Human Resource Management

Definition
HRM focuses on staffing function. HRM is the process of acquiring, training, appraising and compensating employees and of attending their labor relations, health and safety and fairness concerns.

Evolution Of HRM in India

Period
1920s1930s 1940s1960s 1970s1980s 1990s

Development Emphasis Status

Beginning Struggling for Recognition Achieving sophistication Promising Welfare Introduction to techniques Regulatory, confirming Human values, productivity through people

Status
Clerical
[employment & dismissal of workers]

Administrative
[leave, bonus, retirement]

Managerial
[housing, medical recreational activities]

Executive
[formulating policies, T&D programs, MDPs]

Approaches to HRM
Scientific Management Approach (1910) Human Relation Approach (Hawthorne Studies 1930)

Limited Approach due to the following reasons:

o Scientific Management failed to recognize that money was not the only motivating factor. Also workers had few opportunities to use their judgment or make their own decisions. o Human Relations Approach did not recognize individual differences. Something's that motivate others may not have the same impact on others. o Failed to recognize factors of employee satisfaction, and productivity, career development, career planning etc. o Failed to recognize job structures, work rules, procedures etc.

Human Resource Approach

Principles: Employees are assets of organisation. The resources involved in developing them are investments made by the organisation. It is necessary to maintain conducive environment for them.
Employee Motivation

Employee Rewards

Employee Performance

Organizational Performance

PM v/s HRM
Personnel Management
Management of people employed

Human Resource Management

Management of employees skills, knowledge, abilities, talents aptitudes, creative abilities etc.

Employee treated as a economic Treated as a economic, social & man psychological man

Employee treated as a commodity/tool/equipment

Employee is treated as cost centre. Employee used for organizational benefit

Employee is treated as a resource.

Employee is treated as a profit centre. mutual benefit of the organization and employee.

PM treated as a subsidiary function

HRM treated as a Strategic Management Function

Myths and realities of HR people

OLD MYTHS People join HR because they like people. Any one can do HR function NEW REALITIES Practice HR to make employees more competitive not comfortable. Activity based on theory and research

They deal with soft side of business HR professional must know how to translate their work into financial performance Focus on cost, must be effective Job of policy police. Is a fad Performed by nice people Must add value not reduce cost. Make employees feel committed not happy Explains work with less jargons and more authority Should be challenging, and also supportive. Should force rigorous debates.

Disciplines Contributing to HRM

Organization Behavior

Personnel Management

Industrial Relations & Labor Legislations

Functions of HRM
Vision of an Organization Mission of an Organization HRM Objectives Strategies & Policies of HRM

Managerial Functions of HRM

Operative Functions of HRM (contd)

Planning

Organizing

Directing

Controlling

Operative Functions is HRM

Operative Functions of HRM Compensation Management Employee relations

Employment

HRD

Human Resource Planning

Performance Appraisal

Job Evaluation

Motivation

Recruitment

Training

Wages & Salary Administration

Job Satisfaction

Selection

Management Development Career Planning & Development

Fringe Benefits

Communication

Induction

Grievance Handling

Placement

Role of HR Department
As a Specialist

As a facilitator

As a change Agent

As a controller

HR role can be classifies as

Strategic role: should aim to support business strategy. Legal role: to be knowledgeable about legal aspects of business strategies.

Operational role: involves smooth running of the organization.

Achieving balance
Frequently occurring tensions between Strategic v/s Operational Employer v/s Employee Corporate policeman v/s operational player

AN INTEGRATED EFFORT:
INTEGRATION OF INTEREST OF EMPLOYEES AND MANAGEMENT
EMPLOYEES INTEREST Recognition as an individual MANAGEMENTS INTEREST Lowest unit personnel cost

Opportunity for expression & development

Economic security Interest in work

Maximum productivity of employees

Availability & stability of employees Loyalty of employees

Safety healthy working conditions

Acceptable hours of work & adequate wages Fair & efficient leadership

Co-operation of employees
High organizational morale Intelligent initiative of employees

