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Human Resource Management
Shakti Awasthi
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Human Resource Management
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HRM is concerned with managing manpower toimprove
individual , group and organizationaleffectiveness.
HRM involves:
HR planning
Recruitment and selection
Training and development
Motivation Performance appraisal
Career development
Promotions and transfers
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Definitions David Decenzoand Stephen Robbins defined HRM as:
process consists of four functions: acquisition, development , motivation
and maintenance of Human resources.
Human Resource Management is concerned with the people dimension in
management . It is a process consisting of the acquisition, development,
motivation and maintenance of Human resources.
Wendell French defines HRM as:
The philosophy ,policies ,procedures and practices related to the
management of people within the organization.
Edwin FlippoPlanning, 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.
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Nature HRM is a process
Acquisition
Development
Motivation
Maintenance
Focus on Objectives
Universal
Application
Continuous in Nature
Integrated use of Subsystems
Multidisciplinary Approach
Key element in Coping with Problems
Development of Team Spirit
Development of Employees Potentialities
Long term Benefits
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Objectives of HRM
Ensure availability of competent workforce
Integration of goals
Cost containment
Goals through able employees
Harmonious Relationships Optimization of Human resources
Growth and development of employees
Satisfy needs
Motivation
Legal requirements
Self Actualization
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Scope of HRM1. Process: -HRM is a process of managing human resources. HRM process
is undertaken to achieve organizational objectives. The process of HRM
includes;
Acquiring the services of people (selection)
Developing the skills of human resources (training)
Motivating the manpower.
Ensuring the commitment of manpower towards organizational activities
2. Multidisciplinary approach: -
HRM is dynamic and multidisciplinary approach. HR managers make use of
various disciplines to manage the workforce effectively. The various disciplines
include;
Management Science,
Psychology,
Sociology,
Communication,
Economics,
Organization Behavior,
Philosophy, etc.
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3. Universal Applications: -
HRM is all pervasive. It is applicable to business and non business organizations.
For instance, a non-business organization, such as a college or university has to
select, train and motivate human resources to achieve its objectives.
4. Continuous in Nature: - HRM is continuous activity. Organizations need tomanage human resources on a continuous basis. Organizations need to adapt to
changing environment, i.e., changes in employees expectations, changes in
consumer behavior, changes in competitors strategies, etc.
5. Objective Oriented: - HRM places emphasis on the accomplishment of
objectives. The objectives
can be broadly listed under to four categories;
a. Individual objectives employees such as career development,
promotion, etc.
b. Group objectives such as team work.
c. Organizational objectives such as an increase in market share,
profits, etc.
6. Long-term Benefits: - HRM brings long-term benefits to the individuals,
organizations and the society as well. Employees gain long-term benefits
by the way of better monetary and non-monetary incentives. The
organization can gain by the way of higher returns on investment and
better corporate image.
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7. Development of Team Spirit: HRM aims at developing andmaintaining team spirit in every organizational unit, i.e., groups anddepartments. Such team spirit is required so that the people workeffectively together and contribute to the success of the
organization.
8. Key Element in Coping with problems: -Economic, technologicaland social trends have created acute problems for business andindustry. As a result, management has focused attention on HRM askey elements in coping with these problems.
9. Integrated use of subsystems: -HRM involves the integrated use ofsubsystems such as training and development, career development,organizational development, performance appraisal, potentialappraisal, etc.
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10. Development of Employees Potentialities:
-HRMaims at development of employees
potentialities to the maximum possible
extent, so that they gain maximum
satisfaction from their job.
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Differences between Personnel Management (PM) and HumanResources Management (HRM)
1. Personnel mean employed persons of an organization. Management ofthese people is personnel management (PM). Human resourcemanagement (HRM) is the management of employees knowledge,
aptitudes, abilities, talents, creative abilities and skills/competencies.
2. PM is traditional, routine, maintenance-oriented, administrativefunction whereas HRM is continuous, on-going development functionaimed at improving human processes.
3. PM is an independent function with independent sub-functions. HRMfollows the systems thinking approach. It is not considered in isolationfrom the larger organization and must take into account the linkages andinterfaces.
