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PRESENTATION ON
HUMAN RESOURCE MANAGEMENT

                By
                Anshu Tandon
                Asst. Prof.
                NIMT , Lucknow
“ You can get capital and erect buildings , but it
      takes people to build a business .”
                            -Thomas J. Watson
                          ( The founder of IBM )
- What is HRM
- Nature of HRM
- Objectives of HRM
- Importance of HRM
- Functions Of HRM
- Organisation of HR department
- Models of HRM
- Evolution of HRM
- System approach to HRM
- Strategic HRM
- Traditional HR versus Strategic HR
- Skills for HR professionals
‘ Employees are the most important
                 asset of the organization ’

• The quality and effectiveness of the organization is
determined by the quality of the people that are
employed.

• Success for most organizations depends on finding the
employees with the skills to successfully perform the tasks
required to attain the company’s strategic goals
 HRM encompasses all management decisions and
 activities that affect or influence the people of the
 organisation .
 It is the process of managing people in organisations in

   a structured and thorough manner .
 HRM is the organisational function , which can also be

 performed by Line managers , that deals with issues
 related to people like recruitment , compensation ,
 performance appraisal , health , safety , training &
 development , motivation etc .
According to American Management Association:
 Human Resource Management is that field of
 management which has to do with planning, organizing
 and controlling various operative functions of
 procuring, developing, maintaining and utilizing a
 work force in order that
 (a) the objectives for which the company is established
 are attained as efficiently and economically as possible;
 (b) the objectives of all levels of personnel are served to
 the highest degree; and
 (c) the objectives of the community are duly considered
 and served.”
Pervasive
                       force
                                      Action
      Continuous                     oriented
       function


                                       Individu-
                                          ally
   Interdisc-                           oriented
    iplinary
    function

                    Nature                    People
                   Of HRM                    oriented
Auxillary
 service


                                         Future
                                        oriented
  Compre-
  hensive
  function
                   Integrati-ng   Develo-
                   mechanism       pment
                                  oriented
Welfare Aspect



   Personal Aspect



Industrial Relations
      Aspect
Personal


  Functional


   Societal

Organisational
Legal Compliances
Societal         Benefits
                 Union Management Relations



                 Appraisal
Functional       Placement
                 Assesment


                 Training & Development
Personal         Appraisal & Placement
                 Compensation & Assessment

                 Human Resource Planning
                 Selection , T& D
Organisational   Employee Relations
                 Appraisal & Placement
                 Assessment
1- At the enterprise level :
  - attract and retain the best people in the
    organisation
  - train people for challenging roles
  - develop right attitude towards job
  - develop skills and competencies
  - promote team spirit
  - develop loyalty and commitment

2 - At the society level :
  - enhance standard of living
  - generate employment opportunities
3 – At the individual level :
  - promotes team work and team spirit
  - provide opportunities for growth
  - increase productivity and profits
  - develop diligence and commitment towards
     work
  - improve job satisfaction

4 – At the national level :
  - enhance standard of living
  - provide better employment
  - efficient use of natural , physical and financial
    resources
There are two types of functions of HRM as follows :
1- Managerial
2 – Operational

Managerial functions are as follows :
A – Planning
B – Organising
C – Directing
D - Controlling
Operative functions are as follows :
A – Procurement :
 - Job Analysis
 - HR Planning
 - Recruitment
 - Selection
 - Placement
 - Induction
 - Internal mobility

B – Development :
  - Training
  - Executive development
  - Career planning
  - Succession planning
  - Human resources development
    strategies
C – Motivation And Compensation :
 - Job design
 - Work scheduling
 - Motivation
 - Job evaluation
 - Performance and potential appraisal
 - Compensation administration
 - Incentives benefits and services

D – Maintenance :
 - Health
 - Safety
 - Welfare
 - Social Security
E – Integration :
  - Grievances
  - Discipline
  - Teams and team work
  - Collective bargaining
  - Participation
  - Empowerment
  - Trade unions
  - Employers’ association
  - Industrial relations
F – Emerging Issues :
  - Personal records
  - Personal audit
  - Personal research
  - HR accounting
  - Human Resource Information System ( HRIS )
  - Job stress
  - Counselling
  - Mentoring
  - International HR
HRM in Small Scale Unit :