Aims of HRM

Strategy Formulation

Mission
- reason for being

Strategy Formulation

Mission
- reason for being

Goals
- what it hopes to achieve

Strategy Formulation
External Analysis
- opportunities - threats

Mission
- reason for being

Goals
- what it hopes to achieve

Internal Analysis
- strengths - weaknesses

Strategy Formulation
External Analysis
- opportunities - threats

Mission
- reason for being

Goals
- what it hopes to achieve

Strategic Choice
- ways to fulfill goals and mission

Internal Analysis
- strengths - weaknesses

Strategy Formulation
External Analysis
- opportunities - threats

Mission
- reason for being

Goals
- what it hopes to achieve

Strategic Choice
- ways to fulfill goals and mission

Internal Analysis
- strengths - weaknesses

HR Input

The Role of HR in Strategy Formulation

Administrative Linkage

Strategic Planning

HR Function

The Role of HR in Strategy Formulation

Administrative Linkage One-Way Linkage

Strategic Planning

Strategic Planning

HR Function

HR Function

The Role of HR in Strategy Formulation

Administrative Linkage One-Way Linkage Two-Way Linkage

Strategic Planning

Strategic Planning

Strategic Planning

HR Function

HR Function

HR Function

The Role of HR in Strategy Formulation

Administrative Linkage One-Way Linkage Two-Way Linkage Integrative Linkage

Strategic Planning

Strategic Planning

Strategic Planning

Strategic Planning

HR Function HR Function HR Function HR Function

Strategic HR Management

Strategic Choice

Strategic HR Management

HR Practices - recruitment - training - performance management - labor relations - HR planning - job analysis - job design - selection - development - pay structure - incentives - benefits

Strategic Choice

HR Needs - skills - behaviors - culture

HR Capability - skills - abilities - knowledge

HR Actions - behaviors - results

Strategic HR Management

HR Practices - recruitment - training - performance management - labor relations - HR planning - job analysis - job design - selection - development - pay structure - incentives - benefits Firm Performance - productivity - quality - profitability

Strategic Choice

HR Needs - skills - behaviors - culture

HR Capability - skills - abilities - knowledge

HR Actions - behaviors - results

Emergent Strategies

Product Life Cycle and Operating Strategies

Growth

Maturity

Sales

Formation

Porter strategies

Differentiation

Cost Leadership

HR needs in Strategy Formulation

HR Role
Focus of firm

Differentiation
- creative, risk-taking

Cost Leadership
- efficiency

Employee role
Training Staffing Compensation Performance management

- broader tasks creative risk-takers - broad career paths

- recruit more from outside - external pay equity - results-oriented

- specific & repetitive

- specific/short-term skills - promote internally - internal pay equity - behavior-oriented

Product Life Cycle and Directional Strategies

Concentration

Sales

Downsizing

HR needs in Directional Strategies

HR Role
Internal Focus of firm - build on strengths

Growth
External - acquire companies

Training
Staffing Compensation Performance management

- varied needs
- hire and promote - incentive targets - behavior & results-oriented

- conflict resolution
- integrate new cultures acquire new skills - standardize practices - standardize practices

HR needs in Directional Strategies

HR Role

Concentration

Downsizing

Focus of firm

- things they do best

- retrenchment

Training
Staffing Compensation Performance management

- sharpen current skills - promote from within

- internal pay equity - behavior-oriented

- replace depleted skills

- need for flexibility, keep morale up - tie to company success - performance-based

Achieving alignment
Start-up
Attraction

Maturity
Emphasis on
Ensuring smooth running of policies and procedures Maximum output

decline
Hr change management

Recruitment Initial job training

Launch initiatives Reduce cost Protect business position

Human Resource Competencies

Business Competence

Professional & Technical Knowledge

HR Professional

Integration Competence

Ability to Manage Change

Constitutes of Good HR practices

Any practices that deals with enhancing Competencies, Commitments and Culture building can be considered an HR practice. Any practice can take form of system, process, activity, norm, rule or an accepted habit. All three Cs are needed for an organisation to function.

Strategic Human Resource Management

SHRM means formulating and executing human resource policies and practices that produce employee competencies and behavior the company needs to achieve its strategic aims. Management formulates strategic plans. Strategic plan implies workforce requirement. Given these workforce requirements, human resource management formulates HR strategies (policies and procedures)

Human Resource Management Processes

Acquisition Fairness Training

Health and Safety

Human Resource Management (HRM)

Appraisal

Labor Relations

Compensation

Understanding the Nature & Scope of Human Resource Management

HR Planning
Job analysis & design Recruitment & Selection Orientation & Placement Training & Development Performance appraisal & Job Evaluation Employee & Executive Remuneration

Motivation & Communication

Welfare, Safety & Health Industrial Relations

Job Analysis

What is a Job?
Job A group of related activities and duties Position The different duties and responsibilities performed by only one employee Job Family Job A group of individual jobs with similar characteristics Job

Job

Job

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Job Analysis
Goal
Determine the duties and responsibilities of a particular job Determine how the job relates to other jobs and the level of importance of the job Determine the necessary qualifications in order to perform the job Determine the working conditions associated with the job.

