Managing People and Organizations

MBA ZG 511
BITS Pilani Dr. Jayashree Mahesh, Department of Management, BITS
Pilani.
Pilani|Dubai|Goa|Hyderabad
 BITS Pilani
Pilani|Dubai|Goa|Hyderabad

Text books:
T1:Organizational Behavior by Stephen P. Robbins., Timothy A. Judge &
Neharika Vohra, Pearson Education, 18th Edition, 2019

T2. Aswathappa K., Human Resource Management- Text and Cases, Tata
McGraw Hill, 8th Edition, 2017
M1_L1 : Assessment Time

Many organizations look for ways to promote diversity through family-friendly

policies. Look for three companies who are incorporating family-friendly
policies into their HRM strategy. On a separate paper answer the following
questions:
– Identify the companies? (Be sure to list their Web address, too.)
– What are their policies?
– How do these policies attract and keep people?
– Do these policies interest you? Why?
– How might they make their policies more attractive to workers?
– If they make the changes you suggest, what results would you expect?
(Is there evidence to back up your opinion? If it is just your opinion,
say so, but later look for studies that back up or refute your opinion
today.)

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 BITS Pilani
Pilani|Dubai|Goa|Hyderabad

L1 – Nature, Scope and Context of HRM

Where does this course fit?

• The relationship of OB to other closely related

disciplines

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
 A Quick Quiz on HR
1. When hiring employees, is it better to hire people who you judge to be
hard working, organized, and dedicated during a traditional interview,
or is an IQ test a better way to pick people?
2. Is it better to hire people based on the fit of their values with the
company’s values, or is an IQ test better?
3. True or false--Asking applicants about stealing or other negative
behavior at work during an interview doesn’t help you find better
employees, because most people who are going to do bad things at
work just lie.
4. True or false--If employees participate in decision making they will be
more motivated than if top management sets performance goals?
5. True or false—Managers may think their employees are really
concerned about compensation, but when it comes down to it, money
doesn’t really matter that much to most people.
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Importance of People
»Our Vision and Mission
» At Capgemini, we live and breathe the
philosophy that people matter and results
count
• Our Vision: the business value of technology comes from and
through people
• Capgemini understands that business value cannot be achieved through
technology alone. It starts with people: experts working together to get to
the heart of your individual business objectives and develop the most
adapted solutions to fit these requirements. We believe this human-
centered approach to technology is what makes the difference for your
business.

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 Adjudged “best employer of the year”
by number of leading HR surveys.
Why??
Infosys' Vision:

"To be a globally respected corporation that provides best-of-breed business

solutions, leveraging technology, delivered by best-in-class people."

Infosys' Mission

"To achieve our objectives in an environment of fairness, honesty, and courtesy

towards our clients, employees, vendors and society

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 Significance of Human Resources
Infosys' Vision:
"To be a globally respected corporation that provides best-of-
breed business solutions, leveraging technology, delivered by best-
in-class people.“
Infosys' Mission
"To achieve our objectives in an environment of fairness, honesty,
and courtesy towards our clients, employees, vendors and society

To ensure anywhere and any time banking for the customer with
latest state-of-the-art technology and by developing effective
customer centric relationship and to emerge as a world-class
service provider through efficient utilization of Human Resources
and product innovation.
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 Common Statements
• There is unlimited people potential that is untapped..

• The universal challenge is getting results through

people….

• Acquiring ,developing and maintaining human talent

and building human capital….

• Its people that lend competitive advantage …….

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People – A Source of Competitive
Advantage
1) People offer skills, capabilities, systems, practices and behaviors
which help execute firm’s strategies successfully
2) By aligning HR plans to business , HR managers become
strategic partners.
3) Innovation is the key to competitive advantage and people are
sources of innovation
4) HR function seeks to convert an adverse situation into an
opportunity
5) Changes to structure due to environmental changes will become
successful only innovative HRM Strategies
6) HR manager plays a role of an effective change agent

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Uniqueness of Human Resource

• Only assets that appreciate over a period of time.

• Alone can produce an output larger than the input.

• Provide utility value to each physical assets.

• The flexibility of an organization depends more on people
than on any technical factors.

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Meaning of HRM
• HRM refers to acquisition, motivation ,retention and maintenance of
Human Resources in an organization
• The policies and practices involved in carrying out the “people” or
human resource aspects of a management position, including
recruiting, screening, training, rewarding, and appraising
• HRM is a management function that helps organisation to recruit,
select, train, develop and manage its members.
• Simply stated, HRM is all about management of people in the
organisation from Recruitment to Retirement.
• HRM refers to set of programs, functions, and activities designed and
carried out in order to maximise both employee as well as
organisational effectiveness
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The HR Paradox

• The biggest differentiator resource is Human

Resource for any Organization

• The biggest challenge is to quantify the contributions

of the HR

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 A Basic Mental Map for HR
What HR Do You Need to Make a Company Work?

