Human Resource Management Theories,Techniques and Applications

Chapter 1 The Strategic Role of Human Resource Management Behavioral Objectives When you finish studying this chapter, you should be able to: Answer the question, “What is Human Resource Management?” Answer the question, “What is Human Resource Management?” Discuss the components of the changing environment of Human Resource Management. Discuss the components of the changing environment of Human Resource Management. Present examples of the new management practices that are changing Human Resource management. Present examples of the new management practices that are changing Human Resource management. Give examples of human Resource management’s role as a strategic business partner. Give examples of human Resource management’s role as a strategic business partner.

Chapter Outline Human Resource Management at Work Human Resource Management at Work The Changing Environment of Human Resource Management The Changing Environment of Human Resource Management Tomorrow’s HR Today Tomorrow’s HR Today Strategic Planning and HR Management Strategic Planning and HR Management The Plan of This Book The Plan of This Book

Key Words : management process The five basic functions of planning, organizing, staffing, leading, and controlling. human resource management The policies and practices one needs to carry out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising.

Key Words : authority The right to make decisions, direct others’ work, and give orders. line manager A manager who is authorized to direct the work of subordinates and responsible for accomplishing the organization’s goals. staff manager A manager who assists and advises line managers.

Key Words : line authority The authority exerted by a personnel manager by directing the activities of the people in his or her own department and in service areas (like the plant cafeteria). implied authority The authority exerted by a personnel manager by virtue of others’ knowledge that he or she has access to top management (in areas like testing and affirmative action).

Key Words : functional control The authority exerted by an HR manager as coordinator of personnel activities. employee advocacy HR must take responsibility for clearly defining how management should be treating employees, make sure employees have the mechanisms required to contest unfair practices, and represent the interests of employees within the framework of its primary obligation to senior management.

Key Words : globalization The tendency of firms to extend their sales or manufacturing to new markets abroad. competitive advantage Any factors that allow an organization to differentiate its product or service from those of its competitors to increase market share.

Key Words : cost leadership The enterprise aims to become the low- cost leader in an industry. differentiation A firm seeks to be unique in its industry along dimensions that are widely valued by buyers.

The Strategic Roles of HRM 1.What is human resource management? 2.Functions and divisions of human resource management. 3.Evolution of human resource management in the west. 4.Human resource management in India

1. What is human resource management? Definition of HRM : Definition of HRM : Human resource management is to make the most productive use of human resource to the greatest benefits of the organization and individuals. Human resource management is to make the most productive use of human resource to the greatest benefits of the organization and individuals. Organization: profits and social commitments. Organization: profits and social commitments. Individuals: development and achievement. Individuals: development and achievement.

The importance of HRM (1)People is the key factor of production. (2)Productivity is the key to measure a nation’s economic growth potential, and labor quality is the key to improving productivity. (3)Competition today is the competition for talents. (4)Since man is the most uncontrollable and unpredictable variable of all production variables, organizational success depends on the management of people.

Changing Role of HR The Strategic Role: To keep the business goals of the organization as the determining factor for the overseeing of the personnel’s role in the respective fields of competence. Mainly to build a strategy to have the personnel move towards meeting the market demands, through various modes that broadly come under the ‘Compensation plan’. The Strategic Role: To keep the business goals of the organization as the determining factor for the overseeing of the personnel’s role in the respective fields of competence. Mainly to build a strategy to have the personnel move towards meeting the market demands, through various modes that broadly come under the ‘Compensation plan’.

Operational Role: This is the essential day to day needs of the organization that are fulfilled by the correct and apt personnel’s work turnout. HRM, therefore plays the part of the first step of recruitment to the final step of Human resource delivery in sync with the business goals. Operational Role: This is the essential day to day needs of the organization that are fulfilled by the correct and apt personnel’s work turnout. HRM, therefore plays the part of the first step of recruitment to the final step of Human resource delivery in sync with the business goals. Entire Recruitement process, pre-employment, performance evaluation, reference generation or checking etc. Entire Recruitement process, pre-employment, performance evaluation, reference generation or checking etc.

Administrative role: To ensure that the company policies are equally followed in the organization. Also to see that the company is following the local and central Governmental laws and regulations vis a vis the personnel. Administrative role: To ensure that the company policies are equally followed in the organization. Also to see that the company is following the local and central Governmental laws and regulations vis a vis the personnel. Payments, age of recuitement, etc which fall under the Human rights and other components. Payments, age of recuitement, etc which fall under the Human rights and other components.

