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Human Resource Management. Human Resource Management is a process, which consists of four main activities namely, 1. Acquisition, 2. Development, 3. Motivation,

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Presentation on theme: "Human Resource Management. Human Resource Management is a process, which consists of four main activities namely, 1. Acquisition, 2. Development, 3. Motivation,"— Presentation transcript:

1 Human Resource Management

2 Human Resource Management is a process, which consists of four main activities namely, 1. Acquisition, 2. Development, 3. Motivation, as well as 4. Maintenance of human resources. According to Gary Dessler:- "Human resource management refers to the policies and practices one needs to carry out the people or human resource aspects of management position including recruiting, screening, training, rewarding and appraising.“ According to G.R. Agrawal:- "Human resource management is a process concerned with the management of human energies and competencies for achieving organizational goals through acquisition, development, utilization and maintenance of a competent and committed workforce in a changing environment."

3 According to Edwin B. Flippo, ―Human resource management is the planning, organising, directing and controlling of the procurement and development of resources to the end that individual and societal objectives are accomplished. This definition reveals that human resource (HR) management is that aspect of management, which deals with the planning, organising, directing and controlling the personnel functions of the enterprise. Human Resource Management derives its origin from the practices of the earlier personnel management, which assisted in the management of people in an organisation setup. Human Resource Management leverages setting up the systems and procedures for ensuring efficiency, controlling and providing equality of opportunities for all working for the organisation.

4 Difference between Human Resource Management and Personnel Management Human resource management involves all management decisions and practices that directly affect or influence the people, or human resources, who work for the organization. In other words, Human resource management is concerned with ‘people centric issues’ in management. DIFFERENCES BETWEEN HRM AND PERSONNEL MANAGEMENT Although both human resource management (HRM) and personnel management focus on people management, if we examine critically, there are many differences between them. Some are listed below: Nature of relations: The nature of relations can be seen through two different perspective views which are Pluralist and Unitarist. There is a clear distinct difference between both because in personnel management, the focus is more on individualistic where individual interest is more than group interest.

5 The relationship between management and employees are merely on contractual basis where one hires and the others perform. Whereas, HRM focuses more on Unitarist where the word "uni" refers to one and together. Here, HRM through a shared vision between management and staff create a corporate vision and mission which are linked to business goals and the fulfillment of mutual interest where the organization’s needs are satisfied by employees and employees' needs are well-taken care by the organization. Motorola and Seagate are good examples of organizations that belief in this Unitarist approach which also focuses in team management and sees employees as partners in an organization. Relation of power and management: The distribution of power in personnel management is centralized where the top management has full authority in decision-making where even the personnel managers are not even allowed to give ideas or take part in any decision which involves "employees".

6 Leadership and management role: Personnel management emphasizes much on leadership style which is very transactional. This style of leadership merely sees the leader as a task-oriented person. This leader focuses more on procedures that must be followed, punishment form non-performance and non-compliance of rules and regulations and put figures and task accomplishments ahead of human factors such as personal bonding, interpersonal relationship, trust, understanding, tolerance and care. HRM creates leaders who are transformational. This leadership style encourages business objectives to be shared by both employees and management. Here, leaders only focus more on people-oriented and importance on rules, procedures and regulations are eliminated and replaced with: · Shared vision; · Corporate culture and missions; · Trust and flexibility; and · HRM needs that integrates business needs.

7 Contract of employment: In personnel management, employees contract of employment is clearly written and employees must observe strictly the agreed employment contract. The contract is so rigid that there is no room for changes and modifications. There is no compromise in written contracts that stipulates rules, regulations, job and obligations. HRM, on the other hand, does not focus on one-time life-long contract where working hours and other terms and conditions of employment are seen as less rigid. Here, it goes beyond the normal contract that takes place between organizations and employees. The new "flexible approach" encourages employees to choose various ways to keep contributing their skills and knowledge to the organization. HRM, with its new approach, has created flexi-working hours, work from home policies and not forgetting the creation on "open contract" system that is currently practiced by some multinational companies such as Motorola, Siemens and GEC. HRM today gives employees the opportunity and freedom to select any type of working system that can suit them and at the same time benefit the organization as well. Drucker (1996) calls this approach a "win-win" approach.