                        Owner /
                        Manager




Production     Sales           Office
                                          Accountant
 manager      Manager         Manager




                              Personal
                              Assistant
Chairman / MD




             Director   Director         Director   Director
 Director
             Finance     HRM            Marketing    R&D
Production
Director HR


 Manager
                  Manager Admin         Manager HRD        Manager IR
 Personnel



                                                       Training &
                                    Appraisal
                                                      Development




        PR        Canteen    Medical     Welfare    Transport   Legal



                            Grievance     Compen-
HRP          Hiring         Handling       sation
- The Commodity Concept ( labour was regarded as commodity       to be brought and sold )


-    The Factor Of Production Concept ( labour       is like any other factor of production )


-    The Goodwill Concept ( welfare measures have positive impact on labours )

-    The Paternalistic Concept ( fatherly and protective attitude   towards employees )


-    The Humanitarian Concept ( fulfill physical , social &   psychological needs of
      employees )


-    The Human Resource Concept ( employees are most valuable           assets of organisation )


-    The Emerging Concept ( employees should be accepted as      partners in the progress of
       company)
Period      Emphasis                           Status            Roles
1920-30     Welfare management                 Clerical          Welfare
            Paternalistics practices                             administrator
                                                                 Ploliceman
1940-60     Expanding the role to cover        Administration    Appraiser
            labour welfare , industrial                          Advisor
            relation and personnel function                      Mediator
                                                                 Legal Advisor
                                                                 Fire fighting
1970-80     Emphasis on human values,            Developmental   Change agent
            aspirations , dignity , usefulness ,                 Integrator
            efficiency and effectiveness                         Trainer
                                                                 Educator
1990-2000   Increemental productivity gains    Proactive         Developer
            through human assets               Growth oriented   Counsellor
                                                                 Mentor
                                                                 Problem solver
Post 2000   Aggressive cost cutting in order   Fight for survival Compete with the
Product
            subsystem



            HR Subsystem
             Procurement
 Finance       Training    Marketing
subsystem   Compensation   subsystem
              Appraisal
               Rewards



               Technical
              subsystem
Comprehensiveness

           Credibility                   Communication




                              Change
Control                                                       Cost-
                           Commitment                     effectiveness




          Competence                         Creativity


                             Coherence
1. The Fombrum Model
                   Human resource
                    development




                                    Organisational
   Selection           Appraisal
                                     effectiveness




                        Rewards
2. The Harvard Model

 Stakeholder
 interest
 -Management
 -Employee groups
 -Government
 -Community            HRM policy                    Long term
 -Unions                            Human
                       choices                       consequences
                                    Resource
                       -Employee                     -Individual
                                    Outcomes
                        influence                      well – being
                                    -Commitment
                       -HR flow                      -
                                    -Competence
 Situational factors   -Reward                       Organisational
                                    -Congruence
 -Workforce             system                         effectiveness
                                    -Cost –
  characteristics      -Work                         -Social well –
                                     effectiveness
 -Business strategy      system                        being
 -Management
  philosophy
 -Labour market
 -Unions
 -Laws & societal
  values
1. The Guest Model



                                                 Performa
                                      Behavio-   nce
                                      ural       Outcome
           HRM
                                      Outcom-    s
           Practices
                        HR            es         Positive
           Hiring                                            Financial
 HRM                    Outcomes      Motivat-   Producti-
           Training                                          Outcome
Strateg-                Commit-       ion        vity
           Appraisal                                         s
   ies                  ment          Co-ope-    Innova-
           Compens                                           Profit
                        Quality       ration     tion-
           ation                                             ROI
                        Flexibility   Organi-    Quality
           Industrial
                                      sational   Negative
           relations
                                      citizen-   Absent-
                                      ship       eeism
                                                 Turnover
1. The Warwick Model
                      Outer context
                      Socio-economic
                      Technical
                      Political-legal
                      Competitive

