HRM Unit I

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UNIT -1HUMAN RESOURCE MANAGEMENT

Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization

Six Important functionsRecruitment:The success of recruiters and employment specialists generally is measured by the number of positions they fill and the time it takes to fill those positions. Recruiters who work in-house -- as opposed to companies that provide recruiting and staffing services -- play a key role in developing the employer's workforce. They advertise job postings, source candidates, screen applicants, conduct preliminary interviews and coordinate hiring efforts with managers responsible for making the final selection of candidates.Safety:Workplace safety is an important factor. Under the Occupational Safety and Health Act of 1970, employers have an obligation to provide a safe working environment for employees. One of the main functions of HR is to support workplace safety training and maintain federally mandated logs for workplace injury and fatality reporting. In addition, HR safety and risk specialists often work closely with HR benefits specialists to manage the company's workers compensation issues.Employee Relations:In a unionized work environment, the employee and labor relations functions of HR may be combined and handled by one specialist or be entirely separate functions managed by two HR specialists with specific expertise in each area. Employee relations is the HR discipline concerned with strengthening the employer-employee relationship through measuring job satisfaction, employee engagement and resolving workplace conflict. Labor relations functions may include developing management response to union organizing campaigns, negotiating collective bargaining agreements and rendering interpretations of labor union contract issues.Compensation and Benefits:Like employee and labor relations, the compensation and benefits functions of HR often can be handled by one HR specialist with dual expertise. On the compensation side, the HR functions include setting compensation structures and evaluating competitive pay practices. A comp and benefits specialist also may negotiate group health coverage rates with insurers and coordinate activities with the retirement savings fund administrator. Payroll can be a component of the compensation and benefits section of HR; however, in many cases, employers outsource such administrative functions as payroll.Compliance:Compliance with labor and employment laws is a critical HR function. Noncompliance can result in workplace complaints based on unfair employment practices, unsafe working conditions and general dissatisfaction with working conditions that can affect productivity and ultimately, profitability. HR staff must be aware of federal and state employment laws such as Title VII of the Civil Rights Act, the Fair Labor Standards Act, the National Labor Relations Act and many other rules and regulations.Training and Development:Employers must provide employees with the tools necessary for their success which, in many cases, means giving new employees extensive orientation training to help them transition into a new organizational culture. Many HR departments also provide leadership training and professional development. Leadership training may be required of newly hired and promoted supervisors and managers on topics such as performance management and how to handle employee relations matters at the department level. Professional development opportunities are for employees looking for promotional opportunities or employees who want to achieve personal goals such as finishing a college degree. Programs such as tuition assistance and tuition reimbursement programs often are within the purview of the HR training and development area.Eight Human Resource Functions1. Recruitment and Selection2. Career Planning3. Performance Appraisal4. Delegating and Assigning work5. Skills Inventory6. Training and Development7. Coaching and Counselling8. Wage and Salary

