Human Resource Management Session 2

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HUMAN RESOURCE

MANAGEMENT
Session 2

HUMAN RESOURCE
MANAGEMENT
Evolution, Scope, Functions
LEARNING FACILITATOR
JAYANTI SAHAY
Email :rush2jayanti@yahoo.com
Scope of HRM
Objectives of HRM

HRM aims at achieving organisational


goals, meet the expectations of
employees; develop the knowledge, skills
and abilities of employees; improve the
quality of working life and manage human
resources in an ethical and socially
responsible manner.
Importance of HRM

attract and retain talent


train people for challenging roles
develop skills and competencies
promote team spirit
Good HR Practices help
develop loyalty and commitment
increase productivity and profits
improve job satisfaction
enhance standard of living
generate employment opportunities
HRM as a central subsystem in an
organisation
Product
Subsystem

HR Subsystem
Procurement
Finance Training Marketing
Subsystem Compensation Subsystem
Appraisal
Rewards

Technical
Subsystem
Functions of HRM
HRM

Managerial Operative Functions


functions:
Procurement Development: Motivation and Maintenance: Emerging
– Planning Integration:
Compensation: Issues:
Job Analysis Training Grievances
Job design Health Personnel
HR planning Executive records
Work scheduling Discipline
– Organising Recruitment development
Safety Personnel
Motivation Teams and
Selection Career teamwork audit
planning Job evaluation Personnel
Placement Welfare Collective
Succession Performance and research
– Directing bargaining
Induction potential HR
planning appraisal Social security Participation
Internal accounting
mobility Human Compensation Empowerment HRIS
– Controlling resources administration
development Trade unions Job stress
strategies Incentives
benefits and Employers’ Mentoring
services associations International
HRM
Industrial
relations
EVOLUTION OF HRM
The field of HRM evolved both in India and elsewhere over a number of years
to present level of sophistication and use of proactive methods

 The industrial revolution


 Scientific management
 Trade unionism
 Human relations movement
 Human resources approach
Evolution of the Personnel
Function
Concept What is it all about?

The Commodity Labour was regarded as a commodity to be bought and sold.


concept Wages were based on demand and supply. Government did
very little to protect workers.

The Factor of Labour is like any other factor of production, viz, money,
Production concept materials, land, etc. Workers are like machine tools.

The Goodwill concept Welfare measures like safety, first aid, lunch room, rest room
will have a positive impact on workers’ productivity

The Paternalistic Management must assume a fatherly and protective attitude


concept/ Paternalism 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.
Evolution of the Personnel
Function
The Humanitarian To improve productivity, physical, social and psychological
concept needs of workers must be met. Money is less a factor in
determining output, than group standards, group incentives and
security. The organisation is a social system that has both
economic and social dimensions.

The Human Resource Employees are the most valuable assets of an organisation.
concept There should be a conscious effort to realise organisational 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 organisation 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.
Growth in India

 Legal phase
 Welfare phase
 Development phase
Personnel Function in India;
Changing Scenario
Period Emphasis Status Roles
1920 – 30 Welfare management Clerical Welfare
Paternalistic practices administrator

1940 – 60 Expanding the role to cover Administrative Appraiser


Labour, Welfare, Industrial Advisor
Relations and Personnel Mediator
Administration Legal advisor
Fire fighting

1970 – 80 Efficiency, effectiveness Developmental Change agent


dimensions added Integrator
Emphasis on human Trainer
values, aspirations, Educator

1990s – Incremental productivity Proactive, Developer


onwards gains through human growth-oriented Counsellor
assets Coach
Mentor
Problem solver
Shifts in HR management in India

Traditional HR practice Emerging HR practice

 Administrative role  Strategic role


 Reactive  Proactive

 Separate, isolated from  Key part of organisational

company mission mission

 Production focus  Service focus

 Functional organisation  Process-based organisation

 Individuals encouraged,  Cross-functional teams,

singled out for praise, teamwork most important

rewards
 People as expenses People as key investments/assets
HRM in the new millennium

Current thinking in HRM strongly supports the view that


when opportunities for growth and enhancement of skills are
available in an organisation, people will be stimulated to give their
best, leading to greater job satisfaction and organisational
effectiveness.
To this end, therefore, HR managers in the new millennium are
expected to successfully evolve an appropriate corporate culture, take
a strategic approach to the acquisition, motivation and development of
human resources and introduce programmes that reflect and support
the core values of the organisation and its people.     