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4. PM is treated like a less important auxiliary function whereas HRMis considered a strategic management function.
5. PM is reactive, responding to demands as and when they arise.
HRM is proactive, anticipating, planning and advancingcontinuously.
6. PM is the exclusive responsibility of the personnel department.HRM is a concern for all managers in the organization and aims atdeveloping the capabilities of all line managers to carry out the
human resource related functions.
7. The scope of PM is relatively narrow with a focus on administeringpeople. The scope of HRM views the organization as a whole andlays emphasis on building a dynamic culture.
8. PM is primarily concerned with recruitment, selection andadministration of manpower. HRM takes efforts to satisfy thehuman needs of the people at work that helps to motivate peopleto make their best contribution.
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9. Important motivators in PM are compensation, rewards, jobsimplification and so on. HRM considers work groups, challengesand creativity on the job as motivators.
10. In PM improved satisfaction is considered to be the cause forimproved performance but in HRM it is the other way round(performance is the cause and satisfaction is the result).
11. In PM, employee is treated as an economic unit as his services areexchanged for wages/salary. Employee in HRM is treated not only as
economic unit but also a social and psychological entity.
12. PM treats employee as a commodity or a tool or like equipmentthat can be bought and used. Employee is treated as a resource andas a human being.
13. In PM employees are considered as cost centers and therefore,management controls the cost of labor. HRM treats employees asprofit centers and therefore, the management invests in this capitalthrough their development and better future utility.
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14. PMs angle is that employees should beused mostly for organizational benefits andprofits. HRM angle emphasizes on themutual benefits, both of employees and
their families and also the company.
15. PM preserves information and maintainsits secrecy. In HRM communication is one of
its main tasks which take into accountvertical, lateral and feedback typecommunication.
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PERSONNEL MANAGEMENT
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The Personnel Function in our
organization
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Syllabus
The Personnel Function in our organization
Recruitment, Induction, Placement & Development,Personnel Budget
Personnel Policies & Standing orders
Absenteeism, Personnel Turnover & Problem ofindiscipline
Transfers, Promotions & Voluntary retirements
Compensation Plans - Perquisites & Bonus
Job status, Grade & Salary & wage structure Outfore, Measure
Morale studies & Personnel Research
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The Personnel Function in organization
Definition of Personnel Management
The Role of the Personnel Manager
Challenges of Modern Personnel Management Approaches to Personnel Management
Organizing the Personnel Unit
Planning the Personnel Program Controlling the Personnel Unit
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PERSONNEL MANAGEMENT - Definition
Personnel Management is the
Planning,
Organizing,
Directing and Controlling
Of the
Procurement, Development,
Compensation, Integration,
Maintenance & Separation
Of human resources to the end that individual, organizational, andsocietal objectives are accomplished.
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The Role of the Personnel Manager
The Personnel Manager has Exclusiveresponsibility of
Personnel records,
Insurance Benefits administration Unemployment compensation administration
Personnel Research
The Heart of a Personnel Programme itselfrequires considerable coordination, as well as
coordination with units in the remainder of
the organization.
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Challenges of Modern Personnel
Management
Changing Mix of the Work force
Changing Personal Values of the Work force
Changing expectations of citizen-employees
Changing levels of productivity
Changing demands of government
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Changing Mix of the workforce.
Increased numbers of minority members entering
occupations requiring greater skills.
Increasing levels of formal education for the entirework force.
More female employees.
More married female employees.
More working mothers.
A steadily increasing majority of white-collar
employees in place of the blue-collar.
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Changing Personal Values of the Work
Force
Better morale
Better fit of work time to the employees
body clock
Improving handling of fluctuating workloads
Increased customer service
Reduced employee absenteeism Reduced turnover
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Challenges of Modern Personnel
Management contd.
Changing Expectations of Citizen-Employees
Freedom of Speech
Right to privacy
Changing Levels of Productivity Numerous laws
Increase in new numbers of employees
Adversial relations with labour unions
Changing Demands of Government
In procurement, development, compensation, integration,maintenance and separation.
