Human Resource

Management
Preparatory Session
17th August, 2015

MASLOWs HIERARCHY OF NEEDS

Abraham Maslow

THEORY X and THEORY Y

Douglas McGregor

HERZBERGS TWO FACTOR THEORY

Frederick Herzberg

VROOMS EXPECTANCY THEORY

Victor Vroom

VROOMS EXPECTANCY THEORY

Victor Vroom

Galatea effect v/s Pygmalion effect

The Pygmalion effect, or Rosenthal effect, is
the phenomenon whereby the greater the
expectation placed upon people, the better
they perform
A corollary of the Pygmalion effect is
the Golem effect, in which low expectations
lead to a decrease in performance.
When people believe in themselves and
succeed as a result, it's called the Galatea
effect. Even more powerful than the Pygmalion
effect, the Galatea effect is a compelling factor
in employee performance. The manager who
can assist employees to believe in themselves
and in their efficacy, has harnessed a powerful
performance improvement tool.
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HALO v/s HORN EFFECT

Halo Effect: When we meet someone, and the first
impression of him is very positive, then we tend to
ignore the negative characteristics in the person and
concentrate only on the positive characteristics. For
example, if the interview starts with a very positive
statement from the interviewee, then the
interviewer tends to form a positive impression
about the interviewee.
Horn Effect: If our first impression about a person is
negative, we tend to ignore his positive
characteristics and concentrate only on the negative
ones. We tend to see the person in the light of the
negative first impression and hence there is higher
probability that we will not like the person.

Definition of HRM
Human resources management consists of employing people,
developing their resources, utilizing, maintaining and compensating
their services in tune with the job and organizational requirements
with a view to contribute to the goals of the organization, individual
and the society.

Human Resource Management Processes

Acquisition

Training

Fairness

Health and Safety

Labor Relations

Human
Resource
Management
(HRM)

Appraisal

Compensation

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FIVE FUNCTIONS OF MANAGERS

Planning:
Establishing goals and standards; developing rules and procedures; developing
plans and forecasting.
Organizing:
Giving each subordinate a specific task; establishing channels of authority and
communication; coordinating subordinates work.
Staffing:
Determining what type of people you should hire; recruiting employees; training and
developing employees etc.
Leading:
Getting others to get the job done; maintaining morale; motivating subordinates.

Controlling:
Setting standards such as sales quotas, quality standards, or production levels,
Checking to see how actual performance compares with these standards; taking corrective
action, as needed.

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ROLE OF HR MANAGER

12

FUNCTIONS OF HR

STRATEGIC PARTNER
Influences the organization design and identifies
the key talents.

CHANGE AGENT
Plans training sessions for employees to help them
gain new skills and competencies

Uses Feedback to improve HR procedures and

services

Uses Feedback to improve HR procedures and

services

Opens vacancies and preselects candidates that fit

best into the team and supports
diversity

Finds out new trends and expectations and

accordingly informs the management of the same

Lays off/ Recruits in small/large numbers. Helps the

employees to familiarize with restructuring the
organization

Acts as a trouble shooter in different situations

ADMINISTRATIVE PARTNER
Has deep knowledge of labor laws, trade union
bargaining

Implements all requirements evolving from the

changes in legislation, regulation, work and safety
rules.
Introduces new data sources and eliminates the
manual entry of data

Oversees smooth implementation of different

functions

EMPLOYEE CHAMPION
Represents employees & protects their interests

Runs employee satisfaction surveys

Ensures employees have a fair chance to apply for

new roles in the organization

Training and Development session for employees

Regular grievance and compliance procedure to

ensure that employees get fair treatment from the
management.

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LINE HR vs STRATEGIC HR
LINE HR
Responsible for the various
execution and administrative
tasks
Keeping tab of the day to day
employee facilitation activities
(leave,
perks/
benefits
processing, exit interviews,
getting your joining letter)
Employee
engagement
activities (engagement activities
means how to keep the
employee
motivated
and
committed to his job)
Employees training activities
etc.

STRATEGIC HR
Architect of
the company
policies on employee retention ,
development of employees,
performance management of
employees (how to quantify
performance and ensure the
best systems for employee
promotion)

The compensation and benefit

package of the employee
Creating systems and process
that enables and empowers
employees to unleash their
creative potential to the
maximum.
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It is first operative function of Human Resources

Management (HRM). Employment is concerned with
securing and employing the people possessing the
required kind and level of human resources necessary
to achieve the organizational objectives. It covers
functions such as job analysis, human resources
planning, recruitment, selection, placement, induction
and internal mobility.

