Functions of HRM.ppt

HRM

1. Functions of HRM

2. Function of Human Resource Management
•Humanresourcemanagementisconcernedwith
hiring,motivating,andmaintainingworkforce
withinbusinesses.
•AsperArmstrong(1997)HRMisdefinedas“a
strategicapproachtoacquiring,developing,
managing,motivatingandgainingthe
commitmentoftheorganization’skeyresources-
thepeoplewhoworkinandforit.”

3. FUNCTIONSOFHRM
MANEGERIAL
OPERATIVE
ADVISORY

4. Managerial Functions
•Planning
•Organizing
•Staffing
•Directing
•Controlling

5. 1.Planning
•Futurecourseofaction.
•Forahumanresourcemanager,planningmeans
thedeterminationofpersonnelprogramsthatwill
contributetothegoalsoftheenterprise.
•Demandandsupplyforecastingforeachjob.
•Identifyingnetshortageandexcessofmanpower.
•DevelopingHRpoliciesandprogrammes.

6. 2. Organizing
•Designning and developing organisation structure to
carry out the various operations.
•The organization structure basically includes the
following:
–Grouping of personnel activity logically into
functions or positions;
–Assignment of different functions to different
individuals;
–Delegation of authority according to the tasks
assigned and responsibilities involved;
–Co-ordination of activities of different individuals.

7. 3. Staffing
•Itistheprocessofobtainingand
maintainingcapable and competent
personnelinvarious positionsatall
levels,i.e. manpower planning,
recruitment,selection,placementand
induction.

8. 4. Directing
•The direction function of the personnel
manager involves encouraging people to
work willingly and effectively for the goals
of the enterprise.
–Motivation
–Leadership
–Communication
–Morale

9. 5. Controlling
•Controllingisconcernedwiththe
regulationofactivitiesinaccordancewith
theplans,whichinturnhavebeen
formulatedonthebasisoftheobjectives
oftheorganisation.
•Itinvolvesperformanceappraisal,critical
examinationofpersonnelrecordsand
statisticsandpersonnelaudit.

10. FUNCTIONSOFHRM
MANEGERIAL
OPERATIVE
ADVISORY

11. Operative Functions
1.Employment/Procurement
2.Development
3.Compensation
4.Maintenance
5.Motivation
6.Personnel Records
7.Employee Relations
8.Separation

12. 1.Employment
•EmploymentisthefirstoperativefunctionofHRM.This
involvesprocuringandemployingindividualswith
suitableknowledge,skills,experienceandaptitude
necessarytoperformvariousjobs.
•Thevariousfunctionsofemploymentare:
Jobanalysisanddesign
HRplanning
Recruitment
Selection
Placement
Induction

13. •JobAnalysisandDesign:Describingthe
responsibilitiesandminimumqualitiesrequiredto
performthejob.
•HumanResourcePlan:Determinationofright
peopleatrighttimeatrightposition.
•Recruitment:Recruitmentreferstotheprocessof
searchingforprospectiveemployeesandstimulating
themtoapplyforjobsinanorganization.
•Selection:Theprocessofchoosingthemostsuitable
peopleoutofacceptablecandidateswhohave
appliedforajobintheorganizationfrombothwithin
aswellasoutsidetheorganization.
•PlacementandInduction:Processtointroducenew
employeestoorganization.

14. 2.HRdevelopment
•Processofimproving,mouldingandchangingtheskills,
knowledgeandabilityofanemployee
HRdevelopmentinvolvesfunctionssuchas:
•Training–Trainingisthesystematicdevelopmentofknowledge,
skillsandattitudesrequiredtoperformagiventaskorjob
successfully,inanindividual.
•Managementdevelopment–Itistheconceptofdevelopingthe
employeesofanorganizationtomeetfuturechangesand
challenges.
•Careerplanninganddevelopment–Careerplanningand
developmentreferstoidentifyingone’scareergoalsand
formulatingplansforachievingthemthroughvariousmeanssuch
aseducationandworkexperience.
•Performanceappraisal–Thisistheprocessofevaluatingthe
performanceofanemployeeonthejobanddevelopingaplanfor
theemployee’simprovement.

