1 Human Resource Management

People are definitely a company’s realest asset. It doesn't make any difference whether the product is cars or cosmetics. A company is only as good as the people it keeps. Mary Kay Ash Mary Kay Ash 2 A Thought To Share

3 we can divide this term into three parts HUMAN RESOURCE MANAGEMENT

4 ? HUMAN

5 Financial Resources: means debt, equity, retain earnings and selected matters. Physical Resources: means building, machinery, vehicle and other material. Organizational Resources: include the history of groups in the organization, relationship, level of trust and associated culture dimensions, as well as formal reporting structure, control system and compensation system. Human Resource: includes skills, abilities, experience and other work related characteristics of people associated with the organization. includes skills, abilities, experience and other work related characteristics of people associated with the organization. RESOURCE

6 Management Management is the universal process of getting activities completed with and through other people to achieve organizational goals

7 Human Resource Management The design of formal systems in an organization to ensure effective and efficient use of talent to accomplish organizational goals

8 It is a managerial function that tries to match “ Organizational Needs” to the “ Skills and Abilities” of its Employees Human Resource Management Human Resource Management helps in maximizing productivity & reducing cost by Putting Right Person At Right Place

9 Evolution of HRM

10 The Craft system (1600s-1700s) –Small level of production –Industrial Revolution Scientific Management (early 1900s) –One best way to accomplish the task –Putting the right person on the job with the correct tools and equipment –Having a standardized method of doing the job –Providing an economic incentive to the worker Human Relations (late 1920s – early 1930s) –Hawthorne studies –Employee participation program Evolution of HRM

Behavioral Sciences The study of the actions of people at work; people are the most important asset of an organization. Personnel Management Involve in operational planning and decision making & do not incorporate all HR activities. Human Resource Management Involve in operational as well as strategic planning and decision making & incorporate all HR activities(training, career development, EEO etc.) Intellectual Capital Management Organizations need to be dynamic both in the context of the management of individual capabilities and the management of organizational structure. 11 Evolution of HRM

12 Why it is important to study HRM Managing People = Managing Business Investments in people pay off for the firm

13 Goals of Human Resource Management Complying with legal and social obligations Complying with legal and social obligations Facilitating organizational effectiveness Enhancing productivity and quality Enhancing productivity and quality Promoting individual growth and development Promoting individual growth and development The Goals of Human Resource in Contemporary Organizations

14 Human Resource Functions Staffing Maintenance Training & Development Motivation H R M

15 STAFFING Strategic Human Resource Planning Recruitment Selection Maintenance Training & Development Motivation H R M Human Resource Functions

16 STAFFING The basic objective of the staffing function is to locate & secure competent employee Components of Staffing Strategic Human Resource Planning Recruitment Selection

17 Strategic Human Resource Planning Human Resource planning is the process by which an organization ensures that it has right number and kind of people capable of effectively and efficiently completing those task that are in direct support of company’s mission and strategic goals.

18 The process by which a job vacancy is identified and potential employees are notified Objectives of Recruitment To obtain an adequate pool of applicants there by more choice to the organization Providing enough information about the job such that those who are unqualified will not apply Recruitment

19 Selection The primary objective of selection activities is to predict which job applicant will be suitable if hired, during the selection process, candidate are also informed about the job and organization Proper selection can minimize the cost of replacement and training resulting in more productive workforce

20 Staffing Maintenance Motivation TRAINING & DEVELOPMENT Orientation Employee Training Employee Development Organization Development Career Development H R M Human Resource Functions

21 The basic objective of Training & Development function is to take competent workforce, adapt them to the organization, and help them to obtain up-to-date skills, knowledge, and abilities for their job responsibilities TRAINING & DEVELOPMENT

22 Career Development Orientation Employee Training Employee DevelopmentOrganization Development Components of Training & Development

23 Orientation: It covers the activities involve in the introducing a new employee to organization and to his or her work unit Employee Training: Employee training is designed to assist employee acquiring better skill for the current job Employee Development: The focus of employee development is on a future position with in the organization for the which employee require additional competencies Career Development: The focus of career development is to provide the necessary information and assignment in helping employees realize their career goals Organizational Development: Organizational Development is the part of HRM that deals with facilitating system wide change in the organization Components of Training & Development

24 Staffing Maintenance Motivation Motivation and Job Design Performance management Reward & Compensation Employee Benefits H R M Training & Development Human Resource Functions

25 Motivation: The basic objective of motivation function is to retain good staff and to encourage them to give of their best while at work requires attention to the financial and psychological and even physiological rewards offered by the organization as a continuous exercise. Job design: A job should be designed in a such a way that it should facilitate the achievement of the organizational objective, stimulate performance and recognize the capacity and needs of those who are to perform it Performance Management: process used to identify, encourage, measure, evaluate and improve employees through performance appraisal. 