Basics of JA
Work activities Human behavior Machines, tools, equipments and work aids. Performance standards Job context Human requirements

Definitions (Continued)
Job analysis - Systematic process of determining the skills, duties, and knowledge required for performing jobs in an organization Job description document providing information regarding tasks, duties, and responsibilities of job Job specification minimum qualifications to perform a particular job

Nature of:

Determining Job Requirements

Basis for:
Determining job requirements

Job Analysis
What employee does Why employee does it How employee does it

Job Description
Summary statement of the job List of essential functions of the job Employee orientation Employee instruction Disciplinary action

Job Specification
Personal qualifications required in terms of skills, education and experience Recruitment Selection Development

Job Analysis: A Basic Human Resource Management Tool

USES OF JA Human Resource Planning

Tasks

Responsibilities

Duties

Recruitment
Selection Training and Development

Job Descriptions

Job Analysis

Performance Appraisal

Job Specifications

Compensation and Benefits Safety and Health

Legal Considerations

Knowledge

Skills

Abilities
46

Job Requirements
Recruitment

Relationship of Job Requirements to Other HRM Functions

Determine recruitment qualifications

Selection Performance Appraisal Training and Development Compensation Management

Provide job duties and job specifications for selection process

Provide performance criteria for evaluating employees Determine training needs and develop instructional programs Provide basis for determining employees rate of pay

 What is analyzed?
Work activities Working conditions Supervisors Location Schedule Machines and equipment

Who is involved in the job analysis?

Management Supervisors Job analysts Unions Consultants

Process of Job Analysis

Organizational analysis: To find the interrelationships between jobs and contribution to various jobs. Selection of positions to be analyzed: to select representative sample Collection of data: Use several techniques Preparation of Job Description Preparation of Job Specification

The Process of Job Analysis

PAO

Gathering Job Information

Interviews Critical incident method

Task inventory method Observation Position analysis questionnaire (PAO)

Methods of collecting information

Position Analysis Questionnaire (PAQ)
A copyrighted questionnaire that is used to determine the degree to which different tasks are involved in performing a particular job.

Critical Incident Method

Job analysis method by which job tasks are identified that are critical to job success.

Task Inventory Analysis

Job analysis in which organisation develops a questionnaire of customised task statements.

A Sample Page from the PAQ

Task Inventory Analysis

This technique is pioneered by the US Air Force to analyse the jobs held by air force specialists. Unlike PAQ, this task inventory questionnaire is tailor made. TIQ is prepared by identifying a list of tasks and their descriptions that are components of different jobs. The goal is to produce a comprehensive list of task statements that are applicable to all jobs. Task statements are then listed on a task inventory survey form to be completed by the job analyst. A task statement might be Inventories current supplies to maintain stock levels

Techniques of collecting information

Interview Guidelines
Quickly establish rapport with the interviewee. Preferably follow structured guidelines or checklist. Ensure that you dont overlook crucial but infrequently performed activities. After completing the interviews verify the data. Observation - Information is collected merely by observing his job. This method is useful when jobs consist mainly of observable physical activities.eg: accounting clerk, assemblyline worker.

Questionnaire List of questions are given to the incumbent to answer.

Methods of Collecting Job Analysis Information: The Interview

Information sources
Individual employees Groups of employees Supervisors with knowledge of the job

Interview formats
Structured (Checklist) Unstructured

Advantages
Quick, direct way to find overlooked information.

Disadvantages
Distorted information

Interview Guidelines
The job analyst and supervisor should work together to identify the workers who know the job best. Quickly establish rapport with the interviewee. Follow a structured guide or checklist, one that lists openended questions and provides space for answers. Ask the worker to list his or her duties in order of importance and frequency of occurrence. After completing the interview, review and verify the data.

Methods of Collecting Job Analysis Information: Questionnaires

Information source
Have employees fill out questionnaires to describe their job-related duties and responsibilities.

