topic1(chapter 1)
TRANSCRIPT
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Central Issues in Human Resource Management
HRM 515
Dr. Jacob Cherian
M.Com., M.S.W., M.B.A.,M.Phil., Ph.D
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Topic 1
(Chapter 1)
Introduction to
Human Resource Management
and the Strategic Role of HRM
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Human Resource Management
Human Resource Management (HRM) is the effectivemanagement of people at work. It is concerned with
managing people to improve individual, group and
organizational effectiveness.
HRM involves human resource planning, recruitment
and selection, training and development, placement,
motivation, performance appraisal, career development,
promotion and transfer of human resources, so that they
can effectively contribute to the success of the
organization.
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Nature of HRM
HRM is charged with programs
concerned with people
Getting every manager involved
Effective use of people
Achieving individual &
organizational goals
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HRM Activities
EEO compliance
HR planning
Training, development
Job analysis
Labor relations
Performance evaluation, compensation
Safety, health, welfare
Recruitment, selection, motivation, orientation
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HRM Orientation
Action
People
Future
Global
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A Brief History of HRM
Masons, carpenters, leather workers,other craftspeople
EnglishGuilds
Changing work conditions andsocial patterns
IndustrialRevolution
Scientific management, welfare work,industrial psychology
World Wars
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Strategic Importance of HRM
Today, HRM plays a major role in:Clarifying the firms human resource problems
Developing solutions for them
Strategic HRM differs from traditional HRM
Traditional arrangements responsibility for
managing human resources lies with specialists
Strategic approachpeople management rests with
anyone who is in direct contact with workers or line
managers
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Strategic Importance of HRM
Traditional HRM Strategic HRM
Responsibility for
human resources
Specialists Line managers
Objective Better performance Improved understanding and
use of human assets
Role of HRM Respond to needs Lead, inspire, understand
Time focus Short-term results Short, intermediate, long term
Control Rules, policies, position
power
Flexible, based on human
resources
Culture Bureaucratic, top-down,
centralization
Open, participative,
empowerment
Major emphasis Following the rules Developing people
Accountability Cost centers Investment in human assets
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HRM and Organizational Effectiveness
For a firm to survive and prosper, reasonable goalsmust be achieved in:
Performance
Legal compliance
Employee satisfaction
Absenteeism
Turnover
Training effectiveness and ROI
Grievance rates
Accident rates
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Objectives of the HRM Function
Help the organization reach goals
Employ workforce skills/abilities efficiently
Increase employees job satisfaction and self-actualization
Communicate HRM policies to all employees
Maintain ethical policies, socially responsible behavior
Manage change to the mutual advantage of individuals,
groups, the enterprise, and the public
HRM Contributions to Effectiveness
Provide trained, motivated employees
Manage increased urgency and faster cycle time
Achieving quality of work life
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Who Performs HRM Activities
Two groups normally perform HRM activities:HR manager-specialists
Operating managers
The effectiveness ofthe human resource declinesmore quickly than all other resources
An investment in people effects organizational
effectiveness more than money, materials, or
equipment
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Outsourcing
Downsizing
Rapid growth or declineof business
Restructuring
Globalization
Increased competition
Contributors to
HRM outsourcing
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Interaction of Operating & HR Managers
Promotion
Transfer or termination
Working conditions
Discipline
HRM
Specialists
(staff)
Joint-decision ConflictOperatingManagers
(line)
Employment planning
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HRMs Place in Management
To educate others about the HR implications of
decisions, HR executives must understand
Investments Advertising
MarketingProduction
IT
R&D
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HR Department Operations
Average
HR DeptLess than 150 people
PersonnelRatio Average = 1 specialistper 100 employees
Less for construction, retail
agriculture, wholesale, services
More for public utilities, durablegoods manufacturing, banking,
Insurance, government
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HRM Strategy
A firms HRM strategy is the pattern or plan that
integrates the major objectives, resources, policies and
procedures.
Organizations internal strengths/weaknesses
Changes in the environment
Anticipated actions of competitors
Basis for Resource Allocation
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Clarifying Meaningful HRM Objectives
More specific
Strategy: The plan thatintegrates major objectives
Objectives: Goals that arespecific and measurable
Policies: Decision making guides
Procedures/rules: Specific
directions for decision making
More specific
More specific
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HRM Policy
Apolicy is a general guide that expresseslimits within which action should occur
Arises from past or potential problems
Frees managers from making certaindecisions
Ensures some consistencyin behavior
Allows managers to concentrateon decisions where they have the mostexperience and knowledge
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HRM Procedures
Procedures (rules) are specific directions
Instandard operating procedure (SOP) manuals
Helps ensure consistent decision making
Should be well-developed, but not excessive
Develop for only the most vital areas
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Organization of an HR Department
HR specialists are usually located at the
headquarters of an organization
Chief HR
Executive
Typically reports to the
top manager
Small/MediumFirms
NonprofitsHRM is typically a unit in the
business office
HRM and another function may
be in a single department