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HUMAN RESOURSE
MANAGEMENT
Managing HR important because
HR
are heterogenous
Modern
employees more educated
Himself
determines what he contributes
Drucker---Of all the resources available
i.e.mgmt. of materials,methods, money
machine most imp.is M for MEN
HR management is the planning,
organizing, of the procurement,
dev., compensation. integration
,maintenance &separation of human
resources to the end that individual,
organizational & societal objectives
are achieved
 Human resource: Knowledge, skill sets,
expertise of employees, the
adaptability,
commitment and loyalty of employees.
 Skills: The individual abilities of human beings
to perform a piece of work.
 Resource: The stock of assets and skills that
belong to a firm at a point of
time.
 Capability: The ability of a bundle of resources
to perform an activity; a way of combining
assets, people and processes to transform inputs
into outputs.
•HRM is concerned with most effective use of
people to achieve org.al & individual goals.
•Acc. To National Institute Of personnel mgmt.
in India “it is that part of mgmt which is
concerned with people at work & their
relationships in the org.
It seeks to bring together men & women who
make up an enterprise, enabling each to make
its own best contribution to its success both as
individual & as a member of working group.
 Core

Competencies
Integrated knowledge sets within an organization
that distinguish it from its competitors and deliver
value to customers.
 Sustained
competitive advantage through
people is achieved if these human
resources:




Have value.
Are rare and unavailable to competitors.
Are difficult to imitate.
Are organized for synergy.
Internal
Environment
External
Environment
HRM Functions
HRM Objectives
Attract
Retain
Motivate
Cont….
HRM Purposes and Criteria

Productivity
Performance
Absenteeism
Turnover
Basic Model
of
Human
Resource
Management
Quality of Work Life
Job Satisfaction
Job Involvement
Stress
Legal Compliance
Fines
Contracts
Goodwill
Bottom Line
Survival

Competitiveness
Growth

Profitability

Flexibility

Cont….
Characteristics of Human Resource Management
• strategic activity
• goal-oriented rather
maintenance focused;
than
establishment
/
• seeks to develop individual capacity and
capability in order to contribute their best to the
organization;
people-oriented
process for assimilating
individual efforts with organization’s
competitive priorities
emphasizes
of its
individual as a core element
competitive strategy;
•
is an ongoing set of activities and requires
commitment of top management.
Contract
Personnel mgmt.
HRM
Careful delineation Aim to go
of written contracts beyond contract
Managerial tasks Monitoring
vis a vis labor
Key relation
Labor mgmt.
Nurturing
Customer
Speed of
decision
Mgmt. Role
Key managers
Communication
Selection
Pay
Job categories&
grades
Slow
Fast
Transactional
Personnel/IR
specialists
Indirect ,Slow &
downward
Transformational
General/business
/line mgrs.
Separate,margin
al task
Job evaluation
(fixed grades)
Many
Integrated,key
task
Performance
related
Few
Direct,fast&both
upward &
downward
Philosophy
Motivators
Aim
Reactive
On monetary
rewards
Tries to improve
the efficiency of
people and
admin.
Proactive
On higher order
needs
Tries to develop
the organization
as a whole and
its culture
Environment Of Human Resource Management
 Both at national and global levels, labour market
conditions and trade unions.
Cont….
Internal Environmental Influences
 Organizational culture
• core values, beliefs and assumptions
 Organizational climate
• the prevailing environment that exists in an
organization and its impact on employees.
Cont….

Employer Branding
Attrition has today assumed epidemic
proportions
plague
ring
every
organization across different industry
segments.
•
Branding
the
organization
and
offering employees a ‘great place to
work’ experience.
•
External Environmental Influences
Economic environment
the kinds of external influences are:
i. Political
ii. Economic
iii. Social
iv.
Technological
v. Mergers and Acquisitions
vi.
Labour Market Conditions
vii.
Trade Unions
P/HRM
Operative Functions
Managerial
functions:
–
Planning
Procurement
Development:
Job Analysis
Training
HR planning
– Organising
Recruitment
Selection
Executive
development
Career
planning
Placement
–
Directing
Induction
Internal
mobility
– Controlling
Succession
planning
Human
resources
development
strategies
Motivation and
Compensation:
Maintenance:
Job design
Health
Grievances
Discipline
Work scheduling
Motivation
Integration:
Safety
Teams and
teamwork
Welfare
Collective
bargaining
Social security
Participation
Job evaluation
Performance and
potential
appraisal
Compensation
administration
Incentives
benefits and
services
Empowerment
Trade unions
Employers’
associations
Industrial
relations
Emerging
Issues:
Personnel
records
Personnel
audit
Personnel
research
HR
accounting
HRIS
Job stress
Mentoring
International
HRM
Qualities and Role of Human Resource Manager
The critical qualities for an HR professional as
mentioned below:
• Selling Skills
• Knowledge of overall business
• A willingness to work hard
• Broad-based knowledge of
management and labour laws
human
resource
• Good listening skills
• Good communications skills
Cont….

