Lecture 1 HRM

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MMZC411- HUMAN RESOURCE MANAGEMENT LECTURE -1 :

By Jayashree Mahesh 30/7/11 MMZC411- HUMAN RESOURCE MANAGEMENT LECTURE -1

List of Chapters to be Covered:

List of Chapters to be Covered Chapter – 1 : Understanding the Nature and Scope of Human Resource Management Chapter 2 : Context of Human Resource Management

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Chapter – 1 : Understanding the Nature and Scope of Human Resource Management

Chapter Outline:

Chapter Outline Nature of HRM The Semantics HRM Functions and Objectives Organisation of HR Department Paradoxes in HRM Personnel Policies and Principles Scope of HRM Evaluation of HRM Human Capital Management HRM Models Harvard Model Warwick Model Guest Models Jobs and Careers in HRM Why Study HRM?

The HR Paradox:

The HR Paradox The biggest differentiator resource is Human Resource for any Organization The biggest challenge is to quantify the contributions of the HR

Meaning of HRM :

Meaning of HRM HRM is a management function that helps organisation to recruit, select, train, develop and manage its members. Simply stated, HRM is all about management of people in the organisation from Recruitment to Retirement. HRM refers to set of programs, functions, and activities designed and carried out in order to maximise both employee as well as organisational effectiveness

People – A Source of Competitive Advantage:

People – A Source of Competitive Advantage People offer skills, capabilities, systems, practices and behaviors which help execute firm’s strategies successfully By aligning HR plans to business , HR managers become strategic partners. Innovation is the key to competitive advantage and people are sources of innovation HR function seeks to convert an adverse situation into an opportunity Changes to structure due to environmental changes will become successful only innovative HRM Strategies HR manager plays a role of an effective change agent

Line and Staff Aspects of HRM:

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 organization’s tasks. Staff manager A manager who assists and advises line managers.

Line Managers’ HRM Responsibilities:

Line Managers’ HRM Responsibilities Placing the right person on the right job Starting new employees in the organization (orientation) Training employees for jobs that are new to them Improving the job performance of each person Gaining creative cooperation and developing smooth working relationships Interpreting the firm’s policies and procedures Controlling labor costs Developing the abilities of each person Creating and maintaining department morale Protecting employees’ health and physical condition

Human Resource Managers’ Duties:

Human Resource Managers’ Duties Functions of HR Managers Line Function Line Authority Implied Authority Staff Functions Staff Authority Innovator Employee Advocacy Coordinative Function Functional Authority

HRM Functions:

HRM Functions The eight key functions of HRM are: Planning Staffing Developing Monitoring Maintaining Managing relationships Managing Change Evaluating

What does Human Resource Management cover?:

What does Human Resource Management cover? Co-ordination and responsibility for… Recruitment Team working Participation & Involvement Promotion Culture change Retention Development Support Equal Opportunities training Discipline Employee Disputes Competent and willing workforce Organizational Goals

Semantics – HRM vs. PM :

Semantics – HRM vs. PM Mutuality Labour management Legal compliance HRD and IRM – What are they? Segments of HRM

Difference between PM and HRM:

Difference between PM and HRM Personnel Management Careful delineation of written contracts Importance of devising clear rules Procedures Norms/customs and practices Monitoring Labour management Piecemeal Slow Transactional Indirect Negotiation Separate, marginal task Job evaluation HRM Aim to go beyond contract Can do outlook, impatience with rule Business need Values/mission Nurturing Customer Integrated Fast Transformational leadership direct facilitation Integrated key tasks Performance related

Difference between PM and HRM:

Difference between PM and HRM Personnel Management Separately negotiated Collective bargaining contracts Many Division of labour Reach temporary truce Controlled access to courses personnel procedures Labour is treated as a tool which is expendable and replaceable Interests of the organisation are uppermost Precedes HRM external HRM harmonisation Individual contract Few Team work Manage climate and culture Learning companies wide ranging culture, structural and personnel strategies. People are treated as assets to be used for the benefit of an organisation, its employees and the society as a whole. Mutuality of interests Latest in the evaluation of the subject internal

Objectives of HRM:

Objectives of HRM Personal Objectives Functional Objectives Organisational Objectives Societal Objectives

Objectives of HRM:

Objectives of HRM Societal Objectives: To be responsive to the needs and challenges of the society while minimizing the negative impact, if any, of such demands upon the organization. 2. Organizational Objectives : To assist the organization to achieve its primary objectives, whether it is profit making or charity or social agenda .

Objectives of HRM:

Objectives of HRM 3. Functional Objectives : To maintain department’s contribution and level of services at a level appropriate to the organization’s needs. 4.Personal Objectives: To assist employees in achieving their personal goals, at least in so far as these goals enhance the individual’s contribution to the organization. This is necessary to maintain employee performance and satisfaction for the purpose of maintaining, retaining and motivating the employees in the organization .

