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Human Resource Management

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Human resources is a term used to refer to how people are managed by organizations.

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Subject Learning Objectives

1. 2. 3. 4. 5.

Perceptive in Human Resource Management The Concept of Best Fit Employee Training & Executive Development Sustaining Employee Interest Performance Evaluation & Control Process

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Unit I Perceptive in Human Resource Management

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Unit I Perceptive in Human Resource Management

Learning Objectives 1. 2. 3.

4. 5.

Evolution of human resource management: the importance of the human factor Objectives of Human Resource Management Role of human resource manager Human resource policies Computer applications in Human Resource Management bt-hiet

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Definition of Human Resource Management

-1“Human resource Management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance, and separation of human resources to the end that individual, organizational and societal objectives are accomplished.” Edwin B. Flippo

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Definition of Human Resource Management

-2“Human Resource Management involves the task of handling the human problems of an organization and is devoted to acquiring, developing, utilizing and maintaining an efficient workforce.”

*Richard Calhoon and Row Calhoon.

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Introduction to Human Resource Management

As one of the functional areas 2. The key area to solve human complexities that may hamper „Team Work‟ 1.

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Concept of Human Resource Management Related to Managing People at Work. 2. Related to each Member of the Organization. 3. Related to Facilitating a Conducive Environment. 4. Related to Developing and Actualizing Members‟ Potentials. 1.

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1. Related to Managing People at Work

Managing people, the most complex resource, who have to manage other resources of the organization to achieve the organizational objectives.

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2. Related to each member of the organization.

Each member of the organization has to be taken care of without any prejudice. It fulfills their basic „organizational and professional need for recognition.

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3. Related to Facilitating a Conducive Environment.

Facilitating conducive environment results in increased efficiency and effectiveness of the people in the organization.

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4. Related to Developing and Actualizing Members‟ Potentials

Organizational members‟ potentials have to be developed to take the organization towards the right direction. HRM achieves it through its own functional effectiveness. *bt

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Evolution of HR Management Scientific Management –

Frederick Taylor, Henry Gantt, Frank & Lillian Gilbreth



http://en.wikipedia.org/wiki/The_Principles_of_Scientific_Management

Industrial And Organizational Psychology – –

Munsterberg, Scott, Cattell http://en.wikipedia.org/wiki/Industrial_and_organizational_psychology

Human Relations Movement – –

Hawthorne Studies, Mayo, Follett, Lewin http://en.wikipedia.org/wiki/Human_Relations_Movement

Growth Of Government Regulations – – –

Wages (1930s), Unionization (1940s), Employment (1960s) http://pblabour.gov.in/pdf/forms_procedures/procedure06_payment_of_wages_act_1936.pdf http://exim.indiamart.com/ssi-regulations/payment-of-wages-act.html

Professionalisation of HR Management –

Professional HR Societies



http://www.shrm.org/about/history/Pages/default.aspx

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Professionalization of HR Management 1948 Growth of Government Regulations 1930 Human Relations Movement 1920 Industrial & Organizational Psychology 1898

Scientific Management 1880 Industrial Revolution 1830

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Industrial Revolution The Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, and transport had a profound effect on the socioeconomic and cultural conditions in the world. The onset of the Industrial Revolution marked a major turning point in human history; almost every aspect of daily life was eventually influenced in some way.

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Scientific Management Scientific management (also called Taylorism or the Taylor system) is a theory of management that analyzes and synthesizes workflows, with the objective of improving labor productivity. The core ideas of the theory were developed by Frederick Winslow Taylor in the 1880s and 1890s, and were first published in his monographs, Shop Management (1905) and The Principles of Scientific Management (1911). Taylor believed that decisions based upon tradition and rules of thumb should be replaced by precise procedures developed after careful study of an individual at work. Its application is contingent on a high level of managerial control over employee work practices.

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Industrial / Organizational Psychology Industrial and organizational psychology is the study of the behavior of people in the workplace. Industrial and organizational psychology attempts to apply psychological results and methods to aid workers and organizations. I-O study identifies how behaviors and attitudes can be improved through hiring practices, training programs, and feedback systems.

"Industrial-organizational psychologists contribute to an organizations success by improving the performance and well-being of its people. An I-O psychologist researches and identifies how behaviors and attitudes can be improved through hiring practices, training programs, and feedback systems."

