HR POLICY AND FUNCTIONS
Transcript of HR POLICY AND FUNCTIONS
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HR POLICY AND
FUNCTIONS
Chapter 1
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DEFINITION
Human resource management is the art ofmanaging human workforce in an organization
in an optimum manner which is beneficial to the
employee as well as the organization in achievingthe organizational goal.
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EVOLUTION OF HRM
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HISTORY
Human Resource Management Managing People
Deals with understanding the problems of the
people and their Management.Royal Commission on Labour (1929) Govt of
India
Labour Officer (1931) (employment,Dismissal, working conditions, housing, medical,recreational activities).
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Reason for transition
(PM HR Manager)
Increasing labour cost
Periodic stoppage of work (strike)
Government legislation (law)
Changes in production and distribution methodologies
Information technology Strategic use of employees contribution
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DIFFERENCE BETWEEN
PM & HRMPERSONNEL MANAGEMENT HUMAN RESOURCE MANAGEMENT
Management of people Management of employees knowledge,
attitudes, abilities, talents, creative abilities
and skills/competencies
Traditional, routine, maintenance-oriented,
administrative function
Continuous, on-going development function
aimed at improving human processes
Less important auxiliary function
(independent function with independent
sub-functions) cost centre
Strategic management function (systems
thinking approach) Profit centre
Reactive, responding to demands as andwhen they arise
Proactive, anticipating, planning andadvancing continuously
Responsibility of the personnel department Concern for all managers in the organization
and aims at developing the capabilities of all
line managers to carry out the human
resource related functions
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DIFFERENCE BETWEEN
PM & HRMPERSONNEL MANAGEMENT HUMAN RESOURCE MANAGEMENT
Scope is narrow with a focus on
administering people
Views the organization as a whole and lays
emphasis on building a dynamic culture
Recruitment, selection and administration of
manpower
Satisfy the human needs of the people at
work that helps to motivate people to maketheir best contribution
Motivators in PM are compensation,
rewards, job simplification and so on
Work groups, challenges and creativity on
the job as motivators
Employee is treated as an economic unit as
his services are exchanged for wages/salary
Employee in HRM is treated not only as
economic unit but also a social andpsychological entity
Treats employee as a commodity or a tool or
like equipment that can be bought and used
Employee is treated as a resource and as a
human being
Preserves information and maintains its
secrecy
Communication is one of its main tasks
(vertical, lateral and feedback type
communication)
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DIFFERENCE BETWEEN
HRM & HRDHUMAN RESOURCE MANAGEMENT HUMAN RESOURCE DEVELOPMENT
Subset of the entire management processes
of an organization
Subset of HRM
Scope of HRM is wider Scope of HRD as compared to HRM is
narrower
Emphasizes that employees, their abilities
and their attitudes -used effectively and
efficiently to achieve organizational as well
as employees' goals.
HRD emphasizes mainly on training and
development , career development,
counseling, updating latest technology,
mentorship and thus its employee skilldevelopment
Takes care of all the human - to motivate to
achieve organizational goals
Focuses on upgrading the skills and
competencies -performance of the
employees on the job
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Objectives of HRM To help the organization reach its goals (through reconciliation of individual
goal with the Organisation)
To ensure effective utilization and maximum development of human
resources by respecting and satisfying their needs.
To achieve and maintain high morale among employees.
To provide the organization with well-trained and well-motivated employees
to increase their performance .
To increase to the fullest the employee's job satisfaction and self-actualization. To develop and maintain a quality of work life.
To develop overall personality of each employee in its multidimensional
aspect.
To inculcate the sense of team spirit, team work and inter-team collaboration.
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Scope of HRM
1. Personnel aspect - This is concerned with manpower
planning, recruitment, selection, placement, transfer, promotion, training
and development, layoff and retrenchment, remuneration, incentives,
productivity etc.
2. Welfare aspect - It deals with working conditions and amenities such as
canteens, creches, rest and lunch rooms, housing, transport, medical
assistance, education, health and safety, recreation facilities, etc.3. Industrial relations aspect - This covers union-management relations,
joint consultation, collective bargaining, grievance and disciplinary
procedures, settlement of disputes, etc.
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HRM Functions
Organizational
Behaviour
Personnel
Management
Industrial
relations &
Labour
Legislations
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Organizational Behaviour
Focus on the behaviour of the employees (individual,group and total organisation).
Motivation
Job satisfaction
Communication
Supervision
Inter and Intra group behaviour
Organisational Development
Structures and Designs
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Personnel Management
Policy Formulation and Implementation on
Human Resource Planning
Recruitment and Selection Training and Development
Performance and Potential Appraisal
Promotions
Transfers
Quality of Work Life
Compensation Management
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Industrial Relations and Labour
Legislations
Union-Management Relationship
Union Structure
Collective Bargaining
Grievance Handling
Discipline Management
Implementaion of various Labour Legislations.