26 Compensation Management : Compensation is what employee receives in exchange for their contribution to the organization. Compensation management help the organization to obtain, maintain and retain a productive Workforce Employee Benefit : Employees benefit are generally membership based,non financial reward offered to attract and keep the employees, regardless their performance level.

27 Motivation Staffing Maintenance Health & safety Communication Employee relations Training & Developmen t H R M Human Resource Functions

28 The last phase of HRM process is called maintenance function. The main objective of this function is to do such HRM activities that maintain employees commitment and loyalty with the organization. Health and Safety –Designing and implementing programs to ensure employee health and safety Communication –Designing and implementing employee communication system Employees/labor relation –Serving as an intermediary between the organization and its union –Designing discipline and grievance handling systems MAINTENANCE FUNCTION

29 Different Roles for HR Management

30 HR Management Roles Administrative Role –Clerical and administrative support operations (e.g., payroll and benefits work) Employee Advocate Role –“Champion” for employee concerns Employee crisis management Responding to employee complaints Operational Role –Identification and implementation of HR programs and policies—hiring, training, compensating and other activities that support the organization.

31 Strategic Role for HR HR becomes a strategic business partner by: –Focusing on developing HR activities that enhance organizational performance. –Involvement in strategic planning –Participating in decision making on mergers, acquisitions, and downsizing. –Redesigning organizations and work processes –Accounting and documenting the financial results of HR activities.

Economic and Technological Changes W orkforce Availability and Quality Growth in Contingent WorkforceDemographics and Diversity Issues Bala ncing Work and Family Organizational Restructuring, Mergers, and Acquisitions HR Management Challenges

33 Economic and Technological Changes –Shift in jobs for manufacturing and agriculture to service industries and telecommunications. –Pressures of global competition causing firms to adapt by lowering costs and increasing productivity. –Growth of information technology. Workforce Availability and Quality –Inadequate supply of workers with needed skills for “knowledge jobs” –Education of workers in basic skills HR Management Challenges

34 Growth in Contingent Workforce –Increases in temporary workers, independent contractors, leased employees, and part-timers caused by: Need for flexibility in staffing decisions Increased difficulty in firing regular employees. Demographics and Diversity Issues –More diversity of race, gender, age etc Balancing Work and Family –Dual-career couples –Single-parent households –Decline in the “traditional family” –Working mothers and family/childcare –Single employee “backlash” against family-oriented programs.

35 Organizational Restructuring, Mergers, and Acquisitions –“Right-sizing”—eliminating of layers of management, closing facilities, merging with other organizations, and out placing workers Intended results are flatter organizations, increases in productivity, quality, service and lower costs. –HR managers must work toward ensuring cultural compatibility in mergers.

International Human Resource Management

Function of International HRM: Highlighting the broad functions of HRM, Morgan (1986) has presented a model that consist of three dimensions which are: 1.The three broad human resource activities: 2.The three major country categories involved in international HRM activities: 3.The three type of employee of an international firm: ProcurementAllocationUtilization Host countryHome CountryOther Country Host country Nationals (HCNs) Parent Country Nationals (PCNs) Third Country National (TCNs)

Host country Nationals (HCNs) Parent Country Nationals (PCNs) Third Country National (TCNs) Procurement AllocationUtilization HOSTHOST HOMEHOME OTHEROTHER MODEL OF International HRM

Domestic Vs International HRM HRM functions-Domestic as well as International Complexity Involved in operating in different countries and employing different national categories of employees. Extent of reliance of the MNC on its home country of domestic market. Attitude of Senior management Cultural Environment Industry within which the MNC is primarily involved

Waves are inspiring not because they rise and fall but because each time they fall they never fail to rise again. So keep your spirits high always!! 40 Thought of the Day