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HUMAN RESOURCE MANAGEMENT
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Evolution of HRM
Owners themselves managed/control employees
Labour welfare officers (1920s & 30s): to protect
interests of workers in the form of govt intervention.
Welfare officers made mandatory under Factories
Act 1948
In 1970s focus shifted from welfare of people to
concern for performance of organizations in the
form of Personnel Management.
In 1980s PM transitioned into HRM with the advent
of new technologies: to manage People & their
performance
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Evolution of HR in India
Period
Development
Status
Emphasis
Status
1920-1940
Beginning
Statutory,welfare,pat Clerical
ernalism
1940-1970
Struggling for
recognition
Introduction of
techniques
Administrative
1970-1990
Achieving
sophistication
Regulatory,
conforming,
imposition of
standard on other
functions
Managerial
1990s
Promising
Human Values,
productivity through
people
Executive
2000
Considered as
business
differentiator
Business Partner,
Emphasis on
measurability
Strategic
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Definition of HRM:
Strategic & coherent approach to the
management of an organizations most valued
assets the people working there, who
individually and collectively contribute to the
achievement of its objectives.
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HRM
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HRM
Management led planning
of people resources &
conditions
Competitive pay &
conditions to stay ahead
of competitors
Contributing added value
to business
Stimulating change
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HRM
Total commitment to
business goals
Completely flexible
approach to staff
deployment
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HRM Functions
Planning: forecasting future HR needs w.r.t.
organizations environment, mission, objectives,
business strategies, culture, technology, etc
Staffing: obtaining people with right KSAs
based on HRP, job analysis, recruitment &
selection.
Developing: analyzing learning needs for
employee competency & organization capability
Motivating: design & administration of reward
systems job evaluation, PA, pay & benefits.
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HRM Functions
Maintaining: administration of workplace
safety, health, and welfare policies & statutory
compliances
Managing relationships: employee
involvement/participation schemes, negotiating
settlements & implementing them.
Managing change: to envision future, setting
clear expectations for performance &
developing the capability, to reorganize people
and reallocate resources.
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HRM Functions
Evaluating: to measure, evaluate &
communicate value added by people .
Doables include routine activities &
competence building pursuits constitutes
deliverables
8 functions above cover doables as well as
deliverables
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HRM Models
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Principles of HRM
1.
2.
3.
4.
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Aims of HRM
1. Organizational effectiveness (HRM makes a significant
impact on firm performance)
2. Human capital management (HC is the prime asset the
aim is to develop the inherent capacities of people)
3. Knowledge management (support the development of
firm-specific knowledge)
4. Reward management (enhance motivation, job
engagement)
5. Employee relations (harmonious relationship between
partners)
6. Meeting diverse needs (stakeholders, workforce)
7. Bridging the gap between rhetoric and reality (HRM is
to bridge the gap and to ensure that aspirations are
translated to effective action)
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HRM concepts
People Management
Human Resources
Management
Human Capital
Management
An approach to
obtaining, analyzing and
reporting on data which
informs the direction of
value adding people
management strategic
investment and
operational decisions at
corporate level and at
the level of front line
management
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Personnel Policies
A policy is a plan of action an expression of
philosophy & principles
Examples of specific personnel policies are;
Policy of hiring people
Policy on terms & conditions of employment
Policy with regard to medical assistance
Policy regarding housing, transport, etc
Policy regarding training & development
Policy regarding industrial relations
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Personnel Policies
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payments
Establishment of adequate communication systems
Planning for the effects of change of staff.
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Line Function
Line Authority
Implied Authority
Functional Authority
Functions of
HR Managers
Staff Functions
Staff Authority
Innovator
Employee Advocacy
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Coordinative function:
Staff function:
Assist & advise Line managers to understand & appreciate
HR aspects as strategic options.
Plays role as an innovator & employee champion
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Functional/Administrative expert :
Strategic Partner:
HR leader:
Management of
Transformation and
Change
Change Agent
PEOPLE
Management of Firm
Infrastructure
Management of
Employee Contribution
Administrative Expert
Employee Champion
DAY TO DAY
OPERATIONAL FOCUS
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Role/Cell
Deliverable/
Outcome
Metaphor
Activity
Mgmt of Strategic
HR
Aligning with
Business Strategy
Orgnl diagnosis
Mgmt of Firm
Infrastructure
Bldg efficient
infrastructure
Administrative
Expert
Re-engg orgn
processes:
Shared services
Mgmt of
Employee
contribution
Increasing
employee
commitment/capa
bility/competence
Employee
Champion
Listening/respondi
ng to employees :
resources to
employees
Mgmt of
Transformation &
change
Creating a
renewed
organization
Change Agent
Managing
Transformation &
changecreating
capacity to
change
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Functional Expert:
HR has to advise line managers, must have ability to
heritage
To know their limitations and know where to source the
information which they do not have e.g Tower Watson,
Mercer Consulting, etc.
Strategic Partner:
Play the role of strategists, change agents, and internal
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HR Leader:
Ability to envision the future & then leads their team
HR leaders must value their function before any one
else does
HRs credibility starts & ends with operational
excellence e.g. paying on time, appraising on time,
training on time, etc
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Competencies of HR Professional
Earlier
New Dynamics
HR proficiencies domain
knowledge
Business proficiencies
strategic role in partnering
business
Leadership proficiencies
driving & leading the
changes
Learning proficiencies
staying abreast & applying
new technologies
Strategic contribution
Personal credibility
HR delivery
Business knowledge
HR technology
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The HR Organization
HR Functional Organization
HR Shared Services
Embedded HR
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The HR Organization
1. HR Functional Organization:
Will have specialists in each domain of HR
Head of the function & specialists reporting to head.
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The HR Organization
Known
as Corporate HR department
geographical spread;
Each centre has local HR generalists who implement
policies
The HR Organization
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The HR Organization
Corporate
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The HR Organization
2. HR Shared Services:
Most large companies with diverse businesses
create separate units/businesses to compete & at
same time want synergy among units
one group in organization designs superior way of providing
services to employees & is shared with rest of the Group
(Internal Service Provider)
Repetitive, rule driven, legal compliances, leave management,
pay roll function, etc
Realization to cut cost & increase process efficiency
specialized in doing just that .
Earlier HR used to spend much time in Transactional HR
Now HR spends more time in Transformational HR (devising
& implementing strategies) Figure next slide
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The HR Organization
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The HR Organization
Service Centres:
Where similar transactional HR jobs done by a Unit for
multiple units.
Economies of scale enabling employee concerns to be
resolved by fewer dedicated resources. decreased
processing time.
Standardized HR processes increases processing efficiency
& decreases processing time.
Flip side: dehumanize transactions
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The HR Organization
Outsourcing:
Handing over a process to an outside party or vendor to
deliver as per requirements of customer company.
India started as vendor for supplying HR outsourcing to
companies in US & Europe
Now Indian companies are choosing this outsourcing route
e.g. payroll, employee benefits, training & development, etc
Saves costs, drive process standardization, increase speed
& quality of service
Flip side: a wrong vendor, an unbalanced contract & loss of
control to the vendor are some risks
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The HR Organization
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The HR Organization
3. Embedded HR:
In organizations where transactional HR relegated to
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Organizational Structure
Personnel Department
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Personnel Department
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Summary
HRM is a tool that helps managers to plan, recruit,
select, train, develop, remunerate, motivate and make
maximum utilization of human and non human
resources for the organization and society at large.
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Thanks.
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