15. 3. Compensation
•It includes all the rewards that an employee receives during the
course of his or her job–for his or her contributions to the
organisation. It includes:
Job evaluation –It is a systematic determination of the value
of each job in relation to other jobs in the organisation, in the
industry and in the market.
Wage and salary administration –It is the process of
formulating and operating a suitable wage and salary
programme.
Incentives –These are the rewards that an employee earns in
addition to regular wages or salary based on the performance
of the individual, the team or the organisation.
Fringe benefits –These are monetary and non-monetary
benefits given to employees during their employment and
sometimes, also in the post-employment period.

16. 4. Maintenance (Working Conditions and Welfare)
•Processofprovidingemployeestheworking
conditionssothattheymayliketheirworkand
workplaceandmaintaintheirefficiency.
•Theseincludemeasurestakenforhealth,safety,and
comfortoftheworkforce.
•Thepersonneldepartmentalsoprovidesforvarious
welfareserviceswhichrelatetothephysicaland
socialwell-beingoftheemployees.
•Thesemayincludeprovisionofcafeteria,rest
rooms,counseling,groupinsurance,educationfor
childrenofemployees,recreationalfacilities,etc.

17. 5. Motivation
Process of integrating people into a work situation in
a way that it encourages them to perform / deliver to
the best of their ability.
◦Understanding needs
◦Designing motivation techniques
◦Financial
◦Non-financial
◦Monitoring

18. 6. Personnel Records
•Thehumanresourceorpersonneldepartment
maintainstherecordsoftheemployees
workingintheenterprise.
•Itkeepsfullrecordsoftheirtraining,
achievements,transfer,promotion,etc.
•Italsopreservesmanyotherrecordsrelating
tothebehaviourofpersonnellike
absenteeismandlabourturnoverandthe
personnelprogramsandpoliciesofthe
organisation.

19. 7. Employee Relations
•Thesedays,theresponsibilityofmaintaininggood
industrialrelationsismainlydischargedbythe
humanresourcemanager.
•Thehumanresourcemanagercanhelpincollective
bargaining,jointconsultationandsettlementof
disputes,iftheneedarises.
•Thehumanresourcemanagercandoagreatdealin
maintainingindustrialpeaceintheorganisationashe
isdeeplyassociatedwithvariouscommitteeson
discipline,labourwelfare,safety,grievance,etc.

20. 8. Separation
•Sincethefirstfunctionofhumanresource
managementistoprocuretheemployees,itislogical
thatthelastshouldbetheseparationandreturnof
thatpersontosociety.
•Thepersonnelmanagerhastoensurethereleaseof
retirementbenefitstotheretiringpersonnelintime.
•TypesofSeparation:
–Retirement
–Resignation
–Layoff
–Retrenchment
–Dismissal

21. III. Advisory Functions
•Humanresourcemanagerhasspecializededucation
andtraininginmanaginghumanresources.
1.AdvisedtoTopManagement:Personnelmanager
advisesthetopmanagementinformulationand
evaluationofpersonnelprograms,policiesand
procedures.Healsogivesadviceforachievingand
maintaininggoodhumanrelationsandhighemployee
morale.
2.AdvisedtoDepartmentalHeads:Personnelmanager
offersadvicetotheheadsofvariousdepartmentson
matterssuchasmanpowerplanning,jobanalysisand
design,recruitmentandselection,placement,training,
performanceappraisal,etc.

22. Human Capital
•Intellectual: Special knowledge, skills and
learning capacity
•Social: Network, relationship, sociability
and trustworthiness
•Emotional: Self confidence, ambition,
courage, risk bearing ability

23. Difference between
Personnel Management
and Human Resource
Management

24. Personnel Management
•AccordingtoEdwinFlippo,“
PersonnelManagement isthe
planning,organizing,compensation,
integration,andmaintenanceof
peopleforthepurposeofcontributing
toorganizational,individualand
societalgoals.”

25. Human Resource Management
Artofprocuring,developingand
maintaining, competent
workforcetoachievethegoals
ofanorganizationinaneffective
andefficientmanner.

