Chap-01 Introduction to HRM_removed.pptx

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1. Contents to be discussed 9 Definition of Human Resource and Human Resource Management (HRM) Why Employees are Superior to other Factors of Production? Functions of Human Resource Management (HRM) Philosophy of HRM Basic Principles of HRM Approach to Human Resource Management (HRM) Challenges of Modern Human Resource Management

2. Human resources are the personnel of a business or organization, regarded as a significant asset in terms of skills and abilities. Human resources are the people who make up the workforce of an organization, business sector, or economy. Human resource refers to the individuals or personnel or workforce within an organization responsible for performing the tasks given to them for the purpose of achievement of goals and objectives of the organization. 10

3. People are most valuable assets of an organization. It is people not other things that make an organization successful. What is Management? Management is a process of getting things done through others. Management is a set of activities consisting of planning, organizing, leading and controlling. Human Resource Management refers to the philosophy, policies, procedures and practices that are related to the management of people within an organization. 11

4. According to Robbins & Decenzo (2010) “HRM is a process of acquiring, retaining, developing, terminating and properly using the human resources in an organization” According to Flippo (1980) “HRM is planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance & separation of human resources to the end that individual, organizational and societal objectives are accomplished.” 12

5. Labor is viewed as technical factor of production: Employees are treated as a commodity and they can be bought and sold. They are considered as cogs in the machine. They can be hired and fired at will. Labor is Viewed as Human Factors of Productions: Labor has been viewed as a human factor with lot of positive potentials. So they must be treated with respect and dignity. People are asset not cost. Management must develop and utilize the talent of people to achieve common goals. 13

6. Support the organization in achieving its objectives by developing and implementing human resource (HR) strategies that are integrated with the business strategy; contribute to the development of a high- performance culture; ensure that the organization has the talented, skilled and engaged people it needs; create a positive employment relationship between management and employees and a climate of mutual trust; encourage the application of an ethical approach to people management. 14

7. Functions of Human Resource Management HR Managers are performing a variety of functions. The functional areas of HR managers are changing as the time goes on. The main functions of HRM includes : Human Resource Planning (HRP); Job Analysis; Recruitment; Selection; Placement ; Orientation; Training & Development; Job Evaluation; Performance Appraisal & Compensation. 15

8. Human Resource Planning (HRP) It is a process by which managers ensure that they have the right number and kinds of people in the right places at the right times, who are capable of effectively and efficiently completing the assigned tasks. Job Analysis Job analysis is the process of determining the tasks of the job & the knowledge, skills and abilities of an employee required to perform the job. 16

9. Recruitment attracting Recruitment is the process of finding & qualified applicants to fill the vacant position. Selection Selection is the process of hiring the best candidate for the job. Placement: Placement is the assignment or re- assignment of duties to an employment. 17

10. Orientation Orientation is a process of getting new employees acquainted with the organization, its culture, rules- regulation, objectives, supervisors and other employees. Training & Development Training is a process of increasing knowledge, skills & abilities to do the job properly. 18

11. Job Evaluation Job evaluation is a process of determining the relative value or worth of each job in relation to all other jobs within an organization. Performance Appraisal Performance appraisal is a process of measuring the actual performance comparing with the standard. 19

12. Compensation Compensation is the reward provided to the employees in exchange for doing the job. 20

13. Human being is the best creature of Allah. Management experts have tried to identify the basic qualities possessed by a human being. Human beings can think, imagine & feel; Human beings can be motivated & stimulated; Human beings have synergetic power; People have desire for involvement & Of all the factors of production only people can perceive 21

14. Human beings can think, imagine & feel: Human beings can think, imagine and feel. They have creative & innovative power. They have problem- solving ability. People contribute to new ideas, which are the foundation for any technological innovation. Human beings can be motivated & stimulated: Human beings can be motivated & stimulated. Experts believe that employee satisfaction leads to better performance. Happy workers are usually productive workers, a motivated worker works hard. 22

15. Human beings have synergetic power: Synergy means the whole is greater than the sum of its parts. Human beings can work together as a team and team performance is usually greater than the performance of individual. 23

16. People have a desire for involvement: They want to get involved in the relevant decisions. The organization must provide them opportunities for meaningful involvement. Of all the factors of production only people can perceive: Perception is the unique way in which each person sees, organizes, & interprets things. People look at the world and see things differently. 24

