Introduction to Human Resource Management

MM S,SEMESTER II 2011-13 Session 2 Swatee Sarangi

HRD & IRM Difference between PM & HRM Nature & Scope of HRM Functions and Objectives Measuring HR Performance . PM.2 Flow of the Session Understanding HRM.

with capabilities to drive organizational performance.Definition of HRM • HRM involves all management decisions and practices that affect or influence the people who work for the organization ▫ bringing together different kinds of people. to achieve a common business purpose –profit making .

• HR managers must always stand ready to defend their plans and contributions in measurable terms. • HR managers increasingly rely on IT to help support the company’s strategic aims. • HR department’s performance is measured relative to achieving the company’s strategic aims. • Globalization and diversity are important HR issues today.Basic Themes • It is the responsibility of every manager—not just the HR department. • Virtually every HR-related has legal implications. .

.5 Activity ▫ Make a list of the functions which you think are within the realm of HRM.

employees & society ▫ holistic concept .expendable & replaceable ▫ interests of organization are utmost ▫ routine record keeping • Human Resource Management ▫ views people as asset ▫ promotes mutuality in goals. rewards & responsibilities for organization. respect. HRM.6 Understanding PM. HRD. IRM • Personnel Management ▫ viewed labor as a tool.

IRM • Human Resource Development ▫ concerned with training. career planning & organization development – developing people as assets ▫ part of HRM • Industrial Relations Management ▫ concerned with employee grievances. HRD.7 Understanding PM. unionization etc ▫ maintaining industrial democracy ▫ part of HRM . HRM. settlement.

8 Difference b/w PM & HRM Dimension Employment Contract Rules Guide To Management Action Behavior Referent Managerial Task Vis-à-vis Labor Key Relations Speed Of Decision Pay PM Focus On Written Clarity Is Very Imp Procedures Norms Monitoring Labor Management Slow Fixed HRM Go Beyond Contract Flexibility Is Imp Business Need Values Nurturing Customer Fast Performance Related .

9 Difference b/w PM & HRM Dimension PM HRM Perspective Labor management Isolated function Collective bargaining contract Integrated system Individual contracts Conflict handling Employees are Management Role Communication Prized Management Skills Evolution Reach temporary truce Tools Transactional Indirect Negotiation Precedes HRM Handle climate & culture Assets Transformational Direct Facilitation Latest in evolution .

a duty often referred to as functional control. .10 Functions of the HR Manager • A line function ▫ The HR manager directs the activities of the people in his or her own department and in related service areas • A coordinative function ▫ HR managers also coordinate personnel activities. • Staff (assist and advise) functions ▫ Assisting and advising line managers is the heart of the HR manager’s job.

of Hrm Prospects of HRM Employee Hiring Industrial Relations Scope of HRM Employee & Executive Remuner ation Employee Maintaine nece Employee Motivatio n .11 Intro.

12 The Changing HR Environment Challenges ▫ Globalization ▫ Technological Advances ▫ The Nature of Work ▫ Workforce Demographics ▫ Cost cutting ▫ Managing Attrition .

13 Proficiencies .HR Manager ▫ HR proficiencies ▫ Business proficiencies ▫ Leadership proficiencies ▫ Learning proficiencies .

January/February 2000.shrm. [HR Planning. pp. Employees. www. ―Improving the Return on Human Capital: New Metrics. ―Measuring Up.) × (# of workdays)] × 100 • Cost per Hire (Advertising + Agency Fees + Employee Referrals + Travel cost of applicants and staff + Relocation costs + Recruiter pay and benefits) ÷ # of Hires • Health Care Costs per Employee Total cost of health care ÷ Total Employees • HR Expense Factor HR expense ÷ Total operating expense Sources: Robert Grossman. and Financial Metrics. Le Blanc. 1 (Spring 2000).‖ Compensation and Benefits Review. .14 HR Metrics • Absence Rate [(# of days absent in month) ÷ (Average # of employees during mo. pp. 93–105.org.‖ Human Resource Management 39. ―Data and Metrics-Driven Approach to Human Resource Practices: Using Customers. Peter V. pp. 29–35.Thomas E. no. July 17.‖ HR Magazine. January 2000. 13– 20. Rich. 1996. and Jude T. Murphy and Sourushe Zandvakili. Commerce Clearing House Incorporated.] SHRM/EMA 2000 Cost Per Hire and Staffing Metrics Survey. Paul Mulvey.

Murphy and Sourushe Zandvakili.‖ Compensation and Benefits Review. Paul Mulvey. Peter V. Le Blanc. Commerce Clearing House Incorporated.Thomas E. www. [HR Planning. no. January 2000. 13–20. 1996. ―Data and Metrics-Driven Approach to Human Resource Practices: Using Customers. July 17.‖ HR Magazine. and Financial Metrics.15 HR Metrics (cont’d) • Training Investment Factor Total training cost ÷ Headcount • Turnover Costs Cost to terminate + Cost per hire + Vacancy Cost + Learning curve loss • Turnover Rate [# of separations during month ÷ Average # of employees during month] × 100 • Workers’ Compensation Cost per Employee Total WC cost for Year ÷ Average # of employees Sources: Robert Grossman. 29–35. pp. 1 (Spring 2000).shrm.] SHRM/EMA 2000 Cost Per Hire and Staffing Metrics Survey. pp. 93–105. January/February 2000. Rich.‖ Human Resource Management 39. . pp.org. ―Improving the Return on Human Capital: New Metrics. Employees. ―Measuring Up. and Jude T.

16 Application Case .

With customers to see and loans to be made. the supervisor in charge spoke to Nelson confidentially. When he was introduced to Ruth Johnson. know precisely how to operate the machine. she has little time to work with the new employees as they came and went. When an opening developed. but she didn’t know what. and no sooner had one employee been put on the job than another one resigned. she was an excellent employee. employee turnover was too high. She did. The more he thought about the matter. All branch supervisors hired their own employees without communication with the home office or other branches. the supervisor tried to find a suitable employee to replace the worker who had quit. Johnson replied that she really did not know what the machine was called or what it did. After touring the 22 branches and finding similar problems in many of them. . Nelson wondered what the home office should do or what action he should take. She explained that she had only been working there for two months. telling him that ―something was wrong‖. however. For one thing. According to her supervisor. she explained. the more puzzled whether to report his findings to the president. At one of the branch offices.17 Jack Nelson’s Problem As a new member of the board of directors for a local bank. he was curious about her work and asked her what the machine she was using did. The banking firm was generally regarded as a well-run institution that had grown from 27 to 191 employees during the past eight years. Jack Nelson was being introduced to all the employees in the home office. she continued.

18 Thank You for your time & attention!! .

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