26. Base PM HRM
Nature of relation
Focus
Plurist
Profit maximization
Unitarist
Development of
Human resources.
Perception of conflictsInstitutionalized Pathologised
Contract Emphasis on
compliance
Beyond contract
commitment
Planning perspective
Role of procedures
Reactive
Dominated
Proactive
Culture and values

27. Source: D.E. Guest-Human Resource Management and Industrial Relations,
Journal of Management Studies,1987, Vol,24, pp 503-522
Base PM HRM
Level of Trust Low High
Key relation Labourand
Management
Customer
Basis of Job
design
Division of labourTeams
Skill acquisitionTraining and
Development
Learning
organisation
Reward
management
Standardized Job
evaluation
Performance
related

28. Human resourcePolicies

29. Content
•Basic concept
•Objectives
•Types
•Coverage
•Characteristics of sound HR policy

30. Introduction
“Apolicyisaman-maderuleofpre-
determinedcoursesofactionthatis
establishedtoguidetheperformanceofwork
towardstheorganisationobjectives.”-Edwin
Flippo
“Policiesarestatementsoftheorganisation’s
over-allpurposesanditsobjectivesinthe
variousareaswithwhichitsoperationsare
concerned-personnel,finance,production,
marketingandsoon.”

31. HR Policies & Procedures
HR policies –set of guidelines that
determine the way in which e/e are to
be treated in the organization.
HR procedures –help the mgt in
implementing the HR policies i.e.
specific applications or actions.

33. HR Policies
•Definition:-
•Apolicyisaplanofaction.
•BrewsterandRichbelldefined“HR
policiesasasetofproposalsand
actionsthatactasareferencepointfor
managers intheirdealingswith
employees.”
-Theyconstituteguidestoaction.
-Theyfurnishthegeneralstandardsorbases
onwhichdecisionsarebased.
-Theirgenesisliesinanorganization’svalues,
philosophy,conceptsandprinciples

36. ObjectivesHRPolicies:
1)Fulfillment of the organisational objectives.
2)Development of sincere sense of unity within the
enterprise.
3)Maximize use of Human resourcers
4)Providing adequate and trained personnel at all levels.
5)Protection of the common interest of all parties.
6)To provide consultative participation.
7)To avoid confusion or misunderstanding between the
management and workers.
8)To provide for the payment of fair and adequate
compensation.
9)To create a sense of responsibility.

37. Peter Druckersays:
“The management must gear its
policies and objectives in such a
fashion that the employees
perform their work. It implies a
consideration of human being as a
resource having psychological
properties, abilities and limitations
requiring same amount of
engineering attention as any other
resource. And it is the
management alone that can
satisfy the requirements of
motivation, participation,
satisfaction, leadership,

38. Types of HR policy
•Originated policy
•Appealed policy
•General policy
•Specific policy
•Written policy

39. Forms of delivery of HR policies:
•Writtenstandardpractice,proceduresissuedto
covercompanypolicies,withsupplementsto
coverchanges.
•Booklets,bulletins,issuedtonewemployees
setting forthrights,privilegesand
responsibilities.
•Verbalinstructionsfromimmediatesuperiors.
•Groupmeetingsofnewemployeesconvened
regularly.
•Unioncontract
•Conferenceconductedasapartofexecutive
trainingprogramme.

40. Various Types of Policies
•Employment Policies
–These are the policies that guide hiring practices, orientation
of new employees, compliance with employment laws, and
confidentiality.
•Employment Status & Records
–These are the policies that define such issues as
employment classifications, access to personnel files and
guidance on how background checks and performance
reviews are to be performed.
•Employee Benefits
–These are policies that explain employee benefits such as
insurance, vacations, holidays, leave, and employee
reimbursements.
•Payroll
–These are policies that are related to salary and wage
administration including deductions, pay advances, and time
keeping.

