History of Human Resource Management

The history go back to the 19th Century, when welfare officers ( Welfare secretaries) came into being Were concerned only of protecting rights of women and children The first world war accelerated the change in the development of personnel management

 1920s Jobs with the title labor manager and employer manager came into being 1930s New industries ( new sectors) started to see the benefits of HRM By 1945- employment management and welfare work had become integrated under the broad term personnel management 1960- 70s employment started to develop along with HRM perspectives

 Mid 80s the term HRM arrived from USA Today HRM includes number of specialist disciplines
Diversity Reward (compensation / benefits / pension etc) Resourcing Employee relations Organizational development and design

Human Resource Management

 Human resource management is

a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of Cultural, structural and personal techniques.

Definition (John Storey, 1995)

 Fundamentally, human resource management is based on the assumption that employees are individuals with varying goals and needs. When HRM is properly employed members of the workforce are expressive of the goals and operating practices of the firm. HRM is seen by practitioners in the field as a more innovative view of workplace management than the traditional approach

 HRM techniques, when properly practiced, are expressive of the goals and operating practices of the enterprise overall. ".......those decisions and actions which concern the management of employees at all levels in the business and which are related to the implementation of strategies directed towards creating and sustaining competitive advantage" Miller (1987)

 In other words, HRM is concerned with getting better results with the collaboration of people It is an integral but distinctive part of management, concerned at people at work and their relationship within the enterprise HRM helps in achieving:
Maximum individual development Desirable working relationships

 For the last 20 years, empirical work has paid particular attention to the link between the practice of HRM and organizational performance, evident in improved employee commitment, lower levels of absenteeism and turnover, higher levels of skills and therefore higher productivity, enhanced quality and efficiency.

 Perhaps the most popular work in this area is that there were seven best practices for achieving competitive advantage through people and 'building profits by putting people first'.
providing employment security selective hiring extensive training sharing information self-managed teams high pay based on company performance reduction of status differentials.

HRM Nature
This is a process of bringing people and organizations together so that the goals of each are met. Various features include:
Pervasive in nature Focus is on results rather than rules Try to help employees to develop full potential Encourages them to give their best to the organization

 Its all about people at work, both as individuals and groups Tries to put people in assigned jobs in order to get better results Helps to achieve future goals by providing motivated and competent employees Tries to build and maintain cordial relations between people at various levels Its a multidisciplinary activity

HRM Scope
Personnel aspect Welfare aspect Industrial Relations aspect

Human Resources Management

Role of HRM
One widely used scheme to describe the role of HRM, developed by Dave Ulrich, defines fields for the HRM function: Strategic business partner Change Agent Employee champion Administration Expert Business Management Procurement Management

These tasks include: Workforce planning Recruitment Induction, Orientation and On-boarding Skills management Training and development Personnel administration Compensation in wage or salary Time management

Travel management Payroll Employee benefits administration Personnel cost planning Performance appraisal Labor relations Human Resource Management Strategy

Beliefs
The HRM philosophy is based on:
It is the most important asset of an organization A healthy climate with values of openness, enthusiasm etc is essential for development of HR Could be planned and monitored in way to reap benefits to all parties commitment increases with sense of belonging Employees are motivated if the basic and higher level needs are met

Objectives
To help the organization to reach its goals Ensure effective utilization and maximum development of HR Ensure respect for human beings Reconcile individual and organizational goals Achieve and maintain high morale Develop quality of work life To be ethically and socially responsive

To develop overall personality of employees Enhance employee capability Equip employees with precision and clarity Inculcate the sense of team spirit

Functions
Manpower planning Recruitment, selection and placement Training and development Appraisal of performance Taking corrective steps Remuneration Social security and welfare Setting general and specific management policy

 Collective bargaining, contract negotiation and grievance handling Staffing Aiding self development Motivating Manpower audits Appraisal, feedback, counseling Role analysis Job rotation Quality of working life

Major influential factors

Size of the workforce. Rising employees' expectations Drastic changes in the technology as well as Life-style changes. Composition of workforce. New skills required. Environmental challenges. Lean and mean organizations. Impact of new economic policy. Political ideology of the Government. Downsizing and rightsizing of the organizations. Culture prevailing in the organization etc.