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Human Relations Movement… Human Relations Movement refers to those researchers of organizational development who study the behavior of people in groups, in particular workplace groups. It originated in the 1920s' Hawthorne studies, which examined the effects of social relations, motivation and employee satisfaction on factory productivity. The movement viewed workers in terms of their psychology and fit with companies, rather than as interchangeable parts.

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Growth of Government Regulations Indian labor law refers to laws regulating employment in India. There are over fifty national laws and many more state-level laws. Traditionally Indian governments at state level have sought to ensure a high degree of protection for workers. So for instance, a permanent worker can be sacked only for proven misconduct or for habitual absence. In Uttam Nakate case, the Bombay High Court held that dismissing an employee for repeated sleeping on the factory floor was illegal - moreover, it took two decades to complete the legal process.

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Professionalisation of HRM Human resource management has become more professional than how it has been before. The features of human resource management as a profession are its existence of knowledge, professional ethics, and professional affiliations to HR societies.

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Objectives of Human Resource Management Human resource management objective is to maximize the return on investment from the organization's human capital and minimize financial risk.

1. Effective Utilization of Human Resources

2. Formulation and Maintenance of well-balanced Organizational Structure 3. Establishing Smooth Working Relationship among members 4. Incorporation of the organizational members and groups with the Organization

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Objectives of Human Resource Management Cntd…

5. Development of Organizational Members and Groups 6. Recognizing and Gratifying Individual Needs and Group Goals 7. Maintaining High Morale 8. Excellent Human Relations

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1. Effective Utilization of Human Resources

After procuring the human resource and placing them at the right place, it is the objective of Human Resource Management to make use of it in the most effective way.

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2. Formulation and Maintenance of wellbalanced Organizational Structure

The organizational structure should be formulated and maintained in such a way that it has to very clearly convey how the total workload of the organization is divided and allocated to what kind of people, how the authority is delegated, how the responsibility is assigned, whether it is assigned at par of the authority and how the accountability is created. bt-hiet

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3. Establishing Smooth Working Relationship among members

Smooth working relationship among members can be established by resolving grievances and complaints and considering suggestions and recommendations favorably by the Human Resource Manager.

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4. Incorporation of the organizational members and groups with the Organization

Individuals and groups have to be incorporated with the organization to benefit the organization with their loyalty, commitment and involvement in their work.

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5. Development of Organizational Members and Groups

Development of organizational members paves the way for teamdevelopment and ultimately it reflects on the organizational performance.

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6. Recognizing and Gratifying Individual Needs and Group Goals

Satisfied employees will be more loyal, sincere, involved and committed to the organization than dissatisfied employees and they achieve their personal objectives toiling and contributing to achieving the organizational goals at large.

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7. Maintaining High Morale

High morale leads the employees to greater self-confidence, ability to take on challenges and eliminates the resistance to changes.

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8. Excellent Human Relations

It is the responsibility of the Human Resource Manager to take initiative to understand human problems arising from organizational and interpersonal relations and solve those empathetically. bt-hiet

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Role of HR Manager 1. Man-Manager. 2. Humanitarian 3. Counselor. 4. Arbitrator. 5. Spokesperson. 6. Problem-Detector. 7. Problem-Solver. 8. Precautionary. 9. Change Agent. 10. Secretary. bt-hiet

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1. Man-Manager

HR Manager should be able to manage people with different character and behavior, people with different motives and personal interests.

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2. Humanitarian

An HR Manager has to be compassionate to the people in the organization. He or she should behave empathetically to his or her environment. He or she should be able to understand, analyze and solve the problems of the people of the organization caringly. bt-hiet

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3. Counselor

HR Manager studies the motives, thoughts, feelings and attitudes of the people individually to know about who needs what kind of counseling when and where.

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4. Arbitrator

HR Manager becomes the conciliator between individuals, groups, among individual groups and between the employees and management.

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5. Spokesperson

HR Manager has usually the role of representing the organization because of his closeness to each area of operations in the organization.

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6. Problem-Detector

HR Manager acts as a problem-detector identifying problems at the right time.

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7. Problem-Solver

An HR Manager is a solution- provider to so many problems related to human resource of the organization.

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8. Precautionary

It is the duty and diligence of the HR Manager to do whatever is possible to avoid potential problems.