41. •Workplace Guidelines
–These policies are quite varied and their purpose range from
defining certain work arrangements such as flex time and
telecommuting to offering guidelines on the use of company
assets and record retention.
•Employee Conduct
–These policies are guidelines that control employer behavior
and conduct on the job. The mainstay of this section is a
code of conduct but also important are policies regarding
substance abuse, smoking, harassment, and workplace
violence.
•E-Policies
–These policies guide staff in the use of the organization’s
information technology. Policies defining acceptable and
prohibited activities and use of e-mail and the Internet make
up a majority of these policies

42. •Training and Development Policy
•Condition of Employment
•Lay-off, termination of service
•Disciplinary action
•Grievance redressal
•Transfer, promotion and Demotion

43. Coverage of HR Policies:-
a) Social responsibility
Equity
Quality of Work Life
b) Employment Practices
c) Promotion Policies
d) Development Policies
e) Relations Policies
f) Termination Policies

44. Characteristics of sound HR Policy.
•Relationofpolicieswithobjectives
•Definite,positive,clearandeasilyunderstoodby
everyone.
•Itshouldbeinwrittenanduniform
•Reasonablystablebutnotrigidi.e.periodically
revised.
•Compliancewithallappropriatelawand
regulation.
•Recognisethedesireofemployees.
•Itshouldbeprogressiveandenlightened,and
mustbeconsistentwithprofessionalpractice
andphilosophy.

45. •Itshouldbeformulatedwithdueregards
fortheinterestofalltheconcerned
parties-employer,employeeandpublic
community.
•Basedoncarefulanalysisofallthe
availablefacts.
•Mustprovideatwo-waycommunication
betweenemployerandemployees.
•Itmustensurejusticetotheemployees.

46. Tata steel’s PersonnelPolicy
The statement Objectives of the Tata Iron &
steel Co. Ltd. Gives a clear cut policy
towards its employees:
1)By a realistic and generous
understanding and acceptance of their
needs and rights.
2)By proving adequate wages, good
working conditions, job security, an
effective machinery for redressal of
grievances and suitable opportunities of
promotion.
3)By treating them as individuals, giving
them a sense of self-respect.
4)By creating a sense of belongingness
through human and purposeful
activities as an integral part of human

47. Advantages of HR Policies
Policies are useful instructional devices, that
offer various advantages to HR working at
various levels.
•Delegation
•Uniformity
•Better Control
•Standards of efficiency
•Confidence
•Speedy Decisions
•Coordinating Devices

48. Obstacles in Administrating HR
Policies:-
1.Managersarereluctanttofollow
guidelinesasitcurtailstheir
freedom.
2.Conflictbetweenimpliedand
expressedpolicy.
3.NoteasytoCommunicate.
4.Makesmanagersrigid.

49. QUALITIES
OF
HR MANAGER

50. •“Ahumanresourcemanagerisavital
member ofanorganizationsHR
department.
•Thedepartmentfunctionlikethekey
engineroomofanorganizationsoanHR
managerrolesandresponsibilityassume
greatsignificance”.
•AnHRmanagermustpossesscertain
qualitiesandskillstochannelizethetalent,
potentialandcapabilitiesofemployees.

51. Qualities of Manager as per Henry Fayol
1.Physical-Health,vigorandaddress
2.Mental-Abilitytounderstandandlearn,
judgement,mentalvigorandadaptability
3.Moral-Energy,Firmness,willingnesstoaccept
responsibility,Initiative,loyalty,tactanddignity.
4.Educational-Knowledgeaboutgeneral
functioningoftheorganisation
5.Technical-Knowledgeofthejobbeing
performed.
6.Experience-Arisingfromthework.

52. QualitiesofHR Manager
Personal Qualities
Social Qualities
Professional
Qualities

53. PersonalQualities
•Humanitarianvalues
•Honestandsincere
•Discipline
•Dedication
•Enthusiastic
•Self-confidence
•Positiveattitude
•Self-awareness
•Freefrom bias
•Socialoutlook

54. Social Qualities
•Leadership
•Effective communication
•Active Listening
•Adaptability/flexibility (Openness to change)
•Etiquette & Mannerism
•Building up rapport

55. ProfessionalQualities
•Intelligence skill
•Experience and training
•Grievance handling /counseling
•Negotiation skills / (create win-win situation)
•Interdisciplinary approach
•Transparency / Confidentiality
•Decision skill: Analytical, judgment and foresight.
•Executing skill: Ability to implement process.
•Knowledge of labour law and other laws.

