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Dr. Desai

“Nurturing turns potential into performance”

Fundamentals of Human Resource Management

Management is the process of efficiently achieving the objectives of the organization with and through people.Management Essentials Management involves setting goals and allocating scarce resources to achieve them.   .

Management Essentials  Primary Functions of Management – Planning – establishing goals – Organizing – determining what activities need to be done – Leading – assuring the right people are on the job and motivated – Controlling – monitoring activities to be sure goals are met .

and systems in an organization that ensure staff are acquired and used in an effective way . programs.Human Resource Management HRM is the part of the organization concerned with the “people” dimension. The integration of all processes.

Human Resource Management HR planning Recruitment Selection Organizational and work design Training and development Performance review Compensation Labor relations .

Strategic Human Resource Management .

support the business strategy. and assist the organization in maintaining competitive advantage.Strategic Human Resource Management  The Strategic Nature – HRM must be – a strategic business partner and represent employees. – concerned with the total cost of its function and for determining value added to the organization. . – forward-thinking.

do? .Importance of Strategic HRM  Can establish an organization’s sustainable competitive advantage – The difference between efficient and inefficient workers is the same as the difference between a profitable and non-profitable company Requires fundamental change in how managers think about employees – Partners and Investments  Need to consider outsourcing certain HR transactions – But then what does the HR dept.

The Importance of HRM .

The Importance of Human Resource Management (HRM)  As a necessary part of the organizing function of management – Selecting. .  Adds value to the firm – High performance work practices lead to both high individual and high organizational performance. training. and evaluating the work force As an important strategic tool  – HRM helps establish an organization’s sustainable competitive advantage.

Why is HRM Important to an Organization?  The role of human resource managers has changed. – Employment legislation has placed new requirements on employers. HRM jobs today require a new level of sophistication. – Jobs have become more technical and skilled. – Global competition has increased demands for productivity. – Traditional job boundaries have become blurred with the advent of such things as project teams and telecommuting. .

Why is HRM Important to an Organization? Four basic functions:   Staffing Training and Development Motivation Maintenance   .

How External Influences Affect HRM     Strategic Environment Governmental Legislation Labor Unions Management Thought .

How External Influences Affect HRM  HRM Strategic Environment includes: – Globalization – Technology – Work force diversity – Changing skill requirements – Continuous improvement – Work process engineering – Decentralized work sites – Teams – Employee involvement – Ethics .

How External Influences Affect HRM  Governmental Legislation – Laws supporting employer and employee actions  Labor Unions – Act on behalf of their members by negotiating contracts with management – Exist to assist workers – Constrain managers .

– More recently. continuous improvement programs have had a significant influence on HRM activities. .How External Influences Affect HRM  Management Thought – Management principles influence the practice of HRM.

HR Functions .readysetpresent.

knowledge and abilities needed to be successful in a particular job – defining the essential functions of the job .Staffing Function  Employment planning – ensures that staffing will contribute to the organization’s mission and strategy  Job analysis – determining the specific skills.

and – the communication of information to assist job candidates in their decision to accept an offer .Staffing Function  Recruitment – the process of attracting a pool of qualified applicants that is representative of all groups in the labor market  Selection – the process of assessing who will be successful on the job.

Training and Development Function Activities in HRM concerned with assisting employees to develop up-to-date skills. knowledge. and abilities Orientation and socialization help employees to adapt Four phases of training and development – – – – Employee training Employee development Organization development Career development    .

The Motivation Function  The process of arousing and sustaining goal-directed behavior Implications are: – Individual – Managerial – Organizational   Function of two factors: – Ability – Willingness  Promotes Mutual Respect between Organization and Employees .

The Motivation Function  Managing motivation includes: – Job design – Setting performance standards – Establishing effective compensation and benefits programs – Understanding motivational theories .

Intrinsic and Extrinsic Motivation  Intrinsic motivation causes people to participate in an activity for their own enjoyment.   . Extrinsic motivation causes people to do something for a reward or to avoid a penalty. some children take piano lessons for intrinsic motivation (they enjoy it) while others take them for extrinsic motivation (to get a reward or avoid punishment). For example.

and Power Motives – McClelland – Equity Theory – Adams – Expectancy Theory . Affiliation.The Motivation Function  Classic Motivation Theories – Hierarchy of Needs –Maslow – Theory X – Theory Y –McGregor – Motivation – Hygiene – Herzberg – Achievement.Vroom .

Maintenance Function  Activities in HRM concerned with maintaining employees’ commitment and loyalty to the organization. – Health – Safety – Communications – Employee assistance programs  Effective communications programs provide for 2-way communication to ensure that employees are well informed and that their voices are heard. .

Some other factors to be considered in HRM .

  . HRM also involves considering the needs of employees’ families when they are sent overseas.HRM in a Global Organization  HRM functions are more complex when employees are located around the world. Consideration must be given to such things as foreign language training. etc. relocation and orientation processes.

HR and Corporate Ethics  HRM must: – Make sure employees know about corporate ethics policies – Train employees and supervisors on how to act ethically .

• Reassure and counseling to surviving employees.  Managing Work Force Diversity – Widen the recruitment net for diversity – Ensure selection without discrimination – Provide orientation and training that is effective .Current Issues in HRM  Managing Downsizing – The planned elimination of jobs in an organization • Provide open and honest communication. • Provide assistance to employees being downsized.

Current Issues in HRM (cont’d)  Work-Life Balance – Employees have personal lives that they don’t leave behind when they come to work. – Organizations have become more attuned to their employees by offering family-friendly benefits: • On-site child care • Summer day camps • Flextime • Job sharing • Leave for personal matters • Flexible job hours .

Current Issues in HRM (cont’d)  Controlling HR Costs – Employee health-care • Encouraging healthy lifestyles – Financial incentives – Wellness programs – Charging employees with poor health habits more for benefits – Employee pension plans • Reducing pension benefits • No longer providing pension plans .