Role of Human Resource Management. .pptx

Role of HRM

1. Role of HRM

2. The role of HRM is to plan, develop and administer policies and programs designed to make optimum use of an organizations human resources. It is that part of management which is concerned with the people at work and with their relationship within enterprises. Its objectives are: (a) effective utilization of human resources, (b) desirable working relationships among all members of the organizations, and (c) maximum individual development. Human resources function as primarily administrative and professional. HR staff focused on administering benefits and other payroll and operational functions and didn’t think of themselves as playing a part in the firm’s overall strategy.

3. The primary responsibilities of Human Resource managers are : To develop a thorough knowledge of corporate culture, plans and policies. To act as an internal change agent and consultant To initiate change and act as an expert and facilitator To actively involve in company’s strategy formulation To keep communication line open between the HRD function and individuals and groups both within and outside the organization To identify and evolve HRD strategies in consonance with overall business strategy. To facilitate the development of various organizational teams and their working relationship with other teams and individuals

4. To try and relate people and work so that the organization objectives are achieved efficiently and effectively. To diagnose problems and determine appropriate solution particularly in the human resource areas. To provide co-ordination and support services for the delivery of HRD programmes and services To evaluate the impact of an HRD intervention or to conduct research so as to identify, develop or test how HRD In general has improved individual and organizational performance.

5. Different management gurus have deliberated different roles for the HR manager based on the major responsibilities that they full fill in the organization. Few of the commonly accepted models are enumerated below According to Dave Ulrich HR play’s four key roles. 1. Strategic Partner Role-turning strategy into results by building organizations that create value; 2. Change Agent Role- making change happen, and in particular, help it happen fast 3. Employees Champion Role—managing the talent or the intellectual capital within a firm 4. Administrative Role—trying to get things to happen better, faster and cheaper.

6. Role of Human Resource Management HRM is concerned with the people dimension in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to high levels of performance and ensuring that they continue to maintain their commitment to the organization are essential for achieving organizational objectives. This is true regardless of the type of organization, government, business, education, health, recreation or social action.

7. The role of human resource management can be categorised into the following heads: A. Developmental Role of Human Resource Management B. Changing Role of Human Resource Management C. Functional Role of Human Resource Management in Areas Like:- 1. Marketing 2. Finance 3. Production & Operation and 4. Information Technology D. Role of Human Resource Management in Strategic Man­agement:- 1. Providing Purposeful Direction 2. Focus on Core Competency 3. Facilitation of Change 4. Creating Competitive Advantage  

8. 5. Management of Workplace (Workforce)Diversity 6. Managing Executive Information Systems (EIS) 7. Motivational Approaches 8. Empowerment of Human Resources 9. Total Quality Management (TQM) 10. Business Process Reengineering (BPR) and 11. Quality Circles. E. Role of Human Resource Management in Strategic Management Process:- 1. At Strategy Formulation Level 2. At Strategy Implementation Level and 3. At Strategic Control Level. F. Welfare Role of Human Resource Management

9. G. Future Role of Human Resource Management in India:- 1. Change in the Nature of Work 2. Widening Scope of HR Activities 3. Greater Emphasis on HRIS 4. Change in Labour-Market Conditions 5. Increasing Importance of High Performance Work Systems (HPWS) and 6. Growing Need for Measurement Tools to Evaluate HR Programmes.

10. A . Developmental Role of Human Resource Management In the fast-changing, challenging and competitive environment today, there are great many challenges to HRM for the growth, development, expansion and progress of organizations in the world of work. In the organizational context, HRD is a process by which the employees of an organization are helped, in a continuous planned way to- i . Acquire or sharpen capabilities required to perform various functions associated with their present or expected future roles ii. Develop their general capabilities as individuals and discover and exploit their inner potentials for their own and/or organizational development purposes iii. Develop an organizational culture in which supervisor-subordinate relationships, team-work, and collaboration among subunits are strong and contribute to professional well-being, motivation and pride of employees. The developmental role of HRM, in short, focuses on healthy development of human resources and enhancement of human dignity and growth. This essentially means creating employee satisfaction and developing their intelligence and competence .