                      Inner Context
                      Structure
                      Politics/leadership
                      Task technology
                      Business outputs
 Business Strategy                          HRM Context
 Content                                    Role
 Objectives                                 Definition
 Product market                             Organisation
 Strategy & tactics                         HR outputs

                      HRM Content
                      HR flows
                      Work system
                      Reward system
                      Employee relations
Benchmarks          Personnel Management       Human Resource
                                               Management
Evolutionary        Succeeded IR but           Succeeded PM and ruled
                    preceded HRM               for a long time . Started
                                               during 1980s and carried
                                               acceptance today

Emphasis            Emphasis on mundane        Treat human being as
                    activities like hiring ,   valued assets to be valued
                    remunerating, training &   , used and preserved .
                    harmony

Outcome of people   Value for money            Added value
management


Reporting           Regulators                 Investors and
                                               stakeholders
Benchmarks                 Personnel Management          Human Resource
                                                         Management
People management          Focused on service            Numerous small & tactical
activities                 delivery , not project        projects , projects often
                           management                    annual events within
                                                         service delivery
Measurement                Efficiency of HR activities   Effectiveness of HR
                           , compliance                  outputs against business
                                                         plan
Assumptions about          Cause & effect , simple &     Dynamic system , core
environment ,              stable , people seen as a     competencies , strategy-fit
organisations and people   cost/ an expense ,            , people seen as assets ,
management                 behavioural psychology ,      hard & soft HRM ,
                           financial reward              cognitive & humanistic
                                                         psychology , learning
                                                         organisations
SHRM is built around three important propositions :

1. The human resources are major source of competitive
advantage , people can make or break organisation .

2. Successful organisational performance depends on a close fit
between business and human resource strategy

3. Individual HR strategy should cohere by being linked to each
other to offer mutual support .
Points of distinction   Traditional HR              Strategic HR
Focus                   Employee relations          Partnership with internal
                                                    and external customers
Role of HR              Transactional change        Transformational change
                        follower & respondent       leader & initiator
Initiatives             Slow , reactive fragmented, Fast, proactive &
                        short term                  integrated
Time horizon            Short term                  Short, medium & long
Control                 Bureaucratic roles ,        Organic flexible
                        policies & procedures
Job Design              Tight division of labour    Broad , flexible
Key Investments         Capital , products          People , knowledge
Accountability          Cost centre                 Investment centre
Responsibility for HR   Staff specialists           Line managers
A Model Of Strategic Human Resource Management
      External
      Environment               Laws
      Competition             regulating
      Government policy                                     Outcomes
                             environment
      Technology
      Market trends                          Procurement   Increased
      Economic factors    HR Strategy                      performanc
                          HR Planning        Development   e
                          Design of jobs &
                          work systems       Performance   Customer
Corpor-                   What workers       Management    satisfaction
   ate      Business      do
Strategy    Strategy      What workers       Compen-       Employee
                          need               sation        satisfaction
                          How jobs
      Internal            interface with     Labour        Enhanced
      Environment         others             Relations     share
      Culture                                              holder
      Structure                                            values
      Policies                  HRIS
      Skills
“Human resource managers , nowdays , wear
  many hats . They perform mainly three
  different types of roles while meeting the
  requirement of employees and customers
  , namely administrative , operational and
  strategic .”
                - Mathis and Jackson , Ulrich
1.   Administrative Roles –
    Policy maker
    Administrative expert
    Advisor
    Housekeeper
    Counsellor
    Welfare officer
    Legal consultant
2. Operational Roles –
 Recruiter

 Trainer , developer and motivator

 Co-ordinator / linking pin

 Mediator

 Employee champion
3. Strategic Role –
 The strategic role of HR management focuses
   attention on how to enable ordinary employees
   to turn out extra ordinary performance , taking
   care of their ever-changing expectations .
 The key areas of attention include effective
   management of key resources ( employees
   , technology , work process ) while delivering
   cost effective , value enhancing solutions .
 Change agent

 Strategic partner
Matching process,
 All managers        Employees are       integrating the
 are resource       viewed as assets     organization’s
  managers                               goals with
                                         employees’ needs