15

It is the process of study and collection of

information relating to the operations and
responsibilities of a specific job. It includes:
Collection of data, information, facts and ideas
relating to various aspects of jobs including men,
machines and materials.
Preparation of job description, job specifications,
job requirements and employee specifications
which will help in identifying the nature, levels and
quantum of human resources.
Providing the guides, plans and basis for job design
and for all operative functions of HRM.
16

It is the process of searching for prospective

employees and stimulating them to apply for jobs
in an organisation. It deals with:
Identification of existing sources of applicants and
developing them.
Creation/identification of new sources of
applicants.
Stimulating the candidates to apply for jobs in the
organisation.
Striking a balance between internal and external
sources.
17

It is the process of assigning the selected candidate

with the most suitable job in terms of job
requirements. It is matching of employees
specifications with job requirements. This function
includes:
Counseling the functional managers regarding
placement.
Conducting follow-up study, appraising employee
performance in order to determine employee
adjustment with the job.
Correcting misplacements, if any.
18

Induction and orientation are the techniques by which a

new employee is rehabilitated in the changed
surrounding and introduced to the practices, policies,
purposes and people etc., of the organisation.
Acquaint the employee with the company philosophy,
objectives, policies, career planning and development,
opportunities, product, market share, social and
community standing, company history, culture etc.
Introduce the employee to the people with whom has to
work such as peers, supervisors and subordinates.
Mould the employee attitude by orienting him to the
new working and social environment.

19

It is the systematic evaluation of individuals with

respect to their performance on the job and their
potential for development. It includes:
Developing policies, procedures and techniques.
Helping the functional managers.
Reviewing of reports and consolidation of reports.
Evaluating the effectiveness of various
programmes.

20

It is the process of imparting to the employees

technical and operating skills and knowledge. It
includes:
Identification of training needs of the individuals
and the company.
Developing suitable training programmes.
Helping and advising line management in the
conduct of training programmes.
Imparting of requisite job skills and knowledge to
employees.
Evaluating the effectiveness of training
programmes.
21

It is the proves of designing and conducting suitable

executive development programmes so as to develop
the managerial and human relations skill of employees.
It includes:
Identification of the areas in which management
development is needed.
Conducting development programmes.
Motivating the executives.
Designing special development programmes for
promotions.
Using the services of specialists, and/or utilising of the
institutional executive development programmes.
Evaluating the effectiveness of executive development
programmes.

22

It includes vertical and horizontal movement of an

employee within an organization. It consists of
transfer, promotion and demotion.

23

It is the process of placing employees in the same

level jobs where they can be utilized more
effectively in consistence with their potentialities
and needs of the employees and the organisation.
It also deals with:
Developing transfer policies and procedures.
Guiding employees and line management on
transfers.
Evaluating the execution of transfer policies and
procedures.
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It deals with upward reassignment given to an

employee in the organisation to occupy higher position
which commands better status and/or pay keeping in
view the human resources of the employees and the
job requirements.
This function covers the formulating of equitable, fair
and consistent promotion policies and procedures.
Advising line management and employees on matters
relating to promotions.
Evaluating the execution of promotion policies and
procedures.
25

It deals with downward reassignment to an

employee in the organisation.
Develop equitable, fair and consistent demotion
policies and procedures.
Advising line managers on matters relating to
demotions.
Oversee the implementations of demotion policies
and procedures.

26

Employers prefer to retain more talented

employees while they retrench less talented
employees. Employers modify existing human
resource strategies and craft new strategies in order
to pay more salaries, provide more benefits and
create high quality of work life to retain the best
employees.

27

Change implies the creation of imbalances in the

existent pattern or situation. Organisation
development is a planned process designed to
improve organizational effectiveness and health
through modifications in individual and group
behavior, culture and systems of the organisation
using knowledge and technology of applied
behavior sciences.

28

It is the process of providing adequate, equitable

and fair remuneration to the employees. It includes
job evaluation, wage and salary administration,
incentives, bonus, fringe benefits, social security
measures etc.

29

It is the process of determining relative worth of

jobs.
Select suitable job evaluation techniques.
Classify jobs into various categories.
Determining relative value of jobs in various
categories.

30

This is the process of developing and operating a

suitable wage and salary programme. It covers:
Conducting wage and salary survey.
Determining wage and salary rates based on
various factors.
Administering wage and salary programmes
Evaluating its effectiveness.

31

It is the process of formulating, administering and

reviewing the schemes of financial incentives in
addition to regular payment of wages and salary. It
includes:
Formulating incentive payment schemes.
Helping functional managers on the operation.
Review them periodically to evaluate effectiveness.

32

It includes payment of statutory bonus according to

the Payment of Bonus Act, 1965 and its latest
amendments.

33

These are the various benefits at the fringe of the wage.

Management provides these benefits to motivate the
employees and to meet their lifes contingencies. These
benefits include:
Disablement benefit
Housing facilities
Educational facilities to employees and children
Canteen facilities
Recreational facilities
Conveyance facilities
Credit facilities
Legal clinics
Medical, maternity and welfare facilities
Company stores.

34

Management provide social security to their

employees in addition to the fringe benefits. These
measures include:
Workmens compensation to those workers (or
their dependents) who involve in accidents.
Maternity benefits to women employees.
Sickness benefits and medical benefits.
Disablement benefits/allowance
Dependent benefits
35

Industrial relations refers to the study of relations

among employees, employer, government and
trade unions, Industrial relations include:
Indian labour market
Trade unionism
Collective bargaining
Industrial conflicts
Workers participation in management and
Quality circles
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What Do Unions Want?