17. Deal with people as a complete individual Treat all employees with justice Do not underestimate the intelligence of other people Reward should be earned, not to be given Make people feel worthwhile and related Supply employees with relevant information Provide opportunities for growth Focus on group interest 25

18. Deals with people as a complete individual: Consider employee as a whole person. For example: The family life of an employee may have an effect on his working life. Treat all employees with justice: There should be no discrimination in terms of gender, color, race & religion. For example: The selection & placement process should be realized on the basis of equal opportunity principle. 26

19. Do not underestimate intelligence of other people: People have lot of positive potentials. So, they should be treated with respect & dignity. The objective of HR manager is to make the best use of human talent. Reward should be earned, not to be given: Reward may be monetary and non- monetary. If it is given, it becomes a gift or donation. For example: Students should earn good grade through hard work. 27

20. Make people feel worthwhile and related: People are the most valuable asset of an organization. Human beings want to be appreciated and like to feel important for something they have done well. Supply employees with relevant information: Secrecy may create confusion and misunderstanding. Information should be shared with employees. Provides opportunities for growth: According to Herzberg, employee growth is a motivational factor. All employees are expected to enhance knowledge, skills and competencies. Focus on group interest: According to Fayol, one of the basic principles of management is the subordination of individual interest to group interest. 28

21. The word approach includes ideas or actions intended to deal with a problem or situation. HRM may be discussed from the different approaches. These approaches define HRM from the different perspective: Strategic Approach; Human Resource Approach; Commodity Approach; Proactive Approach; Reactive Approach & System Approach. 29

22. Strategic Approach: Strategy is an action plan of doing something. People are the strategic assets of an organization. People have core competencies, which are the basis of gaining competitive advantage . Human Resource Approach: People are human beings with a lot of potentials and intellectual abilities. It is important to treat people with respect and dignity. 30

23. Commodity Approach: They are viewed People are just like commodity. as a cog of a machine. People can be hired & fired through money. There is a saying, “Money is sweeter than Honey” Proactive Approach: HR managers must anticipate challenges or problems before they arise. Prevention is better than cure. The proactive approach will save companies considerable time & money in the short and long run. 31

24. Reactive Approach: It occurs when decision makers respond to problem. Companies may lose time & money if they take reactive approach. System Approach: A system is a set of interrelated or inter- connected elements or parts working together or as a whole one. One part affects and be affected by the another. HRM is a system which may have different parts such as procurement, training, performance appraisal etc. 32

25. Changing mix of workforce Changing values of the workforce Changing demands of employees Introduction of new technology Outsourcing Changing demands of the environment Discrimination Conflict resolution 33

26. Changing Mix of Workforce Workforce diversity means that organizations are becoming a more heterogeneous mix of people in terms of gender, age, race, ethnicity and gender orientation. Diversified workforce is also an opportunity for an organization. Unity in diversity is the new business song. Changing Values of the Workforce New generation workforces are more educated & they prefer challenging and difficult jobs. High expectation can produce anger, frustration, disappointment and dissatisfaction if work experiences do not live up to values and expectations. 34

27. Changing Demands of Employees Contemporary employees are not only happy with the money, they demand more freedom and autonomy in the workplace. They are more concerned about intrinsic motivational factors such as challenging job, recognition & appreciation . They want more time for leisure, recreation and self- development . They would like to balance between work life & family life. 35 Introduction of New Technology New technology may lead to retaining or need to workers with specialist skills. Former typists have recruit become computer operators with the introduction of computer. Telecommunicating and remote reporting relationships are becoming norm rather than an anomaly.

28. Changing Market Changes in the purchasing pattern of consumers may affect the demand for labor. Changes in the economy can also affect human resource planning. In recession, a business is likely to reduce its workforce as demand for its products falls. Outsourcing It is the practice of hiring another firm to complete work that is important and must be done efficiently . Outsourcing refers to companies giving work to independent contractors outside the company rather than in house employees. Organizations should prefer outsourcing when outsourcing can ensure better quality at lower cost. 36

29. Discrimination HR manager must create a workplace free from any kind of discrimination. Since more employees are aware of their rights, a modern HR department may need to handle a potential increase in complaints about discrimination. Conflict Resolution Interpersonal conflict between co- workers as well as disagreement between employees and supervisors may happen for many reasons. It is common for HR managers to investigate complaints of verbal and physical harassment and they must need to resolve conflicts before they become serious or harmful. Is conflict always bad? 37

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