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Human Resource Management

By Shweta Bambuwala

Anagram Finances
Started as a small organization with only 50 workers 10 yrs ago Mr Patil a 12 passed man employed people who he knew and who had reasonable capabilities to perform. No formal recruitment process followed His Son an MBA wants to expand. An HR professional hired advises to discontinue old 50 workers. The 50 workers rise in protest. Decision was reconsidered and son decides to give some less important jobs which does not involve much skill and decision making. Workers refused to accept.


Physical Resources

Human Resources

Why and how human resources (HR) are superior to physical resources
HR alone appreciates over a period. HR achieves in higher performance output than its actual input. HR brings value to all other assets. Operational flexibility is possible with HR.

Human Resource Management: meaning

Human resource management is concerned with policies and practices that ensure the best use of the human resources for fulfilling the organizational and individual goals.

Objectives of HRM
To Take care of the work life of the employees To act as liaison between the top management and the employees To offer training To devise employee benefit schemes for developing skills, improving employee motivation and group morale To ensure and enhance the quality of work life To help keep up ethical values and behavior amongst employees

The Evolution of Human Resource Management

Scope of human resource management

Personnel or labour aspect deals with HR planning, recruitment, selection, placement, training and development, remuneration, etc. Welfare aspect deals with working conditions and amenities such as canteen, rest-rooms, etc. Industrial relations aspect deals with union management relations like collective bargaining, grievance and disciplinary actions, etc.

Functions of human resource management

Operative functions of HRM

HRM and PM
Similarities Business Strategy Matching People Prominence of line Authority Identical Core Elements Emphasis on Communication and participation

Difference between HRM and PM

HRM is proactive in nature while PM is reactive. HRM is a resource-centred activity whereas PM is a employee-centred activity. HRM emphasizes on flexible, open-ended contracts but PM emphasizes the strict observance of defined rules, procedures and contracts.

HRM views better performance as a cause of job satisfaction whereas PM considers job satisfaction as a source of better performance. HRM seeks to develop the competencies of the employees on a sustained basis while PM is a regular, status quobased administrative function.

Qualities of an HR manager
Knowledge Intelligence Communication skills Objectivity and fairness Leadership and motivational qualities Emotional maturity and Empathy

Human Resource Managers Duties

Line Function
Line Authority Implied Authority

Coordinative Function
Functional Authority

Functions of HR Managers

Staff Functions
Staff Authority Innovator Employee Advocacy

HR Managers Proficiencies
1. HR proficiencies 2. Business proficiencies 3. Leadership Proficiencies 4. Learning proficiencies

Line Versus Staff Authority of HRM

Line manager: Empowered to direct the work of the people assigned to them Staff Advisor: play important role in advising and assisting the line managers.
General Manager

Pro. Manager

HR manager

Sales Manager

Line managers Responsibility

Placing Right person on the right job Starting new employees on the organization Training the employees for the jobs that are new Improving the job performance of each person Gaining creative cooperation and developing smooth working relationship Interpreting the policies and procedures of the company Controlling the labour cost Developing the abilities of each person Creating and maintaining the department morale Protecting the employees health and physical condition

The Changing Environment of Human Resource Management

Globalization Trends

Technological Trends Changes and Trends in Human Resource Management Trends in the Nature of Work

Workforce Demographic Trends

Economic challenges and trends

The Changing Role of Human Resource Management

Strategic Human Resource Management

Managing with the HR Scorecard Process

New Responsibilities for HR Managers

Creating HighPerformance Work Systems

Measuring the HRM Teams Performance


HRM in India
Strategic Human Resource Management High performance Work systems Evidence based Human Resource Management Managing Ethics HR qualification

The Strategic Management process

Strategy:- Long term plan to balance internal strengths and
weakness with its external opportunities and threats to maintain a competitive advantage.

Strategic Management:-

The process of identifying and executing the organizations mission by matching its capabilities with the demands of its environment.

Business Vision and Mission

A general statement of an organizations intended direction that evokes emotional feelings in organization members.

Spells out who the company is, what it does, and where its headed.

Our Mission

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions. To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.

Our Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth. People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization.

The Strategic Management Process

A SWOT Chart Strengths

Example: Market leadership

Example: Large inventories

Example: New overseas markets

Example: Market saturation


Types of Strategies
Corporate strategy
1. 2. 3. 4. Diversification Vertical integration Consolidation Geographic Expansion

Competitive Strategy
1. 2. 3. Cost Leadership Differentiation Focusers

Functional Strategy Achieving Strategic fit

Relationships Among Strategies in MultipleBusiness Firms

Strategic Human Resource Management

Strategic Human Resource Management
The linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility.
Involves formulating and executing HR systemsHR policies and activitiesthat produce the employee competencies and behaviors that the company needs to achieve its strategic aims.

Creating the Strategic Human Resource Management System

Components of a Strategic HRM System

Human Resource Professionals

Human Resource Policies and Practices

Employee Behaviors and Competencies


Three Important Strategic HR Tools

Source: Adapted from Brian Becker et al., The HR Scorecard: Linking People, Strategy, and P

The HR Scorecard
Shows the quantitative standards, or metrics the firm uses to measure HR activities.

Measures the employee behaviors resulting from these activities.

Measures the strategically relevant organizational outcomes of those employee behaviors.

Creating an HR Scorecard
The 10-Step HR Scorecard Process
1 2 3 4 5

Define the business strategy Outline value chain activities Outline a strategy map Identify strategically required outcomes Identify required workforce competencies and behaviors

6 7 8

Identify required HR policies and activities Choose HR Scorecard measures Summarize Scorecard measures on digital dashboard and monitor, predict, and evaluate

Five Sample HR Metrics HR Metric* Absence rate How to Calculate It # of days absent in month Average # of employees during month # of workdays 100

Cost per hire

Advertising + agency fees + employee referrals + travel cost of applicants and staff + relocation costs + recruiter pay and benefits
Number of hires

HR expense factor

HR expense Total operating expense

Time to fill

Total days elapsed to fill job requisitions Number hired

Turnover rate

Number of separations during month Average number of employees during month