     How a company manages its workforce may be single
     more important factor in sustained competitive success

38
Company Strategy



                      Attract an Effective Workforce
                             HRM planning
                             Job analysis
                             Forecasting
                             Recruiting
                             Selecting
Maintain an Effective Workforce
                                             Develop an Effective Workforce
       Wage and salary
       Benefits                                        Training
       Labor relations                                 Development
       Terminations                                    Appraisal

39
Focus on building human capital
                  1

                              Development of global
                          2
                               HR strategies IHRM


              3
      The using of information
            technology


40
Business
           Mastery



           Personal
          Credibility



 HR                     Change
Mastery                 Mastery
Business Mastery –   Business acumen
                     Customer orientation
                     Knowledge in all functional
                     areas
                     External relations

Personal Credibility – Competence
                       Sound academic credentials
                       Trust
                        Ethical conduct
                        Courage
HR Mastery –     Staffing
                 Performance appraisal
                 Reward system
                 Communication
                 Organisation design

Change Mastery - Interpersonal skills
                 Problem solving skills
                 Reward system
                 Innovativeness & creativity
References :
1. Managing Human Resources by Aswathapa
2. Human Resource Management by V.S.P. Rao

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Presentation On Human Resource Management

  • 1. PRESENTATION ON HUMAN RESOURCE MANAGEMENT By Anshu Tandon Asst. Prof. NIMT , Lucknow
  • 2. “ You can get capital and erect buildings , but it takes people to build a business .” -Thomas J. Watson ( The founder of IBM )
  • 3. - What is HRM - Nature of HRM - Objectives of HRM - Importance of HRM - Functions Of HRM - Organisation of HR department - Models of HRM - Evolution of HRM - System approach to HRM - Strategic HRM - Traditional HR versus Strategic HR - Skills for HR professionals
  • 4. ‘ Employees are the most important asset of the organization ’ • The quality and effectiveness of the organization is determined by the quality of the people that are employed. • Success for most organizations depends on finding the employees with the skills to successfully perform the tasks required to attain the company’s strategic goals
  • 5.  HRM encompasses all management decisions and activities that affect or influence the people of the organisation .  It is the process of managing people in organisations in a structured and thorough manner .  HRM is the organisational function , which can also be performed by Line managers , that deals with issues related to people like recruitment , compensation , performance appraisal , health , safety , training & development , motivation etc .
  • 6. According to American Management Association: Human Resource Management is that field of management which has to do with planning, organizing and controlling various operative functions of procuring, developing, maintaining and utilizing a work force in order that (a) the objectives for which the company is established are attained as efficiently and economically as possible; (b) the objectives of all levels of personnel are served to the highest degree; and (c) the objectives of the community are duly considered and served.”
  • 7. Pervasive force Action Continuous oriented function Individu- ally Interdisc- oriented iplinary function Nature People Of HRM oriented Auxillary service Future oriented Compre- hensive function Integrati-ng Develo- mechanism pment oriented
  • 8. Welfare Aspect Personal Aspect Industrial Relations Aspect
  • 9. Personal Functional Societal Organisational
  • 10. Legal Compliances Societal Benefits Union Management Relations Appraisal Functional Placement Assesment Training & Development Personal Appraisal & Placement Compensation & Assessment Human Resource Planning Selection , T& D Organisational Employee Relations Appraisal & Placement Assessment
  • 11. 1- At the enterprise level : - attract and retain the best people in the organisation - train people for challenging roles - develop right attitude towards job - develop skills and competencies - promote team spirit - develop loyalty and commitment 2 - At the society level : - enhance standard of living - generate employment opportunities