11. B .Changing Role of HRM HR departments very initially were called as payroll departments. Then renamed as staff management, followed by another metamorphosis to personnel and then to HRM People in different kinds of businesses have to adapt and change in response to emerging trends. Here training plays a crucial role. Employees (the people component) should be courteous, knowledgeable, helpful and passionate for serving customers, tech savvy, and presentable. For instance , the staff of any fashion retailer should be dressed in such a way that it should reflect the fashion level of the merchandise for sale in the store.

12. C. 4 Functional Roles in Areas Like: Marketing, Finance, Production & Operation and IT Human resource management’s interaction with various functional areas can be discussed as under: Role # 1. Marketing and Human Resource Management: Human Resource Management (HRM) is an integrative general management comprises the act of identifying the organisation’s demand for human resources with particular skills and abilities. As regards the introduction of the new products or services, HRM department is expected to know about it. Once the new products or services are introduced, marketing has the responsibility to inform the HRM department regularly and sufficiently. The information for HRM department should be concerned with the new skills and experience needed for the new workers at present. Therefore, HRM department should make a well strategic plan in training, recruitment and selection of new staff.

13. Role # 2. Finance and Human Resource Management: All organisations required to accurately plan, monitor and control their finances if they want to achieve success as well as maintaining it progressively. To do this properly, they need employees who have a clear knowledge and understanding of accounting and finance, along with a good general business background. The personnel department has to work with the finance manager while performing the following functions evaluating different schemes of training programmes, employee’s welfare, economy in manpower, computerisation, incentive’s schemes, revision of pay scales, etc.

14. Role # 3. Production and Operations and Human Resource Management: Production and operations management is related to the functions like scoping, planning, direction and control of facilities, processes and people required to transform resources into products and services. The principles of production and operations management are used in every industry and every environment. All organisations carry out the functions of planning, scheduling, equipment operation, quality control and human resource management. The Human Resources has to assure that people within the firm possess not only have the needed skills but also the essential attitudes. The production function has to interact with the HR function on this count. Each function requires to be at tuned to other function within the firm. The modern business world has necessitated a high level of integration within organisations.

15. Role # 4. IT and Human Resource Management: HR department got to deal with the following: ( i ) Information Management Practices: It shows the organisational capabilities to manage the entire information lifecycle, i.e., sensing, collecting, organising, processing and maintaining information. (ii) Information Behaviours/Values (IBV): IBV demonstrates the organisational capabilities to promote behaviours and values that facilitate the effective use of information. HR managers have to work in close coordination with the IT head for creating awareness about the Information Management Practices. The main challenge is to define and communicate the Information Behaviours/Values expected from the employees. Moreover, HR managers have to initiate an organisational culture building exercise for internalisation and adoption of the desired values.

16. D. In Strategic Man­agement: HRM is in a unique position to provide competitive intelligence that can be useful in strategic planning process. An excellent strategy will fail to achieve business goals in the absence of competent and motivated workforce. The prominent areas where the human resources management play strategic role are discussed below: Role # 1. Providing Purposeful Direction: The human resource manager must be able to lead people and the organisation towards the desired direction involving people right from the beginning.  Objectives are specific aims which must be in line with the mission of the organisation and all the actions of each person must be consistent with the objectives defined.

17. Role # 2. Focus on Core Competency: A core competence is a unique strength of an organisation which may not be shared by others. This may be in the form of human resources marketing capability or technological capability. It needs creative, courageous and dynamic leadership having faith in the organisation’s human resources Role # 3. Facilitation of Change: Human resource professionals will have to play an active role as change agents as any program of organisational change and development involves human resource issues. They have to persuade, mobiles and negotiate people for change. For this purpose human resource professionals require diagnostic and behavioural skills. HR mangers will have to devote more time to promote changes than to maintain the status quo.

18. Role # 4. Creating Competitive Advantage: In today’s globalised market place, maintaining a competitive advantage is the foremost goal of any business organisation. There are two important ways a business can achieve a competitive advantage the first is cost leadership which means the firm aims to become the low cost leader in the industry. The second competitive strategy is differentiation under which the firm seeks to be unique in the industry in terms of dimensions that are widely valued by the customers. Putting these strategies into effect carries a heavy premium on having committed and competent workforce. Such a workforce would enable the organisation to compete on the basis of market responsiveness, product and service quality, differentiated products and technological innovation.

