HUMAN RESOURCE MANAGEMENT

INTRODUCTION
First Who…Then What…. they first got the right people
on the bus, the wrong people off the bus, and the right
people in the right seats—and then figured out where to
drive it. The old adage “People are your most important
asset” turns out to be wrong. People are not your most
important asset. The right people are.”

- Jim Collins, Good To Great

 History of HRM

• Industrial revolution

• Scientific Management

• Trade Unionism

• Human Relations Movement

• Human Resources Approach

 Definition

Human Resource Management (HRM) is the

process of acquiring, training, appraising,
and compensating employees and attending
to their labor relations, health and safety,
and fairness concerns.
HRM is Important to all Managers.
Don’t Let These Happen to You!
• The wrong person
• High turnover
• Poor results
• Useless interviews
• Court actions
• Salaries appear
unfair
• Poor training
• Unfair labor practices
 Objectives of HRM
• Help organization reach its goals
• Employ skills & abilities of workforce
efficiently
• Provide orgnsn. with well trained &
motivated workforce
• Increase employee satisfaction & self
actualization
• Develop & maintain quality of work life
• Communicate HR policies to employees
• Help maintain ethical policies & Behavior
Importance of HRM

• At the Enterprise Level:

– Attracting & Retaining best people

• At the Individual Level:

– Promotes team spirit
– Offers growth opportunities
– Inculcates diligence & commitment

• At the Society Level:

– Multiply Employment opportunities
– Scarce talent put to best use
 Acquisition

Maintenance Development

Motivation
Changing Role of HR Executives

HR roles

OPERATIVE MANAGERIAL

Employment Planning
HRD Organizing
Compensation Directing
Employee relations Controlling
 The HR Functions
Operative Functions
• Employment
• Human Resource
Development
• Compensation
• Employee Relations
 The HR Functions
Managerial Functions
• Planning
• Organizing
• Staffing
• Directing
• Controlling
Structure of HR Department
Line and Staff Aspects of
HRM
• Authority
– Making decisions
– Directing work
– Giving orders
• Line Managers
– Accomplishing goals
• Staff Managers
– Assisting and advising line
managers
Line Manager’s HRM Jobs
• The right person
• Orientation
• Training
• Performance
• Creativity
• Working relationships
• Policies and procedures
• Labor costs
• Morale
• Protecting
Staff Manager’s HRM Jobs

• Service provider
• Facilitator
• Consultant
• Auditor
• Change Agent
• Employee advocacy
 HR’s evolving role

Current Future

Strategy 5% HR Transformation
Strategy 25%
25% Perf.
Enhancement

Less of the
workforce Performance
involved in Enhancement
30% Transactions administrative
functions.

More workforce
to concentrate Transactions 15%
on strategic
human capital
40% Administration
priorities Admin 10%
 Changing Workplace

Globally $36 trillion is derived from

companies’ Intellectual Capital Assets (ICAs)
representing more than 75% of their market
valuation.
PricewaterhouseCoopers

HR management is the responsibility of

every manager
Consequences of these basic
trends

Global expansion

Technology Companies
Uncertainty,
Strengths and must be Fast,
Turbulence,
Weaknesses Responsive, &
Rapid Change
Improved competition Cost-effective
Top Challenges Identified by CEOs
and Top HR Professionals
 HR’s evolving role
Protector Change Agent
&
Screener Strategic Partner

HR practitioners are ready to be:

•Strategic business partners in defining & sourcing human

capital requirements & investment to execute strategic plans

•Transformational specialists in evolving organizational

thinking and behaviors for growing ICAs

•Performance drivers for increasing human capital investor

 Strategic HRM

Strategic Human Resource Management is

the linking of the human resource function

with the company’s strategies to

accomplish that strategy.

