Why HRM?

Basic

need to study this subject?

Module 1 Strategic role of HRM & Subsystems

Introduction to HRM Job analysis HR planning & recruiting Employees testing & selection Interviewing Candidates Training & Development

Introduction to Human Resource Management

Meaning of HRM

HRM is the process of acquiring, training, appraising, compensating employees, attending labour relations, health and safety and fairness concern. The policies and practices involved in carrying out the people or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising.

How do people lend a competitive advantage

People offer skills and capabilities that help execute firms strategies Align HR plans to business plans Innovation is key to competitive advantage Convert adverse situation into an opportunity Organisational designs HR executive is becoming an effective change agent Types of change: Initiative change Process change Cultural change

Evolution of HRM

People management has matured from IR to PM to HRM to HCM

Time period
1920 1930s 1940 1960s

Status
Clerical Administrative

1970 1980s 1990s

Present

Managerial Executive
Human Capital

Scope/Subsystems of HRM

Job analysis HR planning & recruitment Employees testing & selection Training and development Performance management system Career development & Motivation Compensation & Remuneration Industrial relations Labour legislations

Line and Staff Aspects of HRM

Line manager

A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organizations tasks.

Staff manager

A manager who assists and advises line managers.

Line Managers Duties:

Placing the right person on the right job Starting new employees in organisation Training Employees Improving job performances Gaining cooperation & developing smooth working relations Interpreting companys policies & procedures Controlling labor costs Developing abilities of each person Creating labor costs Protecting employees health & physical condition

Difference between PM & HRM

Dimensions Employment contract PM Careful delineation of written contracts Rules Importance of devising clear rules Guide to management Procedures action Behaviour referent Norms/customs & practices Key relations Labour management Conditions Separately negotiated HRM Aim to go beyond contract Can do outlook, impatience with rules Business need
Values/Mission

Customer Harmonisation

Contd
Dimensions Managerial task Initiatives Speed of decision Management role Communication Prized management skill Selection Pay PM Monitoring Piecemeal Slow Transactional Indirect Negotiation
Separate

HRM Nurturing Integrated Fast Transformational Direct Facilitation

Integrated

Job evaluation Performance related (fixed grades)

Contd
Dimensions PM Focus of attention Personnel for interventions procedures HRM Wide ranging cultural, structural & personnel strategies Respect for Labour is treated as People are treated employees a tool which is as assets rather than expendable & liabilities replaceable Shared interests Interest of the Mutuality of organisation are interest uppermost

Contd
Dimensions Labour management PM Collectivebargaining contracts Job categories & Many grades Job design Division of labour Conflict handling Reach temporary truce T&D Controlled access to courses HRM Individual contracts
Few Team work Manage climate & culture Learning

Contd
Dimensions Evolution PM Precedes HRM HRM Latest in the evolution followed by HC Internal Organic Bottom up Decentralised

Locus of control Organising principles

External Mechanistic, Top down Centralised

HRM: Objectives & Functions

Objectives Societal Functions Legal compliance Benefits Union management relations
Appraisal Placement Assessment

Functional

Contd
Objectives
Organisational

Functions
HRP Employee relations Selection T&D Appraisal Placement Assessment T&D Appraisal Placement Compensation Assessment

Personal

Functions of the HR Manager

A line function

The HR manager directs the activities of the people in his or her own department and in related service areas (like the plant cafeteria).

A coordinative function

HR managers also coordinate personnel activities, a duty often referred to as functional control. Assisting and advising line managers is the heart of the HR managers job.

Staff (assist and advise) functions

So in a nutshell, HRM functions constitute

Planning Staffing Developing Motivating Managing change Maintaining relations Evaluating

Human Capital Management

Employees are treated more like investors of their own capital. HCM recognizes that people are investors of their personal human capital and this provides the main source of value for an organisation.

Compare among PM, HRM & HCM

Benchmarks Evolutionary PM Succeeds IR & Preceded HRM Human beings are resources Value for money HRM Succeeds PM & Preceded HCM Human beings are valued assets Added value HCM Latest development after HRM Human beings are capital Created value

Emphasis Outcomes of people management Assumptions about environment, organizations and people management

Simple & stable, people are cost, financial reward

Dynamic systems, people seen as assets, learning organizations & employment value proposition

Complex systems, people seen as investors, search for meaning

Compare among PM, HRM & HCM

Benchmarks People management activities PM Focused on service delivery HRM Numerous small tactical project, believes in project management Effectiveness of hr outputs against business plan Investors & Stakeholders HCM Strategic programmes

Measurement

Compliance

Organisational capability, potential for transformation Board, Managers & Employees

Reporting

Regulators

HR Department Organisational Chart (Large Company)

HR Organisational Chart (Small Company)

HRM Specialties:

Recruiters Human Resource Development specialists Engagement & Fun Specialist Employee Welfare Officer Job Analyst Compensation Managers Training Specialist Employment/ Industrial relations Specialist

Trends in HRM/Challenges
Globalization & competition trends Reasons for it sales expansion New foreign products Cut labor costs Forming partnerships(IBM Lenovo) Pros n cons: consumers, job off shoring, business owners.

Trends in HRM/Challenges

Indebtedness & deregulation Technological trends; Indian railways, online hotel accommodation, BRTS, network of ATMs Trends in nature of work:

High tech jobs Service Jobs: shifting to developing countries EG: levis

Knowledge Work & Human Capital(JIT, automation) eg: bank installs software

Trends in HRM/Challenges
Workforce & Demographic Trends Demographic Trends Generation Y Retirees Nontraditional workers Economic Challenges & Trends

HRM & its Environment External Internal

Political Legal Economic

Suppliers Competitors Customers Economic growth Industrial labour Diversity Globalisation

Strategy, task & leadership Unions Organisational culture & conflict Professional bodies

Technological Cultural

Measuring HRs Contribution

The HR Scorecard

Shows the quantitative standards, or metrics the firm uses to measure HR activities. Measures the employee behaviors resulting from these activities.
Measures the strategically relevant organizational outcomes of those employee behaviours.