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What is HRM?
HRM is concerned with the peoples dimension in the organization
Scope of HRM
Prospects of HRM Nature of HRM
Industrial Relations
HR M
Employee Maintenance
Employee Hiring
Very Vast Covers all major activities in the working life of a worker -from time an individual enters into an organization until he or she leaves
Functions
Facilitating the retention of skilled and competent employees Building the competencies by facilitating continuous learning and development Developing practices that foster team work and flexibility Making the employees feel that they are valued and rewarded for their contribution Developing management practices that endanger high commitment Facilitating management of work force diversity and availability of equal opportunities to all.
Functions of HR
MANAGERIAL FUNCTIONS Planning Organizing Directing Controlling OPERATIVE FUNCTIONS Staffing Development Compensation Motivation
Maintenance
Integration Emerging Issues
Operative functions of HR
STAFFING
Job analysis, HRP, Recruitment, Selection, Placement, Induction, Internal Mobility Competency profiling, Training and development, Performance & potential management, Career management, 360 degree feedback Job design, Work scheduling, Job evaluation, Compensation administration, Incentives and benefits
DEVELOPMENT
INTEGRATION
EMERGING ISSUES
Objectives of HRM
Societal objectives To be ethically & socially responsible to the needs of the society while minimizing the negative impact of such demands upon the organization Organizational objectives To recognize the role of HRM in bringing about organizational effectiveness Functional objectives To maintain the departments contribution at a level appropriate to the organizations needs Personal objectives To assist employees in achieving their personal goals in a manner that their personal goals enhance the individuals contribution to the organization
HRM and 3 Ps
People core strength of an organization
Any resource can be replaced but not HR Processes evolve over a period of time IT enabled environment facilitates engineering effortlessly Performance the pillars of performance are people and IT Organizational performance in terms of value creation and return on investment
Welfare (1920s-1930s) Administration (1930s- 1940s) Employee relations (19401960s) Functional expertise (1970s1980s) Business partner / player (1990s)
Daniel McCallum
Initiated JDs merit promotions
Replacement of rule of thumb Scientific selection & training of wkers Cooperation b/w labor & mgmt. Max output Equal division of responsibility
From PM to HRM
Commodity concept Humans were considered as a commodity Factor of production concept-Mechanistic
Factory system Ppl employed against fixed wages Human were other factor of production People had better wkin conditions than commodity concept.
Paternalistic concept
During trade unions Maintenance of health and workers. Appointment of welfare officer Orgn have protective nature towards employees
Partnership concept
Modern view ESOPs
HRD concept
Learning organization, OD, QWL, conducive wk place, Potential appraisals Employees development Enabling employee capabilities Work culture and climate
Sometimes means the same things. HRM can mean a particular philosophy
Traditional HR Functions
4.
5.
Managerial task
Management Role
Monitoring
Transactional Indirect Reach temporary truce Controlled access to courses Personnel procedures
Nurturing
Transformational leadership Direct Manage climate & culture Learning organization Wide ranging cultural, structural & personnel strategies Mutuality of interests
2. Rules
Procedures
'Business need'
4. Behaviour referent
Values/mission
Monitoring
Nurturing
Pluralist Institutionalised
Unitarist De-emphasised
Strategic
Personnel /IR HRM 8. Key relations Labour management Customer
9. Initiatives
Piecemeal
Integrated
10.Corporate plan
Marginal to
Central to
Slow
Fast
Line management
Personnel / IR 12. Management role Transactional HRM Transformational leadership
Personnel/IR specialists General/business/line managers Indirect High (for example 'parity' an issue) Negotiation Direct Low (for example 'parity' not an issue) Facilitation
Key Levers
Personnel / IR
17. Selection 18. Pay 19. Conditions 20. Labour management 21. Thrust of relations with stewards 22. Job categories and grades 23. Communication 24. Job design 25. Conflict handling 26. Training and development 27. Foci of attention for interventions Separate, marginal task Job evaluation (fixed grades) Separately negotiated Collective bargaining contracts Regularised through facilities and training Many Restricted flow Division of labour Reach temporary truces Controlled access to courses Personnel procedures
HRM
Integrated, key task Performance related Harmonisation Towards individual contracts Marginalised (with exception of some bargaining for change models) Few Increased flow Teamwork Manage climate and culture Learning companies Wide ranging cultural, structural and personnel strategies
Hard HRM
The 'hard' approach rooted in the manpower planning approach is concerned with aligning human resource strategy with business strategy
Soft HRM
The 'soft' approach is rooted in the human relations school, with concern for workers' outcomes and encourages commitment to the organisation by focussing on workers' concerns.
