1 HRM: An introduction Prof. K.B. Akhilesh Dept. of Management Studies Indian Institute of Science, Bangalore
2 Learning objectives At the end of this session, you must have learnt and understood: History of HRM The definition and concept of Personnel Management. Basic functions of HR Management. Strategic role of HR New trends facing human resource management departments
3 Introduction Wherever people work together, personnel issues become important. Personnel Management is the staff function whose primary role is to help the organization achieve its goals through quality and quantity of human resources.
4 Introduction (Contd..) Definition Personnel management may be defined as planning, organizing, directing and controlling of the procurement, development, compensation, integration and maintenance of people for the purpose of contributing to the organizational goals.
5 Introduction (History of HRM ) 1800-early 1900 Scientific Management Movement Focus on processes, cost reduction and pay for performance Job simplification and focus on rules Human Relations Model s View from employees perspective Focus on social environment working conditions, supervisors style, mgmt philosophy
6 Introduction (History of HRM) HRM Movement started back in the present Increase of HR department responsibilities from strictly admin to include: legal compliance, performance appraisals, recruitment, screening, corporate change etc. Closer examination of worker motivation beyond previous two based on nature and scope of job, social influences,compensation, incentive systems, organizational culture, climate supervisors style, and individual needs and values
7 Introduction (Contd..) The operation of the personnel function is dependent on the broad strategy, policies and structure of the organization. The main factors which influence the operation of personnel function are as follows:
8 Factors influencing operation of PM/HRM 1. Whether organization is geographically dispersed or centralized. 2. Manufacturing or Service organization. 3. Labor intensive or capital intensive. 4. The competitive posture assumed by top management.
9 Objectives of Personnel Management Whatever be the organization s strategies and policies, the personnel/human resource function facilitates the organizational goals through its basic functions of Recruitment, Selection, Training, Compensation, and other personnel functions.
10 Objectives of Personnel Management To accomplish the organizational goals and support its strategies, HR also must develop its own objectives and strategies.
11 The important personnel/human resource objectives are : 1. To establish employee recruitment and selection systems for hiring the best possible employees consistent with the organization s needs.
12 Important Personnel/Human Resource objectives (Contd..) 2. To maximize the potential of each employee in order both to attain organization s goals and ensure individual career growth.
13 Important Personnel/Human Resource objectives (Contd..) 3. To retain employees whose performance helps organization realize its goals and to release those whose performance is unsatisfactory. 4. To ensure organizational compliance with legal systems that are applicable to personnel management function.
14 Major functions of Personnel Management The major personnel functions through which personnel management facilitates achievement of organizational goals are as follows:
15 Recruitment and Placement Job Analysis and Design Writing job description and Job Specification. Personnel/Human resource planning- Forecasting personnel needs, supply of internal and external candidates and Preemployment activities
16 Recruitment and Placement (Contd..) Employee testing and selection Using psychological tests, Work samples and simulations, Background investigation and Interviewing.
17 Training and Development Analyzing training needs Using various methods of training to fulfill these needs. Evaluating training outcome
18 Training and Development (Contd..) Performance Appraisal and Management Managing Careers
19 Compensation Determining pay rates salary surveys,job evaluation, Grouping similar jobs into Pay grades, pricing each pay grade and finetuning Pay rates. Financial incentives Money and motivation
20 Compensation (Contd..) Benefits and Services Insurance, Vacations, pension and personal services
21 Employee Relations Ethics and fair treatment at work, employee disciplining. Labor Relations unions and law, collective bargaining and handling grievances. Employee safety and Health Occupational safety and Law to prevent accidents, avoiding workplace health hazards.
22 Managing Cultural Diversity Managing Global human resources
23 Human Resource/Personnel Policies and Activities HR/personnel policies are designed to embrace: - Designing an effective organizational structure Securing optimum working arrangements
24 Human Resource/Personnel Policies and Activities (Contd..) Defining work roles and relationships and Staffing the structure with suitable people
25 HR / Personnel Activities Manpower planning and employment Salary and wage administration, including related reward systems Organizational design
26 HR / Personnel Activities (Contd..) Education, training and development Employee relations Staff services, welfare, health and safety
27 HR / Personnel Activities (Contd..) The purpose of HR/personnel policies is to improve the morale of the staff to evoke willing cooperation, towards the attainment of optimum operational performance.
