accord basic hr concept-2003copy

8/9/2019 Accord Basic Hr Concept-2003copy

1/55

Nature and Scope of

Human

Resource Management


2/55

Meaning and Definition

HRM is a management function that helps

managers recruit, select, train and develop

members of an organisation.

HRM Peoples dimension


3/55

HRM Definition

Is concerned with people dimension in

management.Since every organisation is made

up of people, acquiring their services,

developing their skills, motivating them to

higher levels of performance and ensuring

that they continue to maintain their

commitment to the organisation are essentialto achieving organisational objectives.


4/55

Scope of HRM

HR Planning Job analysis and Design Recruitment and Selection

Orientation and Placement, Training and Development Performance appraisal and Job Evaluation Employee and Executive Remuneration

Motivation and communication Welfare, Safety and Health Industrial Relations (IR)


5/55

Importance of HRM

Social Significance

Balance the jobs available and job seekers

Provide suitable and productive employment

Maximize utilization of the resourceseffectively

Eliminate waste or improper use humanresources

Help people make their own decisions


6/55

Professional Significance

Maintain dignity of the employee as human

Provide maximum opportunities for personaldevelopment

Provide healthy relationship to different work

groups Improve skills and capacities

Minimise wrong postings, allocate work properly


7/55

Features of HRM

Comprehensive

Function

People-Oriented

Action Oriented

Individual Oriented

Development Oriented

Pervasive Function

Continuous Function

Interdisciplinary

Nervous system.

Young discipline Future-oriented

Challenging Function

Science as well an Art Staff function


8/55

What Is Strategic Management?

Strategic Management The ongoing process companies use to form a vision,

analyze their external environment and their internal

environment, and select one or more strategies to use to

create value for customers and other stakeholders,

especially shareholders

Vision

Contains at least two componentsa mission that

describes the firms DNA and the picture of the firm as

it hopes to exist in a future time period.


9/55

Parts of Strategic Management

Strategy

An action plan designed to move an

organization toward achievement of itsvision

Mission

Defines the firms core intent and thebusiness or businesses in which it intends to

operate


10/55

The Strategic Environment

Internal EnvironmentThe set of conditions (such as

strengths, resources and capabilities,

and so forth) inside the firm affectingthe choice and use of strategies

External Environment

A setofconditionsoutsidethefirmthataffectthefirms performance


11/55

Key Characteristics of Strategic Management

Strategic management is:

Performance oriented

Ongoing in nature

Dynamic rather than static

Oriented to the present and the future

Concerned with conditions both outside and inside

the firm

Concerned with performing well and satisfying

stakeholders


12/55

The Three Parts of the Strategic

Management Process

1. Strategic leaders form a firms vision and mission.

2. Firms analyze their external environment and their internal

environment.

3. Firms choose and implement a strategy that to creates

unique mix of value for customers and satisfies other

stakeholders.

Strategy implementationthe set of actions firms take

to use a strategy after it has been selected.


13/55

Difference between HRM & PM

HRM

HRM views people as an important source or

asset to be used for the benefit of

organisation, employees and the society.

Philosophy of mutuality : mutual goals,

mutual respect,mutual rewards and mutual

responsibilities.

ASPA changed its name to SHRM


14/55


Dimension Personnel Human

Resource

Employment

Contract

Written,

delineated

Aim to go

beyond contractRules Clear Outlook,

Impatience

Guide to Mgnt.

Action

Procedures Business Needs

Behaviourreferent

Norms/Customs and Practices

Values/Missions


15/55


Dimension Personnel HumanResource

Managerial/labour task

Monitoring Nurturing

Key Relations LabourManagement

Customer

Initiatives Piecemeal Integrated

ManagementRole

Transactional TransformationalLeadership

Speed of

decision

Slow Fast


16/55



Resource

Communication Indirect Direct

Prized

Managementskill

Negotiation Facilitation

Selection Separate,Marginal task

Integrated, keytask

Pay Job Evaluation(Fixed grades)