8 Pay policies and job design: Pay policies in personnel management is merely based on skills and knowledge required for the perspective jobs only. The value is based on the ability to perform the task and duties as per the employment contract requirement only. It does not encourage value-added incentives to be paid out. This is also because the job design is very functional, where the functions are more departmentalized in which each job falls into one functional department. This is merely known as division on labour based on job needs and skill possessions and requirement. HRM, on the contrary, encourages organizations to look beyond pay for functional duties. Here, the pay is designed to encourage continuous job performance and improvement which is linked to value-added incentives such as gain sharing schemes, group profit sharing and individual incentive plans.

9 Objectives of HRM i)To ensure effective utilization of human resources, all other organizational resources will be efficiently utilized by the human resources. ii)To establish and maintain an adequate organizational structure of relationship among all the members of an organization by dividing of organization tasks into functions, positions and jobs, and by defining clearly the responsibility, accountability, authority for each job and its relation with other jobs in the organization. iii)To generate maximum development of human resources within the organization by offering opportunities for advancement to employees through training and education. iv)To ensure respect for human beings by providing various services and welfare facilities to the personnel. v)To ensure reconciliation of individual/group goals with those of the organization in such a manner that the personnel feel a sense of commitment and loyalty towards it. vi)To identify and satisfy the needs of individuals by offering various monetary and non-monetary rewards.

10 In order to achieve the above objectives, human resource management undertakes the following activities : (i) Human Resource Planning, i.e., determining the number and kinds of personnel required to fill various positions in the organization. (ii) Recruitment, selection and placement of personnel, i.e., employment function. (iii) Training and development of employees for their efficient performance and growth. (iv) Appraisal of performance of employees and taking corrective steps such as transfer from one job to another. (v) Motivation of workforce by providing financial incentives and avenues of promotion. (vi) Remuneration of employees. The employees must be given sufficient wages and fringe benefits to achieve higher standard of living and to motivate them to show higher productivity. (vii) Social security and welfare of employees.

11 Careers in HRM

12 LEVEL``JOBS Supervisory/Officers LevelHR Officers, IR officers, Labour welfare Officers, Welfare Inspectors, HR managers, Wage and salary Officers. Junior Management LevelDeal with coordination activities of HR functions. Middle Management LevelCoordinate various activities of HR functions, Implements HR strategies Senior Management LevelFormulate HR strategies, Formulating corporate level strategies General Management Level (President, CEO, GM) Work with directors to prepare for and ensure productive, effective board meetings. Follow up on board concerns and research issues in a timely and effective fashion Establish systems and procedures that ensure that co-op members remain informed about the co-op’s status, needs, and activities

13 Where job design counts most 1.Job evaluation 2.Recruitment and selection 3.Career planning and development 4.Performance management 5.Reward and recognition 6.Workforce planning 7.Work allocation planning 8.Decisions on training investments 9.Ensuring workforce safety 10.Workforce equity and diversity

14 Why is job design important? Good job design increases the value of the position to the organisation, engages the worker and reduces individual and organisational risk. It leads to greater organisational effectiveness and efficiency and better results from employees. Key benefits include: Organisational Benefits 1.Increased productivity and efficiency 2.Less need for close staff supervision, checking and control 3.More effective work teams 4.Skilled, flexible, responsive and able workforce to meet work requirements 5.Targeted training to maximize value from training investment 6.Improved talent management and succession planning 7.Safer and healthier workplace 8.Improved employee attraction, engagement and retention

15 Employee benefits Greater clarity of work role, purpose and accountabilities Shared understanding of work expectations with supervisor Good team cohesion as roles, relationships and resources are clearly defined Varied work and challenges, opportunity to develop work skills, flexibility and experience Targeted training to meet current and future job needs Better career pathways and developmental opportunities Safer and healthier workplace Support for work/life balance Increased job satisfaction and engagement

16 JOB REDESIGINING: Restructuring the elements including tasks, duties and responsibilities of a specific job in order to make it more encouraging and inspiring for the employees or workers is known as job redesigning. The process includes revising, analyzing, altering, reforming and reshuffling the job-related content and dimensions to increase the variety of assignments and functions to motivate employees and make them feel as an important asset of the organization. The main objective of conducting job redesigning is to place the right person at the right job and get the maximum output while increasing their level of satisfaction.

