BUSINESS PRACTICE AND INDUSTRIAL ECONOMICS

Dileep PandalaiSemester – 1 MtechIEM

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TOPICS FOR DISCUSSION

Human Resource Management Managing Organizational change Innovation

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HUMAN RESOURCE MANAGEMENT

Human Resource Management (HRM) is a management function through which managers Recruit, Select, Train and Develop organization members

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THE HRM PROCESS

Human Resource Planning

Recruitment

Selection

SocializationTraining & Development

Performance Appraisal

Promotions, transfers,

demotions and separations

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HUMAN RESOURCE PLANNING

It is designed to ensure the personnel needs of the organization appropriately.

Human resource planning has four basic aspects: Planning for future needs by deciding how many

people with what skills the organization will need Planning for future balance by comparing the

number of needed employees who can be expected to stay with the organization which leads to

Planning for recruitment or laying off employees and

Planning for the development of employees

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RECRUITMENT

Recruitment is concerned with developing a pool of job candidates in line with the human resource plan.

• Step 1: Prepare a Job/Position description – Description with the title, duties and responsibilities

• Step 2: Hiring/Job specification – qualification and experience requirements

Sources of recruitment • Campus placements, placement agencies• Peer recruitment, recruitment from within

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SELECTION Selection means finding out the right

candidate for job by evaluating through • Application forms• Resumes• Interviews• Employment and skill tests• Reference checks

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SOCIALIZATION (ORIENTATION) Helps the hired individual to fit smoothly in to

the organization.• New comers get introduced to colleagues• Make familiar with their responsibilities• Introduced to Company’s culture, Policy’s and

expectations regarding employee behavior

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TRAINING AND DEVELOPMENT

Training is designed • to improve job skills• to contribute to organizational effectiveness

Requirements for training is determined by1. Performance appraisal2. Analysis of job requirements3. Organizational analysis4. Employee survey

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DEVELOPMENT PROGRAMS

Development programs are designed• to prepare the employees for promotion Two Methods1. On the job methods (Coaching, Job rotation,

Training positions, Planned work activities)2. Off the job methods (in house training and

management development programs and university sponsored programs)

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PERFORMANCE APPRAISAL

Individual’s performance is compared to standards or objectives determined for the position

HRM will establish the policies for appraisal working with the top management

Appraisal in done by the employee’s immediate supervisor

High performanceBonus, Salary rise, Promotion

Low performanceAdditional training, Demotion or

separation

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PROMOTIONS A major incentive for superior managerial

performance Affects morale & productivity if some people

are frequently bypassed Discrimination – Racial & Gender

TRANSFERS Provides broader job experience Fills job vacancies Low performers can be shifted to other

departments instead of demoting or firing from the job

Some employees may need to join their spouse or family

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DISCIPLINE, DEMOTIONS & SEPARATIONS

Discipline – generally administered when company policy is violated or falls short of work expectations

Steps – warning, reprimand, probation, suspension, disciplinary transfer, demotion & discharge

Separation – if transfer or demotion is not possible

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MANAGING ORGANIZATIONAL CHANGE

Reasons for change Changes in external environment Technology Nature of work force

Effects of change Organization structure can become obsolete Management practice & culture become

outdated Communication & decision making system

gets choked Deteriorates interpersonal &

interdepartmental relationships

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PLANNED CHANGE

The systematic attempt to redesign an organization in a way that it will help it adapt to changes in the external environment or to achieve new goals

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FORCE FIELD THEORY – KURT LEWIN EVERY BEHAVIOR IS AN EQUILIBRIUM BETWEEN DRIVING & RESTRAINING FORCES

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SOURCES OF RESISTANCE

Organization’s culture

Individual self interests

Perception of organizational goals and strategies

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THE PROCESS OF CHANGE

Unfreezing Change Refreezing

Unfreezing – making the need for change obviousChange – Adopting new attitudes, values and behaviorsRefreezing – locking the new behavior pattern by means of supporting or reinforcing mechanisms

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TYPES OF APPROACHES TO PLANNED CHANGE

Structural change1. Organizational change2. Decentralization3. Modified work flow Technological change Changing people

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STRUCTURAL CHANGE Rearranging internal systems like 1. Line of communication2. Work flow or management hierarchy

ORGANIZATIONAL CHANGE Classical organization structure focuses on 1. Clearly defined job responsibilities 2. Appropriate division of labor 3. Lines of performance

New trend1. Flat-lean organization where middle level of

managers are eliminated

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DECENTRALIZATION Creating smaller, self contained

organizational units Increases motivation and performance of unit

members Each unit can adapt its own structure and

technology to its particular task and environment

MODIFIED WORK FLOW Modified work flow and careful grouping of

activities can improve productivity and morale

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TECHNOLOGICAL CHANGE

New engineering processes Research techniques Production methods New equipments

CHANGING PEOPLE

Changing employee behavior, skills, attitudes, perceptions and expectations

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MANAGING CREATIVITY AND INNOVATION

Creativity is defined as generation of a new idea and innovation as the translation of a new idea into a new company, new product or new service, a new process or a new method of production

Organizational creativity and innovation• Like individuals organizations also differ in

their ability to translate talents into ideas• Creative process involves 3 steps• Idea generation• Problem solving or idea development• Implementation

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THANK YOU