19. Role # 5. The Management of Workplace (Workforce) Diversity: In order to effectively manage workplace diversity, an HR manager needs to change his perspective from an ethnocentric view (“our way is the best way”) to a culturally relative perspective (“Let’s take the best of a variety of ways”). This shift in philosophy has to be ingrained in the managerial framework of the HR Manger in his/her planning, organising, leading and controlling of organisational resources. There are several best practices that a HR manager can adopt in ensuring effective management of workplace diversity in order to attain organisational goals.

20. They are: ( i )   Planning a Mentoring Program: The purpose of a Diversity Mentoring program seeks to encourage members to move beyond their own cultural frame of reference to recognise and take full advantage of the productivity potential inherent in a diverse population. (ii)   Organising Talents Strategically: As more & more companies are going global in their market expansions either physically or virtually (for example, E-commerce related companies), There is a necessity to employ diverse talents to understand the various niches of the market.

21. (iii)   Leading the Talk: An HR manager needs to advocate a diverse workforce by making diversity evident at all organisational levels. He/She must also show a high level of commitment and be able to resolve issues of workplace diversity in an ethical and responsible manner. (iv)   Control and Measure Results: An HR Manager must develop appropriate measuring tools to measure the impact of diversity initiatives at the organisation through organisation, wide feedback surveys and other methods.

22. Role # 6. Managing Executive Information Systems ( ElS ): Executive Information system (EIS) is the most common term used for the unified collection of computer hardware and software that track the essential data of a business’ daily performance and present it to the managers as an aid to their planning & decision-making. When managing an Executive Information system, a HR manager must first find out exactly what information decision-makers would like to have available in the field of human Resources

23. Role # 7. Motivational Approaches: In our changing workplace and competitive market environments, motivated employees and their contributions are the necessary currency for an organisation’s survival and success. Motivational factors in an organizational context include working environment, job characteristics, and appropriate organisational reward system and so on. Role # 8. Empowerment of Human Resources: The process of empowering involves giving more power to those who, at present have little control over what they do and little ability to influence the decisions being made around them.

24. The basic goals of empowerment are that all people should: ( i ) Understand and feel good about themselves, (ii) Relate to each other with empathy and respect, (iii) Give voluntary agreement to the rules and structures that govern their lives, and (iv) Have sufficient resources (of knowledge, training, authority, time, tools, support, money etc.,) to be able to contribute all the value they can to their chosen roles.

25. Role # 9. Total Quality Management (TQM): TQM is a dynamic process involving all levels in an organisation to promote never ending improvement in the efficiency and effectiveness of all elements of a business. The goal of TQM is to mobilise the entire workforce in pursuits of specific company goals with the primary aim of achieving customer satisfaction with regard to quality, price, and delivery and after sale service. TQM is a philosophy of the entire organisation. It embodies development of a companywide culture for quality. TQM is nothing but an understanding and performance of role by each & every individual in the pursuit of quality improvement. A positive attitude towards customer and constant enhancement of quality must be ingrained in the minds of employees.

26. Role # 10. Business Process Reengineering (BPR): Reengineering denotes the radical redesign of organisational processes to achieve major improvements in terms of cost, time and provision of services. It is also known as Business Process Reengineering (BPR). Reengineering implies that the management should start from scratch to redesign in the organisation around its most important processes rather than beginning with its current design and making incremental changes. It assumes that if a company had no existing structure, departments, jobs, rules or established ways of doing things, re-engineering would design the organisation as it should be for future success.

27. Role # 11. Quality Circles: A quality circle is a small group of employees from the same work area which meets regularly to identify analyses and solve quality and other work related problems. The basic objectives of quality circles are as under: ( i ) To contribute to the improvement and development of the organisation, (ii) To develop respect for human relations and induce job satisfaction, (iii) To deploy human capabilities to the fullest extent and draw out their infinite potential.

