Human Resource Management

Part I

SDM IMD, Term I, 2013 Faculty : Dr. Mousumi Sengupta

mousumi@sdmimd.ac.in

Organizations are open systems and are, therefore, influenced by the environment (internal as well as external ), in which they operate.

External and internal factors influencing the HRM function

External factors Internal factors

v
v v v

Technological factors
Economic challenges Political factors Social factors

v
v v v

Mission & Vision

Policies & Processes Culture Structure

v
v

Legal and Governmental issues

Other issues (e.g.; Trade Union , etc.)

Employees

Most successful and influential companies in India

The India Index 2013 research has been conducted by Neilsen over a 10 week period. A panel of over 100 opinion formers answered questions in two waves. The panel is compiled of four stakeholder audiences: government, business, media and civil society:

Tata Group Google India Maruti Suzuki Apple Delhi Metro Rail Corporation

State Bank of India LIC India Infosys Tech Facebook Mahindra Group

(Economic Times, 19 Feb 2013)

From an organizational standpoint, effective HR practices help in attracting and retaining talent, train people for challenging roles, develop their skills and competencies, increase productivity and profits, and enhance standard of living .

DISTINCTION BETWEEN PERSONNEL MANAGEMENT (PM) & HUMAN RESOURCES MANAGEMENT (HRM)
Dimension PM HRM

Point of View

Compliance

The psychological contract based on commitment

A utilitarian perspective Maximum utilization Aim to go beyond contract Business need

Perception Outlook Employment contract

Pluralist perspective Cost-minimization Careful clarity of written contracts Procedures

Guide to management action Initiatives

Piecemeal

Integrated

Evolution of the HRM Function

Concept The Commodity concept What is it all about? Labor was regarded as a commodity to be bought and sold. Wages were based on demand and supply. Government did very little to protect workers.

The Factor of Production concept

The Goodwill concept

Labor is like any other factor of production, viz, money, materials, land, etc. Workers are like machine tools.
Welfare measures like safety, first aid, lunch room, rest room will have a positive impact on workers productivity Management must assume a fatherly and protective attitude towards employees. Paternalism does not mean merely providing benefits but it means satisfying various needs of the employees as parents meet the requirements of the children.

The Paternalistic concept/ Paternalism

Evolution of the HRM Function

The Humanitarian concept To improve productivity, physical, social and psychological needs of workers must be met. As Mayo and others stated, money is less a factor in determining output, than group standards, group incentives and security. The organization is a social system that has both economic and social dimensions.

The Human Resource concept

Employees are the most valuable assets of an organization. There should be a conscious effort to realize organizational goals by satisfying needs and aspirations of employees.

The Emerging concept Employees should be accepted as partners in the progress of a company. They should have a feeling that the organization is their own. To this end, managers must offer better quality of working life and offer opportunities to people to exploit their potential fully. The focus should be on Human Resource Development.

Objectives of HRM
HRM aims at Achieving organizational goals Meeting the expectations of employees Developing the knowledge, skills and abilities of employees Improving the quality of working life Managing HR in an ethical and socially responsible manner.

WHO COMPLETES HR TASKS?

Line Managers
Human Resource Managers Outsourcing Firms Technology interfaces

Major HRM Functions

Three dimensions HRM

Personnel Aspect
Recruitment, selection, placement, training, appraisal, compensation, productivity.

Welfare Aspect
HRM
Working conditions, amenities, facilities, benefits.

Industrial Relations Aspect

Union-management relations, disputes settlement, grievance handing, discipline, collective bargaining.

Advantages of HR policies
v Delegation

v
v v v v v

Uniformity
Better control Standards of efficiency Benchmark Speedy decisions Coordinating devices

Evaluating the impact of HR policies

The impact of human resource policies can be measured through their outcomes: v v v v Commitment: how long an effective employee stays with a firm Competence: can be appraised through performance appraisal techniques Congruence: nature and frequency of grievances, disagreement, conflict Cost effectiveness: measured through human resource accounting techniques

Major roles played by HRM

v v v v v

Administrative expert Operational role Employee champion Strategic partner Change agent

Cont

Human Resource Management: The strategic aspect

Competitive advantage through people Employer Branding

.

HRM challenges today:

v Composition

& size of workforce

Breaking down of glass ceiling Workforce diversity Downsizing & Rightsizing

v Employee expectations
Loyalty & commitment Recognition and appreciation

Changes in technology

v Life style changes

Cont

v Environmental challenges