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INTRODUCTION TO

HUMAN RESOURCE
MANAGEMENT

According to Adi Godrej,


all corporate strengths
are dependent on people.

Human Resource Management


The real sources of competitive leverage are
the culture and capabilities of your organization
that derive from how you manage your people.

Points to Ponder
Definition and Concept of HRM
History of HRM
Functions of HRM
HR Policies and Procedures
Emerging Role of HRM
Role of HR Executives
Challenges to HR Professionals
Strategic HRM

Human Resource Management


HRM is the function performed in
organizations that facilitates the most
effective use of people to achieve
organizational and individual goals.
Ivancevich and Glueck

History of HRM - 1
Scientific Management Approach (mid 1900s)

Study of motion and fatigue


one-best-way to accomplish the task
Piece-rate system
Welfare programmes
Failed to bring behavioural changes and increase in
productivity

Human Relations Approach (1930-40)


Effect of social and psychological factors
Relations and respect High Productivity

History of HRM - 2
Human Resources Approach (1970s)
Principles
Employees are assets
Policies, programmes and practices - help in work and
personal development
Conducive environment

Challenges of HRM
Individuals differ from
one another
Customization of
stimulation and
motivation
Demanding personnel

Functions of HRM - 1

Managerial

Planning

Organizing

Staffing

Directing

Controlling

Functions of HRM - 2
Operational
Employment

HR Development Compensation Mgt


Employee Relation

HR Planning Performance Appraisal Job Evaluation


Recruitment

Training

Wage and Salary Admn

Selection Management Development Incentives


Placement
Career Planning and DevelopmentBonus
Induction

Fringe Benefits

Emerging role or HRM


Value of Human Resource
Competitive advantage
Human Resource
Accounting It is
measurement of the cost
and value of people for an
organization

ROLE OF HR EXECUTIVES
Service provider
Executive
Facilitator
Consultant
Auditor

Challenges to HR Professionals

Worker productivity
Quality improvement
The changing attitudes of workforce
The impact of the government
Quality of work-life
Technology and Training

Organizationa
l Structure &
HRM

Why structure ???


What structure signifies?
No directions
Leads to confusion
Chaos

Why???????????

MAIN POINTS OF CHAPTER


Organizational Structure and Human
Resource Management
Formal and Informal Organizations
Tall and Flat Organizational Structures
Responsibility, Authority and Accountability
Line and Staff Functions
Human Resource Management and other
Organizational Functions

Mechanistic Vs organic
organization
Rigid structure
Employees are tied
by rules &
regulations
High degree of
centralization
Suitable for
operating in static
environment
Decision-making is
done by superiors
Ex: Public sector in
the pre-reforms era

Flexible structure
Employees are not
tied by rules &
regulations
Decentralized style
of management
Suitable for
operating in dynamic
environment
Decision-making is
done by junior level
employees also
Ex: Marico`s Saffola

Formal
President organization
Vice
President

Vice
President

Informal
organization
Chess group

Vice
President

DivisionDivisionDivisionDivisionDivisionDivisionDivisionDivisionDivision
Managers
Managers
Managers
Managers
Managers
Managers
Managers
Managers
Managers
Department
Managers

Department
Managers

Department
Managers

Departmen
Managers

Department
Managers

Department
Managers

Department
Managers

Departmen
Managers

Department
Managers

Informal organization
Bowling team

Tall Vs Flat structure


CMD
GM

ED

ED

GM

GM

CM

COO

ED
PM

PM

PM

PM

CM
Manager

Team
Lead

Team
Lead

Team
Lead

Manager
Officer
Officer
TALL
STRUCTURE

Executive
Executive

Team
Member

Team
Member

Team
Member

FLAT
STRUCTURE

Team
Member

RESPONSIBILITY, AUTHORITY &


ACCOUNTABILITY
Responsibility:

It is the obligation of a manager to carry


out the duties assigned to him.
Authority:
It refers to the right to give orders and
the power to exact obedience from others in
the process of discharging responsibility.
Accountability:
The employee's answerability on using the
authority in discharging the responsibility is
termed accountability.

