1. 1. An organisation is made up of 4 resources Men Material Money Non Living Machinery It is the human that make use of non human resources. Basic concept of HR
2. 2. People can move mountains! Of all the resources available to man, only man can grow and develop. If the skill and the will are properly applied, wonderful things can happen
3. 3. Therefore, an organisation must provide a healthy work climate where they can exploit their talents fully while realising goals assigned to them. Above all, to get the best out of people, they must be managed well and requires leadership.
4. 4. HRM and Organizational Effectiveness It is important to remember that the people who do the work and create the ideas allow the organization to survive.
5. 5. 2005 by Nelson, a division of Thomson Canada Limited. 16 Competitive Advantage through People Sustained competitive advantage through people is achieved if these human resources: Have value. Are rare and unavailable to competitors. Are difficult to imitate. Are organized for synergy.
6. 6. HRM is process of making the efficient and effective use of human resources so that the set goals are achieved. Acc to Flippo.: HRM is the planning, organizing, directing & controlling of the procurement, development, compensation, integration, maintenance & separation of HR to the end that individual, orgnl & social objectives are achieved. Meaning & Definition of HRM
7. 7. Characteristics of HRM Human Resources are heterogeneous (Different people, different personalities, different needs, attitudes and values). Human resources are dynamic and behave differently (They react to the same situation in quite different ways). HR are the most important element in an organization. The effective utilization of all other resources depend upon the quality of HR. The term HR is wider than the term Personnel. HR include all dynamic components of all the people at all levels in the organization, whereas personnel means the employees working in the organization.
8. 8. Authority- right to make decisions and give orders Line Authority- It creates a superior subordinate relationship Staff Authority- It creates an advisory relationship HR managers are usually considered as staff managers, since they assist and advise the line managers in areas like recruiting, hiring and compensation. Line And Staff Aspect Of HRM
9. 9. HRM as a central department Product deptt. HR deptt. Procurement Training Compensation Appraisal Rewards Marketing deptt. Finance deptt. Technical deptt. ORGANISATION
10. 10. WHY HRM? As managers none of us would like to make the following mistakes: To hire the wrong person for the job. To experience high turnover . To find our people not doing their best. To waste time with countless and useless interviews. To be quoted under bad example of unsafe practices. To have employees think their salaries are unfair and inequitable To allow a lack of training To commit any unfair labor practices .
11. 11. 1. Line function: He directs the activities of the people in his /her own departments 2. Co-ordinate function :Ensures that the line managers are implementing the firms HR policies and practices 3. Staff Function :Assists in hiring, training, evaluating, rewarding, counseling, promoting, and firing employees. Administers various benefit programmes HR managers Duties
12. 12. Objectives of HRM attract and retain talent train people for challenging roles develop skills and competencies promote team spirit develop loyalty and commitment increase productivity and profits improve job satisfaction enhance standard of living communicate HR policies to all ethically and socially responsible help managers in faster cycle times (customer service, product changes, adaptation) Manage in shorter cycle times (in training, recruitment)
13. 13. At the enterprise level: attracting and retaining the required talent developing skills and right attitude towards job & co. dedicated and motivated employees ensuring a positive image inside and outside At the individual level: provides ample opportunities healthy relationships among individuals and team allocating work properly At the society level: employment opportunities multiply employee welfare Importance of HRM
14. 14. The scope of HRM is Very wide Personnel Aspect: It is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, t&d, retrenchment, remuneration, incentives, productivity etc. Welfare Aspect: It deals with working conditions and amenities such as canteens, crches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities etc. Industrial Relations Aspect : This deals with co. relations with employees. Covers union management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes etc. Scope
15. 15. Functions of HRM Planning Organizing Directing Controlling Operative Functions HRM Managerial functions: Procurement Job Analysis HR planning Recruitment Selection Placement Induction Internal mobility Development: Performance appraisal Training Executive development Career planning Compensation: Job evaluation Wage and salary administration Bonus and incentives Maintenance: Health Safety Welfare Social security HR records HR audit HR research Integration: Motivation Job satisfaction Grievances redressal Discipline Collective bargaining Participation Conflict management
16. 16. Industrial Revolution: Machines based production, rapid progress in technology, jobs specialization increased, but left workers with monotonous jobs. Govt. did very little to protect the interest of the workers Scientific management: To improve efficiency and speed F W Taylor advocated scientific management. Scientific management is nothing but systematic analysis and breakdown of work into its smallest mechanical elements and rearranging into most efficient combination. Importance of training was also identified. History of HRM
17. 17. Trade Unionism: Workers joined hands to protect against the exploitive tendency of employers and unfair labor practices. TU tried to improve work conditions, pay and benefits, disciplinary actions etc. Personnel management: Fire fighting stage- Employee disputes, trade unions, decisions taken by top management. Human relations movement: After Hawthorne experiments conducted by Elton Mayo, productivity not only depends on rewards, and the job design but also on certain social and psychological factors also.. Human relations movement led to the implementation of behavioural science techniques in industry.
18. 18. Evolution of HRM 1920-1930 Scientific management 1940-1960 HRM 1970-1980 Development phase 1991- ownwards Personnel management Welfare management
19. 19. The Changing Environment of HRM
20. 20. Changes experienced by organizations Going global, increase in size and complexity Facing competition Embracing technology like automation and computerisation Increased demand for individual and organizational competencies Faster cycle times Increasing legal and compliance scrutiny Higher customer, employee and society expectations Developing human capital Responding to the market Containing costs The mechanized, routine-oriented workforce is giving way to a knowledge-based workforce
21. 21. Globalization Trend Companies dealing across the nation : Sony, Apple, Nike, Mercedes Benz, Infosys, TCS etc.
22. 22. 2005 by Nelson, a division of Thomson Canada Limited. 123 Influence of Technology in HRM Human Resources Information System (HRIS) Computerized system that provides current and accurate data for purposes of control and decision making. Benefits: Store and retrieve of large quantities of data. Combine and reconfigure data to create new information. Institutionalization of organizational knowledge. Easier communications. Lower administrative costs, increase productivity, and response times.
23. 23. 2005 by Nelson, a division of Thomson Canada Limited. 124 Major Uses For HR Information Systems Source: HR and Technology Survey, Deloitte & Touche and Lawson Software, 1998. HRM 1
24. 24. 2005 by Nelson, a division of Thomson Canada Limited. 125 Demographic and Employee Concerns The Diversity Challenge Age distribution HRM 4
25. 25. 2005 by Nelson, a division of Thomson Canada Limited. 126 Gender Distribution Rising levels of edu
26. 26. 2005 by Nelson, a division of Thomson Canada Limited. 127 Cultural Changes Employee Rights Concern for Privacy Changing Attitudes Towards Work Balancing Work and Family
27. 27. 2005 by Nelson, a division of Thomson Canada Limited. 128 Top Issues for Managers in Balancing Work and Home Executive recruiters say 80% of senior and mid management candidates raised concerns about balancing work and home. Top issues: Source: Association of Executive Search Consultants (member survey). Used with permission of the Association of Executive Search Consultants, http://www.aesc.org. Figure 1.8
28. 28. 2005 by Nelson, a division of Thomson Canada Limited. 129 Overall Framework for HRM Presentation Slide 11 COMPETITIVE CHALLENGES Globalization Technology Managing change Human capital Responsiveness Cost containment HR policy choices Procurement Development Compensation Integration Maintenance STAKE HOLDERS INTEREST share holders employees mgt Govt & community Union Figure 1.1 CONSEQUENCES Individual well being Org. well being Societal well being
29. 29. Thanks