HRM .PPT Unit 1
HRM .PPT Unit 1
Unit -I
Dr.S.Prabakar
Unit ʹI - INTRODUCTION
m an reso rce anageent (m is the strategic and coherent
approach to the anageent of an organization's ost val ed assets -
the people working there who individ ally and collectively contrib te
to the achieveent of the objectives of the b siness.
The ters "h an reso rce anageent" and "h an reso rces"
(m have largely replaced the ter "personnel anageent" as a
description of the processes involved in anaging people in
organizations.
In siple words, m eans eploying people, developing their
capacities, tilizing, aintaining and copensating their services in
t ne with the job and organizational req ireent.
In other words, m is concerned with getting better res lts with the
collaboration of people. It is an integral b t distinctive part of
anageent, concerned with people at work and their relationships
within the enterprise.
m helps in attaining axi individ al developent, desirable
working relationship between eployees and eployers, eployees
and eployees, and effective odeling of h an reso rces as
contrasted with physical reso rces.
It is the recr itent, selection, developent, tilization,
copensation and otivation of h an reso rces by the organization.
Definition
m
m can be tho ght of anaging the total knowledge,
skills, creative abilities, talents, and attit des of an
organizational work force as well as their val es, attit des
and believes of the individ als involved.
Personnel anageent
It is a responsibility of all those who anage people as
well as being the description of the work and its concerned
with the eployees both as individ als and as gro ps in
attaining the goals concerned with behavioral, eotional
and social aspects of the personnale.
ñiff r c b tw H M a d PM:
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ontracts aref l delineation of Aied to go beyond the
written contracts contract
les lear les Ipatient with the r les
G ide to anageent Proced res B siness Need
action
anagerial Task onitoring N rt ring
Behavioral eferent Nors/ Val es / issions
stos/Practices
Key elations Labor anageent stoer
Speed of decision Slow Fast
anagerial ole Transaction Leadership Transforational Leader
ship
Key anagers Personnel/I Specialist General/B siness Line
anagers
o nication Indirect Direct
Selection Separate anagerial task Integrated key task
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5 In India there are m ain areas of professional disciplines in
m naely
Labor welfare
Ind strial relations
Personal adinistration
6 Fro the description d ties of a welfare officer given in r le 7 of
the odel central welfare officer r le, 1951, he not only of
ind strial relations and personnel anageent at the factory
level.
7 In the recent years, owning to a n ber of welfare eas res
being stat tory iposed, his d ties in ind strial relations and
per adinistration has decreased.
8 As a res lt welfare officer is fast fielding a place to the personnel
officer in any establishents and to develop h an reso rces
m and mD anagers have started evolving
9 In soe organization were there are ore than 1 officer the
trend is towards reg lating the welfare f nction to a j nior
officer with a senior stat s of personnel officer
- l ti f H M i Idia
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1920 -19m0 Beginning Stat tory Welfare lerical
and Paternalis
1940 Ȃ 1960 Str ggling to Introd ction of Adinistration
recognition Technology
1970 Ȃ 1980 Achieving eg latory and anagerial
Sophistication iposition of
standardization of
other f nctions
1990 -2000 Proising m an Val es and xec tive
Prod ctivity
thro gh people
After 2000 hallenging One to One People Leader
anageent Facilitations
mum n Resource n gement: N ture
m an eso rce anageent is a process of bringing
people and organizations together so that the goals of each are
et. The vario s feat res of m incl de:
Ȉ Its foc s is on res lts rather than on r les.
Ȉ It tries to help eployees develop their potential f lly.
Ȉ It enco rages eployees to give their best to the organization.
Ȉ It is all abo t people at work, both as individ als and gro ps.
Ȉ It tries to p t people on assigned jobs in order to prod ce good
res lts.
Ȉ It helps an organization eet its goals in the f t re by
providing for copetent and well-otivated eployees.
Ȉ It tries to b ild and aintain cordial relations between people
working at vario s levels in the organization.
Ȉ It is a ltidisciplinary activity, tilizing knowledge and inp ts
drawn fro psychology, econoics, etc.
mum n Resource n gement: Scope
The scope of m is very wide:
1. Personnel aspect-This is concerned with anpower
planning, recr itent, selection, placeent, transfer,
prootion, training and developent, layoff and
retrenchent, re neration, incentives, prod ctivity etc.
2. Welfare aspect-It deals with working conditions and
aenities s ch as canteens, creches, rest and l nch roos,
ho sing, transport, edical assistance, ed cation, health
and safety, recreation facilities, etc.
m. Ind strial relations aspect-This covers nion-anageent
relations, joint cons ltation, collective bargaining,
grievance and disciplinary proced res, settleent of
disp tes, etc.
m an eso rce anageent: Beliefs
The m an eso rce anageent philosophy is based on the
following beliefs:
Ȉ m an reso rce is the ost iportant asset in the organization
and can be developed and increased to an nliited extent.
