1. HUMAN RESOURSE MANAGEMENT & STRATEGIC HRM
Meaning & definition
Nature & scope
Significance
Functions & objectives
Evolution of HRM
Contemporary issues
Role of personnel manager
HRM & strategic HRM

2. HUMAN RESOURSE MANAGEMENT
Managing HR important because
HR are heterogenous
Modern employees more educated
Himself determines what he contributes
Drucker---Of all the resources available i.e.mgmt. of materials,methods, money machine most imp.is M for MEN

3. HR is the total knowledge, skills, creative abilities, talents & aptitudes of an org’s workforce,as well as value, attitudes &beliefs of the individuals involved. Flippo “Personnel management is the planning, organizing,directing,controlling of the procurement, dev.,compensation.integration ,maintenance &separation of human resources to the end that individual,organizational & societal objectives are achieved

4. HRM is concerned with most effective use of people to achieve org
HRM is concerned with most effective use of people to achieve org.al & individual goals.
Acc. To National Institute Of personnel mgmt. in India “it is that part of mgmt which is concerned with people at work & their relationships in the org. It seeks to bring together men & women who make up an enterprise, enabling each to make its own best contribution to its success both as individual & as a member of working group.

5. Human resource: Knowledge, skill sets, expertise of employees, the
Human resource: Knowledge, skill sets, expertise of employees, the adaptability, commitment and loyalty of employees.
Skills: The individual abilities of human beings to perform a piece of work.
Resource: The stock of assets and skills that belong to a firm at a point of time.
Capability: The ability of a bundle of resources to perform an activity; a way of combining assets, people and processes to transform inputs into outputs.
Core competencies: Activities that the firm performs especially well when compared to its competitors and through which the firm adds value to its goods and services over a long period of time.
Competitive advantage: It comes from a firm's ability to perform activities more distinctively and more effectively than rivals. To attain competitive advantage, firms need to add value to customers and offer a product or service that cannot be easily imitated or copied by rivals (Uniqueness).
Value: Sum total of benefits received and costs paid by the customer in a given situation.

6. Why Study Human Resources Management
Human Resources Management (HRM)
The process of managing human resources (human capital and intellectual assets) to achieve an organization’s objectives.
“Why Study HRM?”
Staffing the organization, designing jobs and teams, developing skillful employees, identifying approaches for improving their performance, and rewarding employee successes—all typically labeled HRM issues—are as relevant to line managers as they are to managers in the HR department.

7. Competitive Advantage through People
Core Competencies
Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers.
Sustained competitive advantage through people is achieved if these human resources:
Have value.
Are rare and unavailable to competitors.
Are difficult to imitate.
Are organized for synergy.

8. Overall Framework for Human Resource Management

9. Features
Individually oriented---to develop potential,encourage &motivate
Action oriented----problems of employees solved, not just record keeping.
People oriented---both as individuals & groups.
Future oriented
Pervasive force----+nt in all the org.& at all levels
Development oriented

10. Integrating mechanism
Comprehensive function—concerned with many org.al decisions which has an impact on workforce\potential workforce
Auxiliary service----to assist & advice the line mgrs.
Inter-disciplinary function---inputs from psychology,sociology,anthropology, economics
Continuous function

11. Objectives of HRM
HRM aims at achieving organisational goals, meet the expectations of employees; develop the knowledge, skills and abilities of employees; improve the quality of working life and manage human resources in an ethical and socially responsible manner.
Importance of HRM
From an organisational standpoint, good HR practices help in attracting and retaining talent, train people for challenging roles, develop their skills and competencies, increase productivity and profits and enhance standard of living

12. Importance of HRM attract and retain talent
train people for challenging roles
develop skills and competencies
promote team spirit
develop loyalty and commitment
increase productivity and profits
improve job satisfaction
enhance standard of living
generate employment opportunities
Good HR Practices help

13. The industrial revolution Scientific management Trade unionism
EVOLUTION OF HRM
The field of HRM evolved both in India and elsewhere over a number of years to present level of sophistication and use of proactive methods
The industrial revolution
Scientific management
Trade unionism
Human relations movement
Human resources approach

14. Historical Context INDUSTRIAL REVOLUTION
New machine brought in, new technology.
Worker to a small portion of total job.
Specialization increase speed and efficiency.
Left workers with dull, boring and monotonous jobs.
Employees more keen to meet production target.
Government did little to protect interest of workers.

15. SCIENTIFIC MGMT.-----F.W.TAYLOR
systematic analysis & breakdown of work into its smallest mechanical elements & rearranging them into most efficient combination.
There should be match between task & person.
Employees should be trained.
Differential piece rate system for incentives

16. TRADE UNION
HUMAN RELATIONS MOVEMENT
Hawthorne experiments demonstrated that productivity was affected not only by the way the jobs were designed & employees rewarded economically but by certain social & psychological factors also.
led to supervisory trg. Prgms.
support & concern for workers
prgms. to strengthen labor –mgmt. relations

17. HUMAN RESOURCE APPROACH
Each individual is unique & complex
People do not inherently dislike work if they have established objectives they want to achieve.
People can exercise great deal of self direction ,self control & creativity.
Mgr’s job is to use untapped human potential.
Mgr should create a healthy environment.
Should encourage.

