Paradigm Shift in HRM

Personnel Function Maintenance oriented An independent function with independent sub-functions Reactive function, responding to events as and when they take place Exclusive responsibility of personnel department Emphasis is put on monetary rewards

Points of distinction Orientation Structure Philosophy

HRD Development oriented Consists of inter-dependent parts Proactive function, trying to anticipate and get ready with appropriate responses Responsibility of all mangers in the organisation Emphasis is on higher-order needs such as job stretch and challenge, creative and problem solving, people empowering Better use of human resources leads to improved satisfaction and morale It tries to develop the organisation as a whole and its culture

Responsibility Motivators

Improved performance is the result of improved satisfaction and morale Tries to improve the efficiency of people and administration

Outcomes

Aims

Effectiveness of Human Resources Management

Organizational Health Employee contribution and satisfaction Human Resource Accounting - Cost and Value of HR Human Resource Audit Examination, Evaluation of Policies, procedures, practices to determine the effectiveness. Human Resource Research Evaluating the effectiveness and developing the appropriate.

EMERGENCES OF HRM
1. Non-Hierarchical Structure 2. Attitude and Emotions, but not just skill and knowledge 3. Team design and analysis
1. 2. 3. 4. 5. Leader-directed Working Group Leader/Member Rotating/Shared Leadership Self-Directed

4. Employee Referrals 5. Employees for Lease 6. Outsourcing body shops 7. Moon Lighting by Employees part time/business. 8. Dual Career Groups women empowerment 9. Flexi Time core working, flexible timings. 10. Employees proxy another person qualified. 11. Careers in HRM

What is Knowledge Management

 Knowledge management is a systematic,

explicit and deliberate building, renewal and application of knowledge to maximize an enterprise knowledge - related effectiveness and returns from its knowledge assets.

Knowledge Management
Data
Information Knowledge

wisdom

Data, Information
The term data means groups of facts and figures that represent the qualitative or quantitative attributes of a variable or set of variables. Data are often viewed as the lowest level of abstraction from which information and knowledge are derived. 46 years, 160cm, 90 Kgs, Jimmy The organized data are information. Jimmy Age-46, Height- 160 cm, Weight 90 Kg

Knowledge, Wisdom
The processed information in the actionable form is referred to as knowledge. 90 Kg of weight for a person with 160 cm of height is more, he must reduce the weight. The knowledge becomes wisdom when it is used for a good cause of a large number of people. Daily exercise, morning walk and Yoga etc. help people reduce weight and keep themselves fit and healthy.

Knowledge Management Process

1) Identify -competencies 2) Collect knowledge, skills, expertise 3) Select assessment of value standard requirements 4) Store nuggets, classify, include 5) Share make it acceptable for employees 6) Apply activities, decision making, exploiting opportunities 7) Customer acceptance new/developed 8) Create stage- observation, feedback, brain storming, success and failures.

Virtual Organization and HRM

Virtual Organization is a Social network in which all the horizontal and vertical boundaries are removed. It consists of individuals working out of physically dispersed workspaces, or even individuals working from mobile devices and not tied to any particular workspace. It is the coordination of intense structure, consisting primarily of patterns and relationships, and this form needs the communication and information technology to function.

Characteristics of Virtual Organizations

Flexi-work, Flexi-time, and Flexi-work place Part-time work Job sharing Home based working Depends on IT Internet, e-mail, voice mail, mobile, etc. Loose organizational boundaries Dejobbing Multiskilling Flexibility in power, work etc. Goal directed Customer centered.

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Role of HR in a virtual organisation

A virtual organisation is a network of companies or employees connected by computers. Virtual workers work from home, hotels, their cars, or wherever their work takes them. The human resource function plays a unique role in a virtual organisation: v
Psychological fit: The lack of face-to-face interaction in a virtual organisation, virtually compels HR professionals to determine the psychological fit between different units initially.

v System alignment: Given the lack of physical proximity, it becomes even more critical that the organisation's mission, vision and measures be aligned and that all parties are familiar with these issues; the HR function can play an important role in this task.

v Reconsider rewards: In a virtual unit, very few permanent positions exist. In many cases, the organisation will be staffed with workers having different motivational forces. So rewarding each entity in an effective way becomes an important job.
Cont

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Role of HR in a virtual organisation

v Reconsider staffing needs: In a virtual organisation, most employees work on a contractual basis. Finding people with requisite skills, knowledge and motivation levels becomes an important activity. v Build partnerships: Virtual, teams have to be built from scratch paying attention to their unique requirements. The concept of employment needs to be replaced by the concept of 'partnership' especially when most tend to work independently away from the permanent employees or owners of the organisation

Develop leaders: Leaders become the major forces for building trust, creating a mission and instilling a sense of belonging to the organisation. HR can play a major role in ensuring that leaders assume these responsibilities and meet them in an effective way.

