Introduction to HRM & Talent Development

Points to Discuss

Definition and Concept of HRM & TD History of HRM Functions of HRM HR/TD Policies and Procedures Emerging Role of HRM Role of HR Executives Challenges to HR / TD Professionals Strategic HRM / TD

According to Adi Godrej

“All corporate strengths are dependent on people.”

Core Understanding

‘The real sources of competitive leverage are the culture and capabilities of your organization that derive from how you manage your people.’

Human Resource Management

“HRM is the function performed in organizations that facilitates the most effective use of people to achieve organizational and individual goals.”

- Ivancevich and Glueck

Research for Next Class

Organizational Structure and Human Resource Management

Formal and Informal Organizations

Tall and Flat Organizational Structures

Responsibility, Authority and Accountability

Line and Staff Functions

Human Resource Management and other Organizational Functions

Definition 1 – Integration

HRM is a series of integrated decisions that form the employment relationships; their quality contributes to the ability of the organizations and the employees to achieve their objectives.

Human Resource Management

Definition 2- Influencing

HRM is concerned with the people dimensions management. Since every organization 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 organization are essential to achieving organizational objectives.

This is true regardless of the type of the organization- govt, business education, health, recreational or social action.

Human Resource Management

Definition 3 Applicability • HRM is planning, organizing directing and

controlling of the procurement (supply), development, compensation, integration, maintenance, and separation of human resources to the end that individual, organizational and social objectives are accomplished.

Core Elements of HRM

Organizations - People - Management

Human Resource Management

Talent Development

“The success of your company is directly proportional to your ability to find, attract, hire, grow and retain the absolute best people you can possibly get.”- John Spence

Challenges of HRM

Individuals differ from

one anotherCustomization of

stimulation and

motivationDemanding personnel

Survey of 3,000 companies

Only 18% of companies reported that they are winning the war for talent.

72% of companies portrayed it as an endless struggle in which they were making no progress at all.

10% declared that they had lost the war for talent and had given up in defeat.

What are the roadblocks?

We aren’t sure what we’re looking for.

Talent development is just a slogan, not a way of life.

The results are hard to measure and it takes years to play out.

Harvard Study: Top Six Talent Management Challenges

1. Attracting and retaining enough high quality employees at all levels to meet the needs of organic and inorganic growth.

2. Creating an employee value proposition that appeals to multiple generations.

3. Developing a robust leadership pipeline.4. Rounding out the capabilities of hires who lack the skills

to be effective leaders.5. Transferring key knowledge and relationships to future

generations of leaders.6. Enlisting executives who don’t appreciate the challenge of

trying to find and hire top talent.

The seven core principles of building a sustainable talent pipeline.

1. It starts with the business strategy. What kind of company are you trying to build?

2. Higher (better) now for the future.

3. Recognize talent management as a core business process with impact on overall business and financial success for the enterprise.

The 7 Core Principles of Building a Sustainable Talent Pipeline

4. Make talent management a part of the business culture.

5. Measure it and know if it’s making a difference.

6. Identify, develop, and promote“high potential”talent.

7. Address talent gaps with aggressive internal development.

The 7 Core Principles of Building a Sustainable Talent Pipeline

The Global Human Resource Research Alliance

Best practices in integrated talent management.

Recruitment and Staffing

Talent pool strategy rather than hire for specific positions.

Highly selective hiring/ challenging interviewing process.

Compelling employee value proposition. Focus on values and cultural fit, not just job-related

skills and experience. Continuous assessment of performance and

potential. Use of talent inventories for selection/succession.

Training and Development

Continuous assessment of training needs/feedback/360°

Individual development plans linked to succession planning process.

Job rotations as career development tools. Line manager involvement (coaching, mentoring) Use of open job posting system and internal

marketplace. Promotion-from-within policy. Leadership development is a top priority and deeply

rooted (ingrained) in the culture.

Top High-Potential Managers from Microsoft, Verizon, Qualcomm, Abbott and Merrill Lynch

1. Credible2. Respectful3. Approachable4. Team Player 5. Highly Professional

Leader of the Future

1. Character2. Courage3. Communication4. Collaboration5. Compassion6. Contribution

Retention Management

Continuous monitoring of attrition (wearing out) rates.

Highly competitive compensation.Personalized career plans.Senior management attention for high

potentials.Flexible working arrangements.Diversity programs designed to develop,

retain and promote a diverse workforce.

Talent Development

System

Recruitment and

Selection

Career Managemen

t

Performance

Management

Compensation and

Benefits

Strategic HR Planning

Succession Planning

Zero Talent Outages!Succession Not

Replacement!Becoming a Talent

Machine!

Your question for discussion:

What are the three biggest challenges OR opportunities for “your future company” in creating a fully integrated talent development process that truly makes your organization a Talent Machine?

Functions of HRM - 1

Planning Organizing Staffing Directing Controlling

Managerial

Functions of HRM - 2

Employment HR Development Compensation Mgt Employee Relations

HR Planning

Recruitment

Selection

Placement

Induction

Performance Appraisal

Training

Management Development

Career Planning and Development

Job Evaluation

Wage and Salary Admn

Incentives

Bonus

Fringe Benefits

Operational

Emerging role or HRM

Value of Human ResourceCompetitive advantageHuman Resource Accounting – It is

measurement of the cost and value of

people for an organization

Role of HR Executives

Service provider

Executive

Facilitator

Consultant

Auditor

Challenges to HR Professionals

Worker productivityQuality improvementThe changing attitudes of workforceThe impact of the government Quality of work-lifeTechnology and Training

Organizational Structure &Human Resource Management

Why structure?

What does structure signify?

No directions Leads to confusion Chaos

Why?

Mechanistic vs. Organic Organization

Rigid structure Employees are tied

by rules & regulations

High degree of centralization

Suitable for operating in static environment

Decision-making is done by superiors

Ex: Public sector in the pre-reforms era

Flexible structure Employees are not

tied by rules & regulations

Decentralized style of management

Suitable for operating in dynamic environment

Decision-making is done by junior level employees also

Ex: Marico`s Saffola

President

VicePresident

VicePresident

VicePresident

Division Managers

Division Managers

Division Managers

Division Managers

Division Managers

Division Managers

Division Managers

Division Managers

Division Managers

Department Managers

Department Managers

Department Managers

Department Managers

Department Managers

Department Managers

Department Managers

Department Managers

Department Managers

Formal organization

Informal organization Chess group

Informal organization

Bowling team

RESPONSIBILITY, AUTHORITY & ACCOUNTABILITY

Responsibility:It is the obligation of a manager to carry out the duties assigned to him.

Authority:It refers to the right to give orders and

the power to exact obedience from others in the process of discharging responsibility.

Accountability:The employee's answerability on using

the authority in discharging the responsibility is termed accountability.

LINE AND STAFF FUNCTIONS

Departments or employees of a firm that perform core activities

Contributes directly to the business of the firm

Ex: Manufacturing and Marketing departments

Departments or employees of a firm that perform a support function

Contributes indirectly to the business of the firm

Ex: HR and Finance departments

Line & Staff Relationship

Traditional concept

Service oriented firm

Which are line and staff functions

Both needs to support each other

Line staff conflict

Different perception

HR professional to bring change

Understand market & organization Be empathetic Build trust and transparency Win – win approach

The Role of Human Resources Department

As a specialist

As a facilitator

As a change agent

As a controller

HUMAN RESOURCE MANAGEMENT AND OTHER ORGANIZATIONAL FUNCTIONS

Product & HR

Production & HR

Marketing & HR

Management Techniques & HR

Organization structure & HR