Ȉ A healthy cliate with val es of openness, enth sias, tr st,
t ality and collaboration is essential for developing h an
reso rce.
Ȉ m can be planned and onitored in ways that are beneficial
both to the individ als and the organization.
Ȉ ployees feel coitted to their work and the organization, if
the organization perpet ates a feeling of belongingness.
Ȉ ployees feel highly otivated if the organization provides for
satisfaction of their basic and higher level needs.
Ȉ ployee coitent is increased with the opport nity to
dis¬cover and se one's capabilities and potential in one's work.
Ȉ It is every anager's responsibility to ens re the developent and
tilisation of the capabilities of s bordinates.
O jecti es of mR in Gener l:
Ȉ To help the organization reach its goals.
Ȉ To ens re effective tilization and axi developent of h an
reso rces.
Ȉ To ens re respect for h an beings. To identify and satisfy the needs of
individ als.
Ȉ To ens re reconciliation of individ al goals with those of the
organization.
Ȉ To achieve and aintain high orale aong eployees.
Ȉ To provide the organization with well-trained and well-otivated
eployees.
Ȉ To increase to the f llest the eployee's job satisfaction and self-
act alization.
Ȉ To develop and aintain a q ality of work life.
Ȉ To be ethically and socially responsive to the needs of society.
Ȉ To develop overall personality of each eployee in its ltidiensional
aspect.
Ȉ To enhance eployee's capabilities to perfor the present job.
Ȉ To eq ip the eployees with precision and clarity in trans¬action of
b siness.
Ȉ To inc lcate the sense of tea spirit, tea work and inter-tea
collaboration.
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reation of eployent opport nities
axi prod ctivity
Affording aterial and ental satisfaction to the workforce
Avoidance of wastage of effort
Prootion of healthy h an relations and social welfare
1, 2
Provision for adeq ate re neration
Job sec rity
Training and developent
Job satisfaction
Opport nities for developent
Proper work environent
0 1, 2
ecr itent
Integration and aintenance of copetent and loyal eployee
Forecasting and balancing deand and s pply of labor
Placeent
/1, 2
ecognition of nions
For lation of m policies in cons ltation with the nions
Inc lcating the spirit of self discipline and co-operation
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1Acq isition F nction:
1.stiating the deand and s pply
2.ecr itent
m.Selection
4.Socialization of eployees
2Developent F nction:
1.ployee Training:
Skill developents
hange of attit des aong eployees
2.anagerial Developent:
Knowledge acq isition
nhanceent of an exec tives concept al skills
motivational F nctions:
Allienation
Perforance Appraisal
Behavio ral and Str ct ral Techniq es for sti lating
eployee perforance
Linking rewards to perforance
opensation and benefit adinistration
4aintenance F nctions:
Working conditions and working environent
aintenance of coitent aong eployees towards
the organization
mR Functions:
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a.Planning
m an reso rce
eq ireent/ecr itent
Selection
Training
b.Forecasting:
m needs
hanging Val es
Attit des
Behavio r of eployees
c.Organizing:
Str ct re and a process by which cooperative gro p
of h an beings with their task aong its ebers
identifying the relation and integrate its relationship towards
the coon objective
d.Directing:
otivating
o nicating
Leading
Activating People
e.ontrolling:
hecking
Verifying
opare the act al with the plans
Identification of deviation
onnecting the identified deviations
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a.ployent:
1.Job Analysis:
ollection of data, inforation and facts
Preparation of
Job Description
Job Specification
Job eq ireents
ployee Specification
Providing the g idance plans and basis for job design
2.m Planning:
stiation of the present and f t re req ireents of m
alc lation of net m req ireents
Taking steps to change, o ld and develop the strength of the
existing eployees
Preparation of action progras to get the rest of the m fro
o tside so rces
m.ecr itent:
Identification of the existing so rces of applicants
reation / Identification of new so rces of applicants
Sti lating the candidates to apply for the jobs
Striking a balance between the internal and external so rces
4.Selection:
Fraing and developing application fors
reating and developing valid and reliable testing
techniq es
For lating the interview techniq es
hecking of references
Setting p of the edical exaination policy and proced re
Getting the line anagers decisions
Sending letters for appointent / rejection
ploying the selected candidates who report for d ty
6.Placeent:
ons lting the f nctional anagers regarding placeent
ond cting follow p st dies
Appraising eployee perforance
Deterine eployee adj stent
orrecting isplaceents if any
7.Ind ction and Orientation:
Acq aint the eployee with the copany policies
Introd ce the eployee to the boss, s bordinates and peer gro ps
o ld the eployee attit de to the new working and social
environent
b.m an eso rce Developent:
1.Perforance Appraisal:
Developing policies, Proced res and techniq es
melping the f nctional anagers
eceiving and consolidating the PA reports
val ating the effectiveness of PA Syste
2.Training:
Identification of training needs
Developing s itable training progras
melping and advising the line anageent in the cond ct of
training progras
Iparting the req isite job skills and knowledge to the
eployees
val ating the effectiveness of the training progra
m.anagerial Developent:
Identification of the areas of the anagerial developent
ond cting developent progras
otivating the exec tives
Design the special developent progras for prootion
Using the service of the specialist for anagerial
developent
val ating the effectiveness
4.areer planning and developent:
Internal obility
Transfer
Prootion
Deotion
Organization Developent
c.opensation:
Job val ation:
Wage and salary adinistration
Incentives
Bon s
Fringe Benefits
Social Sec rity eas res
d.m an elations:
otivating the eployees
Iproving eployee orale
Developing coon skills
Developing leadership skills
edressing eployee grievances
mandling disciplinary areas
o nseling eployees
Iproving the q ality of worklife
e.ffectiveness of m
Organizational mealth:
ployee satisfaction
Labo r t rnover
Absenteeis
migher rate of eployee coitent
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Policies:
It is an ade r le of predeterined co rse of action that is
established to g ide the perforance of work towards the
organizational objective.
m Policies:
It refers to the principles and r les of contact which
for late, redefine, break into details and decide a n ber of
actions that govern the relationship with eployees in the
attainent of organizational objectives
Need for m Policies:
Scarcity of an power d ring the world war I
Scientific anageent oveent by F.W. Taylor
Applications of principles and psychology to the sol tion to
h an probles in b siness
Need for consistency in dealing with nions
Passing of n ber of welfare of copensation legislations
Objectives:
nable an organization to attain objectives
To ens re eployee cooperation
To provide conditions of eployent and proced re
To provide adeq ate trained personnel at all levels
To provide and project the coon interest of all stake holders of
b siness
To recognize the role of trade nions
To provide sec rity of eployent for the eployees
To create a sense of responsibility
To establish conditions of t al confidence.
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1. The m an eso rce Inforation Syste (mIS is a software or
online sol tion for the data entry, data tracking, and data
inforation needs of the m an eso rces, payroll, anageent,
and acco nting f nctions within a b siness. Norally packaged as a
data base, h ndreds of copanies sell soe for of mIS and every
mIS has different capabilities. Pick yo r mIS caref lly based on the
capabilities yo need in yo r copany.
2. Typically, the better The m an eso rce Inforation Systes (mIS provide
overall:
* anageent of all eployee inforation.
* eporting and analysis of eployee inforation.
* opany-related doc ents s ch as eployee handbooks, eergency
evac ation proced res, and safety g idelines.
* Benefits adinistration incl ding enrollent, stat s changes, and personal
inforation pdating.
* oplete integration with payroll and other copany financial software and
acco nting systes.
* Applicant tracking and res e anageent.
m. The mIS that ost effectively serves copanies tracks:
* attendance and PTO se,
* pay raises and history,
* pay grades and positions held,
* perforance developent plans,
* training received,
* disciplinary action received,
* personal eployee inforation, and occasionally,
* anageent and key eployee s ccession plans,
* high potential eployee identification, and
* applicant tracking, interviewing, and selection.
4. An effective mIS provides inforation on j st abo t anything the
copany needs to track and analyze abo t eployees, forer
eployees, and applicants. Yo r copany will need to select a m an
eso rces Inforation Syste and c stoize it to eet yo r needs.
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1.In a copany with tho sands of eployees, it is easy to lose track of the
processing costs for, say, a single tie off req est. B t losing track doesnǯt ean
the cost j st goes away, and any h an reso rce anageent professionals
wo ld be appalled to find o t how ch oney is chipped off their botto
line every tie a siple eployee transaction Ȃ like a req est for tie off Ȃ
goes thro gh.
2.This type of cost is practically a negligible s when all of the other eployee-
related costs are added p. Take a scenario (and it is probably tr e for yo r
copany in which a tie off req est costs a copany ninety five dollars, and
yearly expendit re on aintenance edges p to alost two tho sand dollars.
m.A copany that is not eq ipped with the appropriate software for anaging its
h an reso rces is bo nd to lose o t on profits j st as ch as prod ctivity,
siply beca se there is no coherent database to prod ce definite res lts on the
cost of h an capital anageent.