Learning Organizations
Organizations learn through the learning of their employees. A learning organization is one in which lives and breathes knowledge acquisition and skill development the ultimate extension of learning on the job. Intellectual manufacturing and marketing Recognition and acceptance of knowledge as competitive advantage Rapid change Adopt L P G Cultural unification Increased customer awareness Change in employees attitude towards change. Increased innovation, creations, outcome of research.

Characteristics of Learning Organizations.

1) Learning approaches to strategy 2) Participative policy making 3) Informing, information systems, automate 4) Formative accounting and control 5) Internal exchange 6) Reward flexibility 7) Enabling structures 8) Boundary workers as environmental scanners 9) Inter-company working 10)Learning culture 11)Self-development for all

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Benchmarking
Effective implementation of TQM requires benchmarking. The essence of benchmarking is striving to be the best of the best in ones area of operations. It is a continuous process of measuring products, services and practices against the toughest competitors or industry leaders with the aim of mutual improvement.

Reengineering
The primary focus of TQM is on continuous improvement or ongoing incremental change. Reengineering is all about achieving this. Actually speaking, reengineering takes place when more than 70 per cent of the work processes in an organisation are evaluated and altered. The focus is on simplifying operations and making them more efficient and customer oriented.

Difference Between Union & Nonunion Workers

Unions have long been associated with manufacturing jobs and other blue-collar occupations, but workers in other fields are also part of unions, including airline pilots and professional athletes. Unions have the express purpose of improving compensation and working conditions for the employees that they represent. While in many cases they have accomplished this, corruption has tainted some unions. There are significant differences between union and non-union workers

Collective Bargaining
Union workers are covered by a collective bargaining agreement. This is also known as a contract, and it is negotiated between representatives of the management of the company and the union representatives. This contract governs all aspects of the working relationship between the two parties. Nonunion workers generally are not covered by a contract. It is up to the employee to negotiate his own terms of employment with the company management. Unions bring the power of the group to the bargaining table.

Pay Differences
At one time, the pay differences between union and non-union workers was more substantial, particularly in the mid- to late1970s. The recession of the early-'80s required many unions to give substantial wage and benefit concessions, reducing this difference. During the '90s and 2000s, the increase in wages has been similar for union and non-union workers. Union members often enjoy better benefits, particularly health benefits.

Contract Employment
An employment contract covers any situations where an employee could be fired or disciplined. The contract also outlines the processes that must be used to discipline an employee whose performance is not up to the employer's standards. A non-union employee is subject to "employment at will," meaning that either the employer or employee can terminate the relationship at any time. Most companies have their own guidelines and policies for discipline of non-union employees, but these policies can change at any time the employer wishes, with no input from the employees.

Costs
A union employee must pay union dues and other fees, such as admission fees to join a union. These fees can be sizable, and are not negotiable. Unions also traditionally have engaged in political activities in order to further their cause. However, not all union employees support their unions' political views. A union member can ask that his dues not be used for political purposes, but he may feel pressure to go along. Non-union workers may have to pay the fees if the majority of their co-workers are represented by a union, but usually non-union workers do not pay to work for their employer.

The Difference Between Union & Nonunion Companies

Union or unionized companies are businesses that hire employees that belong to a union, a legal organization that represents the employees and manages, at least in part, the hiring process. There are different types of unions, based on the industries they work within, and companies that work with unions have several common qualities that differentiate them from businesses that do not use union

Rules and Guidelines

Unions are responsible for creating many different rules in the industries they are a part of. Some of these rules apply to employees and the training they must go through, but many also apply to the companies that hire union workers. These companies must provide workplaces that promote worker safety and health. Of course, good companies will work toward these aims anyway, and state or central governments have their own safety rules. But unions often add extra guidelines to make sure that workers will not be mistreated or put in danger

Compensation
Union workers, on average, are paid more than employees who are not part of unions. This means that union companies must expect to pay more in compensation. Many companies balance this by offering fewer benefits to employees, but only up to a point; most unions also require companies to offer certain benefits, such as health insurance. This is one reason that unions are popular among employees, and it is also a key point of negotiation between companies and unions

Pricing
In general, companies that work with unions have higher payroll costs, whether from extra compensation or simply the costs of negotiation and meeting union guidelines. But companies want to make profits for shareholders and business expansion, so union companies often incorporate strategies to offset these extra costs. Often they raise prices on their services or products, or cut costs throughout departments. This can lead to higher prices for consumers, but it can also help foster company innovation and efficiency.

Representation
Companies that work with unions also have a detailed representation policy. Unions use their representatives to negotiate for higher wages or other changes. The companies involved in unionized industries create representation plans for themselves as well. Often state and central laws outline this representation process so both sides can negotiate without bias or confusion. Companies without unions can also have representation policies, but they are rarely maintained as strictly.