Performancebased

Conditions Separately

negotiated

Harmonisation


17/55



Resource

LabourManagement

Collective barg-aining contracts

Individualcontracts

Job categoriesand grades Many Few

Job design Division of labour Team work

Conflict handling Reach temporarytruce

Manage climateand culture

Training &Development

Controlled accessto courses

Learningcompanies


18/55



Resource

Intervention

focus

Personnel

procedures

Wide ranging-

cultural,structuraland personnelstrategies

Respect for

employees

Labour treated

as tool :expendable andreplaceable

People are treated

as assets tobenefitorganisation/employees/society


19/55



Resource

Sharedinterests

Organisationalinterests areuppermost

Mutuality ofinterests

Evolution Precedes HRM Latest in theevolution of thesubject


20/55

OBJECTIVES OF HRM

SOCIETAL OBJECTIVES

ORGANISATIONAL OBJECTIVES

FUNCTIONAL OBJECTIVES

PERSONAL OBJECTIVES


21/55

Objectives of HRMFunctionalTo maintain the departments contribution at

a level appropriate to the organization's needs.

Personal

To assist employees in achieving theirpersonal goals, at least insofar as these goalsenhance the individuals contribution to theorganization.


22/55

HRM Objectives and Functions

HRM Objectives

Societal

Supporting Functions

1.Legal Compliance

2.Benefits

3.Union management

relationship


23/55


24/55


HRM Objectives

Functional

Supporting

Functions

1.Appraisal

2.Placement

3.Assessment


25/55


HRM Objectives

Personal

Supporting

Functions

1.Training &

Development

2.Placement

3.Assessment

4.Compensation


26/55

Human Resources Management


27/55

JOB ANALYSIS

FRINGE

BENEFITS JOB DESIGN

WAGES &

NCENTIVES

CAREER

PLANNING

PROMOTIONS

JOB

TRANSFER

JOB

ROTATION

EMPLOYEE

TRAINING

JOB EVALUATION

MANPOWER

PLANNING

RECRUITMENT

SELECTION

PLACEMENTS

INDUCTION

HUMAN RESOURCE

MANAGEMENT


28/55

Image & Qualities of HR

Manager Fairness & Firmness

Tact and resourcefulness

Sympathy and consideration

Knowledge of labour other terms

Broad Social outlook

Competence


29/55

HR Policies

A policy is plan of action. Is a statement of intentioncommitting the management to general course ofaction. Policy contains HR programmes, expression of

philosophy and principles.

Policy are required for

basic needs, consistency in treatment & continuity


30/55

EVOLUTION OF HRM IN INDIA1920s - 1930s

1940s 1960s1970s 1980s

1990s


31/55

Evolution of HRM

HRM emerged in 1970s

Kautilyas Arthashastra in 4th BC

Babylonian Code of Hammurabi 1800 BC

minimum wage rate & incentive wage plan In India since 1920 : First world war, emergence of

trade union

The Royal Commission (1931) : Labour Welfare

Officers : Selection of workers and settle grievances.


32/55

Evolution of HRM

Factories Act (1948) Welfare officers compulsoryin industries employing 500 employees

IIPM Kolkata, NILM in Mumbai : (Jute andtextiles)

Second World War : increased expectations of theworkers : IR and Personnel admn integrated asPM

1970 : Shift from welfare to efficiency.

1980 : HRM and HRD Challenges

1990 : Human value and productivity throughpeople.


33/55

ORGANIZATION OF HR DEPARTMENT

Two Issues become relevant in a discussion onorganization of an HR department.

Place of the HR dept. in the overall set-up

Composition of the HR department itself

Status of the HR dept. depends on whether theunit is small or large.

In small organizations there is no separate dept.

to coordinate the HR activities

A large scale unit will have a Manager/Directorheading the HR dept.

Prof.Sujeesha Rao


34/55


HRM in a small scale unit:

Owner/Propreitor

Personnel

Assistant

AccountantOffice

ManagerSales

Manager

Production

Manager

Prof.Sujeesha Rao


35/55


HRM in a large scale unit:

Chairman / MD

Director

Production

Director

FinanceDirector

HRM

Director

Marketing

Director

R&D

Prof.Sujeesha Rao


36/55

CHALLENGES FOR HRM MANAGER

Challenges relating to recruitment, selection and

development of manpower.

