Amity School of Business

Amity School of Business

SEMESTER IV
HUMAN RESOURCE MANAGEMENT (BBAHR-30501)

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Module VI:
Increased concern for HRM (Sound IR, dual career couples, flexi-working hours, work-from home facility) QWL-concept, significance, determinants. International Human Resource Management (Managing inter country differences), SHRM Talent management, competency mapping HR accounting-cases Indian organisations, HRIS, HR audit

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IHRM
International HRM (IHRM) is the process of: procuring, allocating, and effectively utilizing human resources in a multinational corporation to achieve organisational objectives irrespective of geographical boundaries. IHRM is the result of three dimensions: human resource activities, types of employees and countries of operation. IHRM requires a broader perspective, encompasses a greater scope of activities and is subject to much greater challenges than is domestic HRM. IHRM needs to keep in mind the cultural differences, expectations of the employees in other countries.

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Objectives of IHRM
To reduce the risk of international human resource To avoid cultural risks To avoid regional disparities To manage diversified human capital

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P Morgans Model of IHRM

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P Morgans Model of IHRM

This model consists of following 3 dimensions:

1. HR Activities: procurement, allocation & utilization 2. Country of operation: host, parent and 3rd country 3. Types of employees: host country, parent country and 3rd country nationals

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Parent-country nationals (PCNs): Employees who were born and live in a parent country. A parent (or home) country is the country in which a companys corporate headquarters is located. Host-country nationals (HCNs): Employees born and raised in a host country. Host country is a country in which the MNE seeks to locate or has already located a facility. Third-country nationals (TCNs): Employees born in a country other than a parent or host country. Expatriate: An employee who is working and temporarily residing in a foreign country
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Factors affecting IHRM

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Need for Cultural Training

To survive and succeed expatriates require training in three matters: culture, language and practical day to day matters. For organisations, it is a big challenge to prepare expatriates for the country other than there home country. According to Harris and Moran, cultural differences between countries could be examined along the following dimensions:
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Need for Cultural Training

Sense of self and space Language Dress & Appearance Food, eating habits Time consciousness Relationships Values and norms Beliefs and attitudes Mental processes and learning Work habits and practices
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International training and development

1) Cultural awareness programme 2) Preliminary visits 3) Language instruction 4) Practical assistance with day to day matters 5) Health and safety 6) International labour laws

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Human Resource Information System (HRIS)

A Human Resource Management System (HRMS or HRIS), refers to the systems and processes at the intersection between human resource management (HRM) and information technology. It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field. The Human Resource Information System (HRIS) is a software or online solution for the data entry, data tracking, and data information needs of the Human Resources, payroll, management, and accounting functions within a business. The software used for this purpose is Enterprise Resource Planning (ERP) software. On the whole, these ERP systems have their origin on software that integrates information from different applications into one universal database 12

HRIS

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HRIS is a systematic procedure for collecting, storing, maintaining, retriveving data needed by an organisation about its Human Resources. HRIS is a part of organisations larger Management Information System(MIS) It is the data of persons presently available along with their present and future potentials
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Importance of HRIS
The Human Resource Information Systems (HRIS) provide overall: Management of all employee information. Reporting and analysis of employee information. Benefits administration including enrollment status changes, and personal information updating. Complete integration with payroll and other company financial software and accounting systems. Applicant tracking and resume management. With an appropriate HRIS, Human Resources staff enables employees to do their own benefits updates and address changes, thus freeing HR staff for more strategic functions.
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Importance of HRIS
Keep track of Attendance, pay raises and history, pay grades and positions held, performance development plans, training received, disciplinary action received, personal employee information, Finally, managers can access the information they need to legally, ethically, and effectively support the success of their reporting employees. An effective HRIS provides information on just about anything the company needs to track and analyze about employees, former employees, and applicants. 15

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Strategic Human Resource Management

Strategic human resource management (SHRM) is the integration of HRM with the strategic goals and corporate strategy so as to improve business performance and achieve organisational goals. Strategic human resource management (SHRM) is a concept that integrates traditional human resource management activities such as hiring, pay, benefits, training, and administration. within a firm's overall strategic planning and implementation

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Strategic human resource management

It focuses on How organisation can improve their competitive performance by utilising their human resource more effectively? How company can best meet the needs of their employees while promoting company goals. How the organisation can build the set of policies and practices that will build employee pool of skills, knowledge, and abilities that are relevant to organizational goals

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Importance of SHRM
It enhances employee productivity and the ability of agencies to achieve their mission. Integrating the use of personnel practices into the strategic planning process enables an organization to better achieve its goals and objectives. To manage future operations effectively, it is essential that companies produce "business leaders" and "innovators" through SHRM Approach.

