort, provides ideas and has special expertise.

Personnel Management- Line or Staff

The personnel management is a line management responsibility but a staff function. Personnel managers perform the various functions of personnel management viz. employment, training, development, wage and salary administration, motivation, grievance redressal, workers participation in management, collective bargaining etc. Also personnel managers perform certain staff functions relating to management of personnel like advising, assisting, guiding, suggesting, counseling and providing information to line managers.

Human Resource Planning

The process of getting the right number of qualified people into the right job at the right time.

Objectives
Forecast personnel requirements Cope with changes Use existing manpower productively Promote employees in a systematic manner

Benefits
Reservoir of Talent Prepare people for future Expand or contract Cut costs Succession Planning

HRM at Different Levels

1. National level
2. Sectoral Level 3. Industry Level 4. Unit level 5. Departmental level

6. Job Level

The Process Of HRP

1. Forecasting the demand for Human

resources 2. Preparing Manpower Inventory 3. Determining Manpower Gaps 4. Formulating Manpower Plans

Human Resource Planning (contd)

Small Business and HR Planning Issues
Attracting and retaining qualified outsiders Management succession between generations of owners Evolution of HR activities as business grows Family relationships and HR policies

HR Planning Process

Manpower Plan: Strategies

Recruitment Plan Redeployment Plan Redundancy plan Training Plan Productivity Plan Retention Plan Control Points

Benefits of HR Planning
Better view of the HR dimensions of business decisions
Lower HR costs through better HR management.

More timely recruitment for anticipate HR needs

More inclusion of protected groups through planned increases in workforce diversity. Better development of managerial talent

Responsibility for HRP

Prof. Geisler outlined the responsibilitiesAssist and counsel operating managers to plan and set objectives Collect and summarize manpower data keeping long run objectives and organizational interests in mind Monitor and measure performance against the plan and keep top management informed Provide proper research base for effective manpower and organizational planning

Problems in HRP
Accuracy Support Numbers game

Indian Organizations
Inadequate records Improper retrieval systems Non-computerized personnel information Current technologies and knowledge not put to use optimally Changes in labor market Difficulties in forecasting resignations, deaths, turnovers etc.

Guidelines
Objectives Top Management Support Manpower Inventory Human Resource Information System Coordination

1. Dessler, Gary, Human Resource Management, Pearson 2.

Suggested Readings:

3.
4.

5.
6.

7. 8. 9.

Education Asia, New Delhi. Rao, V.S.P., Human Resource Management-Text & Cases, Excel Books, New Delhi. Ramaswamy, E; Managing Human Resources, Oxford University Press, New Delhi Irancevich, John, Human Resource Management, Irwin/McGraw Hill. Casio, Wayne F; Managing Human Resources, McGraw Hill Inc. Subba Rao, P; Essentials of Human Resource Management & Industrial Relations, Text, Cases & Games, Mimbai, Himalaya Publishing House. Mondy R.W; Noe, R.M., Premeaux, S.r. and Mondy J.B; Human Resource Management, Prentice Hall Inc. Saiyodain, Human Resource Management, TMH, N.Delhi. Aswthappa, Human Resource Management, TMH, N.Delhi.