The HR Functions
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Traditional Definition Human resource management is the moulding of the human resources in such a fashion that the goals of the organization are met and at the same time the need satisfaction of all the employees at all the levels is attained to the highest possible degree.
3.
Development
Performance)
(Skill
enhancement
for
appropriate
Work
4.
5.
5.
6.
Employee Advocate
Passive Administrator Reactive Provider / Compliance Monitor
1980s 1990s -
2000s -
I. II.
Statutory HRM Compliance of Legal Framework Voluntary HRM Guidelines for Carrying Out Management
Human
Resource
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HRM Today
We must understand that corporations are not in the business of human resource development. They are in their own business, but human resource development is an important tool which, unfortunately, is being used in a limited sense. The corporate mission has not been attached to it. Actually, human resources must become the business of everyone in the organization. - T. V. Rao Equal access to all resources is forcing organisations to rely on their people as the only source of competitive advantage today
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HUMAN CAPITAL MANAGEMENT HCM refers to the task of measuring the cause and effect relationship of various HR programs and policies on the bottom line of the organization. It seeks to obtain additional productivity. What is Human Capital? Think of it as quality of labor Similarity to physical capital It is productive It is produced Investment Role of savings.importance of credit constraints It earns returns to the investment It is subject to depreciation
Intellectual Capital
Social Capital
Emotional Capital
Specialized knowledge
Self-confidence
Cognitive complexity
Trust-worthiness
Learning capacity
Resilience
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Repositioning HRM
Understanding key business drivers
Driving transition by managing change
Envisioning, enabling and encouraging creativity and innovation Leading through personal credibility by value based on time delivery of promises
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Three competitive challenges that companies now face will increase the importance of human resource management practices: 1. The challenge of sustainability 2. The global challenge and 3. Technology challenge
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Companies are finding that to survive they must compete in international markets as well as fend off foreign corporations attempts to gain ground in the United States. To meet these challenges, U.S. businesses must develop global markets, use their practices to improve global competitiveness and better prepare employees for global assignments.
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The Internet has created a new business modelecommerce, in which business transactions and relationships can be conducted electronically. The Internet is a global collection of computer networks that allow users to exchange data and information.
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Examples of How HRM Practices Can Help Companies Meet Competitive Challenges Global Challenge Sustainability Challenge
o o o
o o o
HRM Practices HRM strategy is matched to business o Continuous learning environment is strategy. created. Knowledge is shared. o Discipline system is progressive. Work is performed by teams. o Customer satisfaction and quality are Pay systems reward skills and evaluated in the performance accomplishments. management system. Selection system is job related and legal. o Skills and values of a diverse workforce Flexibility in which and when work is are valued and used. performed. o Technology is used to reduce the time Work attitudes of employees are for administrative tasks and to improve monitored. HR efficiency and effectiveness.
Technology Challenge
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This area of human resource management deals with: o Identifying human resource requirementsthat is, human resource planning, recruiting employees, and selecting employees. o Training employees to have the skills needed to perform their jobs.
Compensating Human Resources Contd.
This area of human resource management includes: o Creating pay systems. o Rewarding employee contributions. o Providing employees with benefits.
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Assessment and Development of Human Resources Contd. This area of human resource management addresses: o Measuring employees performance. o Preparing employees for future work roles and identifying employees work interests, goals, values and other career issues. o Creating an employment relationship and work environment that benefits both the company and the employee.
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Compensation , labor markets HRP Decision making on mergers and acquisitionsLayoffs Redesigning BPR, TQM
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Strategic HRM
Strategic HRM is the linking of HRM with strategic goals and objectives in order to improve business performance and develop an organizational culture that fosters innovation and flexibility.
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Succession Planning
Individual Review (Ideal Case)
Individual Needs
Review
Key Tasks Development Plan Review
Induction / Orientation
Branch Needs
Team Needs
Shows the quantitative standards, or metrics the firm uses to measure HR activities.
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EMOTIONAL INTELLIGENCE
Emotional Intelligence (EQ) The extent to which people are self-aware, can manage their emotions, can motivate themselves, express empathy, and possess social skills Persons with high EQs may perform better on jobs that require interaction and directing others. EQ can be developed and is not biologically based.