• Tell me a few things that are typically the responsibility

of the HR department
• Consider how HR would be involved in the following
corporate actions:
– Plans to change strategic focus from being a cost leader to a
quality leader
– Plans to expand into a new market
– Preparing to implement a new software or hardware
computer system

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Functions of HRM

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Line and Staff Aspects of HRM
• Line manager: A manager who is authorized to direct
the work of subordinates and is responsible for
accomplishing the departmental goals and corporate
objectives.
- Production Manager
- Purchase Manager
- Sales Manager

• Staff manager :A manager who assists and advises

line managers.
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Human Resource Managers’ Duties
Line Function
Coordinative Function
Line Authority
Functional Authority
Implied Authority

Functions of
HR Managers

Staff Functions
Staff Authority
Innovator
Employee Advocacy

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Line Managers’ HRM Responsibilities
1. Placing the right person on the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth working
relationships
6. Interpreting the firm’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining department morale
10. Protecting employees’ health and physical condition
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 What does HRM cover?
Co-ordination and responsibility for…
• Recruitment
• Team working
• Participation & Involvement
• Promotion
• Culture change Competent
• Retention and willing
workforce
• Development Support
• Equal Opportunities training
• Discipline
• Employee Disputes Organizational
Goals

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Human Resource Specialties
Recruiters

Employment/
Industrial Human Resource
Relations Development
Specialist Human Specialists
Resource
Specialties
Training
Job Analysts
Specialists

Compensation Employee Welfare

Managers Officers

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
The New Human Resource Manager

Big Transactional
picture Services

The New
Human
Resource Talent
Competencies Managers Management

Performance,
results,
evidence-based Employee Ethics
practice Engagement

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Why study ‘environment’?
• Environment affects business activities and vice-
versa.
• Helps managers become proactive and not remain
reactive to the environment.
• Proactive steps are vital for any organization to
survive in such an environment.
• Environment: The entirety of the surrounding
conditions.

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
An Overview….
Internal factors
HRM and its Environment
External factors

Enacted Environment

Knowing the Environment

Domain and
Domain Consensus

Scanning the Environment

Task Environment

HRM and Environmental Scanning

Managing People and Organizations (MBA ZG 511)

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HRM and its Environment

• External Environment - Comprises of political-legal,

economic, technological, and cultural factors
• Internal Environment – conflicts, union, strategy, and
professional bodies

Knowledge about the environment helps the HR

manager and his team to become more proactive

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Factors shaping HRM Environment
• External Factors- The events occurring outside the
organization but influencing the HR activities of the
organization.
• Internal Factors – Factors internal to the organization
that have a significant influence on its HR activities.

Knowledge about the environment helps the HR

manager and his team to become more proactive

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Organizational (HR) Environment

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External Forces
Social Legal
Demographics Economic
Educational Status Suppliers
Technological Competitors
Political Customers
Nature of political Shareholders
organization and System Economic Growth
Political Stability Labour Market
Prevailing Political Diversity
Ideologies Globalization
Cultural
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 Internal Forces
• Vision & Mission of the
Organization

• Business Strategy

• Organizational Culture and

Conflict

• Organizational Structure

• HR systems

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External Environment
• Political- Legal: Covers the impact of political institutions
on organizations.
• In a democratic political setup, three institutions together
constitute the total political environment:
1. the legislature
2. the executive, and
3. the judiciary
For instance, the interface between political environment
and labour takes place through an array of labour laws.

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
External Environment
Many enactments relating to labour:
- Terms and conditions of employment,
- Working conditions,
- Payment of wages,
- Provisions relating to industrial disputes.
Ref. Article 14: Guarantees equality before the law.
Article 15: Prohibits discrimination on grounds of religion,
race, caste, gender, or place of birth.
Article 23: Prohibits forced labour
Article 24: Prohibits employment of children in factories,
mines and other hazardous jobs.
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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
External Environment
• Governments all over the world can create enabling
environments for economies to grow and a robust
economy generates more jobs.
• Government can play a constructive role in
accelerating growth by managing the macro and
micro sectors of the economy effectively.
• Ref. Economic Policy, 1991
• Setting up of National Skill Development
Corporation NSDC
•
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 External Environment
• Economic Environment: Comprises of those economic
forces/ factors which have a bearing on organizational
functioning like

• Economic growth • National and per capita

• Globalization income
• Agriculture • Suppliers
• Industrial production • Competitors
• Population • Customers and
industrial labour

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
External Environment
• Technology:
Technology is a systematic application of organized
knowledge to practical tasks (J. K. Galbraith).
Technology affects HR functions and other
organizational functions as well.
- Positive impact
- Problems encountered in this technology age.

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External Environment
• Culture:
Complex whole which includes knowledge, belief, art,
morals, laws, customs and other capabilities and habits
acquired by an individual as a member of a society.

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Influence of Culture on HRM
• Culture creates the type of people who become members of an
organization
• The attitude of workers towards their work is a result of their
cultural attitude
• Time orientation which influences culture has its roots in
culture
• Work ethics, achievement need, effort-rewards expectation
which are determinants of individual behavior are results of
culture
• Culture makes people confine themselves to certain
occupations or regions

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Concepts related to the Environment
• Enacted Environment – The environment which the
organization creates is called enactment
• Domain - is that part of the environment which the
organization carves out for itself
• Domain Consensus – it is formed when all the
stakeholders agree upon the domain of the
organization
• Task Environment – it specifies the range of products
to be offered, the technology to be employed, and
the proactive strategies to be used to counter
competition
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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Scanning the Environment
• Involves surveillance of the environment to
determine trends and projections that would affect
the fortunes of the organization.
• Focuses on the task environment
• Provides relevant information for planning and
decision making
• The relevant areas for HRM to be scanned are labor
market, legal environment, constitutional provisions
and technology

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