Union Bargaining Aims

Increased workplace
security for the union

Improved wages, hours,

working conditions, job
security, and benefits

1537

TABLE 151

Bargaining Items

Mandatory

Permissible

Illegal

Rates of pay
Wages
Hours of employment
Overtime pay
Shift differentials
Holidays
Vacations
Severance pay
Pensions
Insurance benefits
Profit-sharing plans
Christmas bonuses
Company housing, meals,
and discounts
Employee security
Job performance
Union security
Managementunion
relationship
Drug testing of employees

Indemnity bonds
Management rights as to union
affairs
Pension benefits of retired
employees
Scope of the bargaining unit
Including supervisors in the
contract
Additional parties to the
contract such as the
international union
Use of union label
Settlement of unfair labor
charges
Prices in cafeteria
Continuance of past contract
Membership of bargaining team
Employment of strike breaker

Closed shop
Separation of employees
based on race
Discriminatory treatment

1538

360 degree feedback

Look at a dialog between two colleagues of an organization after the performance
appraisals are over.

I think our supervisor is

biased against me.

David

So, didnt you discuss

with him in the
feedback interview?

Kyle

I have performed very well throughout the

year, yet he has not given me the correct
rating. He rated me as satisfactory.

Why do you
think that?

Kyle

I did but I am not

satisfied with his
explanation.

David

David

Yes, he does
tend to underrate people he
doesnt like.

Kyle

Kyle

I wish the rating was done

by many people who know
me and my work, apart
from our supervisor.

David

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Traditional Feedback vs. 360 Degree Feedback

Traditional Feedback

360 Degree Feedback

Supervisor

Me
Skip - Level
Reportees

Supervisor
ME
Direct
Reportees

External
Customers

ME

Internal
Customers
Co-workers

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360 degree feedback-Advantages for Employees

It serves as a method
It is an honest
of collecting
assessment as
information from as viewed by a variety
many sources in an
of constituents.
employees
environment.

It provides
confidential input
from many
people
anonymously of
how an employee
fares in his job.

It helps employees
It provides
in seeing
information which
themselves as
neither employee
others see them. nor his/her superior
may be aware of.
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360 degree feedback-Advantages for Organization

42

360 degree feedback- Indian scenario

Owing to the entry of multinational companies in India and their implementation
of world-class policies, it becomes imperative for Indian companies also to
consider the 360-degree feedback process.

Examples- HCL, Infosys, Maruti Suzuki

Majority Of The Indian Organizations Still Hesitate To Implement It Due To
Following Reasons:

The Organizations Are Ruled As Per Hierarchy Bases

Subordinates Do Not Open Up About Their Boss
Power And Politics Exists In Organization
Majorly Vertical (Top To Down) Communication Exists
43

Enabling HR through Information Technology- HRIS as a driver

for strategic objectives
Emergence of new technologies like Social Media, Mobility, Analytics and Cloud (SMAC)

Real time talent analytics and big data management

Turning to big data for valuable insights about how to engage employees and how to retain
them.
The tools offered by companies like Mercer, SAP, Oracle etc. can be used to analyze
performance of current employees.

Gamifying business to drive employee engagement and performance

It means incorporating game elements into existing processes to boost productivity,
improve skills, drive performance and increase employee engagement.
Facebook uses social media and mobile technologies to deliver contests, challenges and
rewards.
Deloitte Leadership Academy, PwC, (gamification engines offered by Badgeville, BunchBall)

44

Role of HR in knowledge management and open innovation

Many companies realize that timely capturing their employees collective knowledge is the
only way to preserve their investments in human capital.

Knowledge-supported HR can play a key role in attracting and keeping the most
innovative people and partners, creating a culture that supports open innovation.

Increasing importance of social media in HR

Talent acquisition- from posting openings to sourcing candidates, reviewing CVs, making an
offer and on boarding.

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46

Strategic Human Resource Management

The linking of HRM with strategic goals and objectives of the company in
order to improve business performance and develop organizational cultures
that produce the employee competencies and behaviors that the company
needs to achieve its strategic aims.

347

Basic Model of How to Align HR Strategy and Actions with Business Strategy

348

Performance Management
The continuous process of identifying, measuring, and developing the
performance of individuals and teams and aligning their performance with
the organizations goals.

949

Basic Concepts in Performance

Management and Appraisal
Performance Appraisal

Performance
Management

Setting work
standards, assessing
performance, and
providing feedback to
employees to
motivate, correct, and
continue their
performance.

An integrated
approach to ensuring
that an employees
performance supports
and contributes to the
organizations
strategic aims.

950

Taking Steps to Enhance Diversity:

Womens and Minorities Prospects
Eliminate institutional barriers

Improve networking and mentoring

Supporting
Diversity

Abolish the glass ceiling

Adopt flexible career tracks

1051

Glass ceiling
A glass ceiling is a political term used to
describe "the unseen, yet unbreakable
barrier that keeps minorities and women
from rising to the upper rungs of the
corporate ladder, regardless of their
qualifications or achievements

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Thank you

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