1. HUMAN RESOURCE MANAGEMENT 1

2. 1 OBJECTIVES HRM Functions in the Global Context Evolution and Significance of Human Resource Management Differentiate between Personnel Management and HRM Various Functions of HRM Changing Role of HR

3. 1 HUMAN RESOURCE MANAGEMENT EVOLUTION OF HRM Behavioral Sciences Era The Industrial Revolution Era Trade Unionism Era Scientific Management Era Human Relations Movement Era Personnel Specialist and Welfare Era

4. 1 HUMAN RESOURCE MANAGEMENT Distinguishing Factors of HRM & Personnel Management Beliefs and Assumptions Key Aspect Personnel Management HRM Contract Careful delineation of written Aim to go beyond written contract contract– go by the spirit Rules Thrust on devising clear ‘Can do’ attitude – impatience rules with rules Guide to Procedures Business and customer needs, management action flexibility, commitment Behaviors In line with customs and In line with values and mission norms Managers’ task Monitoring Nurturing

5. 1 HUMAN RESOURCE MANAGEMENT Distinguishing Factors of HRM & Personnel Management Strategic Aspects Key Aspect Personnel Management HRM Key relations Labor management Customers Initiatives Piecemeal Integrated Corporate plan Marginalized Central Speed of decisions Slow Fast

6. 1 HUMAN RESOURCE MANAGEMENT Distinguishing Factors of HRM & Personnel Management Line Management Key Aspect Personnel Management HRM Management role Transactional Transformational leadership Key managers P&IR experts Line managers Skills Negotiation Facilitation

7. 1 HUMAN RESOURCE MANAGEMENT Distinguishing Factors of HRM & Personnel Management Key Levers Key Aspect Personnel Management HRM Attention Personnel procedures Cultural and structural issues and personnel strategies Selection Marginal importance Integrated and key task Pay Job evaluation Performance based Communication Restricted flow/indirect Increased flow/direct Job design Division of labor Team work Conflict handling Temporary basis Managing culture and climate Training & Controlled access to Learning organizations development courses

8. 1 HUMAN RESOURCE MANAGEMENT ‘Hard’ HRM focuses on the resource side of human resources. It emphasizes costs in the form of ‘headcounts’ and places control firmly in the hands of management. ‘Soft’ HRM focuses on, the ‘human’ aspect of HRM. Its concerns are with communication and motivation.

9. 1 HUMAN RESOURCE MANAGEMENT ‘Human’ implies labor, worker, employee or personnel, whichever it is called at different stages of HRM development or different stages or situations of organizational settings of the organization. ‘Resource’ indicates that personnel are ‘valued assets’ and, with the emphasis on commitment, adaptability and employees as a source of competitive advantage, the image might equally be presented as ‘resourceful’ humans. ‘Management’ (as part of HRM) denotes the strategic planning and management of the personnel in an organization. (Legge, 1989).

10. 1 HUMAN RESOURCE MANAGEMENT MODERN HRM strict and rigorous selection and recruitment high level of training, especially induction training and on the job training team working multi-skilling better management-worker communications use of quality circles and an emphasis on right first time quality encouragement of employee suggestions and innovation single status symbols such as common canteens and corporate uniforms Examples from Japanese Organization The HRM practices included:

11. 1 HUMAN RESOURCE MANAGEMENT HRM: Nature It is pervasive in nature as it is present in all enterprises. Its focus is on results rather than on rules. It tries to help employees develop their potential fully. It encourages employees to give their best to the organization. It is all about people at work, both as individuals and groups. It tries to put people on assigned jobs in order to produce good results. It helps an organization meet its goals in the future by providing for competent and well-motivated employees. It tries to build and maintain cordial relations between people working at various levels in the organization. It is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology, economics, etc.

12. 1 HUMAN RESOURCE MANAGEMENT Personnel aspect- manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity, etc. Welfare aspect- working conditions and amenities such as canteens, creches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc. Industrial relations aspect- union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc. HRM: Scope

13. 1 HUMAN RESOURCE MANAGEMENT To help the organization reach its goals. To ensure effective utilization and maximum development of human resources. To ensure respect for human beings. To identify and satisfy the needs of individuals. To ensure reconciliation of individual goals with those of the organization. To achieve and maintain high morale among employees. To provide the organization with well-trained and well- motivated employees. Human Resource Management: Objectives

14. 1 HUMAN RESOURCE MANAGEMENT Human Resource Management: Objectives To increase to the fullest the employee’s job satisfaction and self- actualization. To develop and maintain a quality of work life. To be ethically and socially responsive to the needs of society. To develop the overall personality of each employee in its multidimensional aspect. To enhance employee’s capabilities to perform the present job. To equip the employees with precision and clarity in the transaction of business. To inculcate a sense of team spirit, team work and inter-team collaboration.

