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FUNDAMENTALS OF HRM. Introduction. Introduction. What are the Management Essentials. What are the Management Essentials. Why is HRM important to an organization?

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Presentation on theme: "FUNDAMENTALS OF HRM. Introduction. Introduction. What are the Management Essentials. What are the Management Essentials. Why is HRM important to an organization?"— Presentation transcript:

1 FUNDAMENTALS OF HRM

2 Introduction. Introduction. What are the Management Essentials. What are the Management Essentials. Why is HRM important to an organization? Why is HRM important to an organization? How do external influences affect HRM? How do external influences affect HRM? What activities occur in staffing function? What activities occur in staffing function? What are the goals of training & Development? What are the goals of training & Development? What is a motivation function? What is a motivation function? How important is the maintenance function? How important is the maintenance function? How are HRM functions translated into practice? How are HRM functions translated into practice? Summing / Discussion. Summing / Discussion.

3 WHAT ARE THE MANAGEMENT ESSENTIALS? MANAGEMENT: The process of efficiently getting activities completed with and through other people. PLANNING: A management function focusing on setting organizational goals and objectives. ORGANIZING: A management function that deals with what jobs are to be done, by whom, where decisions are to be made and the grouping of employees? LEADING: A management function concerned with the directing the work of others. CONTROLLING: A management function concerned with monitoring activities.

4 FUNCTION OF HRM – TERMINOLOGY MANAGEMENT THOUGHT: Early theories of management that promoted today’s HRM operations. Early theories of management that promoted today’s HRM operations. SCIENTIFIC MANAGEMENT: A set of principles designed to enchase worker productivity. A set of principles designed to enchase worker productivity. HAWTHORNE STUDIES: A series of studies that provided new insights into group behavior.

5 WHY IS HRM IMPORTANT TO AN ORGANIZATION Pre-sixties situation – Personal Management Pre-sixties situation – Personal Management The changing environment The changing environment Global competition has increased the needs for organization to improve productivity of workforce & looking globally for best & qualified workers. Global competition has increased the needs for organization to improve productivity of workforce & looking globally for best & qualified workers. This resulted in need for HRM specialists to trained in psychology, sociology, law and organization and work design. This resulted in need for HRM specialists to trained in psychology, sociology, law and organization and work design. Employees need to be trained to function effecting with the organization & follow up with ED. Employees need to be trained to function effecting with the organization & follow up with ED. Need practices to ensure employees maintain their productive affiliation with the organization. Need practices to ensure employees maintain their productive affiliation with the organization. Attract, train, retain, maintain & keep engaged so that they stay with organization. Attract, train, retain, maintain & keep engaged so that they stay with organization. Professionals in HR are important for success. Professionals in HR are important for success. HR jobs are of new levels of sophistication & status elevated. HR jobs are of new levels of sophistication & status elevated.

6 WHY IS HRM IMPORTANT TO AN ORGANIZATION General. General. The strategic nature. The strategic nature. Human Resources Management is part of the organization that is the concerned with the peoples dimension. Human Resources Management is part of the organization that is the concerned with the peoples dimension.  HRM can be viewed in two ways.  First: HRM is a staff or support function in the organization.  Second: HRM is a function of every manager’s job. More specifically, HRM is an approach consisting of four basic functions; More specifically, HRM is an approach consisting of four basic functions; 1. Staffing. 2. Training & Development. 3. Motivation. 4. Maintenance. In less academic terms we might say HRM is made up of four activities: In less academic terms we might say HRM is made up of four activities: 1. Getting People. 2. Preparing Them. 3. Stimulating Them. 4. Keeping Them.

7 HOW DO EXTERNAL INFLUENCES AFFECT HRM The four Activities of HRM do not exist in isolation. They are highly affected by organization.   The dynamic environment of HRM.   Governmental legislation.   Labour unions.   Management thoughts.

8 FUNCTIONS OF HRM STAFFING FUNCTION: Activities in HRM concerned with sourcing and hiring qualified employees. MAINTENANCE FUNCTION: Activities in HRM concerned with maintaining employees commitment and loyalty to the organization. MOTIVATION FUNCTION: Activities in HRM with helping employees exert high energy level. COMMUNICATION PROGRAMS: HRM programs designed to provide information to provide information to employees. EMPLOYEE RELATIONS FUNCTION: Activities in HRM concerned with effective communication among organizational members. SHARED SERVICES: Sharing HRM activates among geographically dispersed divisions. HR SHARED SERVICES: Centralized HRM activities focusing on activates such as organization development and compensation and benefits.

9 ACTIVITIES OF STAFFING FUNCTION Employment planning/HR Planning. Define individuals needed who posses KSA directly linked to specific jobs required in organization. HR Managers needs to remain proactive and aligned to business. You cannot exist in darkness. Process start with development of mission, strategy etc. HR needs developed after that. From strategy organization determine goals and objectives. With time period which these results in structural change which follows changes in job requirement reporting relationship and grouping and restructuring which brings lots of jobs to be filled by HRM. Jobs analyzed, specific KSA identified tht applicants must fulfill. Through his job analysis HRM identified essential qualification for particular job and links them with strategic direction & employment legislation. Job description developed. Critical competencies made basis of recruitment To obtain an adequate pool of applicants Recruiting potentially good applicants, best in the job market with needed diversities. Selection executed. Staffing function thus comes to end.