18. Functions of HRM P/HRM Operative Functions Managerial functions:
Procurement
Job Analysis
HR planning
Recruitment
Selection
Placement
Induction
Internal mobility
Development:
Training
Executive development
Career planning
Succession
planning
Human resources development strategies
Motivation and Compensation:
Job design
Work scheduling
Motivation
Job evaluation
Performance and potential appraisal
Compensation administration
Incentives benefits and services
Maintenance:
Health
Safety
Welfare
Social security
Emerging Issues:
Personnel records
Personnel audit
Personnel research
HR accounting
HRIS
Job stress
Mentoring
International HRM
– Planning
– Organising
– Directing
– Controlling
Integration:
Grievances
Discipline
Teams and teamwork
Collective bargaining
Participation
Empowerment
Trade unions
Employers’ associations
Industrial relations

19. Evolution of the Personnel Function
Concept
What is it all about?
The Commodity concept
Labour was regarded as a commodity to be bought and sold. Wages were based on demand and supply. Government did very little to protect workers.
The Factor of Production concept
Labour is like any other factor of production, viz, money, materials, land, etc. Workers are like machine tools.
Welfare measures like safety, first aid, lunch room, rest room will have a positive impact on workers’ productivity
The Goodwill concept
The Paternalistic concept/ Paternalism
Management must assume a fatherly and protective attitude towards employees. Paternalism does not mean merely providing benefits but it means satisfying various needs of the employees as parents meet the requirements of the children.
Cont…

20. Evolution of the Personnel Function
The Humanitarian concept
To improve productivity, physical, social and psychological needs of workers must be met. As Mayo and others stated, money is less a factor in determining output, than group standards, group incentives and security. The organisation is a social system that has both economic and social dimensions.
The Human Resource concept
Employees are the most valuable assets of an organisation. There should be a conscious effort to realise organisational goals by satisfying needs and aspirations of employees.
The Emerging concept
Employees should be accepted as partners in the progress of a company. They should have a feeling that the organisation is their own. To this end, managers must offer better quality of working life and offer opportunities to people to exploit their potential fully. The focus should be on Human Resource Development.

21. Personnel mgmt. Vs HRM HRM Aim to go beyond contract Rules
Careful delineation of written contracts
HRM
Aim to go beyond contract
Rules
Importance of devising clear rules
Can outlook with rules
Guide to mgmt. Action
Procedures
Business need
Behavior referent
Norms,customs,&practice
Values \mission
Managerial tasks vis a vis labor
Monitoring
Nurturing
Key relation
Labor mgmt.
Customer

22. Personnel/IR specialists General/business /line mgrs. Communication
Speed of decision
Slow
Fast
Mgmt. Role
Transactional
Transformational
Key managers
Personnel/IR specialists
General/business /line mgrs.
Communication
Indirect ,Slow & downward
Direct,fast&both upward & downward
Selection
Separate,marginal task
Integrated,key task
Pay
Job evaluation (fixed grades)
Performance related
Job categories& grades
Many
Few
Job design
Division of labour
Team work

23. Conflict handling
Reach Temporary truces
Manage climate and culture
Trg. & Dev.
Controlled access to courses
Learning companies
Philosophy
Employees are made for rules and regulations
Rules and regulations are made for employees
Nature
Confined to procurement & trg. Of personnel
Integrated with the Corporate mgmt.

24. Approach
Work oriented
People oriented
Level of trust
Low
High
Orientation
Maintenance
Development
Structure
Independent function with independent sub functions
Consist of interdependent parts
Philosophy
Reactive
Proactive
Motivators
On monetary rewards
On higher order needs
Aim
Tries to improve the efficiency of people and admin.
Tries to develop the organization as a whole and its culture

25. Shifts in HR management in India
Emerging HR practice
Strategic role
Proactive
Key part of organisational mission
Service focus
Process-based organisation
Cross-functional eams, teamwork most important
People as key investments/assets
Traditional HR practice
Administrative role
Reactive
Separate, isolated from company mission
Production focus
Functional organisation
Individuals encouraged, singled out for praise, rewards
People as expenses

26. Strategic Human Resource Management
1-10
Strategic Human Resource Management
Competitive advantage through people?
Competitive advantage allows a firm to gain an edge over its rivals when competing. It comes from a firm’s unique ability to perform activities more distinctively and more effectively than rivals. HR can be a source of competitive advantage when the talents of people working in the firm are valuable, rare; difficult to imitate and well organised to deliver efficient and effective results.