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Approaches to
Personnel Management
Mechanical Approach
Paternalism
Social System
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Mechanical Approach toward Personnel
Labour must be classified with capital and land.
Personnel are controllable, predictable, andinterchangeable.
Techniques such as time study, incentive wages were
introduced. Problems incurred were
Loss of jobs through development of new machines orwork techniques
Decreased economic security leading to formation oflabour organizations
Labour organizations grew at a very slow pace
Decreased pride in work
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Paternalism
Management must assume a
fatherly and
protective attitude
Toward employees. Activities such as
Company stores
Company homes and Recreational facilities
were started
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Social System
The firm is viewed as a complex central systemoperating within a complex environmentwhich can be termed as outer-extended
system The central system cannot be closed &
directed in a mechanistic fashion.
Options are available to central systemmembers with the aid of labour unions,government, and various public groups.
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Organizing the Personnel Unit
Bases of Departmentation
Procurement (employment)
Development (training)
Compensation (wage & salary administration)
Integration (labor relations)
Maintenance (safety)
Separation (employee services, retirement)
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Organizing the Personnel Unit
Line & Personnel Staff relationships
Line person may Advise and not Command or
Order
Staff relationship is of Service
Staff advice compels the line person only to listen
& not accept or follow advice
Staff should be able to give truthful advice tosuperiors without fear of losing their jobs
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Planning the Personnel Programme
Planning is determination of anything in
advance of action.
Decision Making
Programmes and Policies
The Computer and Personnel Standards
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Decision Making
1. Recognize & define a problem that calls
for action
2. Determine possible alternativesolutions
3. Collect and analyze facts bearing upon
the problem.4. Decide on a solution
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Programmes and Policies
In 4 areas
1. Designing enriched jobs
2. The ease with which it can be
implemented in the organization3. Projected economic benefits to the firm
4. Possible economic risks associated with
the programmes.
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The Computer and PersonnelPayroll
Timekeeping
Taxes
Increases etc.
Personnel
Skills
Education
Interests etc
Fringe benefits
Pensions
Insurance
Medical, etc
Integrated
Computer
system
Procurement
Basic recordsIdentification of vacancies
Applicant flow ( when
applied, source, process,
hiring decision, why
rejected etc..
Development- each employee skill profile
Compensation- salary by job, education etc.
Integration- grievance by unit, employee etc.
Maintenance- Govt. reports (accidents,
lost time etc.)
Separation- terminated employee reports
OUTPUTS
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Standards
It is an established criterion or model
against which actual results can be
compared.
Results or Standards cover
Time and Cost variables
Method or function Personnel & Physical factors
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Controlling the Personnel Unit
STRATEGIC CONTROL POINTS
Procurement Formal placement follow-up of employee job satisfaction
Development Quality losses
Compensation Wage & salary budgets
Integration Morale surveys
Maintenance Insurance premiums
Separation Number of retirees participating in retirement programmes
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The Personnel Audit &
Human Resources Accounting
The Personnel Audit
Systematic survey & analysis of all operativefunctions of personnel, with a summarized
statement of findings and recommendations forcorrection of deficiencies
Human Resources Accounting
Suppose a major catastrophe wiped out all the
human resources in your organization, how longwould it take & how much would it cost to replacethem.
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Dimension Personnel Management HRM
1. Employment
Contract
Careful delineation of
written contracts
Aim to go beyond contract
2. Rules Importance of devising
clear rules
Can do outlook,
Impatience with rule
3. Key Relations Labour Management Customer
4. Speed of decision Slow Fast
5. Management role Transaction Transformational
6. Job design Division of labor Team work
7. Respect for
employees
Labor is treated as a tool
which is expendable &replaceable.
People are treated as
assets to be used for thebenefit of an organization,
its employees & the
society as a whole.
8. Shared interest Interests of the
organization areuppermost
Mutuality of interests
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Composition of HR / Personnel DepartmentDirector HRM
Manager- Manager- Administration Manager-HRD Manager- IR
Personnel
Appraisal T & D
PR Canteen Medical Welfare Transport Legal
HRP Hiring Grievance Handling Compensation