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HRM Objectives Supporting HRM Functions Social Objectives (a)            Legal Compliance (b)            Benefits (c)            Union Management Relations Organizational Objectives (a)            Human Resource Planning (b)            Employee Relations (c)            Recruitment & Selection (d)            Training & Development (e)            Performance Appraisals (f)             Placement & Orientation (g)            Employee Assessment Functional Objectives (a)            Performance Appraisals (b)            Placement & Orientation (c)            Employee Assessment Personal Objectives (a)            Training & Development (b)            Performance Appraisals (c)            Placement & Orientation (d)            Compensation (e)            Employee Assessment

Models of HRM:

Models of HRM HR competency model, Christopher Mabey Business Mastery Business Acumen Customer Orientation Knowledge in all functional Areas External relations Personal Credibility Competence Sound academic credentials Trust Ethical Conduct Courage HR Mastery Staffing Performance Appraisal Reward Systems Communication Organization design Change Mastery Interpersonal Skills Problem Solving Skills Reward Systems Innovativeness and creativity

Models of HRM:

Models of HRM The Fombrun , Tichy & Devanna model (1984) Selection Human resource development Appraisal Rewards Organizational Development

Models of HRM:

Models of HRM The Harvard Model Stakeholders Interests Shareholders Management Employee Groups Government Community Unions Situational Factors Workforce characteristics Business strategy and conditions Management Philosophy Labor market Unions Task technology Laws and Societal Values HRM Employee Influence HR flow Reward systems Work systems HR outcomes Commitment Competence Congruence Cost- Effectiveness Long – Term Consequences Individual well being Organizational well being Societal well being

Models of HRM:

Models of HRM The David Guest Model (1997) HRM Strategies HRM Practices Hiring Training Appraisal Compensation Relations HR Outcomes Commitment Quality Flexibility Behavioral Outcomes Motivation Cooperation Organizational Citizenship Performance Outcomes Positive Productivity Innovation Quality Negative Low productivity Absenteeism Turnover Financial Outcomes Profits ROI

Models of HRM:

Models of HRM The Warwick Model (Hendry & Pettigrew) Socio-economic Technical Political-legal Competitive Culture Structure Politics/leadership Task-technology Business outputs Role Definition Organization HR Outputs Objectives Product market Strategy and tactics HR flows Work systems Reward systems Employee relations Outer Context Business Strategy Context Inner Context HRM Context HRM Content

Evolution of HRM in India:

Evolution of HRM in India 1920s – 30s Pragmatism of capitalists 1940s – 50s Technical, legalistic 1970s – 80s Professional, legalistic, impersonal 1990s Philosophical

HRM in India :

HRM in India In the 1970s and 1980s typical HRM functions in organization included: Personnel and administration Industrial relations Labor welfare Up to the mid-80s human resource management in Indian organizations grew through various phases under the influence of the following factors: A philanthropic viewpoint about doing good for workers A legislative framework Government policies Trade unions Emerging trends/concepts in management Changes in the economy

Jobs & Careers in HRM:

Jobs & Careers in HRM HR Specialist HR Manager HR Executive

Human Resource Specialties:

Human Resource Specialties Recruiters Human Resource Development Specialists Employment/ Industrial Relations Specialist Training Specialists Job Analysts Compensation Managers Human Resource Specialties Employee Welfare Officers

Basic HR Concepts:

Basic HR Concepts The bottom line of managing: Getting results HR creates value by engaging in activities that produce the employee behaviors that the company needs to achieve its strategic goals.

Chapter 1 Summary:

Chapter 1 Summary HRM includes a set of programmes, functions and activities designed and implemented to maximise organisational effectiveness along with employee growth. HRM is inclusive of IR, PM and HRD HR policies are plans of action HRM Models provide analytical framework for studying people management HCM refers to task of measuring the cause and effect relationship of various HR policies and programmes on the bottom line of an organisation.

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Chapter 2 : Context of Human Resource Management

Chapter outline:

Chapter outline HRM and its Environment Internal factors External factors Knowing the Environment HRM and Environmental Scanning Scanning the Environment Enacted Environment Task Environment Domain and Domain Consensus

HRM and its Environment:

Human Resource Management, 5E 33 HRM and its Environment HRM Cultural Professional Bodies Economic Strategy, Task & Leadership Political-Legal Unions Technological Organisation Culture and Conflicts External Internal

External Forces Internal Forces:

Human Resource Management, 5E 34 External Forces Internal Forces Political-Legal Legislature Executive Judiciary Economic Suppliers Competitors Customers Economic Growth Industrial Labour Diversity Globalisation Technological Cultural Strategy, Task and Leadership Unions Organisational Culture and Conflict Professional Bodies

HR and Technology:

Human Resource Management, 5E 35 HR and Technology Consideration of adopting a new technology Strategic Issues Impact on productivity Impact of quality of output Impact on training/delivery of output Cost of equipment/technology Adequacy of current facilities New market opportunities afforded Strategic HR issues Impact on productivity Necessary expansion/ contraction of workforce Training needed to utilise new technology Costs for hiring, severance, training Effective management of change Impact on work group dynamics

Scanning the Environment:

Human Resource Management, 5E 36 Scanning the Environment Enacted Environment Domain and Domain Consensus Task Environment HR Department to play major role in Scanning Environment