15. 1 HUMAN RESOURCE MANAGEMENT Human resource or manpower planning. Recruitment, selection and placement of personnel. Training and development of employees. Appraisal of performance of employees. Taking corrective steps such as transfer from one job to another. Social security and welfare of employees. Setting general and specific management policy for organizational relationship. Collective bargaining, contract negotiation and grievance handling. Staffing the organization. HRM: Functions

16. 1 HUMAN RESOURCE MANAGEMENT Aiding in the self-development of employees at all levels. Developing and maintaining motivation for workers by providing incentives. Reviewing and auditing manpower management in the organization. Potential Appraisal. Feedback Counseling. Role Analysis for job occupants. Job Rotation. Strategic human resource management. Competency-based human resource management. HRM: Functions

17. 1 HUMAN RESOURCE MANAGEMENT HRM and Role of HR Manager Table 1.1 Role of HR Manager Personnel RoleWelfare RoleAdministrative RoleFirst Fighting Legal Role Advisory-advising management on effective use of HR Research on personnel & organizational problems Time keep upGrievance handling Manpower planning, recruitment and recruitment and selection, etc. Managing services, i.e. canteen, transport, medical, etc. Salary and wage administration Settlement of dispute Training and DevelopmentGroup dynamics, group leadership, motivation, communication, conflict, etc. Maintenance of HR records Discipline maintenance Measurement of assessment of individual as well as group behavior Collective bargaining Performance and potential appraisal Worker’s participation, Joint consultation

18. 1 HUMAN RESOURCE MANAGEMENT MOTIVATION AND HRM Maslow ( 1943): physiological, safety, social, ego, and self-actualizing Theories of Motivation Herzberg’s two factors (1959): motivators and hygiene Job enlargement Job enrichment Empowerment Motivator or intrinsic factors, such as achievement and recognition, produce job satisfaction. Hygiene or extrinsic factors, such as pay and job security, produce Job dissatisfaction.

19. 1 HUMAN RESOURCE MANAGEMENT Vroom’s theory is based on the belief that employee effort will lead to performance and performance will lead to rewards (Vroom, 1964). The more positive the reward the more likely that the employee will be highly motivated. Conversely, the more negative the reward the less likely that the employee will be motivated.

20. 1 HUMAN RESOURCE MANAGEMENT Adams’ theory- employees strive for equity between themselves and other workers. Equity is achieved when the ratio of employee outcomes over inputs is equal to other employee outcomes over inputs (Adams, 1965).

21. 1 HUMAN RESOURCE MANAGEMENT Skinner’s theory- employees’ behaviors that lead to positive outcomes will be repeated and behaviors that lead to negative outcomes will not be repeated (Skinner, 1953).

22. 1 HUMAN RESOURCE MANAGEMENT Acceptance, the need for approval Curiosity, the need to learn Eating, the need for food Family, the need to raise children Honor, the need to be loyal to the traditional values of one’s clan/ethnic group Idealism, the need for social justice Independence, the need for individuality Order, the need for organized, stable, predictable environments Physical Activity, the need for exercise Power, the need for influence of will Romance, the need for sex Saving, the need to collect Social Contact, the need for friends (peer relationships) Status, the need for social standing/importance Tranquility, the need to be safe Vengeance, the need to strike back/to win Steven Reiss has proposed a theory that finds 16 basic desires that guide nearly all human behaviors. [Reiss, Steven (2000)]

23. 1 HUMAN RESOURCE MANAGEMENT HRM in MNCs Table 1.2 MNC’s Typologies CompanyGrowth Perspective Multi DomesticDiversifies, sets up new subsidiaries that adapt to local conditions and are organized on a decentralized federal basis International CompanyExploitation of the parent company’s knowledge through professional managers as a coordinated federation Global CorporationTreats the world market as an integrated whole

24. 1 HUMAN RESOURCE MANAGEMENT Size of the workforce Rising employees’ expectations Drastic changes in technology as well as lifestyle changes Composition of workforce New skills required Environmental challenges Lean and mean organizations Impact of new economic policy Political ideology of the Government Downsizing and rightsizing of the organizations Culture prevailing in the organization, etc. MAJOR INFLUENCING FACTORS: HRM