28. E . In Strategic Management Process Human resource management plays significant role at all steps of strategic management process- strategy formulation, strategy implementation, and strategic control . Role # 1. At Strategy Formulation Level: At strategy formulation level, human resource management may play role in two forms. First, head of HR department may act as a functional director representing HR function at the level of Board of Directors or top management committee. In this way, HR head may directly participate in decision making at the highest level of the organization where strategic decisions are made. Second, in organizations where such an arrangement does not exist (majority of the organizations fall in this category), generally, arrangement is made to take the view of HR head about the likely impact of a new strategic move on human resources. This view is used as one of the inputs in strategic decision making. For example, in most of the large organizations, HR department provides inputs about employee-related issues which are used in objective setting. Thus, organizational objectives may be reshaped to reflect employee-related issues.

29. Role # 2. At Strategy Implementation Level: Role of human resource management is quite critical at strategy implementation level as it is the only agency which aims at providing right people at right time throughout the organization. Role of HR professionals in strategy implementation is relevant at two levels- behavioural implementation and functional implementation. At behavioural implementation level , they can play lead role in different aspects of behavioural implementation by undertaking suitable organization development programmes that aim at bringing suitable changes in leadership styles, development of high- performing organizational culture, and overcoming the dysfunctional aspect of organizational politics. At functional implementation level , HR professionals may formulate coherent HR strategies and policies. Implementation of these strategies and policies effectively contributes positively to strategy implementation. Thus, HR professionals may enhance organizational capability to implement strategy by undertaking all human resource actions as per requirements of the strategy.

30. Role # 3. At Strategic Control Level: At strategic control level, the issues relevant to HRM are as follows: i . Is HR system adequate in the light of requirements of corporate or business strategy? ii. Will it work effectively even if there is any discrete change in corporate or business strategy? iii. Does HR system contribute to the organization in terms of return on investment? Thus, suitable corrective measures may be taken to ensure that HRM plays its right role in corporate strategic management.

31. F. Welfare Role of HRM The welfare actions an HRM function might take are: i . Helping employees solve personal problems- It may be common sympathetic advice In other situations it might take the form of a transfer, a change in working hours or a modification of the job. At its most sophisticated level the help might take the form of an employee assistance programme (EAP). In an employee assistance programme the workers are given the telephone number or other contact details of a counselling service they can consult if they have personal problems.. An EAP is usually able to help employees who have problems involving debt, marital and family relationships, a poor work-life balance and drugs. ii. Help employees’ careers – Many HR functions try to structure jobs in their organisation into patterns that provide careers for their employees. They may also offer training that has no direct or immediate relevance to an employee’s current job but which will enhance his or her employability

32. iii. When an employee encounters a serious and acute crisis such as illness or bereave­ment(loss of someone who are close to us), it is usually the HR function that instigates and co-ordinates the organisation’s compassionate response such as arranging extra leave or sending condolences.. iv. The HR function usually makes an above average contribution to the social life of an organisation . It often manages an organisation’s sports and social clubs. Generally, it also organises social events, parties and celebrations. Furthermore the HR function will usually have responsibility for the organisation’s catering services. All of these contributions are usually considered peripheral activities but their sum total improves the quality of people’s working lives.

33. G . Future Role of HRM in India Role # 1. Change in the Nature of Work: Technological developments are changing the very nature of work. Due to technological advancements, even traditional jobs have become technologically challenging. These changes require the employment of more educated and more skilled workers in these jobs. Further, the service sector , which is fast emerging as the major provider of employment in our country, requires the use of knowledge workers. Similarly, due to rapid social transformation , an enhanced access to education and increased labour mobility, the workforce profile of the country has changed dramatically and organizations now represent several heterogeneous groups. This is a direct challenge for the HR managers as they now have to deal with culturally and racially diverse work groups.

34. Many firms are now compelled to initiate new gender – specific and target – based HR policies to serve the interests of different sections of the employees. Example : The success of IBM’s HR policies meant for women and the differently abled is worth mentioning. IBM recognised the variety in its work force and made a commitment to provide an equal work place to individuals who are differently abled and need special care. IBM organises several celebrations such as – the International Women’s Day, Take our kids to Work Day, the Women Leadership Conference and the World Disability Day. In addition, it has launched two new child-care centres, a home-care project and Exploring Interests in Technology and Engineering (EXITE) camps for middle-school girls to make a difference in the world through mathematics, science and technology.

