BASIC HUMAN RESOURCE

MANAGEMENT

MODULE I

HUMAN RESOURCE PLANNING

CP 205
TOPIC : 1
 COURSE COVERAGE
• Evolution of HRM as a subject
• HRM functions
• Roles
• Process
 What is HRM?
Human Resource Management is a series of integrated
decisions that form the employment relationship; their
quality contributes to the ability of the organizations and the
employees to achieve their objective.
__________George T.Milkovich & Johri W.Boudreau
 Human Resource Management is concerned with the 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 essential to achieving organisational
objectives. __________David A Decenzo & Stephen P Robbins
Human Resource Management is the planning,
organising, directing and controlling of the
procurement, development, compensation, integration,
maintenance and separation of human resources to the
end that individual, organisational, and social
objectives are accomplished.
__________Edwin B Flippo
Relationship of HR to other Related
Fields
Organisational Organisational

Theory Behaviour
Theoretical
(OT) (OB)

Organisational Human Resource

Applied
Development Management

(OD) (HRM)

Macro Micro
 Evolution of HRM in India
• Labour Officer : - Recruiting - Record keeping - Labour laws
-Statutory Requirements - Working Conditions - Safety - Welfare
# Tata Steel Works, Jamshedpur (Mr Naoroji)
# Royal Commission on Labour, 1931 – recommended Labour Oficer
for factories
# Bombay Mill Owners’ Association, 1935
# Indian Jute Mills Association, 1936
• Labour Welfare Officer : Statutory Requirements under Factories Act,
1948 and Mines Act, 1952 – 500/more workers
• Personnel Officers/managers (Legal Experts) [ Rise of TUs: Increase
in Legal process] – Time keeping - Security - Wage - Administration
• Early 60s : Management Schools : Specialists
- Legal, Organisational, Personnel Related
-Support to Operations as subsidiary & not as direct contributing
team member
• Open Organisational Culture, Environment of Trust &
Dependence, Freedom of Decision Making, Motivated Employees
HUMAN RESOURCE MANAGEMENT : Pro-active
function
 Evolution of HRM
Researcher Kathryn D McKee has identified the categories of change
into 4 distinct periods:
       Mechanistic period : 1940s & 1950s - manufacturing : driving
force in the industry; birth of personnel/IR profession. Administrative
role
      Legalistic period : 1960s & 1970s - legislation in social and
employment area. T& D emerged as a separate and specialised area of
HR
Labour Relations
Labour is a separate Class
Needs to be strongly dealt with
Only a pair of hands have been hired
Carrot and stick way of management
   Organistic Period : 1980’s – tremendous organisational change
due to globalisation, mergers, acquisitions, re-engeneering,
downsizing. Height of HRM specialisation – movement towards cost
and profit centres, more command and control policies
1970’s to 1980’s : Focus on Quality of Work Life
Growing dissatisfaction among workers with unchallenging jobs and heavy-
handed management prompted managers to rethink the way work was
organized and managed
Moreover, several recessions, deregulation, and mounting foreign
competition brought considerable pressures to bear on managers.
Management learned that quality, not only cost, was a key to market success.
New initiatives, such as self-managed work teams, increased the value of
people to management, (hence the shift from the term “personnel
management” to “HRM”) and opened the door to a new conceptualization of
how work is organized and the role of HR specialists
 Strategic Period: 1990’s – strategic thinking and planning emerged
HRM - true strategic partner, reporting to CEO and interacting with the
Board of Directors
   Catalytic period: beyond 2000 – issues to play important role are:
-         increase in cross border employment
-         workforce comfortable in other cultures
-         fewer organisations (result of mergers & acquisitions)
-         use of just in time professional workers
-         increase in outsourcing of administrative functions
-         more innovative compensation practices
-     more selective approach by employees regarding their careers
-      flexibility of work being widely introduced
- teams playing a major role
 1990’s -> onwards
Focus on TQM & Globalization

Trying to stay competitive, many companies took up

TQM and re-engineering.