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9. Change Agent HR Manager is the first person in the organization to identify the changes happening in and around. There are changes which have to be adopted for the existence and further development of the organization and some changes which endanger the organization.

The organization has to be resistant to negative changes but accept positive changes.

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10. Secretary

The HR Manager has to manage the desk activities like maintenance of records, time-keeping, salary and wage and other perks administration etc.

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Human Resource Policies Human resource policies are systems of codified decisions, established by an organization, to support administrative personnel functions, performance management*, employee relations and resource planning. Each company has a different set of circumstances, and so develops an individual set of human resource policies.

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Performance management*

Performance management is the process of assessing progress toward achieving predetermined goals.

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HR Policies - Objectives HR policies allow an organization to be clear with employees on: The nature of the organization What they should expect from the organization What the organization expects of them How policies and procedures work What is acceptable and unacceptable behavior The consequences of unacceptable behavior

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Challenges of Modern Human Resource Management

1. 2. 3. 4. 5.

Changing Mix of the Workforce Changing Personal Values of the Workforce Changing Expectations of Citizen-Employees Changing Levels of Productivity Changing Demands of Government

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1. Changing Mix of the Workforce 1.

Increased Numbers of Minority Members Entering Occupations Requiring Greater Skills.

2.

Increasing Levels of Formal Education for the entire workforce.

3.

More Female Employees

4.

More Married Female Employees

5.

More Working Mothers

6.

A Steadily Increasing Majority of *White-collar Employees in place of *Blue-collar. bt-hiet

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„Collar‟ Terms*

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„*White-collar‟ -1-

The term is used as an adjective. The term must be followed by a noun. The term „White-collar‟ refers to those working in an office, rather than on a factory floor. Oxford-Word for Word-Stewart Clark, Graham Pointon

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„*White-collar‟ -2-

Classification for employees performing nomanual work, clerical, administration and professional occupations.

*Sterling Dictionary of Business Terms

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„*White-collar‟ -3-

It is used as an adjective. Used only before noun.

„Working in an office, rather than in a factory; connected with work in offices. Terms related : White-collar workers, a white-collar job, white-collar crime. OALD bt-hiet

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„*Blue-collar‟ -1-

This term is used as adjective. This term must be followed by a noun. The term „Blue-Collar‟ refers to those doing physical work in an industry.

Oxford-Word for Word-Stewart Clark, Graham Pointon

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„*Blue-Collar‟ -2-

It is used as an adjective. Used only before noun. „Connected with people who do physical work in industry‟.

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„Pink-collar‟ It is used as an adjective. Used only before a noun.

Connected with low-paid jobs done mainly by women. For example in offices and restaurants.

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2. Changing Personal Values of the Workforce

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What is Productivity?

The rate at which a worker, a company or a country produces goods and the amount produced compared with how much time, work and money is needed to produce them.

OAD

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What is Efficiency?

Quality of doing things with no waste of time or money.

OAD

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What is Effectiveness?

Producing the result that is wanted or intended. Producing a successful result.

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Changes in HR Programs due to

Changes in Personal Values

Redesigning Jobs Restructuring Monetary Benefits Flexi Time

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What is Flexi Time?

Flexi Time is a program that allows flexible starting and quitting times for the employees.

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Flexi Time an Example 7 to 9 A.M.

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FT to begin work

9 to 11:30 A.M.

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Core Time

11:30 A.M. to 1 P.M.

- FT to take 30-minute lunch

1 to 4 P.M.

- Core Time

4 to 6 P.M.

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3. Changing Expectations of Citizen-Employees

Two Outstanding Expectations: 1.

Freedom of Speech – „Whistle Blowing*‟

2.

The Right to Privacy

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Whistle Blowing*

Whistle Blowing is a process in which an employee, because of personal opinions, values or ethical standards concludes that an organization needs to change its behavior and informs an outsider bypassing the organization‟s authority system. bt-hiet

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4. Changing Levels of Productivity An Example

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GDP What is GDP? The total market value of goods and services that are produced within a specified country including those produced by non-residents over a period of time of one year.

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GNP What is GNP? The total market value of all the goods and services that are produced by the residents of a specified country from within or from the assets owned abroad excluding the income of foreigners within the country over a period of one year.