10 TRAINING AND DEVLOPMENT Best possible candidates hired. Employees go through process of socialization/orientation and become more comfortable with surroundings. Then they need training to become fully productive with in short period of time. This is done in four areas:   Employee Training   Employee development   Career Development   Organization development Goals of Training & Development   Having competent, adapted employees who possess the unto date KSAs needed to perform their current jobs more successfully.

11 TRAINING & DEVELOPMENT Training & Development function activities in HRM concerned with assisting employees to develop up-to-date skills, knowledge, and abilities (KSAs) EMPLOYEE TRAINING: Employee training is designed to assist employ acquiring better skills for their current job. The focus of employee training is on current job skill requirement. EMPLOYEE DEVELOPMENT: Employee development is designed to help the organization to ensure that it has the necessary talent internally for meeting future human resource needs with focus on employee development. CAREER DEVELOPMENT: Career development programs are designed to assist employees in advancing their work lives. The focus of career development is to provide the necessary information and assessment to help them to realize their career goals. ORGANIZATION DEVELOPMENT: Organization development deals with facilitating system with changes in the originations. The focus of organization development is to change the attitudes and values of employees according to new organizational strategic directions.

12 MAINTENANCE FUNCTIONS The activities in HRM concerned with maintaining employees committed and loyal to the organization. The objective is to put into place activities that will helps retaining productive employees. HRM needs to ensure that the working environment is safe and healthy, caring for employees well being has a major effect on their commitment. Employees face problems in personal life spills over to workplace. Therefore, EAP to help them. Appropriate communication programs. Employees relations programs, s, bulletin boards town hall meeting or teleconferencing, employees voice be heard. Ultimate goals of organization: Having competent employees, who have adapted to the organizations culture with the up-to-date KSAs who exert high energy levels and are ready to maintain then commitment and loyalty to the company.

13 WHAT IS THE MOTIVATION FUNCTIONS? Motivation function activities in HRM concerned with helping employees exert high energy levels. Essential points are:   Motivation is a multifaceted process which has individual, managerial, and organizations implications.   Performance of individuals in an organization is function of two factors ability and willingness to do the job. The employees need to have the appropriate skills and abilities to adequately do the job.   This can be done, by correctly defining the requirements of the job, matching applicants to those requirements, and training the new employee in how to do the job.

14 KEY ELEMENTS OF CLASSICAL MOTIVATION THEORIES THEORYINDIVIDUALSUMMARY Hierarchy of NeedsAbraham MaslowFive needs ranked in hierarchical order from lower to higher levels. Physiological, safety, belonging, esteem and self-actualization. Theory “X” Theory “Y” Douglas McGregorPropose two alternatives sets of assumptions. Motivation HygieneFrederick HerzbergArgues that intrinsic job factors motivate, whereas extrinsic factors only placate employees. Achievement, Affiliation and Power Motives David Mc ClellanThree major needs in workplace. Equity TheoryJ. Stacey AdmsAn individual compares his or her input / outcome rations to relevant others. Expectancy TheoryVictor VroomMotivation is a function of valence (value) of the effort performance and the performance reward relationship.

15 HOW ARE HRM FUNCTIONS TRANSLATED INTO PRACTICE? Employment. Training and Development. Compensation and Benefits. Employees Relations.

16 SAMPLE JOB TITLES Recruiter. HRIS Analyst. Compensation Analyst. Benefits Specialist. Career Development Specialist. Training Coordinator. ER Specialist. Safety Specialist. Selected Job Activities Recruiting Reference checking Employment planning HRIS Job analysis Job evaluation Salary planning Benefits Administration. Training Career Development Management Training Organization Development Employee Complaints Service Awards Communication Programs Selected Salaries VP HR$150 -$175K Employment Manager$70 – 85K Compensation & Benefits Manager$70 – 90K Employee Relations Manager$60 – 80K Employment ManagerCompensation and Benefit Manager Training and Development Manager Employee Relations Manager Vice- President

17 HRM SKILLS & COMPETENCIES Skills and competencies necessary for successful performance in HRM:   Management practice.   General employment practices.   Staffing.   Human Resources development.   Compensation and Benefits.   Employee and labor relations.   Health, Safety, and Security.

18 SUMMARY Management and identity with its primary functions. Management and identity with its primary functions. Importance of human resources management. Importance of human resources management. Meaning of the term Human Resource Management. Meaning of the term Human Resource Management. The primary environmental influences affecting Human Resource Management. The primary environmental influences affecting Human Resource Management. How management practices affect Human Resource Management? How management practices affect Human Resource Management? Effect of labor unions on Human Resource Management. Effect of labor unions on Human Resource Management. The components and the goals of the Staffing, Training and Development functions. The components and the goals of the Staffing, Training and Development functions. Components and goals of the Motivation and Maintenance functions of Human Resources Management. Components and goals of the Motivation and Maintenance functions of Human Resources Management. Major activities in the Employment, Training and Development, Compensation and Benefits. Major activities in the Employment, Training and Development, Compensation and Benefits. How Human Resource Management practices differ in small businesses and in an international setting. How Human Resource Management practices differ in small businesses and in an international setting.


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