27. Strategic Human Resource Management
1-12
Strategic Human Resource Management
Realising the growing importance of HR, a new line of thinking emerged elevating the status of HR to that of a strategic partner both in the formulation of a firm’s strategic as well as in the implementation of business activities.
SHRM, simply stated, is the linkage of HRM with strategic goals and objectives with a view to improve business performance and develop organisational cultures that foster innovation and flexibility.
Strategic HR differs radically from traditional HR in a number of ways:

28. Traditional HR vs. Strategic HR
1-13
Traditional HR vs. Strategic HR
Point of distinction
Focus
Role of HR
Initiatives
Time horizon
Control
Job design
Key investments
Accountability
Responsibility for HR
Traditional HR
Employee Relations
Transactional change follower and respondent
Slow, reactive, fragmented
Short-term
Bureaucratic-roles, policies, procedures
Tight division of labour; independence, specialisation
Capital, products
Cost centre
Staff specialists
Strategic HR
Partnerships with internal and external customers
Transformational change leader and initiator
Fast, proactive and integrated
Short, medium and long (as required)
Organic-flexible, whatever is necessary to succeed
Broad, flexible, cross-training teams
People, knowledge
Investment centre
Line managers

29. Competitive Challenges and Human Resources Management
The most pressing competitive issues facing firms:
Going global
Embracing new technology
Managing change
Managing talent, or human capital
Responding to the market
Containing costs

30. Challenge 1: Going Global
Globalization
The trend toward opening up foreign markets to international trade and investment
Impact of globalization
“Anything, anywhere, anytime” markets
Partnerships with foreign firms
Lower trade and tariff barriers
WTO and GATT

31. Challenge 1: Going Global
Corporate Social Responsibility
The responsibility of the firm to act in the best interests of the people and communities affected by its activities
Impact on HRM
Different geographies, cultures, laws, and business practices
Issues:
Identifying capable managers and workers
Developing foreign culture and work practice training programs.
Adjusting compensation plans for overseas work

32. Challenge 2: Embracing New Technology
Knowledge Workers
Workers whose responsibilities extend beyond the physical execution of work to include planning, decision making, and problem solving.
Knowledge-Based Training
Online instruction
“Just-in-time” learning via the Internet on company intranets

33. Influence of Technology in HRM
Human Resources Information System (HRIS)
A computerized system that provides current and accurate data for the purposes of control and decision making.
Benefits:
Store and retrieve of large quantities of data.
Combine and reconfigure data to create new information.
Institutionalization of organizational knowledge.
Easier communications.
Lower administrative costs, increased productivity and response times.

34. HRM IT Investment Factors
Fit of the application to the firm’s employee base.
Ability to upgrade Increased efficiency and time savings
Compatibility with current systems
Availability of technical support
Time required to implement and train staff members to use HRIS
Initial and annual maintenance costs
Training time required for HR and payroll

35. Challenge 3: Managing Change
Types of Change
Reactive change
Change that occurs after external forces have already affected performance
Proactive change
Change initiated to take advantage of targeted opportunities
Managing Change through HR
Formal change management programs help to keep employees focused on the success of the business.

36. Challenge 3: Managing Change
Why Change Efforts Fail:
Not establishing a sense of urgency.
Not creating a powerful coalition to guide the effort.
Lacking leaders who have a vision.
Lacking leaders who communicate the vision.
Not removing obstacles to the new vision.
Not systematically planning for and creating short-term “wins.”
Declaring victory too soon.
Not anchoring changes in the corporate culture.

37. Challenge 4: Managing Talent, or Human Capital
The knowledge, skills, and capabilities of individuals that have economic value to an organization.
Valuable because capital:
is based on company-specific skills.
is gained through long-term experience.
can be expanded through development.

38. Challenge 5: Responding to the Market
Total Quality Management (TQM)
A set of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement.
Six Sigma

39. Challenge 5: Responding to the Market
Reengineering and HRM
Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.
Requires that managers create an environment for change.
Depends on effective leadership and communication processes.
Requires that administrative systems be reviewed and modified.

40. Challenge 6: Containing Costs
Downsizing
The planned elimination of jobs (“head count”).
Layoffs
Outsourcing
Contracting outside the organization to have work done that formerly was done by internal employees.
Offshoring
The business practice of sending jobs to other countries.

41. Challenge 6: Containing Costs (cont’d)
Employee Leasing
Employees are hired by a leasing company (which handles all HR-related activities) and contractis with a company to lease the employees.

42. Challenge 6: Containing Costs
Hidden Costs of Layoff
rehiring costs
Pension and benefit payoffs
Potential lawsuits from aggrieved workers
Loss of institutional memory and trust in management
Lack of staffers when the economy rebounds

43. Challenge 6: Containing Costs
Benefits of a No-Layoff Policy
A fiercely loyal,more productive workforce
Higher customer satisfaction
Readiness to snap back with the economy
A recruiting edge
Workers who aren’t afraid to innovate, knowing their jobs are safe.

44. Productivity Enhancements

46. Model of Diversity Management Strategy

48. Attitudes towards Work Balancing Work and Family
Cultural Changes
Employee Rights
Concern for Privacy
Attitudes towards Work
Balancing Work and Family
Cultural Changes

49. Qualities of Human Resources Managers
Responsibilities
Advice and counsel
Service
Policy formulation and implementation
Employee advocacy
Competencies
Business mastery
HR mastery
Change mastery
Personal credibility

50. Human Resource Competency Model