LINE AND STAFF FUNCTIONS


Departments or
employees of a
firm that perform
core activities
Contributes directly
to the business of
the firm
Ex: Manufacturing
and Marketing
departments

Departments or
employees of a
firm that perform a
support function
Contributes
indirectly to the
business of the
firm
Ex: HR and Finance
departments

Line & Staff Relationship


Traditional concept
concept
Traditional
Service oriented
oriented firm
firm
Service
Which are
are line
line and
and staff
staff functions
functions
Which
Both needs
needs to
to support
support each
each other
other
Both

Line staff conflict


Different perception
HR professional to bring change

Understand market & organization


Be empathetic
Build trust and transparency
Win win approach

The Role of Human


Resources Department
As a specialist
As a facilitator
As a change agent
As a controller

HUMAN RESOURCE
MANAGEMENT AND OTHER
ORGANIZATIONAL FUNCTIONS
Product & HR
Production & HR
Marketing & HR
Management Techniques & HR
Organization structure & HR

summary
Organizational Structure and Human
Resource Management
Formal and Informal Organizations
Tall and Flat Organizational
Structures
Responsibility, Authority and
Accountability
Line and Staff Functions
Human Resource Management and
other Organizational Functions

Think before others think

Human
Resource
Planning

Point to ponder
Definition of Human Resource
Planning
Objectives of Human Resource
Planning
The Process of Human Resource
Planning
Managing the Forecasted
Demand/Surplus
Growing Importance of Human
Resource Planning

Opening case
HRP??? NO, Thank you
A reputed south Indian university
appointed 218 people on
temporary basis and paid them Rs
750/month later increased to
1575/month.
University already had surplus of
these employees eating away 22%
of budget allocation

They then realised the guilt of


violating Equal Remuneration Act
and supressing human rights
What to do with this 218 temoparay
staff...??
University can dismiss services of
33% as there have been breaks in
their services. Will they take it?????
While 67% of temporary staff,
university can not terminate them,
as there were no breaks

Human Resource
planning
Right
Rightnumber
number
Right
RightSkills
Skills
Right
RightTime
Time
Right
RightCost
Cost

HRP defined

Process of
anticipating and
making provision
for the
movement of
people into,

Objectives of HRP
Right
RightTime
Time

To maintain

Right
Rightnumber
number

To forecast

Right
RightSkills
Skills

To optimize

Right
RightCost
Cost

To utilize

HRP at different
planning levels
Corporate level planning
Intermediate level planning
Operations planning
Planning short-term activities

Organizational
Organizationalplans
plans
and
andobjectives
objectives
Identify
Identifyfuture
futurehuman
human
resource
resourcerequirements
requirements

HUMAN
HUMANRESOURCE
RESOURCE
PLANNING
PLANNINGMODEL
MODEL

Compare
Comparewith
withthe
the
current
currentHR
HRinventory
inventory

Determine
Determinethe
thenumbers,
numbers,
levels
levels&&criticality
criticalityof
ofvacancies
vacancies
Analyze
Analyzethe
thecost
cost&&time
timeinvolved
involved
in
inmanaging
managingthe
thedemand
demand
Choose
Choosethe
theresources
resources&&
methods
methodsof
ofrecruitment
recruitment

Determine
Determinethe
theredundant
redundant
numbers
numbers
Analyze
Analyzethe
thecost
cost&&time
time
required
requiredfor
formanaging
managingsurplus
surplus

Redeploy
Redeploy

Retrench
Retrench

Assessing current human


resources and making
inventory
Job analysis
HR inventory HRIS
Generate a fairly accurate
picture existing situation

Forecasting
Compare future needs with
current availabity
Analyze companies change
plan
Forecasting methods used
are Time Series Analysis,
Regression Analysis and
Productivity Ratios

Matching the inventory with


future requirements
If the current inventory
exceeds the future
requirements
Natural attrition cannot bring
down resource to match
What to consider then????

MANAGING THE FORECASTED


DEMAND / SURPLUS
Managing
Managing future
future demand
demand
Managing
Managing Future
Future Surplus
Surplus

Dealing With Surplus


Manpower
Retrenchment
Retrenchment
outplacement
outplacement
layoffs
layoffs
Leave
Leaveof
ofabsence
absencewithout
withoutpay
pay
Loaning
Loaning

Work
WorkSharing
Sharing
Reduced
Reducedwork
workhours
hours
Early/voluntary
Early/voluntaryretirement
retirement
attrition
attrition

Growing importance
of HRP

Thank you