Futuristic Vision
There should be a properly defined recruitment policy in the organization In every decision-making process there should be given proper weightage to the aspect that employees are involved wherever possible, leading to sense of team spirit, team-work and inter-team collaboration. Opportunity and comprehensive framework should be provided Networking skills of the organizations should be developed internally and externally as well as horizontally and vertically.

 For performance appraisal of the employees emphasis should be given to 360 degree feedback More emphasis should be given to Total Quality Management. There should be focus on job rotation - vision and knowledge of the employees are broadened/ potentialities of the employees are increased For proper utilization of manpower - the concept of six sigma

 The capacities of the employees to be assessed through potential appraisal The career of the employees should be planned to individualize process and socialize process come together

Recruitment and selection

Right People

Right Cost

Right Skills

Workforce

Right Time

Right Place

 Analyze the Job Preparing the job description and person specification. Locating and developing the sources of required number and type of employees (Advertising etc). Short-listing and identifying the prospective employee with required characteristics. Arranging the interviews with the selected candidates. Conducting the interview and decision making

 To manage the above the following steps could be implemented:

Identify vacancy Prepare job description and person specification Advertising the vacancy Managing the response Short-listing Arrange interviews Conducting interview and decision making

Recruitment

Recruitment
The process by which a job vacancy is identified and potential employees are notified. The nature of the recruitment process is regulated and subject to employment law. Main forms of recruitment through advertising in newspapers, magazines, trade papers and internal vacancy lists.

Recruitment
Job analysis - Requirement Job description outline of the role of the job holder Person specification outline of the skills and qualities required of the post holder Applicants may demonstrate their suitability through application form, letter or curriculum vitae (CV)

Selection

Selection
The process of assessing candidates and appointing a post holder Applicants short listed most suitable candidates selected Selection process varies according to organisation:

Selection
Interview most common method Psychometric testing assessing the personality of the applicants will they fit in? Aptitude testing assessing the skills of applicants In-tray exercise activity based around what the applicant will be doing, e.g. writing a letter to a disgruntled customer Presentation looking for different skills as well as the ideas of the candidate

Selection Procedures
Job Analysis can be used in selection procedures to identify or develop: job duties that should be included in advertisements of vacant positions; appropriate salary level for the position to help determine what salary should be offered to a candidate; minimum requirements (education and/or experience) for screening applicants;

 interview questions; selection tests/instruments (e.g., written tests; oral tests; job simulations); applicant appraisal/evaluation forms; orientation materials for applicants/new hires

Analyse the Job (Job Analysis)

Purpose of Job Analysis The challenge begins..Identify the Role of the Job in Organisation and sometimes to ask the very basic question : Do we have to fill the vacancy..? The purpose of Job Analysis is to establish and document the 'job relatedness' of employment procedures such as training, selection, compensation, and performance appraisal.

Development

Development
Developing the employee can be regarded as investing in a valuable asset
A source of motivation A source of helping the employee fulfil potential

Training

Training
Similar to development:
Provides new skills for the employee Keeps the employee up to date with changes in the field Aims to improve efficiency Can be external or in-house

Determining Training Needs

Job Analysis can be used in training/"needs assessment" to identify or develop: training content assessment tests to measure effectiveness of training equipment to be used in delivering the training methods of training (i.e., small group, computer-based, video, classroom...)

Rewards Systems

Rewards Systems
The system of pay and benefits used by the firm to reward workers Money not the only method Fringe benefits Flexibility at work Holidays, etc.

Compensation
Job Analysis can be used in compensation to identify or determine: skill levels compensable job factors work environment (e.g., hazards; attention; physical effort) responsibilities (e.g., fiscal; supervisory) required level of education (indirectly related to salary level)

Performance Review
Job Analysis can be used in performance review to identify or develop: goals and objectives performance standards evaluation criteria length of probationary periods duties to be evaluated

Employment Legislation

Employment Legislation
Increasingly important aspect of the HRM role Wide range of areas for attention Adds to the cost of the business

Discrimination
Crucial aspects of employment legislation:
Race Gender Disability

Disability is no longer an issue for employers to ignore, they must take reasonable steps to accommodate and recruit disabled workers.
Copyright: Mela, http://www.sxc.hu

Discipline

Discipline
Firms cannot just sack workers Wide range of procedures and steps in dealing with workplace conflict
Informal meetings Formal meetings Verbal warnings Written warnings Grievance procedures Working with external agencies