  • 12. 3 – At the individual level : - promotes team work and team spirit - provide opportunities for growth - increase productivity and profits - develop diligence and commitment towards work - improve job satisfaction 4 – At the national level : - enhance standard of living - provide better employment - efficient use of natural , physical and financial resources
  • 13. There are two types of functions of HRM as follows : 1- Managerial 2 – Operational Managerial functions are as follows : A – Planning B – Organising C – Directing D - Controlling
  • 14. Operative functions are as follows : A – Procurement : - Job Analysis - HR Planning - Recruitment - Selection - Placement - Induction - Internal mobility B – Development : - Training - Executive development - Career planning - Succession planning - Human resources development strategies
  • 15. C – Motivation And Compensation : - Job design - Work scheduling - Motivation - Job evaluation - Performance and potential appraisal - Compensation administration - Incentives benefits and services D – Maintenance : - Health - Safety - Welfare - Social Security
  • 16. E – Integration : - Grievances - Discipline - Teams and team work - Collective bargaining - Participation - Empowerment - Trade unions - Employers’ association - Industrial relations
  • 17. F – Emerging Issues : - Personal records - Personal audit - Personal research - HR accounting - Human Resource Information System ( HRIS ) - Job stress - Counselling - Mentoring - International HR
  • 18. HRM in Small Scale Unit : Owner / Manager Production Sales Office Accountant manager Manager Manager Personal Assistant
  • 19. Chairman / MD Director Director Director Director Director Finance HRM Marketing R&D Production
  • 20. Director HR Manager Manager Admin Manager HRD Manager IR Personnel Training & Appraisal Development PR Canteen Medical Welfare Transport Legal Grievance Compen- HRP Hiring Handling sation
  • 21. - The Commodity Concept ( labour was regarded as commodity to be brought and sold ) - The Factor Of Production Concept ( labour is like any other factor of production ) - The Goodwill Concept ( welfare measures have positive impact on labours ) - The Paternalistic Concept ( fatherly and protective attitude towards employees ) - The Humanitarian Concept ( fulfill physical , social & psychological needs of employees ) - The Human Resource Concept ( employees are most valuable assets of organisation ) - The Emerging Concept ( employees should be accepted as partners in the progress of company)
  • 22. Period Emphasis Status Roles 1920-30 Welfare management Clerical Welfare Paternalistics practices administrator Ploliceman 1940-60 Expanding the role to cover Administration Appraiser labour welfare , industrial Advisor relation and personnel function Mediator Legal Advisor Fire fighting 1970-80 Emphasis on human values, Developmental Change agent aspirations , dignity , usefulness , Integrator efficiency and effectiveness Trainer Educator 1990-2000 Increemental productivity gains Proactive Developer through human assets Growth oriented Counsellor Mentor Problem solver Post 2000 Aggressive cost cutting in order Fight for survival Compete with the
  • 23. Product subsystem HR Subsystem Procurement Finance Training Marketing subsystem Compensation subsystem Appraisal Rewards Technical subsystem
  • 24. Comprehensiveness Credibility Communication Change Control Cost- Commitment effectiveness Competence Creativity Coherence
  • 25. 1. The Fombrum Model Human resource development Organisational Selection Appraisal effectiveness Rewards
  • 26. 2. The Harvard Model Stakeholder interest -Management -Employee groups -Government -Community HRM policy Long term -Unions Human choices consequences Resource -Employee -Individual Outcomes influence well – being -Commitment -HR flow - -Competence Situational factors -Reward Organisational -Congruence -Workforce system effectiveness -Cost – characteristics -Work -Social well – effectiveness -Business strategy system being -Management philosophy -Labour market -Unions -Laws & societal values
  • 27. 1. The Guest Model Performa Behavio- nce ural Outcome HRM Outcom- s Practices HR es Positive Hiring Financial HRM Outcomes Motivat- Producti- Training Outcome Strateg- Commit- ion vity Appraisal s ies ment Co-ope- Innova- Compens Profit Quality ration tion- ation ROI Flexibility Organi- Quality Industrial sational Negative relations citizen- Absent- ship eeism Turnover
  • 28. 1. The Warwick Model Outer context Socio-economic Technical Political-legal Competitive Inner Context Structure Politics/leadership Task technology Business outputs Business Strategy HRM Context Content Role Objectives Definition Product market Organisation Strategy & tactics HR outputs HRM Content HR flows Work system Reward system Employee relations
