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Human Resource Management

Dr. B.S.N.RAJU
ASSOCIATE PROFESSOR
DEPARTMENT OF MBA
HUMAN RESOURCE
MANAGEMENT
 Definitions
 Why HRM is important

 Core objectives

 HRM goals

 Good HRM practices


Definition
HRM is the
Planning,
Organising,
Directing and
Controlling of
Human Resource Management
Procurement
Development
Compensation
Integration
Maintenance and
Separation of
Of Human resources
to the end that
Individual
Organisational and
Social
objectives to be accomplished
HRM
HRM is the process of
 Attracting

 Holding and

 Motivating

people in the organisation


in attainment of goals
The Human Resource Approach
HIGHER GREATER
Employee motivation Quality & quantity
& applied ability of work

GREATER HIGHER
Employee rewards organisational
& recognition productivity & profit
HRM challenges
 Extremely high competition
 Retaining talents
 Deliver value added HR services
 Rapid technological advances and impact
 Changing legal, political & social realities
 Changing values & educational levels
 Changing consumer demands
To meet the challenges the
companies need people who are…

 More Committed
 Highly Motivated
 Highly Skilled
 Good Potential
 Excellent team players
Goals of HRM:
General Specific
Productivity attracting

QWL retaining

Legal compliance motivating

Competitive advantage retraining


‘Good’ Human Resource practices
and ethics
 Recognize people’s needs & expectations
 Respect the individual and treat them as
human beings
 Provide justice in treatment
 Free and fair practices
‘Good’ Human Resource Practices
and ethics
 Provide good working conditions
 Opportunities for career progression
& personal development
 Function as a democracy
 Observe the legislations & codes of
conduct relating to employment
Hard V’s Soft HRM

Hard Soft
Workers are a resource Workers are key
like any other resource to competitive
advantage and
must be nurtured
& developed
Any Questions ?
THANK YOU
Who is Responsible?
Line managers

HR professionals

Consultants/sub-contractors

employees
Current Issues in HRM
 Responding to intensified competition
 Managing international operations
 Technological innovation
 Complying with the law
 Managing with/without trade unions
 Ethical concerns**
 Best practice V’s Best fit
Best Practice V’s Best Fit
 Best Practice:
- best way of carrying out HR activities that is
universally applicable
- advanced selection methods, serious
commitment to employee involvement,
substantial investment in T&D etc.
 Best Fit:
- all is contingent on the circumstances of each
organisation
Some Ethical Concerns
 Dismissing someone for incapability
 Failing to dismiss a senior manager
 Paying women less than men
 Pressure to change hours or location
 Paying less when you can pay more
 Failing to tell the truth at a tribunal
 Failing to make ‘costly’ H&S alterations
HRM Activities
1. Strategy Formulation
2. Human Resource Planning
3. Recruitment & Selection
4. Appraisal & Performance Mgt.
5. Reward Management
6. Training & Development
7. Employee Relations
8. Administration
Organisation

Reward The Resourcing


Strategic
Core Performance
Employee
Relations

Development
The execution of strategy lies in the hands
of individuals and therefore no matter how
good the strategy is, if it fails to take
account of the people element it is
doomed to failure at worst or to partial
success at best.
(Gunnigle et al 1997)
Organisational Strategy &
HR Strategy

Separation
OS HRS

OS Fit
HRS

OS HRS Dialogue
Torrington & Hall 2002

OS HRS Holistic

OS HRS HR Driven
Human Resource Planning Process
EXTERNAL ENVIR. INTERNAL ENVIR.

DEMAND FOR LABOUR SUPPLY OF LABOUR

ESTIMATE OF IMBALANCE

ACTION PLANS
recruitment; training & development;
redundancy, dismissals; redeployment;
employee relations; organisation development

IMPLEMENT & REVIEW


Current + Future Current Supply
Demand for labour of labour
The Recruitment & Selection
Process
Human resource planning

Job analysis

Recruitment

Selection

Induction
Performance Management
1. Clear objectives are essential for effective
performance
2. Communication is good
3. Involvement Commitment
4. Everyone’s work should relate to the
organisation’s work
5. People need feedback
6. Responsibility and autonomy enrich jobs
Establish, communicate Evaluate
& agree objectives performance

Communicate Compare
Decisions & results performance
with objectives

Take corrective action Decide on


Review objectives appropriate
Continue unchanged action
Appraisal Systems
 Formalise the review part of the
performance cycle
 Usually annual/bi-annual
 Form based
 Link to pay?
 One way V’s two way
The Appraisal Interview
• Tell-and sell

• Tell-and listen

• Joint-problem-solving
Reward Package =
Pay + incentives + benefits
- Pay = basic wage
- Benefits = indirect rewards (eg. Car,
VHI, expenses)
- Incentives = performance beyond
expectations (eg. Bonus, awards, share
options)
Objectives of Reward Package
• Attract employees

• Retain “good” employees

• Motivate

• Contribute to H.R. strategy


Effective Reward System
• Satisfies basic needs
• Flexible
• Internal equity
• External equity
• Trust (management & staff believe in it)
Training & Development

- Assessment of need

- Design & delivery

- Transfer & evaluation


The Evidence For Change
• Growth of A-typical employment
• Flexibility debate
• Technological revolution
• Quality initiatives
• Management-employee communications
Partnership Model
• Employers recognise & facilitate worker & T.U.
involvement in strategic decision making

• Workers/T.U.’s commit to productivity


improvements

• Gains shared

• Productivity improvements business expansion


Cutting Edge of HRM
Key changes:
• Attendance management performance

• Use of management to implement HR strategy

• Emphasis on communication & training as tools

• Belief in potential of people to yield competitive


advantage
HRM @ INTEL

•Quarterly employee lunches


• Employee Resource Centre
• Meetings culture
• Profit sharing
• Flexible working arrangements
• 360° feedback
Vision based on
5 core principles:

1. Total quality
2. Total involvement
3. Management by facts
4. Emphasis on H&S
5. Clear objectives
Strategic responses to
increased competition
1. Widespread rationalisation,
redundancies, contracting-out, de-
layering

2. Mergers, acquisitions, strategic


alliances

3. Enterprise level partnership


Human resources is not fluffy
(Sunday Times Jan 2002)
 18 of FTSE 100 have board representation for
HR
 Need to focus on ‘best fit’ as well as ‘best
practice’
 Need to quantify & communicate contribution
 HR is not ‘touchy-feely’ – often left with
controversial decisions that no one else will
deal with
A higher status for the people
person (Financial Times 29/01/02)
 HR managers need to understand how their
jobs have changed
 Need to be involved in looking for talented
recruits, working on top level succession and
helping to devise the long-term strategy of
the organisation
 Dominated by professional rather than
administration staff
 Report to the CEO & sit on the board

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