 Strategic HRM
on
i ti
fin

Clarify the business

De

strategy

Evaluate and refine

Realign the HR
functions and key
people practices

Realization of business
strategies and results

Create needed competencies

and behaviors
HR manager as a strategic business
partner
Three dimensions are critical in
the design and practice of HR

Ethical behavior is
Many HR policies &
good business
Ethical procedures are driven
Public & customer Considerations in large part by a no of
relations employment laws
Employee morale Legal Compliance (or
& commitment Implications noncompliance) can
have a dramatic
Management self-
bottom-line impact
respect & pride in
achievement Bottom
Line Impact
The success of the HR function depends on the extent
to which HR managers see themselves as strategic
business partners
The HR manager as a strategic
business partner
• Sound HR policies
maximize each
Ethical
Considerations dimension

• The dimensions are

Legal
Implications not mutually exclusive
• They complement and

Bottom support each other

Line Impact
 The New Role of HR
Full range activities in typical HR departments
today include:

• Participating in business planning activities;

providing "what-if" assessments on various
scenarios, e.g., growth or merger;

• Co-ordinating and/or conducting

management and supervisory skills training
as well as technical training;
 The New Role of HR

• Designing and implementing employee

performance improvement and
communications programs;
• Initiating organisational development
activities such as career planning and
succession charting; and
• Providing in-depth counsel to managers
and supervisors regarding subordinate
performance problems.
 Trends in HR

• Strategic HR (SHRM)
• Outsourcing
• QWL
• Workplace Flexibility
• Virtual Teams
• Workforce Development
• Knowledge Management
• HR Branding
• Temping
 Trends in HR
• Global HR (GHRM)
- Expatriate Management
- Diversity Management
• HR metrics & scorecards
- PMS, HRD Audit, PCMM, HRA
• Technology & HR
– e-recruiting, e-training, HRIS
• Laws
– Harassment, discrimination
• Downsizing/Downshifting
Expatriate Management
• Global Staffing
• Selection
• Expatriation
• Training
- Cultural, Language, Practical
• Compensation
• Repatriation
 Diversity Management
“Being aware of characteristics common to employees, while also
managing employees as individuals”

Effective diversity management strategy has a positive effect on cost

reduction, creativity, problem solving, and organizational flexibility
 Human Resource Outsourcing
Activities traditionally performed by the HR dept,
done by external agencies

Reasons for HRO

P ercen tag e o f resp o n d en ts

Receive quicker response (58%)

Access to more information (64%)

Develop strategic focus (66%)

Access to expertise (82%)

Lower costs (88%)

0 20 40 60 80 100
( Source: www.accenture.com)
 Outsourcing

HR outsourcing forecasts by process in

Asia Pacific (In $ million for 2004)
Payroll services 761.20
Benefits 535.65
administration
Education & training 555.99
Recruiting & staffing 347.98
Personnel 167.16
administration
Other HR functions 191.97
Total 2,560.00
Source: Gartner
 Quality of Work Life

Term coined by Louis Davis

“The quality of relationship between employees

and the total working environment.”

“Extent to which the environment at work place

stimulates or hinders the productivity of the
employees.”
 Strategies for effective
QWL

• Safe & Healthy Work environment

• Effective Supervision & Management

• Effective Job Design

• Effective Reward & Compensation systems

• Growth & Development orientation

• Effective Interpersonal Relationships

• Effective Career Management

 Benefits of QWL programs

• Improved employee satisfaction

• Increased productivity
• Help in Talent Acquisition & Retention
• Decline in Counter productive behaviors like – turnover,
absenteeism,
• Positive work attitudes
• Learning & growth orientation
• Better employee participation
• Greater trust & loyalty
• Higher employee morale
• Better Industrial relations
Work Life - Balance
“Work-life balance is about people
having a measure of control over

when, where and how they work. It

is achieved when an individual's right

to a fulfilled life inside and outside

paid work is accepted and respected

as the norm, to the mutual benefit of

the individual, business and society.”

 QWL Initiatives
“QWL projects seek to not only improve productivity
but all aspects of life at work.”

• Flexi – time
• Tele – commuting
• Compressed workweeks
• Part-time jobs
• Job-sharing
• Phased and partial retirement schemes
• Sabbaticals & Leave options
• Stress Control Workshops
• Recreational Facilities
• Employee Fitness / Wellness Programs
 QWL Initiatives
• Parenting Assistance
• Elder care assistance
• Child care facilities
• Counseling
• Educational Counseling
• Financial Assistance
• Health Care
• Cafeteria Benefit plan
• Concierge services
• Bring your child to work day
• Fun at workplace