Also the HRM monitors individual performances and identifies those who may have difficulties in their job deliveries. Before the times of appraisals, the HRM counsels and guides those who need guidance to maintain certain standards for retaining their jobs, or those who are in the line for promotions etc. Also the HRM monitors individual performances and identifies those who may have difficulties in their job deliveries. Before the times of appraisals, the HRM counsels and guides those who need guidance to maintain certain standards for retaining their jobs, or those who are in the line for promotions etc. Human Resource Information Systems (HRIS) is the main data base that holds all the information and records. Human Resource Information Systems (HRIS) is the main data base that holds all the information and records.

Organization and individual (1)Organization needs: Profits, productivity and markets. (2)Individual needs: Maslows Need Hierarchy Physiological needs, security, belonging, self- respect and self-actualization. Physiological needs, security, belonging, self- respect and self-actualization. (3) Coordinating organization and individual needs: goal of HRM.

People and productivity (1)Productivity: the measurement of economic growth potential. (2)Productivity formula: input : output (3)Measurement of productivity: a.Productivity of worker is the output per hour. b.Productivity of equipment is the output per every dollar invested. c.Productivity of energy is the output per every unit of energy consumed.

Employee quality and productivity (1)Employee skill determines productivity. Man and tools. Man and tools. (1)Employee motivation affects productivity. Willingness to perform. Willingness to perform. (1)Employee creativity and initiatives improve productivity. innovation is the key to improvement. innovation is the key to improvement.

6. Functions and divisions of HRM (1)Management process a.Planning. b.Organizing. c.Staffing. d.Leading. e.Controlling.

(2) Functions of HRM a.Conducting job analysis. b.Planning future needs and supplies. c.Recruiting and selecting employees. d.Orienting and training employees. e.Managing wages and benefits. f.Performance appraisal. g.Communicating (discipline and services). h.Building employee commitment (incentives).

(3) Line managers’ HRM responsibilities a.Job placing. b.Orienting new employees. c.On-job training of employees. d.Interpreting company policies and procedures. e.Conducting job appraisals. f.Controlling labor costs. g.Labor protection and disciplines.

(4) Staff managers’ HRM responsibilities a.A line function: directing and managing people in the HRM department. b.A coordinating function: coordinating HRM activities across the organization. c.Staff functions: Same as the HRM functions plus labor relations and collective bargaining with the trade unions. Same as the HRM functions plus labor relations and collective bargaining with the trade unions.

3. Evolution of HRM in the west (1)Industrial Revolution: a.Adam Smith: specialization and division of labor. b.Robert Owens: Pioneer of HRM, performance appraisal and pay for performance (fair treatment of employees)

(2) Scientific management Frederic Taylor: Father of scientific management a. Definition: Systematic analysis and breakdown of work into the smallest mechanical components and rearranging them into the most efficient combination. Systematic analysis and breakdown of work into the smallest mechanical components and rearranging them into the most efficient combination. b. Steps: Job analysis—selection—training—rewards. Job analysis—selection—training—rewards.

(3) Industrial psychology a.Hneri Fayol’s management functions: Planning, organizing, communicating, coordina- ting and controlling. Planning, organizing, communicating, coordina- ting and controlling. b.F. & L. Gilbreth’s principles of work simplification (time and motion studies). c.Henry Gantt’s principles of work scheduling. d. Continuation of scientific management.

(4) Human behavior and relations a.The Hawthorne Studies by Westing House The happy workers are the most productive workers. (The Pet Milk theory) The happy workers are the most productive workers. (The Pet Milk theory) b.Max Weber: the Ideal Bureaucracy. c.Chris Argyris: Individual and organization—mutual adjustment. d.Affected by the theories of behavioral science and system theory.

(5) Three stages of growth of HRM a.File Management : collecting and storing data of each employee. b.Government Accountability : Compliance to government regulations. c.Human Resource Management: Treating human resource as an asset. Treating human resource as an asset. Emphasizing joint responsibilities of line managers and staff managers. Emphasizing joint responsibilities of line managers and staff managers.

Human Resource Management therefore acts as the “sensitive bridge that balances and connects the Business goals and the Human factors in the organization” Human Resource Management therefore acts as the “sensitive bridge that balances and connects the Business goals and the Human factors in the organization”