HUMAN RESOURCE MANAGEMENT

Based on Applicability:

HRM is planning, organizing directing and controlling of the procurement , development, compensation , integration, maintenance, and separation of human resources to the end that individual, organizational and social objectives are accomplished.

Based on Integration :

HRM is a series of integrated decisions that form the employment relationships; their quality contributes to the ability of the organizations and the employees to achieve their objectives

What is HRM ??

HUMAN RESOURCE MANAGEMENT

Based on Influencing :

HRM is concerned with the people dimensions management. Since every organization is made up of people ,acquiring their services, developing their skills , motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives.

EVOLUTION OF HRM

• A number of academics and practitioners in the past have contributed a great deal to the development of HRM.

• The history of its development goes back to the early management pioneers, robert owen (1771 – 1858) and charles babbage (1792 – 1871).

• Similarly, other developments such as the industrial revolution, the principles of scientific management, the classical organization theory and more recently, the behavioral science movement and the organization development movement have influenced the development of personnel management and hrm.

EARLY SCIENTIFIC MANAGEMENT

• The history can be traced back to the Origin of Personnel Management. In the beginning of 18th century, many masons, carpenters, leather workers and people of other crafts organized themselves into guilds.

• In the later part of 18th century, the Welfare Concept was developed by some prominent family business houses in the UK.

• Industrial Revolution started from the late 18th century. Labor was treated as commodity to be bought or sold. There was strict system of punctuality and rigorous working rules.

SCIENTIFIC MANAGEMENT

• F.W. Taylor invented principles of scientific management in the 19th century.

• He suggested to plan work and gave methods to maximize productivity and minimize inefficiencies.

• In his studies, he explained less about humanization of workplaces and focused more on output from the workers.

HUMAN RELATIONS MOVEMENT

• Elton Mayo and Fritz Roethlisberger investigated the causes of low productivity different from Taylor’s perspective.

• The Hawthorne studies (1927 – 1932) laid the foundation for the human relations movement and explain why human elements are important to rise productivity.

THE HRM ERA• It was by 1920s, personnel management began to taught

at university level in US.

• At the period of 1920s, a number of large companies established personnel departments.

• During 1930 – 1950, many instances of exploitation of labor appeared.

• Subsequently, a labor relations movement in the form of Labour Unions and collective bargaining emerged and remained successful during 1935 – 1960.

• Personnel department started to work in collaboration

with union representatives.

DIFFERENCES BETWEEN PM AND HRM

PERSONNEL MANAGEMENT

• It focuses on personnel administration, employee welfare and labor relation.

• It deals with employees, their payroll and employment laws.

• It is considered to be reactive.

• It focuses on administrating people or employees.

• It is independent from an organization.

HUMAN RESOURCE MANAGEMENT

• It focuses on acquisition, development, motivation and maintenance of human resources.

• It deals with the management of the work force, and contributes to an organization’s success.

• It deals with developing personnel management skills.

• It is stated to be proactive.

• The prime focus of hrm is to build a dynamic culture.

• It forms an integral part of a company or an organization.

ROLE The Human Resources Department also covers five key roles.Executive role – in this role the HR department are viewed as the specialists in the areas that encompass Human Resources or people management.Audit role – in this capacity the HR department will check other departments and the organisation as a whole to ensure all HR policies such as Health & Safety, Training, Staff Appraisal etc are being carried out in accordance with the company’s HR policy.Facilitator role – in this role, the HR department help or facilitate other departments to achieve the goals or standards as laid out in the HR policies of the organisation. This will involve training being delivered for issues that arise in the areas relating to people management.Consultancy role – the HR department will advise managers on how to tackle specific managing people issues professionally.Service role – in this capacity the HR department is an information provider to raise awareness and inform departments and functional areas on changes in policy.

Challenges on HRM

GLOBALIZATION

Changing workforce dynamics

Managing Diversity

Attitude towards UNIONS

HR Trends

Balancing Work Life

With the increase in competition, locally or

globally, organizations must become more adaptable,

resilient, agile, and customer-focused to

succeed.

And within this change in environment, the HR

professional has to evolve to become a strategic partner, an employee

sponsor or advocate, and a change mentor within the

organization.

Challenges on HRM

GLOBALIZATION

Changing workforce dynamics

Managing Diversity

Attitude towards UNIONS

HR Trends

Balancing Work Life

The globalization influences the jobs that are available and requires that organizations balance a complicated set of issues

related to managing people in different

geographies, cultures, legal environments, and

business conditions.

HR functions such as staffing, training,

compensation, and the like have to be adjusted to take into account the differences

in global management.

Challenges on HRM

GLOBALIZATION

Changing workforce dynamics

Managing Diversity

Attitude towards UNIONS

HR Trends

Balancing Work Life

As we enter the 21st century, workforce diversity has become an essential business concern.

In the so-called information age, the greatest assets of most companies are now on two feet (or a set of wheels). Undeniably, there is a talent war raging.

And no company can afford to unnecessarily restrict its ability to attract and retain the very best employees available.

Challenges on HRM

GLOBALIZATION

Changing workforce dynamics

Managing Diversity

Attitude towards UNIONS

HR Trends

Balancing Work Life

Diversity is a potential performance barrier.