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Comparison between Traditional HRM & SHRM

Basis of Comparison Focus Traditional HRM On activities SHRM On results

Approach
Responsibility

Reactive
Development of people

Active
Development of both people and organisation in line with the organisational goals Formulation and implementation of HR strategy in alignment with corporate strategy
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Significance

Managing people to facilitate the activities

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Benefits of SHRM
1. Identifying and analyzing external opportunities and threats that may be crucial to the company's success. 2. To supply information regarding the company's internal strengths and weaknesses. 3. Provides a clear business strategy and vision for the future. 4. To recruit, retain and motivate people. 5. To develop and retain highly competent people. 6. To ensure that people development issues are addressed systematically. 7. To ensure high productivity.
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Barriers of SHRM
1. High resistance due to lack of cooperation from the bottom line. 2. Focus on current performance 3. Inability of HR to think strategically. 4. Interdepartmental conflict. 5. The commitment of the entire senior management team. 6. Limited time, money and the resources. 7. Fear of incompetency of senior level managers to take up strategic steps. 8. Diverse work-force with competitive skill sets.
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Industrial Relations
It refers to the whole field of relationships among people, trade unions, human relationships that exist because of the necessary collaboration of men and women in the employment process of modern industry.
Relation of all those associated in industry may be called IR It include relationships between Employers and Employees Various unions and State Unions, Employers and government
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Objectives of Industrial Relations

To develop & maintain harmonious relations between management and labor. To safeguard the interests of labor as well as management. To avoid all forms of industrial conflict. To provide better working and living standards to workers To rise productivity by reducing turnover and absenteeism.
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To raise the productivity to a higher level To establish government control over industries to regulate Production & IR

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HRM There are 2 main parties- employee & employer Formulation & implementation of HRM policies Conflicts arising out of poor IR require reformulation of HRM policies Individual employee contacts with the immediate superior Grievance & disciplinary procedures used to solve employer-employee conflicts

IR There are 4 parties employee, employer, trade unions & government Implementation of HRM policies results in IR Sound IR contribute to organisational goals Employees as a group contact even the top management Collective bargaining used to settle terms & conditions of employment

Differences between HRM & IR

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Causes of Poor IR
Causes Economic causes Poor wages, compensation

Organisational causes Faulty communication system, unfair practices Social causes Violence, indiscipline, uninteresting nature of work

Psychological causes

Lack of job security, poor organisational culture, authoritative administration

Trade unions, inter union rivalry

Political causes

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Measures for improving IR

Sound HR Policies Constructive attitude Collective bargaining Participative management Responsible unions Employee welfare Grievance procedure

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Quality of Work-life
It refers to the favorableness and unfavorableness of job environment for people. It is based on the assumption that a job is more than just a job. It is a very important part of life. It is concerned with:
How to develop careers that allow employees to realise there full capabilities and interests? How to design jobs to provide meaningful, interesting and challenging work experience? How to utilise participative management to improve the quality of life at workplace?
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Flexi working conditions: A useful definition of flexible working relates to when, where, how and what work is done:
Flexible time: Work is performed at times that better suit the employer and employee Flexible place: Work is carried out wherever is most appropriate and effective for the employer and employee. Flexible tasks: Multi-skilled workers are able to undertake a variety of tasks according to need.

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HRM and the Quality of Work-life

The HR department can develop a bundle of systems that can together create a highly motivational culture and can improve the quality of life of its employees, such as: Healthy work conditions Fare compensation Job Participation Employees Counseling Opportunity for career growth Recognition of efforts Work from home facility Considering dual working couples
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The beneficiaries of flexible working include: Employers, who are able to match resources to work need and attract and retain staff, whilst reducing fixed costs, boosting productivity and improving customer service. Employees, who can gain access to employment, explore new career opportunities, raise their incomes, reduce their living costs and balance more effectively the demands of work and home. Families, communities and the environment can also gain:

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Benefits of Flexible working conditions: Managers and professionals were equipped and enabled to do some of their work at home. Travel was reduced substantially and more time was spent with customers and business partners. Part-time employees can also be recruited who can work from their homes. The main office size also gets reduced and remodelled into mainly shared space, paper-free business processes

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HR Audit
Human Resource Audit is a systematic assessment of the strengths, limitations, and developmental needs of its existing human resources in the context of organizational performance. HR Audit is a comprehensive evaluation of the entire gamut of HR activities : HR Cost HR activities Health, Environment & Safety Legal Compliance Quality Compensation & Benefits
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NEED FOR H.R. AUDIT:

