CHAPTER 1 UNDERSTANDING THE NATURE AND SCOPE OF HRM.
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Transcript of CHAPTER 1 UNDERSTANDING THE NATURE AND SCOPE OF HRM.
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CHAPTER 1
UNDERSTANDING THE NATURE AND SCOPE OF HRM
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Lecture Overview
Organization of HR Department
HR Policy
Secrets of Best Employers
Human Capital Management
Jobs and Career in HRM
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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)
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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
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Organization Of HR DepartmentTwo 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
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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
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Organization Of HR Department
• HR in Small Scale Unit
Source: Aswathappa, 2008, p.10
Owner
Production Manager
Personnel Assistant
Office Manager
Accounts Manager
Marketing Managers
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Organization Of HR Department
• HRM in large scale organization
Source: Aswathappa, 2008, p.11
Chairman
Deputy Director Training
Director HRM
Director R & D
Director Finance
Director Production
Deputy Director
Recruitment
Deputy Director
Promotions
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Composition Of HR and Personnel Department
Director HRM
Director HRM
Manager Personnel
ManagerAdministration
ManagerHRD
Manager IR
HRPlanning Hiring Complaints Compensation PR Canteen
Welfare Transport LegalSource: Aswathappa, 2008, p.12
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Outsourcing HR ActivitiesOutsourcing or Subcontracting: Transfer activities to specialist organizations
Reasons
•Restructuring
•Downsizing
•Growth in business
•Decline in business
Benefits
•Cost efficiency
•Access to expertise
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HR POLICIES AND PRACTICES
• A policy is plan of action
• HR policies need to ensure consistency and
uniformity in treating people (guideline to course of
action)
• It motivates employees and build loyalty
• Benchmark to evaluate performance
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1 HR Philosophy How management/organization views human resource and what value it associates to the employee development.
2 Employment Policy
Manpower planning, recruitment, probation, promotion, transfer, termination, retirement policy etc. Work scheduling, overtime, duty hours, holidays.
3 Compensation Pay, benefits, leaves, contributory provident fund, gratuity, GP fund, retirement plans, medical facility, social security, house rent/hiring facility etc.
4 Performance evaluation & Employee training
Performance appraisal procedure, methods, and guidelines for training and development of employees.
HR POLICY DOCUMENT
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5 Community Relationships
Social /Community activities, Corporate Social Responsibility, Relationship with project stakeholders.
6 Legal and Ethical Issues
Code of conduct, work ethics, norms, values, information disclosure policy, privacy of personal record and official communications, equal employment opportunity policy, outside work policy etc.
7 Occupational Health and Safety
Smoke free work place, workplace facilities (ergonomics), Health and safety policy and guidelines
8 Disciplinary Actions
Procedure for initiating disciplinary proceedings, opportunity of fair trail and hearing, right of appeal, grievance handling procedure, code of conduct.
HR POLICY DOCUMENT
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Task
• Browse websites of different organizations and
analyze their HR policy documents. Review critically
differences and similarities in these policy manuals
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SECRETES OF BEST EMPLOYERS
• Effected and committed leadership
• Management of talent
• Spotting and attracting talent
• Setting high goals
• Coaching and training
• Effective appraisal and reward system
• Building skills for future
• Building growth into every job
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HUMAN CAPITAL MANAGEMENT(HCM)
HRM is replaced by HCM
• HRM is job of one department where as HCM
responsibility of every employee
• HCM attempts to measures cause and effect
relationship between different programs and policies
• Identify and develop future opportunities for
employees (matching expectations with skills)
• Continuously acquiring new skills
• Still challenges ahead
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JOBS AND CAREER IN HRM
• Generally three positions of HR
• HR Specialist
• HR Manager
• HR Executive
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JOBS AND CAREER IN HRM
• HR Specialist
• Entry level position
• HR specialist included in roles like interviewer ,
compensation analyst, and trainer
• HR specialist provide HR services
• Specialist does every thing for example orientation program,
interview applicant, negotiation for contract and wage
structure
•
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JOBS AND CAREER IN HRM
• HR Manager
• HR manager administrate and coordinate activities, programs, and
policies
• Top ranking person in HR department
• Expected to have knowledge of all areas of HRM
• Advise and oversee HR line managers (to make sure
implementation of HR policies)
• Translate organizational strategy into HR policies
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JOBS AND CAREER IN HRM
• HR Executive
• Top level HR executive (Vice President/DG)
• Responsibilities
• To link HR corporate strategy with HRM
• Considering HR limitations/opportunities
• Establishing HR Policies
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Summary
Organization of HR Department
HR Policy
Secrets of Best Employers
Human Capital Management
Jobs and Career in HRM