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Categories of HR FunctionsLine Functions Staff Functions
(advisory Functions)
HR Department activities Assisting other Managers in performing their
(hiring and retaining employees) duties without creating human problems
HR Planning
Job Analysis
Recruitment and Selection
Induction training
Performance and Potential Appraisal
Internal mobility
Training and development
Compensation Management
Union Management
Motivational Schemes, etc.
Educate Managers on issues such as
Harassment Conducing surveys on various issues Employment of special group employees
helping in setting up compensation
packages dealing with indiscipline Others problems of managing Human
Resources
(ensures smooth flow of activities in the Orgn)
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Hall Mark of HR Policies
Policies are designed Management of the people in the Orgn, ensure parityand justice to all employees.
HR Policies are governed by Labour Laws.
Indian Constitution Promises social, economical and political justice and
equality to status and opportunity.
Articles of Indian Constitution that influence HR activities are
Article 16 (equality in education and employment)
Article 24 (Prohibition of Child Labour) Article 39 (equal pay for equal work)
Article 43 (to provide living wages)
Article 43a (participation of workers in Management)
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Roles of HR Manager
Business and Strategic Partner
Employee Advocate
Change Champion
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Assessment Centre (Procedure not a location)
Employees are not contended by just having a job, but growth and individualdevelopment is required.
It uses variety of techniques to evaluate the employees (promotions /supervisory positions)
Use situational test to observe specific job behavior. (assessors do SWOTanalysis)
Elements required for an Assessment Centre: (IPMA InternationalPersonnel Management Association)
Job analysis to determine attributes, skills, abilities, etc. Multiple Assessment Technique must be used Job related Simulations
Multiple Assessors (thoroughly trained) must be used for each assessee
Systematic Procedure should be used to record observations
Assessors must prepare report (as discussion / using statistical techniques)
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Benefits of Assessment Centre
Helps to identify supervisory / managerial potential early, provide
lead time for training before occupying new position
Identify T&D needs
Training to assessor, helps to know Organisation little better
Opportunity for the Orgn to review HRM Policies.
GSKstarted its assessment centre recently: (3 functions)
Selection of candidate and confirming their potential Assist in Target development
Guides in career development
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Assessment Tools (used by GSK)
Simulation
Structured interview
Presentation
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Empowerment (USA 1970) Redistribution of power in work setting (liberate the range of thought
and action)
Providing greater freedom and discretion to employees
Develop mutual trust
Liberal sharing of information
Become team player
A Major electronic company launched 2 programs to increase theeffectiveness of the supervisor.
Traditional competency training Empowering (flexibility, access to resources, control
over working conditions)
Employee can be empowered after training and adding responsibility
and accountability. Eg. Reliance Industries Ltd.
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Job Enrichment(Hackman and Oldham 1975)
Job needs to satisfy the inner desire of actualization & satisfaction.
Providing discretion, flexibility and variety of job to increase the
employees willingness to contribute.
7 Characteristics:
Skill variety
Task variety
Task significance
Autonomy
Feedback from job
Feedback from others
Dealing with others
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Parity and Justice
Fairness in the treatment of job.
According to the Preamble of Indian Constitution Sovereign,
Socialist, secular, democratic republic - promises social,
economic and political justice, liberty of thought, expression,worship, equality of status, opportunity and dignity of individual.
(Article 14, 15, 16, 24, 39, 41, 43a).
HRM approach has to be
Flexible
Innovative
Constantly responding to the challenges of the environment
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Downsizing / Rightsizing
Activities undertaken by the management to improve efficiency,
productivity and competitiveness of organisations by reducing the
workforce.
To workout the irreducible number of core employees required tooperate the system.
Large staff increase cost, inhibits speed, create road blocks in
responding to challenges , curtails innovation and creativity.
Smaller number of well trained employees + good infrastructure =
increase the effectiveness at work.
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Reasons for Downsizing / Rightsizing
Mergers, acquisitions and sell off
To reduce labour cost and to enhance revenue (cutting down salary
/ wages bills)
Modernization and upgradation of technology, less manual work.
Multitasking
Eg: Tata Steel 78,276 (Jan 1994) reduced to 50,910 (Oct 2000)
under Early Seperation Scheme
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Human Resource Information System
Defined as a composite of database, computer applications, hardware
and software that are used to collect, record, store, manage, deliver and
manipulate data for Human Resource Management.
Systematic way of sorting data and information for each employee, to aidin planning, decision making and report generation.
Requirements of HRIS:
Duties and responsibilities of every job in the organisation
Skills possessed by every employee Future human resource needs of the organisation
Current productivity of human resources
Identification of training needs
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