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Central Issues in Human Resource Management

HRM 515

Dr. Jacob Cherian

M.Com., M.S.W., M.B.A.,M.Phil., Ph.D


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Topic 1

(Chapter 1)

Introduction to

Human Resource Management

and the Strategic Role of HRM


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Human Resource Management

Human Resource Management (HRM) is the effectivemanagement of people at work. It is concerned with

managing people to improve individual, group and

organizational effectiveness.

HRM involves human resource planning, recruitment

and selection, training and development, placement,

motivation, performance appraisal, career development,

promotion and transfer of human resources, so that they

can effectively contribute to the success of the

organization.


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Nature of HRM

HRM is charged with programs

concerned with people

Getting every manager involved

Effective use of people

Achieving individual &

organizational goals


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HRM Activities

EEO compliance

HR planning

Training, development

Job analysis

Labor relations

Performance evaluation, compensation

Safety, health, welfare

Recruitment, selection, motivation, orientation


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HRM Orientation

Action

People

Future

Global


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A Brief History of HRM

Masons, carpenters, leather workers,other craftspeople

EnglishGuilds

Changing work conditions andsocial patterns

IndustrialRevolution

Scientific management, welfare work,industrial psychology

World Wars


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Strategic Importance of HRM

Today, HRM plays a major role in:Clarifying the firms human resource problems

Developing solutions for them

Strategic HRM differs from traditional HRM

Traditional arrangements responsibility for

managing human resources lies with specialists

Strategic approachpeople management rests with

anyone who is in direct contact with workers or line

managers


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Strategic Importance of HRM

Traditional HRM Strategic HRM

Responsibility for

human resources

Specialists Line managers

Objective Better performance Improved understanding and

use of human assets

Role of HRM Respond to needs Lead, inspire, understand

Time focus Short-term results Short, intermediate, long term

Control Rules, policies, position

power

Flexible, based on human

resources

Culture Bureaucratic, top-down,

centralization

Open, participative,

empowerment

Major emphasis Following the rules Developing people

Accountability Cost centers Investment in human assets


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HRM and Organizational Effectiveness

For a firm to survive and prosper, reasonable goalsmust be achieved in:

Performance

Legal compliance

Employee satisfaction

Absenteeism

Turnover

Training effectiveness and ROI

Grievance rates

Accident rates


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Objectives of the HRM Function

Help the organization reach goals

Employ workforce skills/abilities efficiently

Increase employees job satisfaction and self-actualization

Communicate HRM policies to all employees

Maintain ethical policies, socially responsible behavior

Manage change to the mutual advantage of individuals,

groups, the enterprise, and the public

HRM Contributions to Effectiveness

Provide trained, motivated employees

Manage increased urgency and faster cycle time

Achieving quality of work life


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Who Performs HRM Activities

Two groups normally perform HRM activities:HR manager-specialists

Operating managers

The effectiveness ofthe human resource declinesmore quickly than all other resources

An investment in people effects organizational

effectiveness more than money, materials, or

equipment


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Outsourcing

Downsizing

Rapid growth or declineof business

Restructuring

Globalization

Increased competition

Contributors to

HRM outsourcing


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Interaction of Operating & HR Managers

Promotion

Transfer or termination

Working conditions

Discipline

HRM

Specialists

(staff)

Joint-decision ConflictOperatingManagers

(line)

Employment planning


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HRMs Place in Management

To educate others about the HR implications of

decisions, HR executives must understand

Investments Advertising

MarketingProduction

IT

R&D


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HR Department Operations

Average

HR DeptLess than 150 people

PersonnelRatio Average = 1 specialistper 100 employees

Less for construction, retail

agriculture, wholesale, services

More for public utilities, durablegoods manufacturing, banking,

Insurance, government


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HRM Strategy

A firms HRM strategy is the pattern or plan that

integrates the major objectives, resources, policies and

procedures.

Organizations internal strengths/weaknesses

Changes in the environment

Anticipated actions of competitors

Basis for Resource Allocation


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Clarifying Meaningful HRM Objectives

More specific

Strategy: The plan thatintegrates major objectives

Objectives: Goals that arespecific and measurable

Policies: Decision making guides

Procedures/rules: Specific

directions for decision making

More specific

More specific


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HRM Policy

Apolicy is a general guide that expresseslimits within which action should occur

Arises from past or potential problems

Frees managers from making certaindecisions

Ensures some consistencyin behavior

Allows managers to concentrateon decisions where they have the mostexperience and knowledge


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HRM Procedures

Procedures (rules) are specific directions

Instandard operating procedure (SOP) manuals

Helps ensure consistent decision making

Should be well-developed, but not excessive

Develop for only the most vital areas


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Organization of an HR Department

HR specialists are usually located at the

headquarters of an organization

Chief HR

Executive

Typically reports to the

top manager

Small/MediumFirms

NonprofitsHRM is typically a unit in the

business office

HRM and another function may

be in a single department

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