28 HR challenges today Aging of the labour force Increasing levels of education Shift from manufacturing economy to service economy Increased number of dual income career families Increased number of women and ethnic minorities in the labour force
29 The HR Environment & Challenges Economic Technological Political Social Demographic Legal Cultural
30 Economic Challenges A specific country s economic conditions Global Trade international trade, global economy expansion of indigenous Co to other countries and labor markets
31 Labour Market Conditions & Labour Unions Labour Market where an organization recruits employees from Local economic conditions Local climate Is our workforce unionized?
32 HR & Productivity Outsourcing is becoming increasing popular assists in decreasing inputs and increase flexibility decreases no of permanent workers just contract as required
33 HR & Productivity Can help increase productivity by ensuring workers are happy involves: finding better/more efficient ways to meet objectives working on improving quality of life retraining and outplacement
34 Technology Computerization - increased flexibility - when & where work is done decreases geographical barriers New issues arising: Concerns over data control Rights to privacy Using technology to monitor employees Use of HRIS systems to aid HR departments
35 Changing Work Force 2 main categories of workers ID: information workers: data use, transmission, and those who produce the data (fastest growing segment) non-information workers: those working in mfg and service sector Significant portion of work force in service sector = 86%
36 Demographic Challenges Refers to the composition of the workforce increased no of women in the workplace (70% of employmt growth) Increased no of immigrants coming to the native job market Aging workforce
37 Demographic Challenges (Contd..) Need for increased accessibility for disabled persons Shift in worker focus and changes in attitudes towards work life balance
38 Cultural Challenges ethnic diversity resulting in a cultural mosaic bringing additional challenges and opportunities
39 Internal Environment Organizational culture = values, beliefs and assumptions positive culture = retention and recruitment success Organizational Climate = atmosphere of organization
40 Internal Environment (Contd..) Where do HR departments fit into the strategic planning of a company? How are HR departments set up? Professional HR Organizations
41 Strategic HR Management Need to have a HR strategy to have direction and game plan must encompass the large picture for the Co. priorities, mission To be effective, it must obtain, develop, maintain, retain the right combination of workers to facilitate these goals
42 Strategic HR Management (Contd..) Provides environment scanning information about competitors policies/programs Aid in determining company s strengths and weaknesses Aid companies in preparing for their strategic plans i.e.. expansion, cost-cutting measures, mergers etc.
43 Proactive HR Management Strategic approach helps to identify & anticipate problems before damage is caused production maintained or interruptions reduced
44 HR Audit Evaluates the HR department s effectiveness Involves 3 areas: Strategic effectiveness Legislative compliance Effectiveness and costliness of programs Often compared to other organizations plus cost vs. benefit analysis
45 Organization of HR Department Lg Company HR Department President/CEO VP HR Manager Employment Manager Compensation Manager Training Manager Safety Manager Union recruiter(s) analyst trainer(s) safety specialist employee counsellors -many HR duties are assumed by management -HR dept size grows as these duties increase -HR dept increases in size as need grows -specialization also increases with size of dept
46 Service Role of HR Department Exists to serve internal customers (managers, employees and organization) normally has an advisory role can also have authority to make decisions if permitted by Co. these can include decisions normally made by operations and/or decisions in certain areas for efficiency and consistence (ie benefits)
47 New trends facing HR departments The H/R process H/R planning The selection process Training Expanded use of Contingent Workers Employee Appraisal Compensation issues Benefits The new job environment
48 New trends facing HR departments (Contd..) The H/R process H/R planning The selection process Training Managing Diversity Employee Appraisal Compensation issues Benefits The new job environment
49 New trends facing HR departments (Contd..) The H/R process H/R planning The selection process Training Employee Appraisal Family Friendly Benefits Compensation issues Benefits The new job environment
50 HRM Professional HR professional certified by institutions coming under the purview of MHRD Also certification by NIPM, a national body plus various degrees with HR specialization
51 Summary So far, we have seen: The definition and concept and history of HR Management. Basic functions of Personnel Management. Benefits, need and objectives of Man Power Planning. Human Resource planning process
52 In the next session In the next session, we will look at the following: Job Analysis, Design.
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