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Global Productivity-Declining

Major Reasons Rules and regulations regarding environmental protection, health and safety add business-cost. Influx of females and minorities into the workforce reduce productivity during introductory period. Short-term profit orientation postpones R&D and new plant investments Increasing service oriented economies reduces productivity. Adverse relationship with labor unions reduces cooperative efforts. Employee alienation leads to refusal to collaborate. bt-hiet

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5.Changing Demands of Government In the following areas of HRM: An Example Procurement

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Civil Rights Act – Prohibits discrimination in hiring on the basis of race, color, religion, nationality and sex

Development

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Comprehensive Employment and Training Act – Local Control of Job Creation and Training Programs

Compensation Integration Maintenance Separation

Equal Pay Act – Women and Men on the same job get equal pay Civil Rights Act – Applies to all phases of employment including discipline

- Occupational Safety and Health Act -Inspecting Safety Standards - Social Security Act - Retirement Benefits bt-hiet

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Importance of Human Resource Management

Social Significance 2. Professional Significance 3. Individual Significance 1.

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1.Social Significance

Effective management of human resource satisfies social needs of the people in the organization. It enhances the dignity of the organizational members.

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2. Professional Significance

Effective Human Resource Management emphasizes „Team Work’, which is inevitable for professional excellence. The environment of Team Work helps personal development.

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3. Individual Significance

Creating the right attitude among employees through effective motivation fulfilling their own social and other psychological needs of recognition, love, affection, belongingness, esteem and selfactualization.

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Characteristics of HR Manager 1.

2. 3. 4.

5. 6. 7. 8. 9.

A Specialist-Tactician An Effective Advisor A Good Organizer An Expert Administrator A Good Motivator A Creative Think-Tank A Solution-Provider A Competent Leader A Personality of Integrity

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1. A Specialist-Tactician

HR Manager should know how to handle different kinds of people with different kinds of nature and problems.

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2. An Effective Advisor

The HR Manager of an organization should be able to give timely and creative advice to the people at the higher levels in organizational matters.

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3. A Good Organizer

HR Manager of an organization should be able to organize his own department well in such a way that the potentials of his people are canalized to the organizational veins, so that every corner of the organization gets its benefits.

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4. An Expert Administrator

HR Manager should have relevant knowledge in the respective areas like procedures, techniques, law, man-management, philosophy, ethics, logic, mathematics, sociology, anthropology, medicine, history, economics, management, political science etc. to administer organizational affairs falling in his jurisdiction. bt-hiet

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5. A Good Motivator

Motivation boosts the morale of the workforce, which turns around the organization from its poor performance to better performance.

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6. A Creative Think-Tank

HR Manager should be able to think creatively, so that he can analyze the situations objectively to solve problems.

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7. A Solution Provider

The HR Manager who is a creative think-tank can come up with fitting solutions to the problems he faces.

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8. A Competent Leader

HR Manager should possess leadership qualities and should be a role model to others.

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9. A Personality of Integrity

Integrity of the HR Manager gains confidence of the members of the organization which ultimately results in getting the things done.

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America’s Best Leaders

Indra Nooyi

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Indra Nooyi

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Indra Krishnamurthy Nooyi Born on October 28, 1955 in Chennai The Chairman and Chief Executive Officer (CEO) of Pepsi Co.

One of the world's leading food and beverage companies On August 14, 2006, Nooyi was named the successor to Steven Reinemund as Chief Executive Officer of the company effective October 1, 2006. On February 5, 2007, she was named Chairman, effective May 2, 2007. Forbes magazine ranked Nooyi third on the 2008 list of The World‟s 100 Most Powerful Women Fortune magazine has named Nooyi # 1 on its annual ranking of Most Powerful Women in business for 2006, 2007, 2008 and 2009.

In 2008, Nooyi was named one of America's Best Leaders by US News & World Report In 2008, Indra Nooyi earned a total compensation of $1,49,17,701, which included a base salary of $13,00,000, a cash bonus of $26,00,000, stocks granted of $64,28,538, and options granted of $43,82,569. bt-hiet

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Computer Applications in Human Resource Management

E-Job Design E-HR Planning E-Recruitment E-Selection E-Performance Management E-Training & Development E-Compensation Management E-Grievance Redressal E-HR Records E-HR Information E-HR Audit bt-hiet

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