  • 29. Benchmarks Personnel Management Human Resource Management Evolutionary Succeeded IR but Succeeded PM and ruled preceded HRM for a long time . Started during 1980s and carried acceptance today Emphasis Emphasis on mundane Treat human being as activities like hiring , valued assets to be valued remunerating, training & , used and preserved . harmony Outcome of people Value for money Added value management Reporting Regulators Investors and stakeholders
  • 30. Benchmarks Personnel Management Human Resource Management People management Focused on service Numerous small & tactical activities delivery , not project projects , projects often management annual events within service delivery Measurement Efficiency of HR activities Effectiveness of HR , compliance outputs against business plan Assumptions about Cause & effect , simple & Dynamic system , core environment , stable , people seen as a competencies , strategy-fit organisations and people cost/ an expense , , people seen as assets , management behavioural psychology , hard & soft HRM , financial reward cognitive & humanistic psychology , learning organisations
  • 31. SHRM is built around three important propositions : 1. The human resources are major source of competitive advantage , people can make or break organisation . 2. Successful organisational performance depends on a close fit between business and human resource strategy 3. Individual HR strategy should cohere by being linked to each other to offer mutual support .
  • 32. Points of distinction Traditional HR Strategic HR Focus Employee relations Partnership with internal and external customers Role of HR Transactional change Transformational change follower & respondent leader & initiator Initiatives Slow , reactive fragmented, Fast, proactive & short term integrated Time horizon Short term Short, medium & long Control Bureaucratic roles , Organic flexible policies & procedures Job Design Tight division of labour Broad , flexible Key Investments Capital , products People , knowledge Accountability Cost centre Investment centre Responsibility for HR Staff specialists Line managers
  • 33. A Model Of Strategic Human Resource Management External Environment Laws Competition regulating Government policy Outcomes environment Technology Market trends Procurement Increased Economic factors HR Strategy performanc HR Planning Development e Design of jobs & work systems Performance Customer Corpor- What workers Management satisfaction ate Business do Strategy Strategy What workers Compen- Employee need sation satisfaction How jobs Internal interface with Labour Enhanced Environment others Relations share Culture holder Structure values Policies HRIS Skills
  • 34. “Human resource managers , nowdays , wear many hats . They perform mainly three different types of roles while meeting the requirement of employees and customers , namely administrative , operational and strategic .” - Mathis and Jackson , Ulrich
  • 35. 1. Administrative Roles –  Policy maker  Administrative expert  Advisor  Housekeeper  Counsellor  Welfare officer  Legal consultant
  • 36. 2. Operational Roles –  Recruiter  Trainer , developer and motivator  Co-ordinator / linking pin  Mediator  Employee champion
  • 37. 3. Strategic Role –  The strategic role of HR management focuses attention on how to enable ordinary employees to turn out extra ordinary performance , taking care of their ever-changing expectations .  The key areas of attention include effective management of key resources ( employees , technology , work process ) while delivering cost effective , value enhancing solutions .  Change agent  Strategic partner
  • 38. Matching process, All managers Employees are integrating the are resource viewed as assets organization’s managers goals with employees’ needs How a company manages its workforce may be single more important factor in sustained competitive success 38
  • 39. Company Strategy Attract an Effective Workforce HRM planning Job analysis Forecasting Recruiting Selecting Maintain an Effective Workforce Develop an Effective Workforce Wage and salary Benefits Training Labor relations Development Terminations Appraisal 39
  • 40. Focus on building human capital 1 Development of global 2 HR strategies IHRM 3 The using of information technology 40
  • 41. Business Mastery Personal Credibility HR Change Mastery Mastery
  • 42. Business Mastery – Business acumen Customer orientation Knowledge in all functional areas External relations Personal Credibility – Competence Sound academic credentials Trust Ethical conduct Courage
  • 43. HR Mastery – Staffing Performance appraisal Reward system Communication Organisation design Change Mastery - Interpersonal skills Problem solving skills Reward system Innovativeness & creativity
  • 44.
  • 45. References : 1. Managing Human Resources by Aswathapa 2. Human Resource Management by V.S.P. Rao