(if we think in positive, then : Diversity is a value

added activity)

There may be problem to retain Employees…

Because of the perception of the diverse

employees values and norms

Challenges on HRM

GLOBALIZATION

Changing workforce dynamics

Managing Diversity

Attitude towards UNIONS

HR Trends

Balancing Work Life

Union Influence

Role of UNIONS

Union Activities

Challenges on HRM

GLOBALIZATION

Changing workforce dynamics

Managing Diversity

Attitude towards UNIONS

HR Trends

Balancing Work Life

Moving Business Towards globalization (going global) - Increase in Competition - Diversified work-force

Technological Innovation and Change

Challenges on International Human Resource Management

Q : - what are the other HR trends that are the challenges of HRM ?

Challenges on HRM

GLOBALIZATION

Changing workforce dynamics

Managing Diversity

Attitude towards UNIONS

HR Trends

Balancing Work Life

Employees have the responsibility for their

parents and for the organization (how they

balance?)

Managing work life and personal life of

employees is challenging task for the HRD

Challenge on time management (flexibility)

DUTIES AND RESPONSIBILITIES• Recruitment procedure

• Hiring employees

• Training and developing employees

• Organization development

• Bridge for communication

• Employee performance

• Consultation for employees

• Advocating company policies

• Wages and benefits

• Teamwork and team spirit

• Relations amongst employees

• Significance of strategies

HR FUNCTIONS

The main functions of human resource management are classified into two categories:

(a) Managerial functions and

(B) Operative functions

 FUNCTIONS OF HRM

Managerial function•Planning•Organizing•Directing•Controlling

Operational function

• Employment

• Human resources development

• Compensation

• Human relations

• Industrial relations

• Recent trends in HRM

 

HARVARD MODEL

CONT..• Existence of multiple stakeholders within the organization.

• Stake holders includes share holders, employees, government, and community at large.

• This model emphasizes more on the fact that employees like any other shareholder are equally important in influencing organizational outcomes.

• Employee influence is recognized through people motivation and the development of an organization culture based on mutual trust and team work.

• The outcomes from such a set up are soft in nature as they include high congruence, commitment, competencies etc.

• The achievement of the crucial hr outcomes has got an impact on long term consequences, increased productivity, organizational effectiveness which will in turn influence shareholder interests and situational factors hence making it a cycle.

• It is thus important to note that the harvard model is premised on the belief that it is the organization’s human resources that give competitive advantage through treating them as assets and not costs.

FOMBRUN MODEL/THE MICHIGAN

CONT..• The matching aspect of this model demonstrates that the model is inclined

towards the harder side of HRM.

• The matching model emphasizes more on “tight fit” between the hr strategy and the business strategy.

• It demands that available human resources must be matched with jobs in the organization.

• The hr strategy must be highly calculative in terms of the quantity of the human resources required to achieve the objectives enshrined in the business strategy.

• Business strategy takes the central stage in this model hence human resources are taken like any other resource which must be fully utilized together with the other resources to achieve organizational objectives.

• The point of departure in the michigan model is the pre-eminence and pre-dominance of a business strategy, which must strictly be achieved by the available resources regardless of whether, they are able to do so or not.

• In fact the business strategy must be achieved through minimum labour costs enhanced by structural re-organization, performance related pay and staff reduction.

WARWICK MODEL

WARWICK MODEL

This model was developed by 2 researchers, hendry & pettigrew of university of Warwick. It is classified into 5 elements :• outer context ( macro environmental forces)• Inner context ( firm specific or micro environmental forces)• Business strategy• HRM context• HRM content

The strength of the model is that it identifies & classifies important environmental Influences on HRM.It maps the connection between the external & environmental factors & explores how Hrm adopts to changes in the context.

5P MODEL

CONT..• Purpose: it involves all the elements that constitute the strategic

intention of the organization. This includes the organization’s mission, vision, goals, and objectives, as well as strategies for achieving the vision and mission. Strategies drive structure “processes and principles” should be aligned with purpose.

• Principles: they are the guiding philosophies, assumptions, or attitudes about how the organization should operate and conduct business. They are the integrity base, ethics, and core values to which employees are expected to make a commitment when they are hired. These core values are the foundation for the way decisions are made and employees behave.

• Processes: it is the organizational structures, systems, and procedures that are used to make the products or perform the services that the organization provides, as well as the infrastructure and rules that support these systems and procedures. Performance appraisal methods, communication patterns, and production systems are examples of processes.

CONT..• People: they are the employees (individuals and teams) who

perform work that is consistent with the principles and processes of an organization to achieve its purpose. They are the active components through which work results are accomplished. Purpose, principles and processes must be in place before people can be consistently effective to achieve excellence.

• Performance: it encompasses all the metrics, measurements, and expected results that indicate the status of the organization and are used as criteria for decision making. Performance results are fed back into the strategic management process to provide a means of feedback and control. Effective performance will result in long-term survive and profitability.

GUEST MODEL

CONT..• This model is a fusion of aspects that resemble both a hard and a

soft approach of HRM.

• Guest proposes 4 crucial components that underpin organizational effectiveness. They are:

• Strategic integration: this is the ability of organizations to maintain a fit between the hrm strategy and the business strategy. Strategic integration shows the harder side of the guest model. This is precisely because human resources are treated in a similar manner like any other resource with the prime goal of achieving business objectives. Thus there are implications of labour exploitation.

• Flexibility: it is basically concerned with the ability of the organization and its people to adapt to the changing business and work environment and to the capacity to manage innovation.

CONT..• High commitment: it is concerned with the need to

have both behavioral commitment, which is the ability to go an extra mile, and attitudinal commitment, which is reflected through a strong identification with the organization.

• Quality: quality is based on the assumption that provision of high quality goods and services results from a quality way of managing people.

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YOU!