17 JOB REDESIGN PROCESS

18 Job Redesign Process Revising the Job Content: Job redesigning process involves recollecting and revising job-related information to determine the inconsistency between person and the job. Analyzing Job-related Information: Once the job analyst is through with recollecting and revising the job content, analyzing the discrepancies is the next step. It is done to determine the hindrances in performing job-related tasks and duties and investigate why an employee is not able to deliver the expected output. Altering the Job Elements: The next step is to amend the job elements. It may include cut back on extra responsibilities or addition of more functions and a higher degree of accountability. The basic aim of altering the job content is to design a job in such a manner that encourages employees to work harder and perform better. Reformation of Job Description and Specification: After altering the job elements, a job analyst needs to reform the job description and specification in order to make sure that the worker placed at a particular place is able to deliver what is expected of him. Reshuffling the Job-related Tasks and Duties: Next is to reallocation of new or altered tasks and functions to employees. It may be done by rotating, enriching, enlarging and engineering the job. The idea is to motivate the performers while increasing their satisfaction level.

19 ADVANTEGES OF JOB REDESIGN

20 1.Enhances the Quality of Work-Life: Job redesigning motivates the employees and enhances the quality of their work life. It increases their on-the-job productivity and encourages them to perform better. 2.Increases Organization’s and Employees’ Productivity: Altering their job functions and duties makes employees much comfortable and adds to their satisfaction level. The unambiguous job responsibilities and tasks motivate them to work harder and give their best output. Not only this, it also results in increased productivity of an organization. 3.Brings the Sense of Belongingness in Employees: Redesigning job and allowing employees to do what they are good at creates a sense of belongingness in them towards the organization. It is an effective strategy to retain the talent in the organization and encouraging them to carry out their responsibilities in a better fashion. 4.Creates a Right Person-Job Fit: Job Redesigning plays an important role in creating a right person-job fit while harnessing the full potential of employees. It helps organization as well as employees in achieving their targets or goals. 5.Therefore, the purpose of job redesigning is to identify the task significance and skill variety available in the organization and reallocating the job-related tasks and responsibilities according to the specific skills possessed by an employee.

21 HUMAN RESOURCE INFORMATION SYSTEM. A Human Resources Management System (HRMS) or Human Resources Information System (HRIS), refers to the systems and processes at the intersection between human resource management(HRM) and information technology.human resource managementinformation technology It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field, whereas the programming of data processing systems evolved into standardized routines and packages of enterprise resource planning (ERP) software.enterprise resource planning The function of human resources (HR) departments is generally administrative and common to all organizations. Organizations may have formalized selection, evaluation, and payroll processes. Efficient and effective management of "human capital" progressed to an increasingly imperative and complex process.human capital

22 The HR function consists of tracking existing employee data which traditionally includes personal histories, skills, capabilities, accomplishments and salary. To reduce the manual workload of these administrative activities, organizations began to electronically automate many of these processes by introducing specialized human resource management systems. The advent of client–server, application service provider, and software as a service (SaaS) or human resource management systems enabled increasingly higher administrative control of such systems.client–serverapplication service providersoftware as a service Currently human resource management systems encompass : 1.PayrollPayroll 2.Time and attendanceTime and attendance 3.Performance appraisalPerformance appraisal 4.Benefits administration 5.HR management information system 6.Recruiting/Learning managementLearning management 7.Performance record 8.Employee self-serviceEmployee self-service 9.Scheduling 10.Absence management 11.Analytics

23 1 The payroll module automates the pay process by gathering data on employee time and attendance, calculating various deductions and taxes, and generating periodic pay cheques and employee tax reports. Data is generally fed from the human resources and time keeping modules to calculate automatic deposit and manual cheque writing capabilities. This module can encompass all employee-related transactions as well as integrate with existing financial management systems. 2The time and attendance module gathers standardized time and work related efforts. The most advanced modules provide broad flexibility in data collection methods, labor distribution capabilities and data analysis features. Cost analysis and efficiency metrics are the primary functions. 3The benefits administration module provides a system for organizations to administer and track employee participation in benefits programs. These typically encompass insurance, compensation, profit sharing and retirement. 4The HR management module is a component covering many other HR aspects from application to retirement. The system records basic demographic and address data, selection, training and development, capabilities and skills management, compensation planning records and other related activities.

