SCIENTIFIC MANAGEMENT› Frederick Taylor, Henry Gantt, Frank & Lillian Gilbreth

INDUSTRIAL/ORGL PSYCHOLOGY› Munsterberg, Scott, Cattell

HUMAN RELATIONS MOVEMENT› Hawthorne Studies, Mayo, Follett, Lewin

GROWTH OF GOVERNMENTAL REGULATIONS› Wages (1930s), Unionization (1940s), Employment (1960s)

PROFESSIONALIZATION OF HR MANAGEMENT› Professional HR Societies & HRCI (Certification Institute)

Management› the process of coordinating work

activities so that they are completed efficiently and effectively with and through other people

› elements of definition Process - represents ongoing functions or

primary activities engaged in by managers Coordinating - distinguishes a managerial

position from a non-managerial one

Management Strives For:Low resource waste (high efficiency)

High goal attainment (high effectiveness)

ResourceUsage

Efficiency (Means)

GoalAttainment

Effectiveness (Ends)

Low Waste High Attainment

Utilization of individuals to achieve organizational objectives

All managers at every level must concern themselves with human resource management

Five functions

1

Human Resource

Management

Human Resource

Development

Com

pens

atio

n

Staffing

Employee and

Labor Relations

Safety and Health

Human Resource Management Functions

Job analyses Labor needs Recruit Select candidates Orient and train Wages and salaries Incentives and

benefits

Performance Communicate Train and develop Employee

commitment Equal opportunity Health and safety Grievances/labor

relations

EMPLOYMENT / STAFFING› RECRUITMENT› SELECTION

TRAINING AND DEVELOPMENT › APPRAISAL› EDUCATION AND DEVELOPMENT

COMPENSATION› SALARIES, WAGES AND BENEFITS› INCENTIVE PLANS

EMPLOYEE RELATIONS› GRIEVANCE RESOLUTION› UNION RELATIONS

HR PLANNING AND RESEARCH› FORECASTING› JOB ANALYSIS› ATTITUDE SURVEYS› VALIDATION STUDIES

Staffing - Process through which organization ensures it always has proper number of employees with appropriate skills in right jobs at right time to achieve organizational objectives

Job analysis - Systematic process of determining skills, duties, and knowledge required for performing jobs in organization

Human resource planning - Systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time .

Recruitment - Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization

Selection - Process of choosing from a group of applicants the individual best suited for a particular position and the organization

Training - Designed to provide learners with knowledge and skills needed for their present jobs

Development - Involves learning that goes beyond today's job; it has more long-term focus

Career development - Formal approach used by organization to ensure that people with proper qualifications and experiences are available when needed

Organization development - Planned process of improving organization by developing its structures, systems, and processes to improve effectiveness and achieving desired goals

Performance management - Goal-oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization

Performance appraisal - Formal system of review and evaluation of individual or team task performance

Direct Financial Compensation - Pay that person receives in form of wages, salaries, bonuses, and commissions.

Indirect Financial Compensation (Benefits) - All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance.

Nonfinancial Compensation - Satisfaction that person receives from job itself or from psychological and/or physical environment in which person works.

Employees who work in safe environment and enjoy good health are more likely to be productive and yield long-term benefits to organization.

Safety - Involves protecting employees from injuries caused by work-related accidents

Health - Refers to employees' freedom from illness and their general physical and mental well being

Private-sector union membership has fallen from 39 percent in 1958 to 7.8 percent in 2005.

Business is required by law to recognize a union and bargain with it in good faith if the firm’s employees want the union to represent them

Is the function of HR to control workers, or to help them and act as their advocate?

Resolving personnel grievances and disagreements fairly in both union and union-free environments

Impact on you as employees

Impact on you as managers

Potential future roles as HR professionals

Impact of HRM on organizations

HR Department Organizational Chart

EMPHASIS ON STRATEGIC PLANNING & SUCCESSION› VP of HR is a Strategic Manager, Management Succession

Planning

EMPHASIS ON COST-RELATED ISSUES / COST CONTROL› Global Competition, Outsourcing and Downsizing

NEW SPECIALTIES EMERGING IN HR› HR Planning, International HR, Employee Assistance Programs

GROWTH OF GOVERNMENTAL REGULATIONS› Wages (1930s), Unionization (1940s), Employment (1960s)

PROFESSIONALIZATION OF HR MANAGEMENT› Professional HR Societies & HRCI (Certification Institute)

THE INTERNET REVOLUTION› Electronic Recruiting, Records Management, and HRIS

System approach to Human Resource Management (4 inter related factors) › Human resource approach – people constitute a form of capital

and act as one of essential assets › Personnel climate – personnel environment conducive for

development of Human Capital as long term investment capable of yielding rich dividends

› Human resource program – to achieve the twin aims of productivity and satisfaction

› Human Resource System – with relevant inputs , processing and outputs

› Five separate sub-systems are Employment Development Utilization Compensation Maintenance

Possibility of never-ending workday BlackBerrys, cell phones, text

messaging, and e-mail create endless possibilities for communication

Some workers believe their employer wants them available 24/7

More strategic (not strictly focused on day-to-day operational needs)

More proactive (less reactive) More of a consultant to line

management (less of a bureaucratic specialist)

More of an “employee champion” (less of an organizational “cop”)

Personal credibility

Business mastery

HR mastery

Change mastery(Broadbank and Ulrich, 1994)

Society for Human Resource Management

Human Resource Certification Institute

American Society for Training & Development

American Compensation Association

STRATEGIC HUMAN RESOURCE

MANAGEMENT

Strategic Management› The process of identifying and executing the

organization’s mission by matching its capabilities with the demands of its environment.