The ability of an organization to perform depends on the relationships of the people involved, which ultimately relates to the degree of emotional intelligence of its employees and leaders. Leaders possessing Emotional Intelligence will create an effective work climate that will further develop emotional intelligence at the subordinate level. The higher the level of a jobs complexity and authority, the greater the impact of high Emotional Intelligence.
The ability of an organization to perform depends on the relationships of the people involved, which ultimately relates to the degree of emotional intelligence of its employees and leaders. Egon Zehnder International analyzed 515 senior executives. Those strong in EQ were more likely to succeed than those who were strongest in relevant experience or IQ. EQ is a stronger predictor of success than experience or high IQ. Study included execs from Latin America, Germany, Japan with same results across cultures.
Actions
Self Aware-ness Emotional Self Awareness Emotional awareness Self image Self expression
Actions
Expression
Motivation
Conflict management
Interpersonal skills, trust and intimacy
Mentoring is a term used to help, advise and guide employees through the complexities of the business.
Mentoring is a mutual learning partnership in which individuals assist each other with personal and career development through coaching, role modeling counseling, sharing knowledge and providing emotional support. Offline help from one person to another in making significant transitions in knowledge, work or thinking.
DIMENSIONS OF MENTORING
INFLUENCE
COACH
(Directive) GUARDIAN
INTELLECTUAL NEED
EMOTIONAL NEED
(Challenging)
(Nurturing)
NETWORKER/ FACILITATOR
COUNSELLOR (Non-Directive)
INFLUENCE
A.
B.
ESOP
An employee stock ownership plan (ESOP) is a way in which employees of a company can own a share of the company they work for. There are different ways in which employees can receive stocks and shares of their company. Employees can receive them as a bonus, buy them directly from the company, or receive them through an ESOP. In the United States, ESOPs are a very common form of employee ownership. They have been growing in strength since about 1974. The main purpose of an ESOP is to reward and motivate employees. They are also used to provide a market for departing owners of successful companies. In most cases, an ESOP is given to an employee, rather than purchased by an employee.
An ESOP is similar to a profit-sharing plan. A trust fund, contributes either new shares of its own stocks or cash to buy existing shares. Another version of the ESOP borrows money in order to buy existing or new shares. repay the loan. Shares in the trust are generally allocated to individual employee accounts. When employees leave the company, they receives their share options, and the company must be able to buy back these options. They must buy them back at their full market value. In private companies, employees are able to vote their shares on major issues such as relocation or closure. In public companies, employees can vote on all issues.
FLEXI-TIME It is a programme that allows flexible entering and leaving times for employees. Advantages are: Increase in productivity Decline the tardiness & absenteeism Reduction in employee turnover Increase in morale and work consciousness rather than time consciousness Improve Quality
KAIZEN TECHNIQUE
Kaizen- defines the managements role in continuously encouraging and implementing small improvements in the individual & organization. Break the complex process into sub-processes and then improve the sub-processes. Continuous improvements in small increments make the process more efficient ,controllable and adaptable. Does not rely on more expense, or sophisticated equipment and techniques.
What is KAIZEN?
(Original Definition)
Doing it right first time and all the time. This boosts Customer satisfaction immensely and increases efficiency of the Business operations.
Clearing the bar (ie. Specification or Standard stipulated) Excellence that is better than a minimum standard.
QUALITY - DEFINITIONS
Quality is excellence that is better than a minimum standard. It is conformance to standards and fitness of purpose ISO 9000:2000 definition of qualityIt is the degree to which a set of inherent characteristics fulfills requirements. Quality is fitness for use of the product Joseph Juran. TQM philosophy and guiding principles continuously improve the Organisation processes and result in customer satisfaction.
---------------------------- Reliability Durability Service ---------------------------- Response- of Dealer/ Mfgr. to Customer Aesthetics of product Reputation- of Mfgr./Dealer
Service Cost Performance
Features
Management commitment to TQM principles and methods & long term Quality plans for the Organisation
BENEFITS OF QUALITY
Higher customer satisfaction Reliable products/services Better efficiency of operations More productivity & profit
TQM IMPLEMENTATION
Begins with Sr. Managers and CEOs
Timing of the implementation process Formation of Quality council
Product
Customer
Need
Process
MistakeProof
Ensure
Possible Applications
Customer Service
Engineering Support
Order Fulfillment
Finance
Reengineering
Benchmarking
Problem solving
Team leader/Facilitator
Statistical Tool