HR departments became more focused on serving

external and internal customers, lowering costs through
process improvements, and facilitating organizational
change and organizational learning initiatives
 Evolution from Personnel/IR Deptt to HRM/HRD

• Mere Substitution
•Modern & up-to-date with new concepts enhanced status & power
•More integrated approach within Personnel Tasks; Training – Important
•Personnel functions – Integrated with Business requirements &
strategies; HR well accounted for
•Real conversion (Qualitatively different from traditional approach)
# HRM encompasses all employees
# Linked to Strategic Management – policies, procedures, processes
# Commitment # Individual # Initiatives by all
 PM & HRM DIFFERENCES
PM
Time& planning perspective
• Short-term, ad-hoc, marginal
Psychological contrast
• Compliance
Control system : External
Employee Relations
• Collective, low trust
Role
• Specialist/Professional
Evaluation
• Cost minimisation
HRM
Time& planning perspective
• Long-term, pro-active,
strategic, integrated
Psychological contrast
• Commitment
Control system : Self
Employee Relations
• Individual, high trust
Role
• Largely integrated into line
mgmt
Evaluation
• Maximum utilisation
 Scope
• From entry to exit
• Strategic
 Structure of HR Deptt
• Place of HR Deptt in overall set up
- Small organisation
Manager

Production Mgr Sales Mgr Office Mgr Accountant

Personnel Assistant
- Large scale Organisation
CMD

Director -Prodn Director- Fin Director- HR Director - Mkt

 HR Function in a Corporate

CMD
Dir ( HR )

GM ( CSR ) GM ( Admin & Welfare ) GM ( PR ) GM ( HR ) GM (HRD) GM ( Vigilance )

VARIOUS DESIGNATIONS IN HR
DIRECTOR – HR GM – HR / ED – HR DGM – HR

SENIOR MANAGER – HR CHIEF MANAGER – HR

MANAGER – HR DEPUTY MANAGER – HR

PERSONNEL OFFICER SENIOR PERSONNEL OFFICER

 Functions
OBJECTIVES : of HR functions include:
• Effective utilisation of Human resources
• Desirable working relationship
• Maximum individual development

Traditionally the functions are:

• Attracting and retaining talents through Selection & Staffing
• Creating and running systems and processes for managing people
through:
 training and development
 compensation and rewards management
 rewards performance management
 industrial relations management
 Human Resource Information Systems management
 Functions
Currently, the functions are:

• Helping an organisation achieve its business objectives through

designing, developing and implementing people and performance
management strategies through:

1.Human Resource Planning : Job Analysis, Forecasting &

Inventory, Recruitment & Selection, Placement & Induction
2. Human Resource Development : Performance Appraisal, Training,
Motivation, Management Development, Career Planning,
Organisational Development
3. Compensation Management : Job Evaluation, Wage & Salary
Administration, Incentives, Social Security
4. Employee Relations : Relations with Trade Unions,
Communication, Negotiation, Grievance handling, Counselling
5. HR Evaluation : Audit, Research & Analysis, HR Accounting
 Dave Ulrich’s Quotation
• "Essentially, what’s happened is that the field of
HR has begun to split into two parts. One half
consists of administrative and transactional
work, which is becoming more automated and
routine and is increasingly being turned over to
employee self-service or outsource providers.
The second half consists of transformational
work, in which HR develops organizational
goals, determines what capabilities are needed to
meet those goals, and then creates HR practices
that make those capabilities come to life.
 Present Role of HR Managers