HR audit is done to get a clear judgment about the overall status of the organization and also to find out whether certain systems put in place are yielding any results. HR audit also helps companies to figure out any gaps or lapses and the reason for the same. To encourage a sense of confidence in the human resource department that it is well-managed. To ensure effective utilization of human resources. To evaluate the extent to which line mangers have implemented the HR policies and programmes.
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NEED FOR H.R. AUDIT:

To examine and pinpoint strength and weaknesses related to H.R. areas and Skills and Competencies to enable an organization to achieve its long-term and short-term goals.
To increase the effectiveness of the design and implementation of human resource policies, planning and programs. To help human resource planners develop and update employment and program plans. To conduct due diligence for mergers and acquisitions. .

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Process of HR Audit
STEP ONE: Briefing and Orientation:
Key Staff Members meet: i. To discuss particular issues considered to be important. ii. To chart out audit procedures, and iii. To develop plans and program of audit. STEP TWO: Scanning material information: Scrutiny of all available information pertaining to personnel, personnel handbooks and manuals, guides, appraisal forms, computer capabilities and any other related information.

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STEP THREE: Surveying employees and conducting interviews: a. Interview with key managers, functional executives, Top functionaries in the organisation and employees Representatives, if necessary. b. The purpose is to pinpoint issues of concern, Present strengths, anticipated needs and managerial views on human resources. c. During the on-site visit, a separate review is conducted of HR records and postings. Employee personnel files are randomly examined as well as compensation, employee claims, disciplinary actions, grievances and other relevant HR related information are checked.
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STEP FOUR: Evaluation: The data gathered is evaluated to present the a. Current Situation. b. Priorities. c. Staff pattern, and d. Issues identified. STEP FIVE: Reporting: The information gathered is used to develop an HR audit report. The results of the audit are discussed with Managers and Staff Specialists Important issues are identified for inclusion in the formal Report. On the basis of this report the management decides what actions need to be taken to make the HR practices more affective 39

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Talent Management
Talent management refers to the skills of attracting highly skilled workers, integrating new workers, and developing and retaining current workers to meet current and future business objectives. This term "talent management" is usually associated with competency-based management. Talent management decisions are often driven by a set of organizational core competencies as well as position-specific competencies. The competency set may include knowledge, skills, experience, and personal traits (demonstrated through defined behaviors).
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Activities involved in talent management: Attract Select Train Develop Retain Promote and move employees through the organization.
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Why Talent Management is important?

To increase awareness of available talent and successors To review the performance and career potential of employees, To discuss possible vacancy risks of current employees To identify successors and top talent in the organization To create development action plans so as to prepare employees for future roles in the organization. For analyzing their career interests and organizational business needs Developing these individuals to reduce the risk of losing the best people and experiencing extensive leadership gaps when turnover occurs
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Competency Mapping
Research indicates that Source of 50% of job performance problems is that people are in the wrong job. 25% of on-the-job performance problems is the inability to identify the gaps between the competencies of the person and the requirements of the job.

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Competency Mapping
Competencies include the collection of knowledge, skills, and attributes (more historically called "KSA's") necessary for achieving important results in a specific job or work role in a particular organization. Attributes include: personal characteristics, traits, motives, values or ways of thinking that impact an individual's behavior.

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Purpose of competency mapping

"Effectiveness of an organisation is the summation of the required competencies in the organisation". Gap Analysis Role Clarity Potential Identification Growth Plans. Succession Planning. Restructuring Inventory of competencies for future planning.
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Mapping Process
There are about five stages while performing competency mapping. STAGE 1: The first stage of mapping requires understanding the vision and mission of the organization. STAGE 2: Second stage requires understanding the behavioral as well as the functional aspects required to perform job effectively. These would be the behavioral indicators that would be measured during competency mapping.
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STAGE 3: This involves finalising the indicators Development of dictionary which involves detail description of the competency based on the indicators. Care should be taken that the indicators should be measurable and gives objective judgment.

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STAGE 4: This stage requires finalising method of assessment. Methods of assessment can be either through assessment centers or 360 Degree Feedback Assessment method should objectively measure the entire competency required. STAGE 5: This stage involves giving a brief feedback to the participant about the competencies that has been assessed and where they stand to.
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STAGE 6: Sixth stage involves detailed report of the competencies assessed and also the development plan for the developmental areas so that the gap between the desired and the expected performance can be reduced.

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