56. Role of HR Manager

57. •HRmanagerplaysapivotalroletoachieve
organizationalobjectives.
•Itishumanresource/workpeoplewhoperformtask
andachievecompanygoals.
•HRmanagerisaguide,philosopher,friend,path-
finder,pathidentifier,problemsolver,competence
makerofthehumanresource.
•Ulrich(1997)hasdevelopedamodelofmultiple
rolesforHRprofessionalswhofocusrangesfrom
long-termstrategictoshort-termoperational,and
activitiesrangefrommanagingprocesses(HRtools
andsystems)tomanagingpeople.

58. Role of HR Manager
•Administrative Role
•Operational Role
•Strategic Role

59. Role of HR Practitioner
•AdvisoryRole
•Pro-actingRole
•WelfareRole
•DevelopmentalRole
•Mediator’sRole
•CounsellorsRole
•MaintenanceRole
•SpokespersonRole
•Motivator’sRole
•Procurer’s Role
•Disputes Prevention
Role
•Decision Maker’s role
•Change agent role
•Coordinator’s Role
•Strategic Partner Role
•Monitoring Role
•Executive Role

60. •AdvisoryRole:OneofthemajorrolesofHR
manageris,toadvisethetopmanagementin
thematterrelatingtomanagement and
developmentofhumanresource,inorderto
achieveorganizationalobjects.
•Pro-ActingRole:HRmanagerascertainsthe
probableareasofconflictanddifferences
betweenworkersandmanagement
•WelfareRole:HRexecutivelookstothewelfare
aspectoftheemployee’sviz.,canteen,creche,
rest-room,hospital,transportation,housing
accommodation,school,etc.

61. •DevelopmentalRole:Developmentofworkers
forattainingcompanygoalsismadebytheHR
managerthroughimprovementofknowledge,
skill,abilities,aptitude,attitude,value,beliefs
etc.
•Mediator’sRole:HRmanagerworksasalink
personalitybetweentradeunionsandtop
management inordertoeliminatethe
differencesofopinionscroppedupinprocessof
settlementofdisputes.
•Counsellor’sRole:Guidingandadvising
employeestotakedecisionswithrespectto
work,careerandfamily.

62. •SpokespersonRole:HRexecutiveworksasa
spokespersonofthecompanyespecially,inthe
matterofdepictingorganizationhealth,condition,
strengthetc.totheemployeeswhilenegotiating
forsettlementofindustrialdisputes.
•Motivator’sRole:OneofthefunctionsofHR
manageristomotivatetheemployeestoachieve
theirowngoals,aswellasorganizationalgoals
HRmanagerperformssuchrolebywayof
introducingrewardschemes.
•Procurer’sRole:HRmanagerhelpstoprocure
therightnumberandrightkindofpeopleatthe
righttime,toenablethecompanytorunsmoothly,
effectivelyandefficientlyandtoachieveitsgoals.

63. •ChangeAgentRole:Inchangingscenario,
workersarerequiredtochangetheirattitudes,
belief,perceptiblestate,valuestomeet
organizationneeds,requirementandexpectation.
•MaintenanceRole:HRmanagerplaysapivotal
roletoretainthedynamic,excellent,highlyskilled
workersbyprovidingattractivecompensation
package,introducingrewardmanagement,career
planninganddevelopment,welfare,fringebenefits
andsocialsecurityschemes.
•DisputesPrevention/LegalRole:HRexecutive
createscongenialandconduciveclimateinthe
companybyeliminatingdifferencesbetween
management andworkersanddeveloping
understandingonthebasisofmutuality.

