Human Resource

Management
Overview of HR Function

http://edition.cnn.com/2009/WORLD/asiapcf/09/23/india.vp.beaten/index.html

NEW DELHI, India (CNN) -- Angry workers beat to

death a human resources vice president after he
laid off 42 employees at an auto-parts
manufacturing company in southern India, police
said Wednesday.

Roy George was vice-president for human

resources at Pricol, the auto-parts company.

Some four to five workers, belonging to a union not

recognized by the company, barged into his office
and beat him up with iron rods, said N. Kannan, a
police superintendent of Coimbatore in Tamil Nadu
state.

India: HR manager killed by

workers
http://www.workplacebullying.org/2010/11/14/hr-exec-killed/

GHAZIABAD: A 45-year-old human resources

manager, who was employed with Allied Nippon,
succumbed to his injuries on Sunday. Joginder

Singh, who passed away around 12.15am, had

suffered multiple head and chest injuries when
workers

of

the

factory

management on Saturday.

clashed

with

the

HRM Crucial to the

Success of Organization
I believe the only game in town is the personnel
game ... My theory is if you have the right person in
the right place, you don't have to do anything else.
If you have the wrong person in the job, there's no
management system known to man that can save
you.
Walter Wriston
Former Chairman and Managing Director
Citicorp

Human Resource
Management

Conducting job analysis

Planning labor needs and recruiting job candidates
Selecting job candidates
Orienting and training new employees
Compensating employees
Providing incentives and benefits
Appraising performance
Communicating (interviewing, counseling, disciplining)
Training and developing managers
Building employee commitment

Key HR Challenges for Todays Managers

Environment

Rapid Change
Workforce Diversity
Globalization
Rise of Internet

Legislation
Evolving Work and Family Roles
Skill Shortages and the Rise
of the Service Sector

Organization
Competitive Position: Cost,
Quality, Distinctive Capabilities
Decentralization
Downsizing
Organizational Restructuring

Self-Managed Work Teams

Small Businesses
Organizational Culture
Technology
Outsourcing

Individual
Matching People and Organization
Ethical Dilemmas and Social Responsibility
Productivity
Empowerment
Brain Drain
Job Insecurity

Effective HR Strategy
Formulation and
Implementation
Organizational
Strategies

Fit
Consistency

Consistency

Fit

Organizational
Characteristics

Environment

Consistency

HR Strategies

Fit

Improved
Firm
Performance

Fit
Consistency

Organizational
Capabilities

Personnel Aspects Of A
Managers Job

Conducting job analyses (determining the nature of each

employees job)
Planning labor needs and recruiting job candidates
Selecting job candidates
Orienting and training new employees
Managing wages and salaries (compensating employees)
Providing incentives and benefits
Appraising performance
Communicating (interviewing, counseling, disciplining)
Training and developing managers
Building employee commitment

Personnel Mistakes

Hire the wrong person for the job

Experience high turnover

Have your people not doing their best

Waste time with useless interviews

Court cases because of discriminatory actions

Have some employees think their salaries are unfair and

inequitable relative to others in the organization

Allow a lack of training to undermine your departments

effectiveness

Commit any unfair labor practices

Line Managers HRM

Responsibilities
1.

Placing the right person on the right job

2.

Starting new employees in the organization (orientation)

3.

Training employees for jobs new to them

4.

Improving the job performance of each person

5.

Gaining creative cooperation and developing smooth

working relationships

6.

Interpreting the firms policies and procedures

7.

Controlling labor costs

8.

Developing the abilities of each person

9.

Creating and maintaining department morale

10.

Protecting employees health and physical condition

Examples of HR Job
Duties

Recruiters
Search for qualified job applicants.

Laws of the land

Job analysts
Collect and examine information about
jobs to prepare job descriptions.

Examples of HR Job
Duties

Compensation managers
Develop compensation plans and handle the
employee benefits program.

Training specialists
Plan, organize, and direct training activities.

Labor relations specialists

Advise management on all aspects of union
management relations.

Measuring HRs
Contribution

Strategy
The companys long-term plan for how it will
balance its internal strengths and weaknesses
with its external opportunities and threats to
maintain a competitive advantage.

HR managers today are more involved in partnering

with their top managers in both designing and
implementing their companies strategies.

Top management wants to see, precisely, how

the HR managers plans will make the company
more valuable.

HR Metrics

Absence Rate
[(Number of days absent in month) (Average number of
employees during mo.) (number of workdays)] 100

Cost per Hire

(Advertising + Agency Fees + Employee Referrals + Travel
cost of applicants and staff + Relocation costs + Recruiter
pay and benefits) Number of Hires

Health Care Costs per Employee

Total cost of health care Total Employees

HR Expense Factor
HR expense Total operating expense

HR Metrics

Training Investment Factor

Total training cost Headcount

Turnover Costs
Cost to terminate + Cost per hire + Vacancy Cost + Learning
curve loss

Turnover Rate
[Number of separations during month Average number of
employees during month] 100

Workers Compensation Cost per Employee

Total WC cost for Year Average number of employees

HRM Practices

HRM practices should

Increase employees knowledge, skills and
abilities (KSA).
Motivate employees to leverage their KSAs for
the firms benefit
Empower employees to do so.

Increase employees
KSA

Training

Selection

Compensation Level

Motivation Enhancing
Practices

Internal Promotion

Incentive System

Empowerment
Enhancing Practices

Grievance Procedure

Flex Time

Employment Security

Participation Programme

Expatriate
A citizen of one country living and
working in another country.

Transnational
Corporation
A firm with operations in many
countries
and
highly
decentralized operations. The
firm owes little allegiance to its
country of origin and has weak
ties to any given country.

Managing an International
Subsidiary

Ethnocentric Approach
Top management and other key positions are
filled by people from the home country

Polycentric Approach
International subsidiaries are managed and
staffed by personnel from the host country

Geocentric Approach
Nationality is deliberately downplayed and the
firm actively searches on a worldwide or regional
basis for the best people to fill key positions

Advantages and Disadvantages of Using

Local and Expatriate Employees to Staff
International Subsidiaries
Locals
Advantages
Lower labor costs
Demonstrates trust in local
citizenry
Increases acceptance of the
company by the local community
Leads to recognition of the
company as a legitimate
participant in the local economy
Effectively represents local
considerations and constraints
in the decision-making process

Disadvantages
Makes it difficult to balance local
demands and global priorities
Leads to postponement of
difficult local decisions (such as
layoffs) until they are
unavoidable, when they are more
difficult, costly, and painful than
they would have been if
implemented earlier
May make it difficult to recruit
qualified personnel
May reduce the amount of control
exercised by headquarters

Advantages and Disadvantages of Using

Local and Expatriate Employees to Staff
International Subsidiaries
Expatriates
Advantages
Cultural similarity with parent
company ensures transfer of
business/management practices
Permits closer control and
coordination of international
subsidiaries
Gives employees a multinational
orientation through experience
at parent company
Establishes a pool of
internationally experienced
executives
Local talent may not yet be able
to deliver as much value as
expatriates can

Disadvantages
Creates problems of adaptability
to foreign environment and
culture
Increases the foreignness of
the subsidiary
May involve high transfer, salary,
and other costs
May result in personal and family
problems
Has disincentive effect on localmanagement morale and
motivation
May be subject to local
government restrictions