HRM- CONCEPTS AND CHALLENGES- Chapter 1.1- new.pptx

1st unit of HRM
MBA

1. HUMAN R ESO URCE MANAGEMENT Concepts And Challenges CHAPTER 1

2. Why Human Factor is More Important? Human resources are unique in character HR alone can produce an output greater than its input HR is the only resource which are animate HR is most complex and unpredictable in its behavior This is the only resource which appreciates in its value with the passage of time.

3. WHAT IS HUMAN RESOURCE MGMT? HRM is concerned with the “people” dimension in management. Organizations are managed by the people & through people. Without people, organizations can never exist. Indeed people who make up the human resources of the company are unique & they can either make or break an organizations depending upon the level of commitment, contributions and co-operations. Human resources have to manage 5 basic functions most effectively:- They are as follows:- Planning, Organizing, Staffing, Leading, Directing, Controlling.

4. Cont.. It is concerned with human beings in an organization. HR management helps bridge the gap between employees’ performance and the organization's strategic objectives It deals with the process of developing people in accordance with their aspirations & to suit the organizational needs. Thus the main purpose of HRM is to improve the productive contributions of people to the organization in an ethical & socially responsible way.

5. Scope of hrm To look at HRM more specifically, let us have a look at its 4 main functions:-

6. Cont.. Acquisition Function- It begins with planning. Relative to HR requirements, we need to know where we are going and how we are going to get there. Development Function- It can be viewed along with 3 dimensions. First is employee training which focuses on skill development & changing the attitudes among workers. Second is management development which concerns with knowledge acquisition & the enhancement of an executive conceptual abilities. Third is career development which is the continual efforts to match long term individual & organizational needs. Motivation Functio n- It begins with the recognition that individuals are unique & motivation techniques must reflects the needs of the individuals. It consists of performance appraisal, rewards, recognition, compensations, benefits etc. Maintenance Function- It is concerned with providing those working conditions that employees believe are necessary in order to maintain their commitment to the organization.

7. DEFINITIONS:- “ It is the process of managing people in the organizations.” HRM is planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance, and separation of human resources to the end that individual, organizational and social objectives are accomplished.” - Flippo  “Human Resource Management is the process of acquiring, training, appraising and compensating employees and attending to their labour relations, health and safety and fairness concerns”. -Prof. Gary Dessler . “Human Resources Management is a management function that helps manager’s recruit, select, train and develop members for an organization. Obviously, HRM is concerned with people’s dimension in organization”. Prof. K. Aswathappa

8. Objectives of HRM To effective utilization of the human resources. To establish and maintain an organizational structure. To secure integration to the individuals and organization by reconciling individual group goals. To generates maximum development of individuals groups. To recognize and satisfy individual needs and group goals. To maintain high morale and better human relations. To develop and maintain a quality of work life. To establish and maintain productive self-respecting working relationships.

9. Functions of HRM:- Planning Organizing Directing Controlling Procurement Development Compensation Integration Maintenance Managerial Functions Operative Functions

10. Features of Human Resource Management Universal Force Decision Oriented Focus on Individual needs and objectives Employee Oriented Development and Growth Oriented Employees- An Internal Customers. Strategic Implications Support Functions Multi-disciplinary Nature Ongoing and Forward Looking nature

11. Role of Human Resource Management: The Conscience (Senses of right and wrong) Role The Counsellor The Mediator The Spokesperson The Change Agent Problem Solver

12. IMPORTANCE OF HRM HRM helps a company to achieve its objective from time to time by creating a positive attitude among workers. Reducing wastage and making maximum use of resources. Due to proper HR policies employees are trained well and this makes them ready for future promotions. Their talent can be utilized not only in the company in which they are currently working but also in other companies which the employees may join in the future . Healthy HRM practices can help the organization to maintain co-ordinal relationship with the unions. Union members start realizing that the company is also interested in the workers and will not go against them therefore chances of going on strike are greatly reduced.

13. IMPORTANCE OF HRM Effective HR practices teach individuals team work and adjustment. The individuals are now very comfortable while working in team thus team work improves . Since employees are constantly trained, they are ready to meet the job requirements. The company is also able to identify potential employees who can be promoted in the future for the top level jobs . If proper recruitment and selection methods are followed, the company will be able to select the right people for the right job. Effective HR practices lead to higher profits and better performance by companies due to this the company achieves a chance to enter into new business and start new ventured thus industrial development increases and the economy improves.

14. Policies & Practices in HRM Dictionary meaning of the word Policy is “ Plan of Action” and Plan is a Policy. HRM refers to practices and policies framed for the management of human resource organization, including Recruiting, screening, reward in grand appraising. Practices of HRM : Safe , Healthy and Happy workplace. Delight employees with unexpected Reward ceremonies Open House Discussion Feedback Mechanism Highlight Performer Knowledge Sharing with employees Fair Evaluation System Performance - linked Bonuses 360 Degree Performance Management

15. Cont.. HR policies are the formal rules and guidelines that organization put in place to hire, train, access and reward the members of their workplace. HR policies are the system of codified decisions, established by an organisation,to support administrative personnel functions, performance management ,employee relations and resource planning. Purpose: To be clear with employees on the nature of the organization What they should expect from the company What the company expects from them How policies and procedures work at the company What is acceptable and unacceptable behavior The consequences of the unacceptable behavior

16. Challenges of Human Resource Management: Challenges due to Globalization Skill Shortage Knowledge management Challenges related to training Changing workforce dynamics Changed employee expectations. Compliance with Laws and Regulation. Management Changes. Leadership Development. Workforce Training and Development. Adapting to Innovation. Compensation. Talent retention

17. Strategic Human Resource Management Human resource management  (HRM) focuses on recruiting and hiring the best employees and providing them with the compensation, benefits, training, and development they need to be successful within an organization. However, Strategic Human Resource Management takes these responsibilities one step further by aligning them with the goals of other departments and overall organizational goals. HR departments that practice strategic management also ensure that all of their objectives are aligned with the mission, vision, values, and goals of the organization of which they are a part.