    Size of work force


Demands for better pay, benefits, working conditions
HRM in the new millennium

Composition of workforce
Equal pay for equal work
Breaking down of glass ceiling
Constitutional protection to minority groups
Importance to factors such as age, sex, religion, region, caste especially while
dealing with multifarious, heterogeneous, culturally diverse work groups

 Employee expectations
Better educated, more knowledgeable, emotionally strong and demanding
workforce
Demand for educated, trained, experienced and knowledgeable workers growing
Understand individual differences and develop appropriate policies to meet their
growing expectations.
HRM in the new millennium
 Changes in technology
Modernisation, computerisation, sophistication increasing by the day
Knowledge and skills need to be refined constantly
Training, retraining and mid-career counselling important
Equip employees so as to cope with dramatic challenges brought forward by rapid
advances in science and technology
  Life style changes
 Environmental challenges
 Personnel function in future
Job redesign
Career opportunities
Productivity
Recruitment and selection
Training and development
Rewards
Safety and welfare       
HRM in the new millennium

 Changes in 21st century affecting HRM


HR as a springboard for success
Talent hunting, developing and retraining
Lean and mean organisations
Labour relations
Health and benefit programmes
Traditional HR vs. Strategic HR
Point of distinction Traditional HR Strategic HR
Focus Employee Relations Partnerships with internal and
external customers
Role of HR Transactional change Transformational change leader
follower and respondent and initiator
Initiatives Slow, reactive, fragmented Fast, proactive and integrated
Time horizon Short-term Short, medium and long (as
required)
Control Bureaucratic-roles, policies, Organic-flexible, whatever is
procedures necessary to succeed
Job design Tight division of labour; Broad, flexible, cross-training
independence, teams
specialisation
Key investments Capital, products People, knowledge
Accountability Cost centre Investment centre
Responsibility for HR Staff specialists Line managers
HRM today
‘Talking the Talk': Jeff Schwartz on Building Talent During a Downturn
Published: July 21, 2010 in Knowledge@Wharton

……covering the CEO or other top officials.

 These are among the key findings of a massive, year-long study of approximately 1,800
global executives by professional services giant Deloitte titled, "Managing Talent in a
Turbulent Economy: Where Are You on the Recovery Curve?", which seeks to answer some
of the questions about how leadership training and development fits into economic recovery
efforts.

 The project, which surveyed senior executives from a cross-section of large companies
around the globe, found that the firms that posted stronger performances and were more
optimistic about the future were those that refused to put retaining top employees -- or
even hiring some of their rivals' future stars -- on the back burner.

 "These companies were on, and are on, the offense; they are not on defense," Jeff
Schwartz, global leader for Deloitte Consulting's organization and change service line, said
during a speech at the recent 14th annual Wharton Leadership Conference. "They are more
committed to retaining their key employees and are building a stronger internal pipeline --
which is probably one of the main measures by which you might [gauge] the effectiveness
of leadership programs.... They were cherry-picking in the market because they knew that a
recession was a really good time to increase their recruitment."
Organisations 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
 Technological factors  Mission
 Economic challenges  Policies
 Political factors  Organisational culture
 Social factors  Organisation structure
 Local and Governmental issues  HR systems
 Unions
 Employers’ demands
 Workforce diversity
Technological Changes And HRM
Technology includes tools, machinery, equipment, work procedures
and employee knowledge and skills. The impact of technology on HR
can be profound, as the following things clearly reveal:

 New skills, knowledge, experience and expertise required to gain


the edge over rivals.
 Downsize operations, cut organisational layers and cut the extra
fat to survive in a competitive world
 Collaborate and achieve teamwork
 Relocate work from the office to the home
 Internet and intranet revolution
How to deal with a human
resource surplus situation?
Why? Consequences? Managing Survivors of
downsizing
 Automation  Cuts payroll expenses Bitterness, anger, disbelief
and shock need to be
 Restructuring  Eliminates extra layers
handled properly
 Mergers  Improves functioning if
 Give information as to why
firm’s product and
service profile is good the action had to be taken