64. •ExecutiveRole:HRmanageractsasan
executorofthepolicydecisionsinthecompany,
forsmoothfunctioningandeffectivenessofthe
organization.
•DecisionMaker’sRole:HRmanageristhe
supremepersontomakedecisionsinrespectof
managementanddevelopmentofhuman
resource.
•Coordinator’sRole:HRexecutivecoordinates
thetaskofdeveloping,interpretingofHR
programmes,policieswhichareputinto
operationbythelinepeople,anddevelopsa
teamspiritamongstthem.

65. •Strategic Partner Role: HR manager helps
to accomplish business strategy of the
organization through introducing and
implementing HR strategies.
•Monitoring Role: HR manager acts as
regulator/monitor to ensure, that HR policies,
procedures, programmes, so formulated are
monitored effectively to meet the objectives.

66. Types of HRM Jobs
•Generalist
–Human Resource Assistant or Specialist
•Employment, Recruiting and Placement
–Interviewer, EEO Specialist or College Recruiter
•Training and Development
–Trainer, Orientation Specialist
•Compensation and Benefits
–Salary Administrator, Compensation Analyst, and
Benefits Administrator
Career in HRM

67. Types of HRM Jobs
•Employee and Labor Relations
–Labor Relations Specialist, Plant
Personnel Assistant, Employee Relations
Specialist
•Health, Safety and Security
–Safety specialist, Security Specialist,
Employee Assistance Program Counselor,
Medical Program Administrator
•Human Resource Information Managers

68. Education
•Undergraduate Degrees
–Behavioral Sciences, General Business, Business & Labor
Law
•Masters Degrees
–Human Resource Management, Labor Relations, Organizational
Behavior/Development
–A Master’s degree is preferred in today’s competitive market
•Human Resource Certification Institute(HRCI)
•PHR (Professional in Human Resources)
•SPHR (Senior Professional in Human Resources)
based on experience, exam, and course requirements

69. Challenges of Modern HR Managers

70. Introduction
•HRMisoneofthefunctionsof
managementthatenduredtremendous
changeinthenewmillennium.
•ThereisashiftinHRMmanager’s
responsibilityfromsimplyhandling
personnelissuestodesigningstrategic
implementationofcomplicatedstrategies
fortheorganization.

71. Challenges to HR Professionals
•Environmental Challenge
•Organisational Challenge
•Individual challenge

72. Environmental Challenge
•Globalization
•Change Management
•Workforce Diversity: Gender, age
distribution, cultural diversity, educational
level.
•Regulatory Framework
•Economic change
•Technological trends: Artificial intelligence,
Robots

73. Globalization
Impact on HRM
Partnerships with foreign firms
“Anything, anywhere, anytime” markets
Different geographies, cultures, laws, and
business practices
Issues:
Identifying capable expatriate managers.
Developing foreign culture and work practice
training programs.
Adjusting compensation plans for overseas work.

74. Organisational Challenge
•Slowergrowth
•HumanResourceInformationsystem
•Attractingandretainingtalenttotheenterprise
•DevelopingDistinctivecapabilities
•CorporateReorganization
•Managingrelationship
•Changingnatureofwork
•Flatterorganization
•Ethicalmanagement
•Teamwork

75. Major Uses For HRIS

76. Individual challenge
•Quality of work life
•Individual productivity
•Attrition rate/ Turnover
•Employee empowerment
•Job insecurity
•Leadership development
•Managing work-life balance
•Conflict, Groupism and internal politics

77. •Quality of Work-life:Richard E Walton
provides eight criteria for assessing the
QWL.
–Sufficient and fair compensation,
–Healthy and safe work environment,
–Opportunity to use and develop human
capacities,
–Opportunity of continued growth and security,
–Social integration in the work organization,
–Constitutionalism,
–Balance role of work and
–Socially beneficial and responsible work

78. ProductivityEnhancements
MOTIVATION
•Jobenrichment
•Promotions
•Coaching
•Feedback
•Rewards
ENVIRONMENT
•Empowerment
•Teams
•Leadersupport
•Culture
ABILITY
•Recruitment
•Selection
•Training
•Development
Perf = f(A,M,E)

79. Developing HumanCapital
•Human Capital
The knowledge, skills, and capabilities of
individuals that have economic value to an
organization.