Challenges relating to industrial relations.

Challenges relating to provision of welfarefacilities.

Challenges relating to manpower management.


37/55

Business Facts Today, India is the fourth largest economy in the world.

Until 1991, there was an import substitution policy that

favored domestic industries.

After 1991, there was active foreign investment with a very

strong trade liberalization policy. Foreign direct investment in India increased dramatically ($15.8

million in 1997 compared with 0.3 million in 1991).

In 2000, the Y2K computer crisis required worldwide

computer remediation provided by software engineers.

Indian software engineers were found to be very dedicatedand hard-working (Friedman, T. 2005; The World is Flat).

SHRM 2008 37


38/55

Mercers 2006 Best Companies to

Work For in India

Infosys Technologies Limited (IT industry).

MindTree Consulting (IT industry).

Satyam Computer Services Limited (IT industry).

Dr. Reddys Laboratories Limited (pharmaceutical company).

Sapient Corporation (business and technology consulting).

Agilent Technologies (IT industry).

Johnson & Johnson (consumer health care company).

Covansys India (IT industry).

HCL Comnet (IT industry).

HSBC; Hongkong and Banking Corporation (banking services).

SHRM 2008 38


39/55

Federal Employment Laws

HR began to play a significant role with the early enactmentof these employment-related laws:

The Workers Compensation Act of 1923 ensured that

employers compensate employees for work-related injuries.

The Trade Union Act of 1926 gave formal recognition to trade

unions.

The Industrial Disputes Act of 1947 led to the increased role of

industrial relations (employees were distinguished by the work

they did such as permanent, temporary, trainee etc.).

The Factories Act of 1948 regulated the work environment in

factories to ensure the safety of employees.

The Employees Provident Funds and Miscellaneous Provisions

Act of1952 required employers to provide contributions for

retirement.

SHRM 2008 39


40/55

Federal Employment Laws

The Minimum Wage Act of 1948 established

minimum wages that vary from state to state.

The Payment ofBonus Act 1965 provides for a

minimum bonus of 8.33 percent of salary, even if

the organization is not making any profit.

The Persons with Disabilities Act (PWD) of 1995

was landmark legislation for disabled people in

India.SHRM 2008 40


41/55

Indian HR Associations

In the 1940s and early 1950s, two professional HR associations were

established to acknowledge the importance of HR:

Indian Institute of Personnel Management (IIPM).

National Institute of Labor Management (NILM).

In1980, the two associations merged to form the National Institute ofPersonnel Management (NIPM).

NIPM is the only group engaged in the advancement of HR, industrial relations

and labor welfare.

NIPM has a working relationship with HR groups in the United States, Australia

and the United Kingdom.

SHRM 2008 41


42/55

Class 3

Indian HR Practices

SHRM 2008 42


43/55

Staffing Practices Resumes seek strong educational background.

Employee referrals (predominantly used for middle andsenior management).

Succession planning (predominantly used for middle and

senior management).

Elaborate employment tests related to the job, especially atentry level.

E-recruitment: Naukri.com was the first e-portal establishedin 1998 (naukri means job in Hindi ).

SHRM 2008 43


44/55

Staffing Practices

Newspaper advertisements are used to brand the companyto potential applicants.

Newspaper advertisements will specify age and genderrequirements.

Personal questions will be asked in interviews/resumesabout:

Age

Marital status

Family plans (women planning to start a family) Family background

Caste background

Photos to be included

Verification of educational certificates

SHRM 2008 44


45/55

Training Practices

Training (future orientation):

Education is extremely valued, and training is anextension of it.

Entry point training programs (3 to12 months oforientation).

Ongoing training programs.

Development programs (promotions involve training).

In-house training centers are a common feature in Indian

organizations. Deductive learning style in training: Known as top-down

approach where learning principles start with general

concepts and move toward specific application.

SHRM 2008 45


46/55

Performance Appraisal

Cultural dimensions of collectivism and power distance make objective

appraisals a challenge.

Supervisors and subordinates develop close relationships.