 Shocks those left out  Tell how it is going to help


 Acquisitions
the firm and employees in
 Competitive  Shattering impact on the long run.
Pressures employee motivation and
morale if not managed
properly
Role of HR in a virtual organisation

A virtual organisation is a network of companies or employees


connected by computers. Virtual workers work from home, hotels,
their cars, or wherever their work takes them. The human resource
function plays a unique role in a virtual organisation:
 Psychological fit: The lack of face-to-face interaction in a virtual
organisation, virtually compels HR professionals to determine the
psychological fit between different units initially.
 System alignment: Given the lack of physical proximity, it
becomes even more critical that the organisation's mission, vision and
measures be aligned and that all parties are familiar with these
issues; the HR function can play an important role in this task.
 Reconsider rewards: In a virtual unit, very few permanent
positions exist. In many cases, the organisation will be staffed with
workers having different motivational forces. So rewarding each
entity in an effective way becomes an important job.
Role of HR in a virtual organisation

 Reconsider staffing needs: In a virtual organisation, most


employees work on a contractual basis. Finding people with requisite
skills, knowledge and motivation levels becomes an important
activity.
 Build partnerships: Virtual, teams have to be built from scratch
paying attention to their unique requirements. The concept of
employment needs to be replaced by the concept of 'partnership'
especially when most tend to work independently away from the
permanent employees or owners of the organisation
 Develop leaders: Leaders become the major forces for building
trust, creating a mission and instilling a sense of belonging to the
organisation. HR can play a major role in ensuring that leaders
assume these responsibilities and meet them in an effective way.
Designing appropriate HR systems

Issue Focus on
 Nature of employment : Job/Career
 Recruitment : Internal/external/both
 Selection : Merit/other considerations
 Training and employee : 6 months/yearly
development actions Regular/irregular/need based
 Degree of participation : Top down/bottom up
 Incentives : Individual merit/group output
 Job security : Lifelong employment/need-based jobs
 Employee welfare : Be a model employer (offer those that
are needed by law.)
CASE STUDY
MODELS OF HRM
 Fombrun, Tichy and Devanna model

HRD

Selection Organizational Effectiveness


Appraisal

Rewards
Stakeholder Interest
Harvard Model
SHAREHOLDERS
MANAGEMENT
EMPLOYEE GROUPS
GOVERNMENT
COMMUNITY HRM Policy Long-term
Choices HR
UNIONS Outcomes Consequences
EMPLOYEE INFLUENCE
COMMITMENT INDIVIDUAL
HUMAN RESOURCE FLOW
COMPETENCE WELLBEING
REWARD SYSTEMS
CONGRUENCE ORGANIZATIONAL
WORK SYSTEMS
Situational Factors COSTEFFECTIVENESS EFFECTIVENESS
SOCIETAL
WELLBEING
WORKFORCE
CHARACTERISTICS
BUSINESS STRATEGY &
CONDITIONS
LAWS & SOCIETAL VALUES
MANAGEMENT PHILOSOPHY
LABOUR MARKET
UNIONS
TASK TECHNOLOGY
Guest Model

HRM HR
Practices Behavioural
Outcomes Outcomes
Performance
Hiring Commit Outcomes
Training Motivation Financial
ment Co-operation
HRM Appraisal outcomes
STRATEGIES
Quality Organizational
Compens Flexibility
ation citizenship
Relations
Warwick Model
 FOR SELF LEARNING

Go to the library
Refer book titled “HRM-text and cases”
5th ed. TATA Mc Graw Hill publication
Authored by K Aswathappa
To be discussed in the next session
near to ideal DEFINITION
 EVER EVOLVING
 Management is “control and creation of technological and human
environment that supports optimal utilization of resources and
competencies for achieving organizational goals”

HRM is
 Integration of competencies with IT
 Aligning HR strategy with corporate strategy
 Well being of employees
 Developing employee competencies
 Optimal utilization
 Employee empowerment
 Performance managment

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