  In the changed scenario, mgmt and HR professionals must

become partners in decision making and share accountability for
organising the work to be performed including where it is to be
performed. To be successful HR professional will have to :
      Become involved with line managers in strategy formulation
and implementation, resulting in the design of HR strategies that
will support the overall company strategy
      Become an expert in the way work is organised and executed
   Become involved in reducing costs through administrative
efficiency while at the same time maintaining high quality; this can
be done by delivering state of the art innovative HR practices
 Become a reliable representative for employees when
putting their concerns to management
    Become involved in efforts to increase the employees
contribution to the organisation
 Become an agent for continuous transformation, shaping
processes and culture to help organisation improve their capacity
for change
Dave Ulrich has proposed a multiple role model for HRM.
He has proposed that for HR to be successful it has to play 4 different
roles
1.      Strategic partner
2.      Administrative partner
3.      Employee Champion
4.      Change Agent
 HR Roles
FUTURE/STRATEGIC FOCUS (SHORT-LONG TERM)
Cell 1 Cell 3
Mgmt of Strategic Human Resources Mgmt of Transformation & Change
Deliverable/Outcome:  Deliverable/Outcome:
Executing Strategy Creating a renewed Organisation
P
Activity : Aligning HR and Business  Activity : Managing Transformation &
R
Strategy: ‘Organisational Diagnosis’ Change: ‘ensuring capacity for change’ P
O
Role : Strategic Partner Role :Change Agent E
C
 Cell 2 Cell 4 O
E
Management of firm infrastructure Management of Employee contribution P
S
L
S  Deliverable/Outcome : Deliverable/Outcome : Increasing
E
E Building an efficient infrastructure Employee Commitment & Capability
S Activity : Re-engineering organisation Activity :
processes: ‘shared services’ Listening & responding to employees:
 Role : ‘providing resource to employees’
Administrative expert  Role :
Employee Champion
DAY-TO-DAY/OPERATIONAL FOCUS
 HR PROCESS MODEL
ORGANISATIONAL ENVIRONMENTAL
OBJECTIVES INFLUENCE

HRP + RECRUITMENT + SELECTION + SOCIALISATION =

COMPETENT EMPLOYEES WHO HAVE ADAPTED TO THE ORGN’S
CULTURE + T&D + CAREER DEVELOPMENT = COMPETENT
EMPLOYEES WITH UP TO DATE SKILLS AND KNOWLEDGE +
MOTIVATION + PERFORMANCE APPRAISAL + REWARDS &
PUNISHMENT = COMPETENT EMPLOYEES WHO DESIRE TO
EXERT HIGH EFFORT + BENEFITS & SERVICES + SAFE &
HEALTHY WORKING CONDITIONS + SATISFACTORY EMPLOYEE
RELATIONS = COMPETENT EMPLOYEES WHO ARE COMMITTED
TO THE ORGANISATION AND SATISFIED WITH THEIR JOBS =
EFFECTIVE HRM LEADING TO HIGH PRODUCTIVITY, LOW
TURNOVER, LOW ABSENTEEISM, HIGH JOB SATISFACTION
CHANGING CONDITIONS REQUIRE ON-GOING RESEARCH &
CONCERN FOR THE FUTURE
 CORPORATE EXAMPLE
• General Motors
• VP, Global Human Resources - first time in the company’s
history that an HR person reported directly to the CEO.
• Ms Barclay launched a company-wide HR transformation
effort involving standardizing processes, creating HR centers
of excellence, & outsourcing routine activities.
• In a company with 362,000 global workers in 58 countries, a
change of this magnitude is time taking but the CEO is
committed to the change.
• A key part of GM’s global HR transformation involves
developing HR people so that they understand and can take on
the role of internal consultants.
• 15 to 20 courses are mandatory for all HR professionals which
would help them acquire business acumen, change-
management skills, and the ability to forge relationships across
the organization.
 CORPORATE EXAMPLE (Cont’d)
• By training its HR people to understand and address business
issues, Barclay is slowly transforming the way the function
operates. Therefore, in future when a business unit is having trouble
achieving its goals, GM’s HR people will be able to work with that
unit to diagnose its problem
• GM is also training its line managers to understand that HR is there
to help with strategy, not transactional work. A global HR Web site
houses materials the HR people can use with their operating leaders
to help those leaders understand how HR is changing, why it needs
to, and why the value equation is better for the company
• A key part of the HR transformation at GM involves transferring
responsibility for HR activities to line unit managers with the help
of technology. For example, compensation plan for 40,000
employees could be implemented by managers entirely over the
Web without any intervention from HR. This experience helped
managers understand how HR is working differently now.
 CONCLUSION
Research from Watson Wyatt’s Work USA
2002 study indicates that companies with
effective HR practices deliver shareholder
returns that are three times higher than
those of companies without such practices.