HRM Policies and Practices Course Code: MGT450 Dr. Saqib Yousaf

Introduction to Course Nature and Scope of HRM Challenges in HRM An Investment Perspective of HRM Human Resource Planning Job Analysis and Job Design Recruitment and Selection Inducting and Placing New Hires Performance Appraisal Compensation Management (components of remuneration, incentives, benefits and services, fringe benefits, perquisites, top executives remuneration)

Introduction to Course Health and Safe Environment Managing Separations and Rightsizing Industrial Relations Trade Unions Resolving Disputes Labour Laws in Pakistan Equal Employment Practices in Pakistan International Human Resource Management Evaluating HR effectiveness

Grading System Assignment 10 MARKS Quizzes 10 MARKS Graded Discussion 05 MARKS Sessionals (I and II) 25 MARKS Final Exam 50 MARKS TOTAL 100 MARKS

Lecture Overview HRM Definition Scope of HRM Difference between HRM and PM Functions of HRM Department HRM Functions and Objectives Human Resource Management

Reading Material Gary Dessler : Human Resource Management Publisher National Book Foundation

UNDERSTANDING THE NATURE AND SCOPE OF HRM CHAPTER 1 UNDERSTANDING THE NATURE AND SCOPE OF HRM

Lecture Overview What is HRM? HRM Activities Scope of HRM Difference between HRM and PM HRM Objectives and Functions

HUMAN RESOURCE MANAGEMENT (HRM) HRM defined as “HRM is management function concerned with hiring , motivating and maintaining people in an organization. It focuses on people in organization” (Aswathappa, 2008, p.5)

HRM: Peoples Dimensions In Organizations HRM: the application of management functions and principles related to employees HRM functions applicable every where (not for profit and profit driven organizations) Employees decisions are integrated Employee decision brings effectiveness/efficiency in organization HRM includes all major activities in professional life of a worker All activities from employee entry to managing performance and training until he or she leaves

HRM Activities HR Planning Job Analysis and Design Recruitment and Selection Training and Development Remuneration Welfare Safe and Healthy Work Environment Industrial relations

SCOPE OF HRM Introduction to HRM Employee Hiring Employee Remuneration Employee Motivation Employee Maintenance Industrial Relations Prospects of HRM

Scope Of HRM HRM IR Introduction of HRM Prospects of Employee Hiring Remuneration Career Development HRM Employee Motivation IR Employee Maintenance Source: Aswathappa, 2008, p.6

The Semantics There two terms PM (Personnel Management ) HRM (Human Resource Management ) PM and HRM are different in scope and orientation HRM is broad concept PM and HRD (Human Resource Development) are part of HRM

Differences Between HRM and PM Dimensions PM HRM 1.Employment contract Care full delineation of written contracts Aim to go behind contract 2.Rules Importance of devising clear rules Can do outlook, impatience with rule 3.Guide to management action Procedures Business need 4.Behaviour referent Norms ,customs and practices Values and mission 5.Managerial task vis-à-vis labor Monitoring Nurturing 6.Speed of decision Slow Fast 7.Management role Transactional Transformational leadership 8.Communication Indirect Direct 9. Prized management skills Negotiation Facilitation 10.Selection Separate ,marginal task Integrated, key task 11.Labour management Collective barraging contracts Individual contracts 12.Job categories and grade Many Few 13.Job design Division of labour Team work 14.Conflict handling Reach temporary truce Manage climate and culture

Differences Between HRM and PM Dimensions PM HRM 15.Respect for employees Labour is used as tool which is spendable and replaceable Peoples are used as assets to be used for the benefit of organization 16.Shared interest Interest of organizations are uppermost Mutuality of interest 17.Evolution Precedes HRM Latest in evolution of subjects 18.Locus of control External Internal 19.Oganization principles Mechanistic Top down centralized Organic Bottom-up Decentralized 20.Key relations Labour Management Customers 21.Initiatives Piecemeal Integrated 22.Pay Job evaluation Performance related 23.Training and development Controlled accessed to courses Learning companies Source: Aswathappa, 2008, p.7

HRM Functions and Objectives The main objective of HRM is to ensure the availability of willing and competent force to an organization There are other objective of HRM too Societal objectives Functional objectives Organizational objectives Personal objectives

HRM FUNCTIONS AND OBJECTIVES Societal Objectives Organizational Objectives Functional Objectives Personal Objectives Source: Aswathappa, 2008, p.8

HRM Functions and Objectives 1 Societal objectives Societal objectives of HRM make sure that the organization is socially and ethically responsible Minimizing negative impact of societal demands on organizations For example: EOE laws forces organizations to be ethical in recruitment, to minimize the discrimination against hiring based on ethnicity, race, and religion etc.

HRM Functions and Objectives 2 Organizational objectives To determine the role of HRM in organizational effectiveness Its purpose is to assist/serve organization HR department also serve other departments

HRM Functions and Objectives 3 Functional objectives To maintain department contribution in organizational effectiveness HR department services must fit into the organizational needs

HRM Functions and Objectives 4 Personal objectives To assist employees in achieving their personal/individual goals Maximum contribution to organization Personal objectives are achieved when employees are satisfied, motivated and retained Satisfied employees excellent services excellent organizational performance

HRM Functions and Objectives HRM Objectives Supporting Functions Societal Objectives Legal compliance Benefits Union-Management relationship Organizational Objectives Human Resource Planning Employee Relations Training and Development Performance Appraisal Placement Functional Objectives Personal Objectives Compensation Source: Aswathappa, 2008, p.10

Organization Of HR Department Two issues HR department placement in overall setup Composition of HR department Structure of HR Structure of organization depend on whether organization is small or large In small organization there is no need to have separate department to deals with activities relating to people Many small organizations even do not have personnel managers Outsourcing to firms specializing in managing accounts, pensions, funds and health & care

Organization Of HR Department Earlier, in personnel department employee with little knowledge and competencies were placed The responsibility was to arrange tours, picnics, and retirement/farewell parties Now focus has changed, HR department has key place in overall organizations Contrary to small-sized company, In large scale organization there is big department heading by Manager/Director

Organization Of HR Department HR in Small Scale Unit Owner Accounts Manager Office Manager Production Manager Marketing Managers Personnel Assistant Source: Aswathappa, 2008, p.10

Organization Of HR Department HRM in large scale organization Chairman Director Finance Director R & D Director HRM Director Production Deputy Director Recruitment Deputy Director Training Deputy Director Promotions Source: Aswathappa, 2008, p.11

Composition Of HR and Personnel Department Director HRM Manager Personnel Administration HRD Manager IR HR Planning Hiring Complaints Compensation PR Canteen Welfare Transport Legal Director HRM Source: Aswathappa, 2008, p.12

Outsourcing HR Activities Outsourcing or Subcontracting: Transfer activities to specialist organizations Reasons Restructuring Downsizing Growth in business Decline in business Benefits Cost efficiency Access to expertise

Summary What is HRM? HRM Activities Scope of HRM Difference between HRM and PM HRM Objectives and Functions