4.At a certain point it becoes inevitable that a copany seeking to aintain its
copetitive edge will have to pay into an inforation processing syste in
order to anage its workforce. After all is said and done, the investent will be
a wise one. This is ade all the ore clear when the eployer recognizes that
his or her workforce is the b sinessǯ ost vital asset. The way the technology
works is tr ly aazing and, at the price of so nding a bit over ex berant, it
co ld be said that a good m progra can ore or less be eq ated to having
the entire m departent on line.
5. What it does is create a platfor that spans the entire enterprise so that
nothing is left nanaged. It incl des everything fro r nning eployee pay
and benefits to s pervising eployee responsibilities, new hires and talent
developent.
6. Indeed, a m an eso rces anageent software syste helps ake the
process ore efficient and ltiately proves to be very cost effective.
7. ajor organizations offering m services have already had incredible s ccess
in t rning aro nd savings by red cing the cost of their m processes.
8. Instead of reaining coitted to a few antiq ated in-ho se progras and an
overworked m an eso rces departent, it is probably tie to switch to
m on line.
9. Generally, an organization providing m will provide a cons ltant to ake
s re that the process of switching over goes as soothly as possible.
10. A ajor coponent of cons ltation involves giving sef l instr ction and
ed cation to the staff that will be sing the m services.
11.The other iportant aspect of the cons ltantǯs services involves application
c stoization so that the m syste's od lar systes integrate across the
board to provide a sol tion for the enterprise's needs.
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1. The role of the m an eso rce anager is evolving with the change in
copetitive arket environent and the realization that m an eso rce
anageent st play a ore strategic role in the s ccess of an organization.
2. Organizations that do not p t their ephasis on attracting and retaining
talents ay find theselves in dire conseq ences, as their copetitors ay be
o tplaying the in the strategic eployent of their h an reso rces.
m. With the increase in copetition, locally or globally, organizations st
becoe ore adaptable, resilient, agile, and c stoer-foc sed to s cceed. And
within this change in environent, the m professional has to evolve to
becoe a strategic partner, an eployee sponsor or advocate, and a change
entor within the organization.
4. In order to s cceed, m st be a b siness driven f nction with a thoro gh
nderstanding of the organizationǯs big pict re and be able to infl ence key
decisions and policies.
5. In general, the foc s of todayǯs m anager is on strategic personnel retention
and talents developent. m professionals will be coaches, co nselors,
entors, and s ccession planners to help otivate organizationǯs ebers
and their loyalty.
6.The m anager will also proote and fight for val es, ethics, beliefs, and
spirit ality within their organizations, especially in the anageent of
workplace diversity.
Soe of the copetitive challenges are disc ssed below:
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In order to effectively anage workplace diversity, ox (199m
s ggests that a m anager needs to change fro an ethnocentric view
("o r way is the best way" to a c lt rally relative perspective ("let's take
the best of a variety of ways".
This shift in philosophy has to be ingrained in the anagerial
fraework of the m anager in his/her planning, organizing, leading
and controlling of organizational reso rces.
As s ggested by Thoas (1992 and ox (199m, there are several
best practices that a m anager can adopt in ens ring effective
anageent of workplace diversity in order to attain organizational
goals. They are:
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One of the best ways to handle workplace
diversity iss es is thro gh initiating a Diversity entoring Progra. This co ld
entail involving different departental anagers in a entoring progra to
coach and provide feedback to eployees who are different fro the.
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With this trend in place, a m anager st
be able to organize the pool of diverse talents strategically for the organization.
me/She st consider how a diverse workforce can enable the copany to
attain new arkets and other organizational goals in order to harness the f ll
potential of workplace diversity.
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A m anager needs to advocate a diverse workforce
by aking diversity evident at all organizational levels. Otherwise,
soe eployees will q ickly concl de that there is no f t re for the
in the copany. As the m anager, it is pertinent to show respect for
diversity iss es and proote clear and positive responses to the.
A m anager st cond ct reg lar
organizational assessents on iss es like pay, benefits, work
environent, anageent and prootional opport nities to assess
the progress over the long ter. There is also a need to develop
appropriate eas ring tools to eas re the ipact of diversity
initiatives at the organization thro gh organization-wide feedback
s rveys and other ethods. Witho t proper control and eval ation,
soe of these diversity initiatives ay j st fizzle o t, witho t resolving
any real probles that ay s rface d e to workplace diversity.
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Why do we need otivated eployees? The
answer is s rvival (Sith, 1994. In o r changing workplace and
copetitive arket environents, otivated eployees and their
contrib tions are the necessary c rrency for an organizationǯs s rvival
and s ccess. otivational factors in an organizational context incl de
working environent, job characteristics, appropriate organizational
reward syste and so on.
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aintaining a balance between the jobs available and job speakers
Provide s itable and prod ctive eployent with psychological satisfaction
liinating wastages or iproper se of m
melping people ake their own decision
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