18. Strategic Human Resource Management Strategic human resource management (SHRM) is about the formulation of HR strategies in alignment with the overall corporate strategy to achieve the goals of the organization. Strategic HRM is seen as a partner in organizational success, as opposed to a necessity for legal compliance or compensation. Strategic HRM utilizes the talent and opportunity within the human resources department to make other departments stronger and more effective.

19. Let see an example: Let's think about this approach in relation to a basketball team, where Player A is the strategic HR department, and Players B to E are the other departments within the organization. The whole team wants to win the ball game, and they all may be phenomenal players on their own, but one great player doesn't always win the game. That's not how a basketball team wins, and it's not how an organization wins either. A team wins when its members support each other and work together for a common goal. Player A, our strategic HR department, must work with players B, C, D and E, our different organizational departments. They must run plays that they have planned out beforehand, assist when necessary to help another player get the basket, and compensate for the weaknesses of one in order to create a stronger team as a whole. When a team works together to reach that common goal, only then can they be truly successful.

20. Example: Here are top companies that demonstrate exemplary strategic human resource management. Google:- Google being Google, it’s no surprise that their approach to HR broke away from tradition. We all know about the tons of employee perks and amazing “ Googlified ” facilities that set a new trend in office design. But Google’s strategic approach to human resources goes beyond that. Like with most tech companies they’re obsessed with data, and the HR function is no exception. In 2006, co-founders S Brin and L. Page decided to take an empirical approach to HR founded on feedback and employee data. A manifestation of this is Project Oxygen an ongoing study into management practices that identifies and measures key management behaviors and helps nurture them.

21. Cont.. It all gets quite technical, but essentially Google hired some smart people to undertake in-depth statistical analysis into what their employees consider to be good managers. They discovered eight common behaviors exhibited by the top-performing managers and then trained the rest in them. As a result, Google saw an overall improvement in people management and team metrics such as turnover, satisfaction, and performance over time. So there you go, collecting data from your employees and using it to improve the employee experience  does work . It’s no accident that Google employees are some of the most productive in the world.

22. Example: Cisco :- True to their industry, CISCO developed their own HRM technology to guide strategy and better serve the needs of the business. The CISCO Talent Cloud is essentially an internal CRM that gives managers transparency into the skills and experiences of the company’s 70,000+ employees. Further , it gives employees themselves the tools and insights they need to take the initiative and advance their careers (sounds like an internal LinkedIn!). This approach allows managers to put together the best team needed to complete a particular project, and employees the opportunity to learn by working on a project that helps them meet a particular goal.  Senior managers can also access real-time intelligence on team performance, how they produce results, execute priorities, and levels of engagement. CISCO is ranked number one in Fortune’s Best 100 Companies To Work For and is able to attract top talent to help meet business goals.

23. Nature of Strategic HRM At Organizational Level : Because strategies involve decisions about key goals, major policies and the allocation of resources, they tend to be formulated at the top. Strategies are business driven and focus on organizational effectiveness; thus in this perspective people are viewed primarily as resources to be managed toward the achievement of Strategic business goals.

24. Models of Strategic HRM The Fombrun Model/Matching Model: One of the first explicit statements of the HRM concept was made by the Michigan School (Fombrun et al, 1984). They held that HR systems and the organization structure should be managed in a way that is congruent with organizational strategy (hence the name ‘matching model’). They further explained that there is a human resource cycle which consists of four generic processes or functions that are performed in all organizations. Four generic processes are – Selection – Matching available human resources to jobs; Appraisal - Performance management Rewards – The reward system is one of the most under- utilized and mishandled managerial tools for driving organizational performance’; – Development – Developing high-quality employees.

25. Cont.. It is divided into two parts: first which shows HR-strategy integration and second which depicts the HR cycle. A) Important HR issues to achieve such a match: Selection of the most suitable people to meet business needs. Performance in the pursuit of business, objectives. Rewards for appropriate performance. Development of skills and knowledge required to meet business objectives. B) Managerial Implications of the Model : The model is focused on individual and organisational performance. It concentrates on managing human assets to achieve strategic goals. Contributes to Human Resource Performance

26. Cont.. Matching model ensures way to achieve the organizational objectives is the applying of above five major functions of HRM very effectively. The work and contribution of properly selected human resource has to be evaluated in using appropriate techniques. Some kinds of rewards have to be offered on the basis of results of appraisal and the performances of employees..

27. Harvard Model of HRM Beer et al (1984) produced what has become known as the ‘Harvard framework’. They started with the proposition that: ‘Human resource management (HRM) involves all management decisions and actions that affect the nature of the relationship between the organization and employees – its human resources . They believed that: ‘Today... many pressures are demanding a broader, more comprehensive and more strategic perspective with regard to the organization’s human resources’ They also stressed that it was necessary to adopt ‘a longer-term perspective in managing people and consideration of people as a potential asset rather than merely a variable cost’

28. Cont. Beer and his colleagues were the first to underline the HRM tenet that it belongs to line managers. They suggested that HRM had two characteristic features: 1) line managers accept more responsibility for ensuring the alignment of competitive strategy and HR policies; 2) HR has the mission of setting policies that govern how HR activities are developed and implemented in ways that make them more mutually reinforcing