Good counselling skills
 Branding

Leadership skills
 Cultural

skills
skills
Customer management skills
The critical roles for an HR professional
1. Strategic Partner
2. Administrative Expert
3. Employee Champion
4. Change Agent
5. Corporate Architect
Cont….
1-10
Competitive advantage through people?
Competitive advantage allows a firm to gain an edge over its rivals
when competing.
It comes from a firm’s unique ability to perform activities more
distinctively and more effectively than rivals.
HR can be a source of competitive advantage when the talents of
people working in the firm are valuable, rare; difficult to imitate and well
organised to deliver efficient and effective results.
1-12
SHRM, is the linkage of HRM with
strategic goals and objectives with a view to
improve business performance and develop
organisational
cultures
that
foster
innovation and flexibility.
Summarization of Development of HRM
Period
HRM’s Role
Key Business Issue
1920s–1930s


Organic growth
New technologies



Recruitment
New technologies
Caring for employees
1940s–1970s


Diversification
Competition


Productivity
Negotiations
1970s–1990s



International
competition
Survival
Shift to service




Downsizing
Leadership
Change management
Performance management



Globalization
Innovation
Reinvention


Talent management
Strategic capabilities
2000s
onwards
(Source: Mercer Delta Consulting)
Title for Role
Labour Relations
Personnel
Human Resources
HR Business
Partner
 Globalization

The trend toward opening up foreign markets to
international trade and investment
 Impact



of globalization
“Anything, anywhere, anytime” markets
Partnerships with foreign firms
Lower trade and tariff barriers

WTO and GATT
 Corporate
Social Responsibility
 The
responsibility of the firm to act in the best
interests of the people and communities affected by its
activities
 Impact
on HRM
 Different
geographies, cultures, laws, and business
practices
 Issues:



Identifying capable managers and workers
Developing foreign culture and work practice training
programs.
Adjusting compensation plans for overseas work
 Knowledge

Workers
Workers whose responsibilities extend beyond
the physical execution of work to include
planning, decision making, and problem solving.
 Knowledge-Based


Training
Online instruction
“Just-in-time” learning via the Internet
on company intranets
 Human
Resources Information System (HRIS)
A
computerized system that provides current and
accurate data for the purposes of control and
decision making.
 Benefits:


Store and retrieve of large quantities of data.
Combine and reconfigure data to create new
information.

Institutionalization of organizational knowledge.

Easier communications.

Lower administrative costs, increased productivity and
response times.

Fit of the application
to the firm’s
employee base.

Ability to upgrade
Increased efficiency
and time savings

Compatibility with
current systems

Availability of
technical support

Time required to
implement and train
staff members to use
HRIS

Initial and annual
maintenance costs

Training time required
for HR and payroll
 Types
of Change
 Reactive

change
Change that occurs after external forces have already
affected performance
 Proactive

change
Change initiated to take advantage of targeted
opportunities
 Managing
 Formal
Change through HR
change management programs help to
keep employees focused on the success of the
business.
 Why
1.
2.
3.
4.
5.
6.
7.
8.
Change Efforts Fail:
Not establishing a sense of urgency.
Not creating a powerful coalition to guide the effort.
Lacking leaders who have a vision.
Lacking leaders who communicate the vision.
Not removing obstacles to the new vision.
Not systematically planning for and creating shortterm “wins.”
Declaring victory too soon.
Not anchoring changes in the corporate culture.
 Human


Capital
The knowledge, skills, and capabilities of individuals
that have economic value to an organization.
Valuable because capital:



is based on company-specific skills.
is gained through long-term experience.
can be expanded through development.
 Total

Quality Management (TQM)
A set of principles and practices whose core ideas
include understanding customer needs, doing
things right the first time, and striving for
continuous improvement.
 Six
Sigma
 Reengineering
and HRM
 Fundamental
rethinking and radical redesign of business
processes to achieve dramatic improvements in cost,
quality, service, and speed.



Requires that managers create an environment for change.
Depends on effective leadership and communication
processes.
Requires that administrative systems be reviewed and
modified.
 Downsizing
 The
planned elimination of jobs (“head count”).
 Layoffs
 Outsourcing
 Contracting
outside the organization to have
work done that formerly was done by internal
employees.
 Offshoring
 The
business practice of sending jobs to other
countries.
 Employee

Leasing
Employees are hired by a leasing company (which
handles all HR-related activities) and contract
with a company to lease the employees.