24 5Online recruiting has become one of the primary methods employed by HR departments to garner potential candidates for available positions within an organization. recruiting through online recruiting sites or publications that market to both recruiters and applicants. The significant cost incurred in maintaining an organized recruitment effort, cross- posting within and across general or industry-specific job boards and maintaining a competitive exposure of availabilities has given rise to the development of a dedicated applicant tracking system, or 'ATS', module.applicant tracking system 6The training module provides a system for organizations to administer and track employee training and development efforts. The system, normally called a "learning management system" (LMS) if a stand alone product, allows HR to track education, qualifications and skills of the employees, as well as outlining what training courses, books, CDs, web based learning or materials are available to develop which skills. Courses can then be offered in date specific sessions, with delegates and training resources being mapped and managed within the same system..

25 7.The employee self-service module allows employees to query HR related data and perform some HR transactions over the system. Employees may query their attendance record from the system without asking the information from HR personnel. The module also lets supervisors approve O.T. requests from their subordinates through the system without overloading the task on HR department. 8.The Analytics module enables organizations to extend the value of an HRMS implementation by extracting HR related data for use with other business intelligence platforms. For example, organizations combine HR metrics with other business data to identify trends and anomalies in headcount in order to better predict the impact of employee turnover on future output.

26 Human Resource Policies Human resource policies are the formal rules and guidelines that businesses put in place to hire, train, assess, and reward the members of their workforce. These policies, when organized and disseminated in an easily used form, can serve to preempt many misunderstandings between employees and employers about their rights and obligations in the business place. All business analysts and employment lawyers will advise a new business owner to get a policy down on paper,. Having policies written is important so that it is clear to all what the policies are and that they are applied consistently and fairly across the organization. Moreover, when issues concerning employee rights and company policies come before federal and state courts, it is standard practice to assume that the company's human resource policies, whether written or verbal, are a part of an employment contract between the employee and the company. Without clearly written policies, the company is at a disadvantage.

27 SUBJECTS COVERED BY COMPANY HR POLICIES Business owners should make sure that they address the following basic human resource issues when putting together their personnel policies: 1.Equal Employment Opportunity policies. 2.Employee classifications. 3.Workdays, paydays, and pay advances. 4.Overtime compensation. 5.Meal periods and break periods. 6.Payroll deductions. 7.Vacation policies. 8.Holidays. 9.Sick days and personal leave (for bereavement- the state of being sad because a family member or friend has recently died, jury duty, voting, etc.) 10.Performance evaluations and salary increases. 11.Performance improvement. 12.Termination policies.

28 A broad spectrum of issues can be addressed in human resource policies, depending on the nature of the business in question. Examples of such issues include promotion policies; 1.Medical/dental benefits provided to employees; 2.Use of company equipment/resources (access to internet, personal use of fax machines and telephones, etc.); 3.Sexual harassment; smoking; 4.Flextime and telecommuting policies; 5.Pension, profit-sharing, and retirement plans; 6.Reimbursement of employee expenses (for traveling expenses and other expenses associated with conducting company business); 7.Child or elder care; 8.Educational assistance; 9.Grievance procedures; 10.Employee privacy; 11.Dress codes; 12.Parking; 13.Mail and shipping; and 14.Sponsorship of recreational activities.

29 . Functions of Human Resource Department A typical Human Resource Department is carries out the following functions: 1.Manpower Planning It involves the planning for the future and finding out how many employees will be needed in the future by the business and what types of skills should they possess. It depends on the following factors The number of people leaving the job The projected growth in sales of the business Technological changes Productivity level of the workers 2. Job analysis and Job description HR Department is also involved in designing the Job analysis and Job description for the prospective vacancies. A job analysis is the process used to collect information about the duties, responsibilities, necessary skills, outcomes, and work environment of a particular job. job descriptions are written statements that describe the: i) Duties, ii) Responsibilities, iii) Most important contributions and outcomes needed from a position, iv) Required qualifications of candidates, and v) Reporting relationship and co-workers of a particular job.

30 3. Determining wages and salaries HR Department is also involved in conducting market surveys and determining the wages and salaries for different position in an organization. These decision may be taken in consultation with top management and the Finance department. 4. Recruitment and Selection One of the most important jobs HR department is to recruit the best people for the organization. This is of crucial importance as the success of any organization depend on the quality of its workforce. 5. Performance Apprasial Once the employees are recruited, the HR Department has to review their performance on a regular basis through proper performance appraisals. Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. 6. Training and Development HR department is constantly keeping a watch over the employees of the organisation. In order to improve the efficiency level of the employees they have go undergo regular trainings and development programmes. All trainings and development needs are carried out by this department. Training might include on the job or off the job training. 7. Employee welfare and motivation Happy employees mean a healthy organization. HR Department conducts various employee welfare activities which might include employees get together, annual staff parties etc. HR department also reviews organizational policies and its impact on the motivation of the employees.