35. Role # 2. Widening Scope of HR Activities: Globalisation and deregulations have deeply affected the functioning of traditional HRM. Organizations, in their pursuit of new markets and grater cost- effectiveness, extend their sales, production facilities, and supporting services to new destinations in several countries around the world. HR managers must have adequate dynamism and action plans to help these organizations successfully integrate their global HR operations. They must also ensure effective coordination amongst and control over the labour forces working in different countries.

36. Role # 3. Greater Emphasis on HRIS: The organizations of the future will be large due to world – wide mergers and acquisitions . The sheer size of an organization may compel the HR department to computerise its HR operations like recruitment, training, appraising and pay-roll preparations. Thus, large companies may require an integrated Human Resource Information System (HRIS) for effectively coordinating their different HR operations. HRIS actually means, “interrelated components working together to collects, process, store and disseminate information to support decision-making, coordination, control, analysis and visualisation of an organization’s HRM activities”.

37. Role # 4. Change in Labour-Market Conditions: Uneven economic development has resulted in the large scale unemployment of unskilled and under-skilled persons on one side and a severe shortage of competent people on the other. This dichotomy may compel HR managers to reduce their focus on the short-tern needs of the organization and to concentrate more on fulfilling the long-term capability requirements such as – skill development and knowledge formation amongst its existing workforce. For example , the skill development efforts at Infosys . As part of its HR strategy, Infosys organises the “Campus Connect” programme to improve the industry-readiness of students while they pursue a regular education. -It has partnered with 250 colleges in India and four universities in China, and helped 188 faculty members with specialised courses. -Further, to ensure availability of skills in line with their needs, it makes sure that the new employees undergo training for about 15 weeks before being deployed on engagements. -To upgrade the skills of its staff across the board, it offers ‘competency certification programme’, which is aimed at certifying its employees in various industry domains, technologies, and project management processes. The certifications are mandatory for the future growth of employees.

38. Role # 5. Increasing Importance of High Performance Work Systems (HPWS): Globalisation is bringing about a tremendous change in the size, structure, composition, and style of functioning of organizations so as to meet an intensified global competition. This in turn puts increased pressure on an organization to improve its employees’ productivity. Thus, HR managers, with the help of dynamic HR policies, should develop HPWS that maximises the competencies, commitment and abilities of the firm’s employees . Example :Tata Business Support Service’s is one of the best examples of developing and maintaining a successful HPWS. The elements included in the Tata Business Support Services HPWS are multiple recruitment methods to source best talents at all levels, high performance orientation and performance linked rewards, continuous learning and development opportunities for employees, continuous employee engagement initiatives, attention on retention and not on attrition, and, lastly, ensuring employees’ strict adherence to the Tata code of conduct.

39. Role # 6. Growing Need for Measurement Tools to Evaluate HR Programmes: The inherent weakness of HRM is the absence of reliable and effective yardsticks(standards) for measuring the performance of HR programmes. The top management expects HR managers to express their plans and performance in quantifiable terms. Thus, there is an urgent need for HR managers to provide concrete evidence that their department is contributing in a significant and constructive way in the accomplishment of organizational goals and objectives. HR managers’ focus in the future will be on the development, and introduction of reliable and accurate HR tools to measure the efficiency of HR functions.

40. ROLE OF HUMAN RESOURCES MANAGER Human Resources Manager plays a vital role in the modern organisation. He plays various strategic roles at different levels in the organisation. The roles of the HR Manager include roles of conscience, of a counsellor, a mediator, a company spokesman, a problem solver and a change agent. ( i ) The Conscience Role: The conscience role is that of a humanitarian who reminds the management of its morals and obligations to its employees. ( ii) The Counsellor: Employees who are dissatisfied with the present job approach the HR manager for counselling. In addition, employees facing various problems like marital, health, children education/marriage, mental, physical and career also approach the HR managers. The HR Manager counsels and consults the employees and offers suggestions to solve/overcome the problems .

41. (iii) The Mediator: As a mediator, the HR manager plays the role of a peace-maker. He settles the disputes between employees and the management. He acts as a liaison and communication link between both of them ( iv) The Spokesman: He is a frequent spokesman for or representative of the company. ( v) The Problem-solver: He acts as a problem solver with respect to the issues that involve human resources management and overall long range organisational planning. ( vi) The Change Agent: He acts as a change agent and introduces changes in various existing programmes