Advantages
Quick and efficient way to gather information from large numbers of employees

Questionnaire formats
Structured checklists Opened-ended questions

Disadvantages
Expense and time consumed in preparing and testing the questionnaire

Methods of Collecting Job Analysis Information: Observation

Information source
Observing and noting the physical activities of employees as they go about their jobs.

Advantages
Provides first-hand information Reduces distortion of information

Disadvantages
Time consuming Difficulty in capturing entire job cycle Of little use if job involves a high level of mental activity.

Writing Job Descriptions

A job description
A written statement of what the worker actually does, how he or she does it, and what the jobs working conditions are.

Sections of a typical job description

Job identification Job summary Responsibilities and duties Authority of incumbent Standards of performance Working conditions Job specifications

Preparing the Job Description

Interview Questionnaire
Job Analyst Interview Questionnaire Observation Employees Supervisor Securing consensus Final Draft

Combine and reconcile data

Tentative draft

Key Elements of a Job Description

Job Title
Indicates job duties and organizational level

Job Identification
Distinguishes job from all other jobs

Essential Functions (Job Duties)

Indicate responsibilities entailed and results to be accomplished

Job Specifications
Skills required to perform the job and physical demands of the job

Job Descriptions
Job Title
Provides status to the employee. Indicates what the duties of the job entails. Indicates the relative level occupied by its holder in the organizational hierarchy.

Job Descriptions (contd)

Job Identification Section
Departmental location of the job Person to whom the jobholder reports Date the job description was last revised Payroll or code number Number of employees performing the job Number of employees in the department where the job is located

Job Descriptions (contd)

Job Duties, or Essential Functions
Are arranged in order of importance that indicate the weight, or value, of each duty; weight of a duty is gauged by the percentage of time devoted to it. Relationship to other jobs Stress the responsibilities that duties entail and the results to be accomplished. Indicate the tools and equipment used by the employee in performing the job. Conditions of work locations time, posture, health hazard etc.

Job Specifications
Job Section
Personal qualifications an individual must possess in order to perform the duties and responsibilities
The skills required to perform the job:
Education or experience, specialized training, personal traits or abilities, interpersonal skills or specific behavioral attributes, psychological characteristics

Demographics - sex, age, language, ability to read write and speak particular
language.

JOB ANALYSIS

EMPLOYMENT

JOB EVALUATION

JOB DESIGN

TRAINING

APPRAISAL

JOB EVALUATION WAGE SURVEY

JOB ENRICHMENT ALTERNATIVE WORK SCHEDULE

ESTABLISHING FORMAL JOB REQUIREMENTS

ON-THE-JOB DEVELOPMENTS PERFORMANCE APPRAISAL EQUITABLE COMPENSATION SYSTEM

RECRUITMENT

SELECTION

Job Design approaches

Job Rotation: systematically moving workers from one job to another to enhance work team performance &/or broaden his experience & identify strong & weak points. Job Engineering: focuses on the task to be performed, methods to be used, workflows among employees, layout of workplace, interdependencies among people and machine

Job Enlargement: assigning workers additional samelevel activities, thus increasing the number of activities they perform. (instead of just one lousy job, I have two)

Job Design approaches

Job Enrichment: redesigning jobs in a way that increases the opportunities for the worker to feel responsible, growth & recognition (by planning and controlling his work)

Job evaluation: is a process of determining the relative worth of one job in relation to that of another.

Job Design approaches

Low

Jon enrichment impact

medium

Job enlargement Job engineering Job rotation Low medium complexity high

high

Job Enlargement = same-level activities

Job Rotation = moving from one job to another

Job Enrichment = redesigning to experience more responsibility, achievement, growth and recognition
Job Evaluation = determine the relative worth

Competency-Based Job Analysis

Competencies
Demonstrable characteristics of a person that enable performance of a job.

Competency-based job analysis

Describing a job in terms of the measurable, observable, behavioral competencies (knowledge, skills, and/or behaviors) an employee must exhibit to do a job well.

Examples of competencies
General competencies: reading, writing, mathematical reasoning Leadership competencies: strategic thinking, leading, communicating Technical competencies: programing

Using internet for JDs

O*Net allows users to see the most important characteristics of various occupations, as well as the experience, education and knowledge required to do each job well.