HR Philosophy:TheHR Management Philosophyis not mainly about Human Resources Function. It is more about the leadership style of the top management, the current corporate culture and values. It is about the vision of the leader of the organization. The modern leader usually requires amodern HR Management approachand builds the environment suitable for the evolution of themodern HR Management. This is the HR Management Philosophy behind the scene.Thedevelopment of the HR Management Philosophyis a long term process. The philosophy is usually informal and respects values and opinions of the main stakeholders. The leader of the organization has a significant influence on the HR Philosophy. The HR Leader is the next one influencing the philosophy significantly.The informality of the HR Management Philosophy is important. It differentiates it from theHR Strategy. The philosophy is the set of values, behavior and practices. The practices are extremely crucial for the leader. The leader is not interested in written formal HR policies. The leader is interested in the real decision processes in the organization. They can be really different from the written rules (as people do not follow them, they follow the philosophyThe main factors influencing the HR philosophy in the organization are: Leadership Style Corporate Culture Corporate Values Market CompetitionThe leadership style is extremely important. The leaders of the organization are the role models for managers and employees. The manager always try to act as the leader does. The behavior is observed and spread across the entire organization. The leader sets the basic expectations from all employees and managers. They adjust their behavior to be fully compliant with the leaders expectations. TheHR Management Philosophyis the same story.The leader is usually the person, who starts the change or the re-design of the HR Management Philosophy. The leader observes the behavior in the organization and requests several changes. The leader usually calls a new HR leader, who is responsible for the leadership in the change management. The biggest task is to change the behavior of the leader.Thecorporate cultureand thecorporate valuesdefine boundaries for the HR Management philosophy. The HR Management cannot be in the conflict with the corporate culture. It has to be a natural part of the culture. In case of the changes in the HR Philosophy, the HR team has to start influencing the corporate culture. It has to be adjusted as well. The change of the corporate culture is the joint effort of the leadership management and Human Resources. It has to be changes by changes of the living examples. The employees will follow the changes naturally.The external market and the direct and indirect competitors have the influence on the HR Management Philosophy. The competitors define the industry standard. The completely different approach usually builds the organizational weakness. The HR Philosophy has to be better, it cannot be completely different.The leader usually compares theperformance of the organizationwith the direct competitors on the market. The leader identifies weaknesses and advantages. In case of the need, the leader provokes the change of the corporate culture and the HR philosophy.The changing Environment of HRM:Changes in the environment of human resource management are very wide and it plays a crucial role in organizations. These changes include work force diversity, technological changes, globalization, and changes in the nature of jobs and work (External Factors). The internal factors are unions, Organizational culture, conflicts and professional bodies.The External Forces (i) Work Force Diversity:A change in the work force is a continuous process, since the last two decades we are noticing such changes. For example the structure of the women working force is widely increasing in(ii) Technological Trends:Technological change will continue to shift employment from some occupations to others while contributing to a rise in productivity. For example changes are taking place in office automation, where personal computers, word processing, and management information systems continue to change the nature of office work. Also telecommunications already makes it relatively easy for many to work at home. Robots are also taking man place especially in the heavy industries. (iii) Globalization:Globalization refers to the tendency of firms to extend their sales or manufacturing to new markets abroad, and to spread the business everywhere. Production is becoming globalized; manufacturers around the world are putting their manufacturing facilities where they feel it is more advantageous. Thus, the Sony TV is new manufactured and produced in India as other products, which are originally from Japan or other countries. This globalization of markets and manufacturing has vastly increased international competition. Throughout the world firms that formerly, competed at the national level, now are competing internationally. (iv) Changes in the nature of jobs and work:The changing Environment of HRM:Changes in the environment of human resource management are very wide and it plays a crucial role in organizations. These changes include work force diversity, technological changes, globalization, and changes in the nature of jobs and work (External Factors). The internal factors are unions, Organizational culture, conflicts and professional bodies.The External Forces (v) Work Force Diversity:A change in the work force is a continuous process, since the last two decades we are noticing such changes. For example the structure of the women working force is widely increasing in

STRATEGIC HUMAN RESOURCE MANAGEMENT

Strategic HRM defines the organizations intentions and plans on how its business goals should be achieved through people. It is based on three propositions: first, that human capital is a major source of competitive29advantage; second, that it is people who implement the strategic plan; and,third, that a systematic approach should be adopted to defining where theorganization wants to go and how it should get there.Different Approaches to Strategic Human Resource Management: The four major approaches to Strategic Human Resource Management identifies the differing views which are consolidated below: 1) Strategy-focused Approach: Authors Mathis& Jackson and Beer et al view HRM and SHRM to be identical. They define that HRM by its nature itself is strategic. The elements of HRM like training, recruitment, selection all of them operate as derivatives of requirements of strategy within the organization. Strategic planning suggests HRM planning. This view is not accepted by many of the scholars and view that HRM is strategic to some extent but not in all aspects. 2) Decision-focused Approach: Tichy et al defines that there are three management levels namely: strategic (long-term), managerial (medium-term) and operational (short-term). The author views that the HR functions performed at the strategic management level are SHRM. The managerial and operational level HR functions do not come under SHRM and would rather be considered as functional HRM activities. 3) Content-focused Approach: Torrington & Hall identifies that in the model of HRM process there are always some elements and in every such elements there are some strategic aspects that are referred to as SHRM. According to this approach the functional aspects of HRM elements can also be included with the organizations strategy leading to the emergence of SHRM. 4) Implementation-focused Approach: Miles & Snow view that organizations do have some competitive objectives that are achieved through some business strategies. In order to formulate and implement such strategies appropriate HRM systems are necessary, and those HR systems are strategic in nature so called SHRM.HR & Competitive Advantage: Non-human resourcessuch as land, capital and equipment Managing human resources is essential in order for a business to thrive and survive. People determine the organizations goals and of course people run the organization to ensure goals are met/exceeded People are the competitive advantage to an organizations success In HR we deal with issues such as pre-selection, selection, and post-selection Pre-selection we planorganizations decide what types of jobs are going to exist and what are the qualifications. During the selection phase, the organization selects the employees: Recruiting applicants Assessing their qualifications Selecting those most qualified Post-selection phase the organization develop sound HR practices for effectively managing their key talent The firm provides them with training and development opportunities to have the necessary skills to perform at satisfactory levels. (Mission, Vision, Strategic Business Objectives) The strategic planning process takes shape here Demand and supply forecasting we determine the number and types of employees we need (i.e. electrical engineers recruitment process) Steps:--Developing performance appraisal rating forms--Helping to determine pay rates--Setting performance standards for productivity improvement programs (i.e. assessment testing for administrative positions) Safety & Health Concerns (Chapter 13) Legal, social, and political pressures on organizations to ensure the health and safety of their employees Wellness and Employee Assistance Programs(EAPTRENDS IN HR Describe trends in the labor force composition and how they affect human resource management. Summarize areas in which human resource management can support the goal of creating a high-performance work system. Define employee empowerment and explain its role in the modern organization. Identify ways HR professionals can support organizational strategies for quality, growth, and efficiency. Summarize ways in which HRM can support organizations expanding internationally. Discuss how technological developments are affecting human resource management. Explain how the nature of the employment relationship is changing. Discuss how the need for flexibility affects human resource management.Labour Work Force Internal work Force: An organizations workers1. Its employees2. The people who have contracts to work at the organization