31 8. Addressing employees grievances HR department is the link between the workers and the management. Employees grievances related work environment are usually entertained and resolved by the HR Department. 9. Labour management relations For the smooth operation of any organization, it is crucial to have good labour management relations. HR department has to ensure that these relations are cordial. In case of any labour-management conflict the HR Department will play a vital role in bringing both management parties to the negotiation table and resolving the issue. 10. Implementing organizational policies HR Department has to coordinate with line manager and see that the organizational policies are being implemented in a proper manner. Disciplinary action can be initiated against employees who are not following organizational rules and regulations. All these actions are conceived and implemented by the HR department. 11. Dismissal and redundancy HR Department has to take firm actions against employees who are not following the organizational code of conduct, rules and regulations. This can result in the dismissal of the employee. Sometimes, an organization may no more require the services of an employee. The employee may be made redundant. HR Department has to see that organizational and government regulations are being followed in this process.

32 ASSESSMENT OF HR REQUIREMENTS HRM is the integrated use of systems, policies, and practices that will provide the range of functions needed to plan, produce, deploy, manage, train, support, and sustain the workforce. HRM focuses on people: how they fit and are utilized within a health system, and how they can be most effective. In the health sector, strong HRM is central to the provision of an effective, enabled, and functional health system. Moreover, targeted interventions to strengthen HRM will yield significant impact.

33 This assessment approach is intended to help users identify and address HRM systems issues. It promotes the collection and analysis of information on defined key HRM challenges, and informs the development of effective policy, strategy, systems, and process interventions to respond to these challenges. The approach also helps generate the evidence base needed to determine the most appropriate solutions and interventions to address HRM challenges in a systemic, integrated, and holistic manner

34 Methodologies and data sources Data collection methodologies can include the following: Key informant interviews. Focus group discussions. Engagement with a representative range of stakeholders from among the following: Ministry of concerned departments (e.g., HR, planning, monitoring and evaluation, research, clinical programs). Other government agencies with HR roles and mandates (e.g., ministries of public service, education, finance, and local government). Organizations and agencies from outside the public sector (e.g., HR managers in FBOs, NGOs, private-sector associations, regulatory and professional bodies) Training institutions. Development partners.

35 key steps in a typical assessment approach. 1.Agree on aim/key question: Establish the aim of the assessment from the beginning by framing the overarching HRM issue or key question that you are seeking to address.In almost all cases, the HRM Assessment Approach is used to help address a specific issues Examples of typical HRM assessment requests include the following: To evaluate an ongoing HRM interventions. To respond to an underlying workforce challenge. To identify and assess the root causes of specific workforce problems: for example, recruitment process delays, or the gender-relevant imbalances in employment conditions. To conduct a gap analysis of health workforce management systems and practices To improve coordination, collaboration, and implementation of workforce management interventions.

36 2. Planning: Outline the planning requirements such as scope of work, activity schedule, deliverables, and identification of counterparts and/or an assessment task team (if required), assignment of key roles. During this phase, it is helpful to identify which HRM function areas are of greatest importance, given the aim of the assessment. This will help establish which areas and components (assessment templates) of the assessment approach should be applied and which stakeholders should be involved.

37 3. Initial data collection: Begin the assessment by identifying and reviewing existing documentation, evaluations, surveys, data sources, and other available entry points. Collect available assessment reports and data and carry out a desk review of existing workforce data, policies, plans, reports, and assessments to see if the issue or evaluation questions can be answered. 4. Refine key data gaps and areas for further investigation: Identify additional key data and information gaps and sources. Define the requirements and methodology for the additional data collection and analysis phases, and align these with anticipated deliverables and assessment areas. 5. Analysis: Collect and analyze data to further evaluate progress or determine root causes of the main problems identified. Aim to define the nature and scope of the technical interventions required to address each problem.

38 6.Options and actions: Prioritize and develop a set of three to five recommended actions or interventions for future implementation—based on the analysis findings and stakeholder dialogue—including milestones, indicators, targets, and measures for monitoring impact. As the user is developing these options and actions, it may be helpful to revisit the assessment template “areas of investigation” and “indicators and milestones” as there are suggested intervention areas included in their descriptions that may potentially be adapted in line with the emerging assessment findings and prevailing context


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