Strategy› A chosen course of action.

Strategic Plan› How an organization intends to balance its

internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage over the long-term.

Vision› A general statement of an organization’s

intended direction that evokes emotional feelings in organization members.

Mission› Spells out who the company is, what it

does, and where it’s headed.

Diversification Strategy

Geographic Expansion Strategy

Vertical Integration Strategy

Corporate-Level

Strategies

Consolidation

Strategy

Cost Leadership Focus/Niche

Business-Level/Competitive Strategies

Differentiation

The “Fit” Point of View (Porter)› All of the firm’s activities must be tailored

to or fit the chosen strategy such that the firm’s functional strategies support its corporate and competitive strategies.

Leveraging (Hamel and Prahalad) › “Stretch” in leveraging resources—

supplementing what you have and doing more with what you have—can be more important than just fitting the strategic plan to current resources.

Strategic Human Resource Management› The linking of HRM with strategic goals and

objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility. Involves formulating and executing HR

systems—HR policies and activities—that produce the employee competencies and behaviors that the company needs to achieve its strategic aims.

Corporate productivity

and performance improvement

efforts

Increased HR team

involvement in design of

strategic plans

Basic Strategic Challenges

Expanded role of employees

in the organization’s performance

efforts

Strategy Execution

Role

Strategic Planning

Roles

Strategy Formulation

Role

Human Resource

Professionals

Employee Behaviors and Competencies

Components of a Strategic HRM

System

Human Resource

Policies and Practices

Characteristics of HPWS

•multi-skilled work teams

•empowered front-line workers

•extensive training•labor-management cooperation

•commitment to quality

•customer satisfaction

“

HR Activities

Organizational

Performance

Emergent Employee Behaviors

Strategically Relevant

Organizational

Outcomes

Achieve Strategic

Goals

1

2

3

4

5

Outline value chain activities

Define the business strategy

Outline a strategy map

Identify strategically required outcomesIdentify required workforce competencies and behaviors

6

7

8

9

10

Create HR Scorecard

Identify required HR policies and activities

Choose HR Scorecard measuresSummarize Scorecard measures on digital dashboardMonitor, predict, evaluate

The 10-Step HR Scorecard Process

Human resource management attracts, develops, and maintains a talented workforce.

Government legislation protects workers against employment discrimination. Employee rights and other issues complicate the

legal environment of work. Labor relations and collective bargaining are

closely governed by law.

Govt or state machinery regulates the relationship between workers’ organizations and employers’ organizations.

It does it through : - Statutes and legislations, - The judiciary- labor courts industrial tribunals - An executive machinery- that lays down rules,

procedures and gives awards and monitors them

Discrimination› When someone is denied a job or position for non job related

reasons Equal Employment Opportunity

› The right to employment and advancement without regard to race, religion, sex, color or national origin

Affirmative Action› An effort to give preference in employment to women or

other minorities› Employment criteria justified by capacity to perform a job

Comparable Worth› Persons performing jobs of similar worth should receive

comparable pay Bona-fide Occupational Qualifications

› Employment criteria justified by capacity to perform a job

Workplace Privacy› The right to privacy while at work

Independent Contractors› Hired on temporary contracts and are not part of the organization’s

permanent work force Labor Union

› An organization that deals with employers on the workers collective behalf Labor Contract

› A formal agreement between a union and employer about the terms of work for union members

U.S. labor union facts: • U.S. union membership was 12.5% in 2004, down from 20.1% in 1983. • 8% of private sector workers belong to unions, and 36% of government workers. • Many of the fastest growing unions represent white-collar workers. • 75% of U.S. adults believe unions improve wages and working conditions; • 67% believe unions are too involved in politics.

India being a welfare state has taken up itself the responsibility of extending various benefits of social security and social assistance to its citizens.

Although the constitution of India is yet to recognize social security as a fundamental right, it does require state to promote the welfare of the people by providing social, economic and political justice

Constitution requires companies to make effective provisions for making effective provisions for securing right to work, to educate and public assistance in case of unemployment, old age, sickness and disablement. Securing just and humane conditions of work. Raise level of nutrition and standard of living, improvement of public health etc

A social security division has been set up under the ministry of labor and employment.

In the context of labor , social security aims at reducing risks against

loss of earnings or earning capacity due to old age, illness or work-related injuries.

Social security to the workers is provided through 5 major Acts:

1. The Employees State Insurance act, 19482. Employees’ provident Fund and Miscellaneous provisions Act3. The Worker’s Compensation Act4. The Maternity Benefit Act5. The payment of Gratuity Act In addition there are large number of welfare funds also for

some specific segments Major thrust of social security relating to labor is on: a) Provisions relating to medical facilities, compensation

benefits and insurance coverage incase if accidents, incapacity,

illness etc.. b) Provisions relating to provident fund and gratuity