The internal labor force has been drawn from the external labor market.External Laour Force: Individuals who are actively seeking employment. The number and kinds of people in the external labor market determine the kinds of human resources available to an organization.

Change in the Labor Force: An Aging Workforce A Diverse Workforce Skill Deficiencies of the Workforce Skill Deficiencies of the Workforce: mathematical skills verbal skills interpersonal skills computer skills Today, employers are looking for: The gap between skills needed and skills available has decreased companies ability to compete. They sometimes lack the capacity to upgrade technology, reorganize work, and empower employees.

HRIS[ Human Resourse Information System A computer system used to acquire, store, manipulate, analyze, retrieve, and distribute information related to an organizations human resources. An HRIS can: support strategic decision making help the organization avoid lawsuits provide data for evaluating programs or policies support day-to-day HR decisions HR function are divided intothree principal group: HR Front Office HR Back Office HR Centre Of Excellence HR FRONT OFFICE Organization of personnel Department(known as HR front office) is responsible for striking rapport with internal groups/client. A designated official, generally, would be meeting the requirements of clients. HR BACK OFFICEIt centralize traditional HR agenda such as HR administration, payroll, welfare amenities, etc. The back office would take care of legal requirements and regulatory framework. The back office people would be responsible for keeping personnel files, records and data in an accessible form-updated almost every week. HR CENTERS OF EXCELLENCEThis independent department looks after functions such as recruitments, training &development, compensation and benefits, industrial relations etc. These centers works in the close coordination with HR front office and HR back office while trying to get the best out of employees through excellent HR practices and procedures. HR DEPARTMENT IN LINEORGANISATIONLine structure is a type of structure in which authority flows in direct line from a superior to a subordinate. Each employee knows who is his superior and who has authority to issue order to whom. Managers has full authority in their area of operations and are responsible for final results. Chief Executive HR Manager Recruitment Training Compensation Industrial Welfare Officer manager manager manager Relations HR DEPARTMENT IN FUNCTIONALORGANISATIONIn any functional organization, all activities of an organization is divided into different functions such as production, marketing, finance etc. each functional area is headed by a specialist who directs the activities of that area for the entire organization. Every employee is required to report to his respective functional head. The functional head has line authority over activities of his functional area.Line and staff functionsIn a sense, all managers are HR managers as they all get involved in activities like selecting, training, compensating employees. Yet most firms, now a days, have the HR department headed by a person with requisite qualifications in behavioural sciences. How do the duties of this HR manager relate to the line managers HR duties would be an interesting question to answer. Line managers have the final responsibility for achieving the organisation's goals. They also have the authority to direct the work of subordinates. Staff managers usually help and advise line managers in achieving organisational goals. HR managers are staff experts. They assist line managers in areas like recruiting, selecting, training and compensating. Managing people, in a broader context, is every managers business and successful organisations generally combine the experience of line managers with the experience of HR specialists while utilising the talents of employees to their greatest potential. HR managers have to win the hearts of employees working alongside line mangers and deliver results in a cost-effective manner. HR managers as indicated earlier are assuming a greater role in top management planning and decision making-a trend that indicates the growing realisation among executives that HRM can make significant contributions to the success of an organisation.

Examples Of Line And Staff Function