Organizational loyalty is as important as work performance. Employee promotions are frequently based on seniority.

Annual performance appraisals.

Supervisors provide performance ratings that are frequently inflated due

to personal relationships. Employment at will does not exist in India. Employment termination

carries a social stigma.

SHRM 2008 46


47/55

Compensation and Benefits In addition to a base salary, compensation includes:

House rent allowance (HRA*).

Medical allowance.

Dearness allowance (DA*).

Leave travel allowance (LTA*).

Commuter allowance.

* These allowances are frequently referred by their acronyms

Several categories of leave (vacation) exist: Sick leave: 7 days (medical certificate required).

Casual leave: 7 days (for personal and family emergencies,requires prior permission of boss). Employees can takemaximum 2 days at a time

Annual leave: 3 weeks (after one year of employment).

Federal holidays: About 20 days.

SHRM 2008 47


48/55

Compensation and Benefits

Retirement age:

55-60 years (private sector);.

60 years (public sector).

Retirement Benefits: Employees receive two lump-sum payments when they

retire:

Provident Fund (similar to 401(k))

Typical contributions: 10-12 percent of base salary (employer andemployee).

Payable on retirement, voluntary separation, death.

Gratuity Only employer contributes (15 days salary per year of service).

Tax-exempt for employees.

Payable on retirement, voluntary separation, death.

SHRM 2008 48


49/55


Organizations are seen as an extension of the family.

Provide both short-term and long-term personal loans.

Personal loans for housing, car, home maintenance and family emergencies.

Loan amounts vary by position and level in organization.

All employees after their probation (confirmation) period are eligible.

Many medium and large organizations have cafeterias with subsidizedlunch facilities.

SHRM 2008 49


50/55


Executives receive special benefits to reflect status such as:

Club memberships.

Overseas training.

Company housing. Company cars.

Provided with drivers.

International cars.

Operational and maintenance costs.

Phone bill reimbursements. Organizations provide business and cell phones.

SHRM 2008 50


51/55

Definition of Cultural Dimensions

(GLOBE Study) Power distance: The degree to which organizations and societies accept

power.

Institutional collectivism: The degree to which organizational and

institutional practices encourage collective action.

In-group collectivism: The degree to which individuals in societies reflectcollectivist behavior.

Uncertainty avoidance: The degree to which organizations and societies

avoid uncertainty by relying on practices and procedures.

Performance orientation: The degree to which upper management in

organizations and leaders in societies reward group members forperformance excellence.

SHRM 2008 51


52/55

Definition of Cultural Dimensions

(GLOBE Study) Assertiveness: The degree to which individuals in organizations or

societies are assertive in social relationships.

Future orientation: The degree to which individuals in organizations or

societies plan for the future.

Gender egalitarianism: The degree to which organizations or societypromote gender equality.

Humane orientation: The degree to which individuals in organizations or

societies reward individuals for positive behavior.

SHRM 2008 52

N ti l C lt d HR


53/55

National Culture and HR

Practices Scholars have found a strong connection between cultural

dimensions and HR practices.

High power-distance cultures create:

Hierarchical organizational structures.

Loyal and committed subordinate

workers.

Autocratic relationships between

managers and subordinates.

What kind of HR practices would low power-distance cultures

adopt?

What staffing practices would high power-distance cultures

encourage?SHRM 2008 53


54/55

National Culture and HR Practices

High institutional-collectivism cultures prefer:

Group harmony and cooperation.

Conformity to societal norms valued.

High in-group collectivism cultures feel: A very close bond with their organization family, friends and relatives.

What kind of HR practices would low institutional collectivism cultures

adopt?

What staffing practices would high in-group collectivism culturesencourage?

SHRM 2008 54


55/55

National Culture and HR Practices

High uncertainty-avoidance cultures create:

o Formalized procedures to minimize unpredictability.

o Clearly defined roles for employees.

o Focus on security and trust.

What kind of HR practices would low uncertainty-avoidance cultures

create?

What staffing practices would high uncertainty-avoidance cultures

encourage?

SHRM 2008 55

accord basic hr concept-2003copy

Documents